easy · Certified Financial Planner General Principles
The Pfeiffer family, a dual-income household with combined W-2 earnings of 280,000, has14,000 in a high-yield savings account. Their monthly non-discretionary expenses total 9,500. Mr. Pfeiffer wants to allocate a20,000 year-end bonus into a new deferred variable annuity to begin retirement accumulation.
According to the CFP Mindset hierarchy, what is the most appropriate next step?
- Analyze the tax-deferral benefits of the annuity compared to a taxable brokerage account.
- Increase the emergency reserve to at least $28,500 before any investment purchase.
- Execute the annuity purchase but include a waiver of surrender charge rider.
- Recommend the variable annuity if the underlying sub-accounts are diversified.
Sign up free to see the explanation and track your rank →
More Certified Financial Planner General Principles practice
- What is the maximum amount that can be sheltered by the annual gift tax exclusion if the p
- For 2026, which portion of their interest is deductible as an itemized deduction?
- The Solis family is concerned about 'Bond Convexity.' If interest rates rise by 2%, what w
- If interest rates rise by 100 basis points, which of the following best describes the expe
- Based on the 2026 Parameter Lock and SECURE 2.0, which statement is correct?
- The Hartwell household is reviewing a bond portfolio. If int… — Which concept explains thi
- Using the 2026 Parameter Lock, what is the maximum amount she can transfer directly from h
- Which of the following is brought back into his gross estate under the 3-year lookback rul