An investor is looking at different retirement investment choices and he is willing to accept one with upside potential even if that means sacrificing certainty.Which of the following will he most likely select?

Question

Quizplus · Accepted Answer

The defined contribution plan is the most suitable choice for someone who is willing to accept upside potential even if certainty is sacrificed. Unlike fixed annuities and bonds, defined contribution plans are subject to market volatility and hence offer potential for higher returns. Defined benefit plans, on the other hand, offer a fixed, guaranteed benefit and may not be suitable for someone looking for upside potential.

An Investor Is Looking at Different Retirement Investment Choices and He