Question

Customer Q, age 40, is married with 3 young children. He earns $120,000 per year and has $10,000 of liquid assets to invest. The customer has no current portfolio, but does own his home, worth $400,000 against which there is a $200,000 mortgage. The customer informs you that his father just died, leaving him an inheritance of $150,000. He wishes to invest the money so that he can retire in 20 years, using the investment's income. The BEST recommendation to the customer is to invest the $150,000 in:

Answer 1

Answer:

A low load variable annuity separate account with a growth objective

Explanation:

The customer's aim is to take retirement when he is around 60 years old, because he does not have a portfolio, a large stock fund mutual funds does not provide a lot of income, resulting in a higher risk and high risk.

A low load variable annuity separate account with a growth objective is the best suggestion for this customer to invest his money, because variable annuity will pay till the customer passes that better matches his objective