Ms. Rodriguez, 68, is retired and relies on her $1,200,000 investment portfolio for income. She withdraws $5,000 monthly to supplement her CPP and OAS benefits. She has no other significant income sources and expects this withdrawal rate to continue for the foreseeable future. Which liquidity constraint is most relevant for Ms. Rodriguez?

Question: Ms. Rodriguez, 68, is retired and relies on her $1,200,000 investment portfolio for income. She withdraws $5,000 monthly to supplement her CPP and OAS benefits. She has no other significant income sources and expects this withdrawal rate to continue for the foreseeable future. Which liquidity constraint is most relevant for Ms. Rodriguez?

Answer options:

• Unexpected emergency expenses
• Long-term capital preservation ✅ Regular, predictable income needs
• Future growth requirements for legacy planning

Correct answer: Regular, predictable income needs

Explanation: Ms. Rodriguez's primary concern is generating a consistent, predictable income stream from her portfolio to cover her ongoing living expenses, making regular income needs the most prominent liquidity constraint.