A new customer, age 45, has been terminated from his assembly-line job of the past 20 years at an automotive parts supplier. Dur
ing that time period, he has accumulated $124,000 in the company's 401(k) plan. He wishes to rollover the funds to an IRA account with your brokerage firm. This customer, who is an unsophisticated investor, has the entire 401(k) invested in a growth mutual fund and has no other investments. As the representative for this customer, you should be concerned about:________
communicating effectively with an unsophisticated customer in an understandable manner to assess financial goals and risk tolerance
Explanation:
The new customer who has accumulated $124,000 in his company's 401(k) plan wants to rollover his funds with a brokerage firm.
However he only invested in a growth mutual fund.
This is a scenario that could lead to total loss for the customer if the growth mutual fund fails. A better approach would have been to invest in more than one option.
The first action should be to communicate effectively with the unsophisticated customer in an understandable manner to assess financial goals and risk tolerance.
Based on his Prefered objectives an investment plan can be recommended for him
Blockbusting could be defined as when an individual or someone that's into real estate tries to convince a particular set of people(mostly white) living in a neighborhood to sell their property describing to them that those property would soon depreciate in value and this promotes fear in the heart of occupants of those property. Most times the agents do this for their own gain rather than stating the obvious and it's illegal to do. Agent Simpson is practicing blockbusting kind of descrimination.
An ethics framework that always considers the moral standards as well as problems that occur mostly in a corporation but also function as a guide for the behavior of people throughout the organization.
Meanwhile, corporation governments facilitate the collection of values and conventions governing as well as controlling the business of the company.
Your money will double in approximately 11 years and quadruple in approximately 22.
Use the Rule of 72 for doubling (72/interest rate= number of years to double) and the Rule of 144 to quadruple (144/interest rate= number of years to quadruple).
