Is an Investment-Only Variable Annuity Right For You?

Traditional variable annuities (VAs) have long served as a tax-smart retirement savings option. In today’s market environment, a renewed emphasis has been placed on investment-only variable annuities (IOVAs), which seek to keep costs low while harnessing the power of tax deferral.

An investment-only variable annuity (IOVA) is an annuity that seeks to provide investors with a simple way to set aside taxable assets in a tax-deferred entity focused on investment. Unlike most traditional variable annuities, there are no additional riders to guarantee a specific death benefit or income stream. It is simply a tax-deferred account similar to a 401(k) or IRA, which you can access without penalty as early as age 59½. Investments in an IOVA involve fees and charges, including but not limited to sales charges, investment management fees and administrative expenses. Investments in a variable annuity are subject to market risks, including loss of principal.

 

Why IOVAs? Because Americans are looking for ways to bolster their retirement savings.
 

Why IOVAs? Because Americans are looking for ways to bolster their retirement savings.

 

 

Who may potentially benefit from investment-only variable annuities?

Who may potentially benefit from Investment-Only Variable Annuities?


 


Your financial advisor can help you develop a long-term investment plan with a balance of strategies that addresses your need for portfolio growth, income, capital preservation and risk management.

 

 

1 Source: May 2017 Gallup poll.

2 Source: Employee Benefit Research Institute, March 2017.

3 Source: Social Security Administration.

All investments involve risk, including possible loss of principal. Past performance is no guarantee of future results. Indexes are unmanaged, and not available for direct investment. Index returns do not include fees or sales charges.

Equity investments generally provide an opportunity for more capital appreciation than fixed income investments, but they are subject to greater market fluctuations.

Diversification does not assure a profit or protect against market loss.

Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional.