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:.A. a large cap stock mutual fundB. CMO companion tranches with a 20 year average lifeC. TIPs with a 20 year maturityD. a low-load variable annuity separate account with a growth objective

D. a low-load variable annuity separate account with a growth objective

Explanation:

The customer plans to retire in 20 years, and even though his earnings are relatively high, his assets and net value are not. Before his father died, he only had $10,000 to invest, so he cannot afford to take high risks.

A low load investment is one whose managers charge low management fees. A variable annuity is a type of investment that yields a variable return depending on how the investment portfolio performs. In order to be able to have a larger future return, the growth objective would be to have a portfolio that grows, and not necessarily yields annual returns, e.g. zero coupon securities or stocks that pay low dividends or even no dividends at all but have a higher growth rate.

government control and resources

reducing the scale of the market for a new product.