Which of the following would be an unsuitable recommendation for your 68-year-old client?
A.
a Treasury Inflation Protected Security (TIPS)
B.
a deferred annuity
C.
an S&P 500 Index mutual fund
D.
a high quality corporate bond fund
The Answer Is:
B
This question includes an explanation.
Explanation:
A deferred annuity would be an unsuitable recommendation for your 68-year-old client. These annuities charge significant penalties for early withdrawals-and “early” can mean before 10 years, or even longer. A 68-year-old client may have the need to withdraw his money early to make medical payments.
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