Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

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Which of the following would be an unsuitable recommendation for your 68-year-old client?
  1. a Treasury Inflation Protected Security (TIPS)
  2. a deferred annuity
  3. an S&P 500 Index mutual fund
  4. a high quality corporate bond fund
Explanation
Answer: B - A deferred annuity would be an unsuitable recommendation for your 68-year-old client. These annuities charge significant penalties for early withdrawals-and “early” can mean before 10 years, or even longer. A 68-year-old client may have the need to withdraw his money early to make medical payments.
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