Mrs. Desjardin, 70, has a $1,000,000 RRIF and wishes to draw $50,000 annually. She is concerned about market volatility's impact on her income. The Investment Advisor recommends a portfolio with 40% equities and 60% fixed income. She previously worked as a CFO and is highly knowledgeable about financial markets. What is the most appropriate risk profile, considering her age, income needs, and financial expertise?

Question: Mrs. Desjardin, 70, has a $1,000,000 RRIF and wishes to draw $50,000 annually. She is concerned about market volatility's impact on her income. The Investment Advisor recommends a portfolio with 40% equities and 60% fixed income. She previously worked as a CFO and is highly knowledgeable about financial markets. What is the most appropriate risk profile, considering her age, income needs, and financial expertise?

Answer options:

• Conservative ✅ Moderate Conservative
• Moderate Growth
• Growth

Correct answer: Moderate Conservative

Explanation: Despite her financial knowledge, her age and immediate income needs suggest a focus on capital preservation. However, her knowledge and the 40% equity allocation indicate a willingness to accept some market fluctuation for inflation protection, placing her at Moderate Conservative rather than purely Conservative.