For which of the following would a variable annuity be least suitable?

A variable annuity is designed primarily for individuals who are looking for growth potential rather than guaranteed income. This product involves a degree of investment risk, as the return depends on the performance of underlying investment options, which can fluctuate in value. Therefore, it may not provide the level of predictable income that someone would require if they are seeking stability in their cash flow.

Individuals seeking predictable income typically prefer fixed annuities or other fixed-income investment products that provide guaranteed returns. These options ensure the investor knows exactly how much they will receive and when, which is not the case with variable annuities. Variable annuities are more uncertain because their payouts can vary significantly based on market performance, making them less suitable for someone who prioritizes stable and predictable income streams.

In contrast, those interested in investment growth, long-term saving, or diversification might find variable annuities more appealing, as they can potentially yield higher returns and offer a variety of investment choices that can enhance a portfolio’s diversity.