During a client discovery meeting, Mr. and Mrs. Lee, both aged 62, express their primary goal is to maintain their current lifestyle in retirement, which is 3 years away. They have accumulated $1.5 million in investable assets and anticipate needing $80,000 annually in after-tax income from their portfolio. What is the most appropriate risk profile for their investment strategy?

Question: During a client discovery meeting, Mr. and Mrs. Lee, both aged 62, express their primary goal is to maintain their current lifestyle in retirement, which is 3 years away. They have accumulated $1.5 million in investable assets and anticipate needing $80,000 annually in after-tax income from their portfolio. What is the most appropriate risk profile for their investment strategy?

Answer options: ✅ Moderate Conservative

• Conservative
• Moderate Growth
• Aggressive Growth

Correct answer: Moderate Conservative

Explanation: Given their short time horizon to retirement (3 years) and the immediate need to draw income, preserving capital and generating stable income are paramount. A Moderate Conservative profile balances modest growth potential with a strong emphasis on capital preservation, which is critical as they approach income distribution.