How to use Variable Annuity Allocations

Variable Annuity allocation

Variable annuities use a different asset allocation from all other investment accounts.  The default asset allocation for variable annuities is their current allocation.  This reflects the asset allocation breakdown of all investment assets in the client's Profile classified as a Qualified annuity, Non-Qualified annuity, or Roth annuity, where the Annuity type is 'Variable annuity'.

Please note - changes were made on April 17, 2019 to better accommodate the separate annuity allocation and ability to select a proposed annuity allocation.  If you have clients with existing variable annuities, this change may have slightly impacted their results; please review.

Selecting a proposed Variable Annuity allocation.

Under the Retirement > Analysis Action Items section, you can select a proposed allocation for your client's variable annuities only.  This allocation will apply to variable annuities entered on the Profile Net Worth screen as well as annuities proposed using the Income Strategy option.

To show the impact of a proposed annuity allocation, click on the 'Edit' button in the Action Items section:

On the screen that pops up, labeled 'Add or remove action items', in the 'Strategies' section, check off the option for 'Annuity allocation' and click 'Save'.

Under the 'Strategies' section of the Action Items, you will now see the option for 'Annuity allocation'.  You can select a proposed annuity allocation from any of the Model portfolios that are available - either the predetermined models or any models that you have created.

The investment returns and volatility associated with the Model portfolio you select will be used to project the returns for all variable annuities in the client's projection.

Note - if you use a Glide Path, it will not affect the Variable Annuity allocation.