Frequently Asked Question

January 08 2010 | Filed Under » ,

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

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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