Multiple choice

For older investors who want to transfer their wealth

  1. no financial planning is required

  2. the right investment strategy depends upon who the beneficiaries are

  3. the right investment strategy depends upon the state of the stock market

  4. all the funds can be invested in aggressive equity funds
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Wealth transfer strategy must consider beneficiary needs - age, financial literacy, tax status, and timing of transfer all affect optimal investment choices. Market conditions influence tactical decisions but shouldn't drive strategy. No financial planning (A) is dangerous. Aggressive equity (D) may be inappropriate depending on beneficiaries. The beneficiaries' characteristics are the key determinant.

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