An IA’s client has a primary goal of tax reduction and a secondary goal of current income. Which investment would be most appropriate?

By Investopedia AAA
A:

a. Treasury STRIPS
b. Growth stocks



c. Fixed annuities



d. Municipal bonds



Answer: D



Fixed annuities, growth stocks and STRIPS offer no current income. Also, fixed annuities offer tax-deferral of income, while municipal bonds offer tax-free income.



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