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Question 1

A client has decided to fund equity-based investments to provide a capital sum in the event that she
needs long-term care in later life. A potential drawback of this approach is that:

A high levels of taxation will apply.

B she will always be subject to liquidity risk.

C she will always receive reduced access to non-means tested benefits.

D there is a risk of capital loss

Answer 1

D there is a risk of capital loss