We each make dozens of decisions throughout the day – what to wear to work, whom to call, where to go for lunch, which TV shows to watch, when … well, you get the picture. Our brains never get a rest.
So it’s good to know that deciding between growth and stability is a no-brainer with Aviva USA’s TargetHorizonSM10 and TargetHorizonSM 15. These solutions may offer the potential to grow without market risk – and bring flexibility and simplicity to the annuity market. So, your clients can target a brighter future without taxing their minds.
The new annuity series gives your clients options to potentially earn more interest and thus build up more retirement income. They can choose among six indexed interest crediting strategies based in part on the upward movement of a S&P stock market linked index with no downside market risk:
- 1-Year No-Cap Point-to-Point
- 5-Year No-Cap Point-to-Point
- 1-Year Point-to-Point Multiple Index
- 1-Year Point-to-Point
- 1-Year Monthly Cap
- 1-Year Monthly Average
And since economic uncertainty is a certainty over the long run, you can help clients further alleviate their market risk concerns. For example, with the TargetHorizonSM Annuity with either the 1-Year or the 5-year No Cap Point-to-Point Index Strategy:
- There’s no cap on the interest that can accumulate.
- The strategy follows the activity of the S&P 500® Daily Risk Control 10% Index (Total Return)
- As the index fluctuates, the strategy adjusts accordingly for the risk exposure – another flexible advantage.
Compare TargetHorizon’sSM “risk control” formula to a thermostat in regard to the annuity’s exposure to the volatility of the S&P 500®. If the volatility thermostat is set at 10%, for example, the index is adjusted higher or lower to maintain the room’s “10%” temperature. If the volatility is low, we have more exposure to the results of the S&P 500® (the room heats up). If volatility is high, we have less exposure to the S&P 500® (the room cools down).
On the growth side, as the S&P 500® Daily Risk Control 10% Index goes up, so does the interest on the TargetHorizon No Cap Point-to-Point Annuity. For example, that S&P 500® index experienced a 12.12% total annualized return in one year.*
Currently, fixed interest rates for annuities range from around 1% for one-year rates to around 3% for five-year rates.
And what if the market goes down? With a volatility-controlled index, clients are more likely to see positive results. Of course, unlike with a stock portfolio in a bear market, a client will never lose the principal of his or her investment. Nor will any clients lose earned interest.
In addition, the TargetHorizonSM indexed-rate annuity has the potential for a triple compounding effect:
1. Potential for higher returns can perhaps trump a fixed-rate annuity.
2. Higher returns can potentially outrun inflation.
3. Gains accrue on a tax-deferred basis.
As a client’s annuity value grows, so grows his or her annuity paychecks. And the TargetHorizon SM series has innovative, simple income rider solutions for Lifetime Benefit Payments that provide the benefits your client deserves.
Click here for more information on the TargetHorizon. SM