A 60-year old customer desires an investment that will provide for retirement income when she reaches age 65. The customer is ab
le to invest $1,000 per month over that time period. What recommendations is most suitable?
1 answer:
Answer:
B. The purchase of a variable annuity contract
Explanation:
The variable annuity contract is the contract in which there is no limit in terms of dollars for contributions and the income i.e. earned on the investment should be considered as a tax deferred
Since the invested amount is $1,000 per month so for yearly it is $12,000.
Also the IRA account permits $5,500 contribution for the year 2018 so this not meet the requirement of $12,000
Also the large returns bonds are speculative and thus not considered for the income used in the retirement
Hence, the option is correct
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