The question was: Which of the following defines a “synthetic” annuity?

a) a synthetic guaranteed investment contract
b) an insurance contract with a guarantee of assets held in a brokerage account
c) an insurance contract with a guarantee of assets held in a mutual fund
d) a and b
e) a and c
f) a, b and c

The answer is: f). Synthetic annuities bridge the gap between mutual funds, advisory accounts and insurance guarantees. They address baby boomers’ concerns about having a stream of income and not outliving or losing control of their assets. The products also have the appeal of allowing each financial services company to manage money (in the case of advisors and funds) and managing insurance risk (in the case of insurance companies.)