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Chapter 17: Q 31 (page 426)

What are some reasons why the investment

strategy of a 30-year-old might differ from the investment strategy of a 65-year-old?

Short Answer

Expert verified

Age plays as a factor in investing strategy of a person.

Step by step solution

01

Reason [old aged person]

aged person of 65 years old may be on verge of retiring or may have retired. their main income source may be pension or some type of fixed income. So they will go for something mid or short term period of investment.

02

Reason [ middle aged person]

Whereas a mid-aged person of 30 years is still earing and has future possibilities to earn more and get promoted. He will focus more on long term investment strategy. As this will provide necessary diversification and continuous flow of dividends.

03

Conclusion

Hence investment strategy differs from age to age. old aged person go for short term investment strategy as compared to middle aged person who will prefer invest in long term assets.

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