Series 7 - General Securities Representative Exam
A 23 year old client just set up his IRA. Which of the following allocations might you suggest?
90% stocks 10% weekly optionsA
18% gold / 32% stocks / 20 % money market funds / 30% bondsB
50% bonds / 50% stocksC
90% stocks 10% bondsD
At this age with such a long time horizon, 90/10 stocks to bonds is the best choice. Trading in weekly options is high risk and requires experience. There is no need for 50% bonds or only 32% stocks