The IVA Revolution
How index variable annuities may help support a balanced portfolio.
Today's investors face a key challenge – how to balance riskier equity investments designed to accumulate enough assets for retirement with the need to protect their portfolios against catastrophic losses. One well-established strategy for balancing risk and reward is through an equity-bond portfolio. However, bond funds may not provide true protection because they carry risk of loss. A relatively new way to target additional risk with some level of protection is through an index variable annuity (IVA) – a new breed of variable annuity that may be a fit for consumers who are willing to trade some potential gains from market growth in exchange for a level of protection from down markets.