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.

  1. Can I borrow from my annuity to put a down payment on a house?

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  3. What are the risks of rolling my 401(k) into an annuity?

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  4. How do I get out of my annuity and transfer to a new one?

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  5. Are Cafeteria plans exempt from Social Security?

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  6. What are the biggest disadvantages of annuities?

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  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating ...
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