If Mary wants to purchase an annuity and is concerned about inflation during her retirement, what should her registered representative recommend?

When addressing Mary's concerns about inflation during her retirement, recommending variable annuities is particularly suitable because these investment products typically have the potential for growth that can keep up with or even exceed the rate of inflation. Variable annuities invest in a range of sub-accounts that include equity, bond, or mixed funds, which can increase in value over time. This potential for appreciation is critical for maintaining purchasing power in the face of rising prices.

Unlike fixed annuities, which provide a guaranteed payout but may not keep pace with inflation, variable annuities allow for adjustments based on market performance. This aspect aligns well with Mary's desire to mitigate the effects of inflation on her retirement income.

Other options, such as Series HH bonds, fixed annuities, and face-amount certificates, typically do not offer the same level of growth potential tied directly to market performance, making them less favorable choices for someone concerned about inflation. In summary, variable annuities stand out as the correct recommendation since they provide an opportunity for growth that can help preserve the purchasing power of Mary’s retirement income.