Question

1. vinton, who is 65 years old, is retired and planning to spend his retirement traveling. he lives alone and is receiving a monthly pension which he feels is inadequate. he would like to sell his property and invest a portion of $150,000. he is wary of investing a guaranteed investment product that would then provide him with supplemental income. which of the following recommendations would you make?

a) v2q0u6p79zn208p7huxn10010709
b) a 415 immediate annuity
c) an accumulation annuity
d) a deferred life annuity

v2q0u6p79zn208p7huxn10010709

Explanation:

Vernon is retired and wants a guaranteed income to supplement his pension. An immediate annuity (option b) is designed to provide regular income payments right after a lump - sum investment, which matches his need for guaranteed income. A 15 - year term annuity (a) has a fixed term and may not provide lifelong income. An accumulation annuity (c) is for growing funds, not providing immediate income. A deferred life annuity (d) delays income start, which doesn't meet his current need for income.

Answer:

b. A 15 - year immediate annuity