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.
Based on CFP Board Practice Standards, 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.
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