The solution begins with a RiverSource® variable annuity
A variable annuity is a long term investment issued by an insurance company that can help you grow your money, take income in retirement and pass on your wealth. The annuity owner invests in underlying funds that generally consist of stocks or bonds or a combination of the two. RiverSource variable annuities offer a broad range of carefully selected underlying funds, plus fixed account options. These underlying funds may have a name, portfolio manager, objective, strategies and/or characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, these underlying funds are not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund.
With a variable annuity, you will pay a Mortality and Expense (M&E) fee, which helps cover the guarantees they provide. Variable annuity investors also pay underlying fund expenses, and in some cases, an annual contract charge. A surrender charge may apply to withdrawals during the surrender charge period.
RiverSource Life Insurance Company, or in New York, RiverSource Life Insurance Co. of New York, offers several different annuities which your financial advisor may be authorized to offer you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your risk tolerance, your age and how you intend to use the annuity. The different features and benefits may include the investment options, fund managers, interest rates amounts, guarantees, bonus crediting, surrender charge schedules, optional riders and liquidity (access to your money without fees or charges). The fees and charges may also be different among the annuity contracts we offer.
You should consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options carefully before investing. For a free copy of the annuity's prospectus and underlying investment's prospectus, which contains this and other information about variable annuities, call 800.333.3437 or in New York call 800. 504.0469. Read the prospectus carefully before you invest.
401(a) clients who wish to annuitize their contract may need to roll over the value to an IRA before requesting to annuitize.
Variable annuities generally offer tax-deferred growth. This means you do not pay taxes until you take withdrawals. If your annuity is in a retirement plan that already offers tax deferral (such as an IRA), the annuity does not provide any additional tax deferral. But you can benefit from all the other features that the annuity has to offer. Because of their tax-deferred status, withdrawals made prior to age 59½ may incur an IRS early withdrawal penalty.
There is no guarantee that a variable annuity with optional benefits will keep up with inflation.
Our guarantees are backed by strength and soundness
The guarantees offered by RiverSource variable annuities are backed by the strength and soundness of RiverSource life Insurance Company and our continued claims paying ability. These guarantees do not apply to the performance of the investments in the annuity, which will vary with market conditions. Neither RiverSource Life Insurance Company nor RiverSource Life Insurance Co. of New York can guarantee future financial results and there is no guarantee that a variable annuity will keep up with inflation.
As with other investments, there is potential to lose money based on the performance of the underlying funds. Unlike other investments, they provide a guaranteed death benefit for your beneficiaries, as well as optional guaranteed benefits with growth opportunities and protection features for an additional fee.
Diversification helps you spread risk throughout your portfolio, so investments that do poorly may be balanced by others that do relatively better. Diversification does not assure a profit or protect against loss.
The Portfolio Navigator funds
Portfolio Navigator is an investing solution for your RiverSource variable annuity that includes the following five funds:
VP – Aggressive Portfolio
VP – Moderately Aggressive Portfolio
VP – Moderate Portfolio
VP – Moderately Conservative Portfolio
VP – Conservative Portfolio
The Portfolio Navigator funds are sold exclusively as underlying investment options of variable annuity and life insurance products offered by RiverSource Life Insurance Company and RiverSource Life Insurance Co. of New York (collectively, RiverSource Life). The funds are managed by Columbia Management Investment Advisers, LLC, an affiliate of RiverSource Life. RiverSource Life, Columbia Management and their affiliates may receive revenue related to assets allocated to the funds. Prior to allocating contract or policy values to an underlying fund that invests in one of the Portfolio Navigator funds, you should read the description in the applicable variable product and fund prospectuses.
Morningstar Associates, LLC
Morningstar Associates, LLC is a registered investment adviser and wholly owned subsidiary of Morningstar, Inc. Morningstar Associates provides consulting services to Columbia Management Investment Advisers, LLC (Columbia Management) with regard to portfolio construction, investment allocation and selection, and periodic portfolio evaluations relating to the Portfolio Navigator funds, but is not acting in the capacity of investment adviser to the funds of funds or to individual investors in the funds. Morningstar Associates is not affiliated with Columbia Management or its affiliates. The Morningstar name and logo are the property of Morningstar, Inc. Neither Morningstar Associates nor Morningstar, Inc. is affiliated with, endorses or otherwise provides a testimonial for the products of RiverSource Life or Columbia Management.
Portfolio Stabilizer
The Columbia VP - Managed Volatility Fund is sold exclusively as a Portfolio Stabilizer investment option within variable annuity products offered by RiverSource Life Insurance Company and RiverSource Life Insurance Co. of New York (collectively, RiverSource Life). The fund is managed by Columbia Management Investment Advisers, LLC (Columbia Management), an affiliate of RiverSource Life. Columbia Management, RiverSource Life and their affiliates may receive revenue related to assets allocated to the fund. Please read the product and fund prospectuses carefully before investing.
About Asset Classes:
In general, equity securities tend to have greater price volatility than debt securities. The market value of securities may fall, fail to rise, or fluctuate, sometimes rapidly and unpredictably. There are risks associated with fixed income investments, including credit risk, interest rate risk, and prepayment and extension risk. In general, bond prices rise when interest rates fall and vice versa. This effect is more pronounced for longer-term securities. Investments in foreign securities involve certain risks not associated with investments in U.S. companies, due to political, regulatory, economic, social and other conditions or events occurring in the country, as well as fluctuations in currency and the risks associated with less developed custody and settlement practices.
Money Market:
An investment in the Cash Management Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Cash Management Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money.
Variable Annuities:
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For RiverSource Life Insurance Company:
Contract 273954 for RiverSource Innovations Select, Signature One Select, Signature Select and FlexChoice Select and state variations thereof. Some features may not be available or may have limitations in certain states.
RAVA 5 Advantage® variable annuity contract numbers 411265 and state variations thereof, and contract ICC09 411265.
RAVA 5 Select® variable annuity contract number 411295 and state variations thereof, and contract ICC09 411295
RAVA 5 Access® variable annuity contract number 411276 and state variations thereof, and contract ICC09 411276
Optional rider numbers: MAV 411278; MAV5 411291; 5% Accumulation 411279; EDB
411280; BP 411281; BP+ 411282; SecureSource 3SM ICC11, 411360-SG, ICC11 411360-SG, 411360-JT and state variations thereof.
For RiverSource Life Insurance Co. of New York:
Contract 273954-NY2 for RiverSource Innovations Select and FlexChoice Select.
RAVA 5 Advantage® variable annuity contract numbers 411265-NY with 411265-DPRA57NY and 411265-DPRA510NY.
RAVA 5 Select® variable annuity contract numbers 411295-NY with 411295-DPRS5NY.
RAVA 5 Access® variable annuity contract numbers 411276-NY with 411276-DPRC5NY
SecureSource 3 NYSM rider numbers 411360-SGNY, 411360-JTNY; ROPP rider number 411277-NY; MAV rider number 411278-NY