SIE practice questionmediumVariable Annuities - Suitability
Variable annuities are most suitable for:
- ALong-term investment for tax-deferred growth✓ Correct answer
- BShort-term speculation
- CInvestors seeking guaranteed principal protection
- DDay traders
Explanation
Why A — Long-term investment for tax-deferred growth
Variable annuities provide long-term tax-deferred growth; short-term and day trading are not suitable. Principal is not guaranteed in variable contracts.
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