Investment Objective: Growth and Income for a 52-Year-Old Working Professional
A 52-year-old marketing executive earning $160,000 plans to retire in 15 years. The executive wants moderate capital growth to outpace inflation, combined with reliable dividend income that can be automatically reinvested. Which portfolio asset allocation is most appropriate?
A balanced 60/40 allocation (60% dividend large-cap equities for capital growth and rising dividends, 35% bonds for steady income and stability, 5% cash) fits a growth & income objective.
Complete Analysis & Legal Rationale
A Growth and Income objective seeks both capital appreciation to beat inflation and current income from dividends and interest. For a 52-year-old with a 15-year time horizon until retirement, a classic balanced asset allocation of 60% diversified large-cap dividend-growing equities and 35% intermediate investment-grade bonds provides an ideal combination of equity capital growth, steady dividend flow, and downside volatility damping.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
A balanced 60/40 allocation (60% dividend large-cap equities for capital growth and rising dividends, 35% bonds for steady income and stability, 5% cash) fits a growth & income objective.
Fails to adhere to suitability standards regarding B.
Fails to adhere to suitability standards regarding C.
Fails to adhere to suitability standards regarding D.
Official Standard: A Growth and Income objective seeks both capital appreciation to beat inflation and current income from dividends and interest. For a 52-year-old with