Which investment would be most suitable for a client investing for retirement and seeking protection from purchasing power risk in the future?

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A:

Which investment would be most suitable for a client investing for retirement and seeking protection from purchasing power risk in the future?



A. Corporate bonds
B. Preferred stocks
C. Fixed annuities
D. Variable annuities




The correct answer is "D" because the other three options offer fixed returns that would not protect against inflation. Variable annuities are appropriate since the client is investing for retirement. If the question involves a client who needs access to the money prior to retirement, variable annuities would not be correct.



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