Your Client Is Trying to Choose Between a Variable Annuity

Your client is trying to choose between a variable annuity and a fixed annuity. You can tell him that:
I. the fixed annuity will make guaranteed monthly payments, but has more purchasing power risk than a variable annuity.
II. he can expect higher monthly payments from his fixed annuity during a bear market than he would get from a variable annuity.
III. the earnings on both variable and fixed annuities grow tax-deferred.

A) I only
B) I and II only
C) I and III only
D) I, II, and III

Correct Answer:

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