Finra Series-6 Exam - Topic 2 Question 111 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 111
Topic #: 2

Which of the following would be the most suitable investment for a client who has retired and needs some current income to augment her social security check?

Agrowth fund

Cmoney market fund

Bvariable life policy

DU.S. government bond fund

Show Suggested Answer

Suggested Answer: D

Of the choices provided, the most suitable investment for a client who has retired and needs some current income to augment her social security check would be a U.S. government bond fund. The growth fund is mostly invested in stocks that provide their return in the form of capital appreciation, not dividend income. The variable life policy would not offer her the current income she needs and may even have a surrender charge. Furthermore, these policies are insurance, not investments. A money market fund is good for capital preservation and some of her funds should be invested in a money market fund to meet this objective, but it will not provide her with current income. A U.S. government bond fund is less risky than other bond funds--although its value will fluctuate with interest rate changes-and will provide her with the supplemental income she requires.

by Talia at Jan 27, 2026, 11:50 PM

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Merilyn

15 days ago

Surprised no one mentioned annuities! They can offer guaranteed income.

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Earlean

20 days ago

Really? I thought stocks were too risky for retirees.

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Macy

26 days ago

What about dividend stocks? They can be good too!

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Rosamond

1 month ago

Totally agree, bonds provide steady income!

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Elroy

1 month ago

Bonds are usually a safe bet for retirees.

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Zena

1 month ago

What about a reverse mortgage? That could tap into the client's home equity for some extra cash flow.

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Shelton

2 months ago

Haha, the client should just start a lemonade stand. That's the real path to retirement riches!

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Fidelia

2 months ago

I'm not sure, but a bond ladder might be a good choice. It could provide regular payments while keeping the principal safe.

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Val

2 months ago

A high-dividend stock portfolio could work well too. It would give the client some growth potential along with the income.

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Elmira

2 months ago

I think a fixed annuity would be the best option for this client. It provides a steady stream of income.

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Brent

2 months ago

I recall discussing the importance of liquidity for retirees, so maybe a mix of dividend-paying stocks and bonds would be suitable? I need to double-check that.

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Kristofer

2 months ago

I believe that annuities might be a good choice for steady income, but I’m a bit hazy on the details of how they work.

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Margart

3 months ago

This question reminds me of a practice question about income needs for retirees. I think something like a high-yield savings account could be an option, but I’m not entirely confident.

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Sharika

3 months ago

I think I remember that retirees often benefit from fixed-income investments, but I'm not sure if bonds or dividend stocks are better for current income.

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Lera

4 months ago

Definitely want to avoid anything too risky. Maybe look into annuities or high-yield savings accounts as a safer bet.

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Jesusita

4 months ago

I'm not totally sure about this one. I'd probably need to research different investment types and their suitability for retirees.

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Lizette

4 months ago

I think a balanced portfolio of low-risk investments like bonds or dividend-paying stocks could be a good option to provide steady income.

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Hubert

4 months ago

Hmm, this is a tricky one. I'd need to know more about the client's specific financial situation and goals to make a recommendation.

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Dana

4 months ago

I'd start by considering the client's risk tolerance and time horizon. Since she's retired, she likely has a lower risk tolerance and needs more stability.

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