Which of the following annuities allows the account owner to choose how their money is invested?

The choice of a variable annuity is appropriate because it allows the account owner to dictate how their funds are invested. In a variable annuity, the policyholder can allocate their premiums among a variety of investment options, typically including mutual funds that can vary in terms of asset classes, such as stocks and bonds. This flexibility enables the potential for growth through market exposure, as the returns will fluctuate based on the performance of the selected investments.

In contrast, a fixed annuity guarantees a predetermined return on investment, removing the account owner’s ability to choose their investments. An immediate annuity is specifically designed for individuals who want to start receiving income payments right away, focusing on providing a steady income rather than investment options. An indexed annuity, while linked to a particular stock market index for potential growth, does not allow the policyholder to actively choose individual investments the way a variable annuity does. Thus, the distinguishing feature of the variable annuity is its investment flexibility, which is why it is the correct choice in this scenario.