Series 7 - General Securities Representative Exam

Preview Mode

Jennifer is a retiree that opened a new account with you and transferred assets from another broker. She is 74 years old and her monthly living expenses are exceeding her social security income. Her current holdings include Mutual Funds that have dividends and capital gains reinvested. Which of the following may be a suitable recommendation?

To increase the holdings of smaller cap stocks
To have the dividends and capital gains paid in cash rather than reinvested
To liquidate the entire portfolio to start fresh with muni bonds
To sell out of her Class B share bond mutual funds and buy ETFs


The divs and cap gains from her mutual funds may help her with some income. It is the best answer of the selections with the given information