Question

Which of the following individual situations typically leads to increased income needs, reduced risk tolerance, and greater need for future income protection?a) Change of employmentb) Retirementc) Responsibility for others
d) Investmente) Accumulation of assets

Answer 1

Answer:

The correct answer is option C) Responsibility for others

Explanation:

Being responsible for the financial needs for others is one of the biggest factors that leads the individual towards increased income, reduced risk and increases future financial protection.

They have to pay for not only themselves, but others too, most commonly their family. Therefore, they think of investing in assets that have a high profit return and low risk of failure such as buying a property for future purposes or looking for a job that has more long term privileges.