Multiple choice

Retired investors should

  1. not draw down on their capital

  2. not invest in securities, which bear risk of capital erosion

  3. continue holding some portion of their holding in equity growth funds

  4. never invest in equity
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Retired investors primarily need capital preservation and steady income, making securities with capital erosion risk unsuitable. Option A is impractical since retirees must draw down for living expenses. Option C is partially true but overly specific - some equity exposure may be appropriate depending on circumstances. Option D is too extreme - complete equity avoidance isn't always necessary. Risk-averse investing is the prudent approach.

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