John is concerned that a catastrophic event could disrupt a steady paycheck. Since he is single with a single income in his household, what is the best way to address this concern in the IPS, while also meeting Johns retirement objective?

Group of answer choices

Invest his entire portfolio conservatively in low risk assets so that John can sleep well at night if a market disruption occurs.

Set aside an appropriate amount in an emergency fund and invest it in low risk, high liquidity assets such as money market securities.

Set aside an appropriate amount in an emergency fund and invest it in an aggressive manner that matches Johns risk tolerance.

Invest his entire portfolio aggressively and assure John that markets always go back up.