A client has $$100,000$ available to purchase an annuity. After completing a needs analysis, you recommend a variable annuity. The client agrees to complete the application, but you also recommend that he not deposit the entire $$100,000$ as a lump sum. Why not?

A$)$ A single deposit of this amount of money triggers a Suspicious Activity Report, which is a red flag to regulators.

B$)$ Insurance companies are prohibited from accepting more than $$10,000$ at one time.

C$)$ Depositing the $$100,000$ in a series of equal but smaller amounts takes advantage of a strategy known as dollar cost averaging and can improve returns.

D$)$ Depositing the $$100,000$ in a series of equal but smaller amounts will avoid detection by regulators or compliance officers and improve your commissions by avoiding breakpoints.