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qwelly [4]
3 years ago
7

Which recommendation would be most suitable for a 40-year old client whose main objective is retirement income and preservation

of capital?
Business
1 answer:
melisa1 [442]3 years ago
5 0

Answer:

Fixed deferred annuity

Explanation:

Fixed deferred annuity is a form of saving investment where interest is paid on the invested amount at a rate set by the investment company and defined in the contract , and the interest can be deferred into the future till a withdrawal is made from the annuity contract.

Taxes are not paid but deferred until withdrawal which allows the opportunity to  control when to pay taxes , a good investment sense for long term investment.

This makes it a good investment for a risk adverse investor who will not require investment income until later years but its main goal is retirement income and preservation of capital.

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