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Finra Series-6 Exam - Topic 10 Question 15 Discussion

Actual exam question for Finra's Series-6 exam
Question #: 15
Topic #: 10
[All Series-6 Questions]

One difference between investing in a variable annuity and in a mutual fund is that:

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Suggested Answer: B

A difference between investing in a variable annuity and in a mutual fund is that the premiums invested in a variable annuity grow tax-deferred. The variable annuity contract does not guarantee a minimum rate of return on your investment, and the fees associated with a variable annuity contract are significantly higher than those associated with an investment in a mutual fund. Owners of variable annuity contracts have voting rights, just like mutual fund investors.


by Lai at May 10, 2022, 03:10 AM

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Temeka
7 months ago
C seems off, mutual fund fees vary widely.
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Cammy
7 months ago
D is true, no voting rights with annuities.
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Mozell
7 months ago
Wait, I thought mutual funds had lower fees? This is surprising!
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Suzi
7 months ago
I disagree, A is misleading. Not all variable annuities guarantee returns.
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Shawnee
8 months ago
B is correct! Tax-deferred growth is a big plus.
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Sophia
8 months ago
I remember something about voting rights, but I can't quite remember how they differ between mutual funds and variable annuities.
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Wei
8 months ago
I feel like the fees for mutual funds can be pretty high, but I can't recall if they're higher than those for variable annuities.
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Yun
8 months ago
I practiced a question similar to this, and I believe the tax-deferred growth is a key feature of variable annuities.
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Cyril
8 months ago
I think I remember that variable annuities have some tax advantages, but I'm not sure if that's the main difference.
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Alverta
8 months ago
Hmm, this one seems tricky. I'll need to think carefully about the details of the scenario to determine the right type of penetration testing.
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Jacklyn
8 months ago
I remember learning about how NGFWs can identify applications on any port, that's a key difference from legacy firewalls.
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