Question

1. luis is 65 years old and has $200,000 in his savings account. he wants to invest the $200,000 to leave as an inheritance for his grandson. luis has low risk tolerance and wants the investment to grow rapidly. he wants to ensure that, after his death, the entire amount from his investment is paid to his grandson without any deductions. which of the following is the most suitable investment recommendation for luis?

a. community - based mutual funds investment

b. equity - based segregated fund with 100% guarantees

c. exchange - traded fund (etf) in an interest form

d. guaranteed investment certificates

Explanation:

Luis is 65, has low risk tolerance, and wants the investment to grow rapidly, with the entire amount (after death) for his heirs. Let's analyze each option:

• Option a: Community - based mutual funds (like bond - based or money - market - like community funds) might not grow rapidly.
• Option b: Equity - based mutual funds are high - risk and can grow rapidly. Since Luis has low risk tolerance? Wait, no, the problem says "Luis has low risk tolerance and wants the investment to grow rapidly. He wants to ensure that, after his death, the entire amount from his investment is paid to his heirs without any deductions." Wait, maybe I misread. Wait, the options: Let's re - evaluate. Wait, "Guaranteed Investment Certificates" (option d? Wait, the options: a. Community - based mutual funds investment; b. Equity - based segregated fund with 100% guarantees; c. Exchange - traded fund (ETF) in an interest form; d. Guaranteed Investment Certificates. Wait, Luis is 65, low risk, wants growth, and wants the amount to go to heirs without deductions. A segregated fund (option b) with 100% guarantees can provide growth potential (equity - based can grow) and also has a death benefit guarantee (so after death, the amount goes to heirs without deductions, and equity - based can grow rapidly. Community - based mutual funds may not grow as fast. ETF in interest form is low - growth. Guaranteed Investment Certificates (GICs) have low growth. So the best is option b: Equity - based segregated fund with 100% guarantees. Wait, but the original options: Wait, the first option is "Community - based mutual funds investment", second "Equity - based segregated fund with 100% guarantees", third "Exchange - traded fund (ETF) in an interest form", fourth "Guaranteed Investment Certificates". So the correct answer is b. Equity - based segregated fund with 100% guarantees.

Answer:

b. Equity - based segregated fund with 100% guarantees