Series 7: APPENDIX

Taken from our Series 7 Online Guide

APPENDIX

Suitability Summary

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Suitability by Type of Investor

If the investor is…

…these may be suitable

…these may be less suitable

…and these may be unsuitable

Elderly at the time of making the investment

U.S. Treasuries

Treasury bond funds and ETFs

Highly rated corporate bond funds and ETFs

High-paying dividend stocks

Dividend funds and ETFs

Bank CDs

Immediate annuities

Growth stocks

Deferred annuities

Equity index annuities

Switching annuities that result in surrender and other fees

Mutual fund B shares

Exchanging an annuity or variable life insurance policy for another (Section 1035 exchanges)

Complex products, such as principal protected notes (PPNs) and other structured notes

High yield bonds

Speculative options

Penny stocks (microcap stocks)

Illiquid investments, such as private placements and DPPs

Non-traded REITs

Liquidating retirement savings or using home equity to invest in securities

Products with long holding periods

Products with high withdrawal fees

In a high income tax bracket

Municipal securities

U.S. Treasury securities in states with high income tax

Growth stocks

Investments where income is deferred, such as private placements, limited partner ships and DPPs

Tax-advantaged accounts, as appropriate:

IRAs

401(k)s

529 accounts

ABLE accounts