Identify the correct statements concerning withdrawal plans. 1. High constant dollar withdrawals may encroach upon the principal. 2. Ratio withdrawal plans are suitable for using the proceeds to pay a mortgage. 3. Life withdrawal plans do not always result in constant dollar payouts. 4. Under fixed period withdrawal plan, the yearly amount withdrawn remains unchanged.

a. 1 and 4 b 2 and 3 c. 1 and 3 d. 2 and 4

Select the correct statements about balanced funds. 1. Expected retums on balanced funds should be higher than the return on money market funds. 2. The balance between defensive and aggressive holdings is rarely 50-50. 3. The main objective is to provide a balanced mixture of safety and capital appreciation. 4. Balanced funds are equally balanced between bonds, preferred and equity.

a. 1 and 2 b. 1 and 3 c. 2 and 4 d. 3 and 4