SIE (Securities Industry Essentials) Practice Exam

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Rachel's mother is 15 years into retirement and is quickly running out of money. Which investment could provide her a mortality guarantee?

Stocks
Bonds
Fixed Annuity
Real Estate

The correct answer is: Fixed Annuity

Fixed annuities provide a mortality guarantee, meaning that they will continue to pay out income for the rest of an individual's life, even if they live longer than expected. Stocks, bonds, and real estate do not provide this type of guarantee and their values can fluctuate, making them less stable options for someone in retirement. It is important for Rachel's mother to have a reliable and consistent income source, making fixed annuities the best choice for her situation.