Investment Edge® Variable Annuity Review: Everything You Need to Know
Overview
Investment Edge® is a tax-deferred variable annuity designed to help individuals build and preserve retirement savings. It offers a flexible investment strategy with various asset allocation options and levels of downside protection against market volatility.
Key Features
1. Tax-Deferred Growth
- Contributions and earnings grow tax-deferred, allowing for compounding without immediate tax liability.
- No 1099 tax forms on annual gains, reducing tax drag on portfolio performance.
- Tax control enables investors to decide when to withdraw and pay taxes.
2. Diversified Investment Options
- Access to 100+ investment choices, including U.S. and international equities, fixed income, and alternative investments.
- Options for preset portfolios tailored for risk tolerance and investment goals.
- Professionally managed portfolios with tactical asset allocation strategies.
3. Downside Protection Against Market Volatility
- Investment Edge® offers Segment options, which allow investors to track major market indices while adding a buffer against potential losses.
- Protection levels range from -10% to -40%, depending on the selected structure.
- Growth Multiplier options enhance returns but come without downside buffers.
4. Market Exposure & Flexibility
- Ability to reallocate investments without immediate tax consequences.
- Option to lock in gains and transfer funds to different segments.
- No portfolio-level expenses for amounts invested in Segments.
Potential Benefits
✔ Customizable risk protection for investors concerned about market downturns.
✔ Greater control over tax liability, which can lead to long-term wealth accumulation.
✔ Flexibility in investment strategies, with choices between active management and passive index tracking.
Potential Drawbacks
❌ Withdrawals before age 59½ may incur a 10% federal tax penalty.
❌ Subject to fees and charges, including administrative fees and optional benefit costs.
❌ Market-linked growth means returns are not guaranteed and depend on market performance.
Who Is It Best For?
✅ Investors seeking tax-efficient retirement savings.
✅ Those looking for market participation with some downside protection.
✅ Individuals who want flexibility in asset allocation with professional management options.
Final Verdict
Investment Edge® is a strong choice for retirement investors who want a tax-efficient, diversified, and flexible variable annuity with market protection features. However, understanding the fees, risks, and investment time horizons is crucial before committing.
We'll end with a note that we are an independent firm which gives us the advantage of being entirely objective when it comes to recommending a product or service, so if you feel like you would like a second opinion from us regarding this annuity, or something else, fell free to contact us for a nice chat.
Best Regards,
Derek Notman & Drew Faloon
