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

A defined contribution plan, such as a 401(k), allows for investment in various mutual funds or stocks with the potential for higher returns but also comes with the risk of market fluctuations. This aligns with the investor's preference for upside potential over certainty. The other options listed, such as a fixed annuity, defined benefit plan, or bonds, typically offer more certainty but with lower potential returns.

An Investor Is Looking at Different Retirement Investment Choices, and He