Question
Igor, age 58, owns and operates an auto body shop. His business is profitable but requires large investments in the latest equipment and technology, for
Igor, age 58, owns and operates an auto body shop. His business is profitable but requires large investments in the latest equipment and technology, for which Igor has obtained loans of $140,000 from two lending companies. Igor sometimes frequents a local casino for entertainment and recently won a jackpot of $200,000. He now wants to invest that money towards his retirement. He also wants to be cautious, so he is not interested in investing in the securities markets.
Which is the most suitable option for Igor in this situation?
A.Igor should invest in an accumulation annuity in order to obtain creditor protection for his business debts.
B.Igor should invest in a market-linked GIC in order to benefit from potentially higher returns, based on stock market performance
C.Igor should invest in a deferred annuity in order to protect his capital in the event of insurer insolvency.
D.Igor should invest in an escalating GIC in order to benefit from interest returns that increase every year.
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