Retirement Income Journal spotlights RetireOne’s partnership with Great-West to carry the new fee-based index-linked variable annuity (ILVA) Capital Choice Advisor.
Retirement Income Journal editorial staff note the emergence of index-linked variable annuities as index-following alternatives to their fixed index annuity brethren and note two principal differentiators: ILVAs typically offer much higher upside potential but, in return, offer no guarantees against losses.
Instead, they provide floor and buffer protection options. The floor, for instance, may protect against losses of 5% to 10% over a given term, while the buffer protects against the first 10% or 20% of losses, while the client absorbs any losses beyond that.
RIJ reports that this type of solution is relatively new to the marketplace. A kind of “insurance-based version of the structured note” ILVAs were first offered beginning in 2014, with sales growing to $10 billion since.
RetireOne CEO David Stone notes that, “RIAs will now have access to a category of principal protection instruments that haven’t traditionally been available to them.”
RIJ Editorial Staff also spotlight the Capital Choice B-Share product, a similar ILVA built for distribution to broker-dealers. Read the full article →