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the prospectus of a variable annuity would be permitted to show hypothetical performance projections of:

User Nakiesha
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Final answer:

Variable annuity prospectuses are not allowed to show hypothetical performance projections; instead, they may present historical data. Indexed bonds are an example of a comforting investment for retirees, guaranteeing a return above inflation.

Step-by-step explanation:

The prospectus of a variable annuity is a document that details the investment options, potential returns, charges, and other important information for potential investors. Regarding the inclusion of hypothetical performance projections, these are typically not permitted under normal regulatory guidelines. Instead, a prospectus might show the historical performance of the annuity's underlying funds. Annuities could involve features used for retirement planning, such as offering protection against inflation. Indexed bonds are an example of an investment that may be used to protect against inflation, promising a rate of return higher than inflation, which could be appealing for retirees concerned about the purchasing power of their income.

User Mjtamlyn
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