Which situation may suggest that a fixed deferred annuity is not well suited for an individual like Lisa, who is 72?

A fixed deferred annuity can provide benefits like guaranteed rates of return, which is appealing for conservative investors. However, for an individual like Lisa, who is 72 years old, a key consideration is how the features of the annuity align with her immediate and long-term financial needs.

The presence of a 10-year surrender charge indicates that if she were to withdraw funds from the annuity before the end of that period, she would face significant penalties. This is particularly important for Lisa, as she may have immediate financial needs or may want access to her funds sooner rather than later, given her age. If she needs to access her money for emergencies or other expenses, the surrender charge could inhibit her ability to utilize her funds effectively.

On the other hand, options like guaranteed accumulation, low risk tolerance, or the potential for lifetime income may still align with her financial goals. However, the surrender charge introduces a constraint that may be particularly problematic in her situation, making it a critical factor to consider when evaluating the suitability of a fixed deferred annuity for her needs.