Question of the Week

Tina and Mary are sisters seeking to save enough money to contribute to their eight-year-old nephew's college education. They enlist the assistance of Jayne, their financial advisor, who will get them on track with their goal. Jayne is committed to devising a suitable strategy for Tina and Mary. Which of the following is NOT a factor in developing their profile?

a) Risk Tolerance
b) Wrap account fees
c) Tax situation
d) Target financial goal
e) Time horizon


The correct answer is b).

Wrap account programs are designed for those who trade often within their accounts and want to avoid paying commissions on every transaction. Instead, they pay a set fee, usually based on percentage of assets under management. All of the other choices are completely relevant to developing a profile for Mary and Tina's objective.