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Risk Tolerance Levels and Types Questions Discussion

 

1.Discuss the three risk tolerance level (risk adverse, risk seeking, risk neutral) and describe how a client’s risk tolerance could affect their investment choices.

2.Describe the differences between and Grantor Remainder Annuity Trust (GRAT), Charitable Remainder Annuity trust (CRAT) and Charitable Lead Unit Trust (CLUT). Which type of trust would your recommend to a client who would like to live off of the trust assets and leave the rest of the money to their child or other family member after a five years or when they pass away?