Living expenses are covered from accumulated assets rather than from earned income in the __________ phase of the life cycle.
A)accumulation
B)consolidation
C)spending
D)gifting

Question

Quizplus · Accepted Answer

The spending phase of the life cycle is when accumulated assets are used to cover living expenses, as the individual is no longer earning income from employment. The accumulation phase is when the individual is working and saving money, while the consolidation phase is when they begin to shift their investments towards more stable and lower-risk options. Gifting occurs when assets are transferred to others as part of estate planning or charitable giving.

Living Expenses Are Covered from Accumulated Assets Rather Than from Earned