Series 7 Exam Question 204: Answer and Explanation

Question: 204

Martina Martin is new to investing but has determined that her primary objective is making sure that she is prepared for retirement. Which of the following is the MOST important factor for you to consider when helping her set up her investment portfolio?

• A. Age
• B. Net worth
• C. Education level
• D. Previous investment history

Correct Answer: A

Explanation:

A. Certainly, any information you can get about your client will help you set up a portfolio that fits the client's needs. However, because Martina's primary investment objective is making sure that she's prepared for retirement, you need to begin by looking at her age. Someone who is younger can take more risk than someone who is older.