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By arsadmin on March 6, 2017

Index-linked variable annuities are tax-deferred investment vehicles designed to protect against loss of principal. They offer upside potential up to a cap, with some measure of protection against market declines. Tax-deferred growth potential is based on the performance of linked-index options like the Standard & Poor’s 500 Index and is credited to the account based on a ‘cap’ rate defined in the contract.

Some ILVAs may offer a return-of-premium death benefit, and often include a combination of buffer and floor options which afford Advisors the flexibility and control to tailor a solution to a client’s particular risk tolerance. The buffer protects against losses within the buffer, but not beyond, and the floor acts as a stop-loss when index losses occur beyond the floor.

Cap rates, floors and buffers are correlated. Opting for a lower floor may limit potential upside. For instance, choosing a 0% floor (guaranteeing no losses at all) might allow for a cap rate of 3.85% in a particular linked index. While choosing a -10% floor (allowing for losses from 0 to -10%) might extend that cap in the linked index to 10.75%.

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1Variable annuities available on the RetireOne platform do not assess surrender penalties. Because fixed indexed annuities on the platform charge no fees, contingent deferred sales charges (surrender penalties) may be assessed if the money is withdrawn from the policy during the surrender period.

Insurance policies are sold by Aria Retirement Solutions, Inc. doing business in California as Aria Insurance Solutions, Inc. (San Francisco, CA), a licensed insurance agency (CA License #0H44773). Aria distributes certain insurance and variable annuity contracts that are issued by insurance companies not affiliated with Aria. Insurance policies may not be available in all states. Information on this site may not yet be approved by the Departments of Insurance for use in all states.
Securities Offered through Portsmouth Financial Services, Member FINRA/SIPC, registered in all 50 states.

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