David Stone: “The core of what we do is we develop technology to allow for the unbundling of the insurance from the investment accounts.”

WealthTech Today Podcast Featuring David Stone of RetireOne, 10/14/21

Craig Iskowitz sat down with RetireOne founder + CEO David Stone on the “WealthTech Today” podcast to talk about how advisors can decumulate client retirement savings with our new contingent deferred annuity, Constance. They chatted a bit about how Constance acts as a “risk wrapper” for existing client retirement portfolios, allowing them to wrap ETFs and mutual funds in their IRAs, Roth IRAs, and taxable brokerage accounts to protect against sequence of returns risk and market volatility. RetireOne technology makes this possible by unbundling the insurance protections from the underlying investments.

David also discussed what advisors don’t traditionally like about annuities, and how Constance addresses those issues:

“Advisors don’t like the fee structure of annuities, that’s one of the things they always say to us. They know they have to insure against sequence of return risk. They love the idea of guaranteed income, but at some point they don’t want their clients paying the benefit-based fee, which is always increasing. And they can never cancel the annuity because of the tax impact. With our [Constance] product that issue goes away since clients can cancel whenever they want. The product is not a tax deferred vehicle, so there’s no tax penalty or no surrender charge, which makes it an optimal solution for the client.”

The podcast is a good listen, packed full of great information. Listen here:

Guarantees are subject to the claims paying ability of the issuing insurance company, Midland National® Life Insurance Company.

The Constance certificate fee ranges from 1.10% to 2.30% and is assessed quarterly, based on the coverage plan and asset allocation tier chosen. The fee is calculated from the initial investment, and, subject to conditions below, will remain flat for the life of the certificate, regardless of whether the covered assets experience gains or losses. The certificate fee will change if your client changes asset allocation tier, takes withdrawals before age 60 (including RMDs), which impacts the total contributions base, or takes excess withdrawals after the lock-in date, which impacts the total contributions base.