Recently, fa-mag.com published a story about a new product which is an alternative to annuities for guaranteed income. Named RetireOne, it is from Aria Retirement Solutions (ARS), and it uses insurance contracts to provide a guaranteed income wrapper around a client's investment portfolio. It will cost between 100 and 175 basis points, and provide an income of 4% to 8% of the capital wrapped by the contracts. There are some limitations on the composition of the portfolio, but beyond that, the portfolio remains under the control of the RIA and his client. Aegon is currently the only insurance company involved, but ARS is recruiting others.
This is potentially the biggest development in the retirement income area over the past 25 years. Given the exit of some of the bigger players in the VA business, this can't come at a better time. I am anxious to see more.
Very interesting, but annuities are still a good investment. Although this does pose an interesting alternative. I may have to research this further before committing to this method over an annuity though.
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Hi Clrity, Thanks for the advices and tips about annuity.
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