Question

12 violet is 45 years old and is switching jobs. she has worked for bb industries for the last 10 years. bb industries offered a defined contribution pension plan (dcpp). her plan is vested and the plan administrator informs her that the value of her pension plan is $215,000. violet’s financial advisor suggests that she transfer the funds in her pension plan to a locked - in retirement account (lira). violet plans to retire at age 65. what types of investments should violet’s advisor recommend for her lira? a. investments with a short - term horizon v2t02ujpkznbrthjazw5hm1qut09 b. investments with a very short - term horizon c. investments with a medium - term horizon d. investments with a long - term horizon v2t02ujpkznbrthjazw5hm1qut09

Explanation:

Violet is 45 and plans to retire at 65, so her time until retirement (for LIRA) is 20 years, a long - term horizon. Short - term (a, b) or medium - term (c) don't fit. Long - term investments are suitable for long - term goals like retirement in 20 years.

Answer:

d. Investments with a long - term horizon