A customer, age 55, has a diversified portfolio of blue chip equity investments that pay a reliable cash dividend. The customer would like to retire at age 65. The customer has an expensive lifestyle, and even though he makes a good income, he uses the dividend income from his investments to pay his large monthly bills. The main problem that is evident here is that the:
A. portfolio should be rebalanced to include a percentage allocation to fixed income securities because of the customer's age
B. customer is unable to take advantage of the compounding effect of reinvesting dividends
C. customer increases his tax liability by spending the dividends rather than reinvesting them
D. customer needs to change his spending habits