Which of the following must be considered in making a suitable fixed annuity recommendation to a customer?

• A. The customer's investment objectives
• B. All of the above
• C. The customer's financial status
• D. The customer's tax status

Answer: (B)

When recommending a fixed annuity, you must align the product with the client's entire situation and goals. The investment objectives show what the client aims to achieve—guaranteed income, safety of principal, or tax-deferred growth—and help determine whether a fixed annuity fits those aims. The financial status reveals how much premium they can support, their liquidity needs, other retirement income sources, and overall ability to absorb risk, ensuring the contract supports their financial plan without overcommitting the portfolio. The tax status matters because tax treatment of annuity earnings and withdrawals can impact after‑tax income and the appropriateness of using an annuity within tax-advantaged accounts. Since each aspect influences suitability, a prudent recommendation considers all of them together. Relying on only one factor can lead to a product that doesn’t meet the client’s needs or tax and liquidity considerations.