Certified Financial Planner (CFP) Practice Exam · Question
Scenario 70: A client is concerned about outliving their savings in retirement. Which financial product is specifically designed to address this longevity risk?
An annuity provides a guaranteed stream of income for a specified period or for life, effectively mitigating the risk of outliving one's savings. The correct an
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Question: Scenario 70: A client is concerned about outliving their savings in retirement. Which financial product is specifically designed to address this longevity risk?
Answer options:
- Term deposit ✅ Annuity
- Mutual fund
- Exchange-Traded Fund (ETF)
Correct answer: Annuity
Explanation: An annuity provides a guaranteed stream of income for a specified period or for life, effectively mitigating the risk of outliving one's savings. The correct answer is "Annuity". This capacity-fill scenario 70 reinforces the same competency for the cfp bank and follows the certified explanation standard.
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