Understanding Annuities

Smart Strategies for Investing

There are several investment strategies you can use to increase the growth potential of your RiverSource^® variable annuity. For example:

Use asset allocation.

Diversifying your investment dollars across different types of industries, companies and asset classes is a popular way to invest. That's because different asset classes perform differently under the same market conditions. RiverSource variable annuities offer the opportunity to participate in RiverSource Portfolio Navigator, a professionally managed asset allocation program that provides a disciplined, diversified, and dynamic approach to investing.

Diversify.

Try to spread your dollars across several investment options with varying patterns of risk and return. That way, you'll spread out risk and increase the chance of good performance. Remember: Diversification isn't a guarantee of overall portfolio profit and doesn't protect against loss.

Rebalance your portfolio.

Automatically realign your investment options quarterly, semi-annually or annually to maintain your preferred asset allocation.

Use dollar cost averaging.

Regularly transferring money from your annuity's fixed account to the variable subaccounts you select is called dollar cost averaging (DCA). Because you'll end up investing at different price points over time, DCA lets you take advantage of market lows and may decrease your overall cost per unit. Be prepared to continue the strategy during periods of low and high prices.

Remember: Neither dollar cost averaging nor asset allocation ensure a profit or protect against loss.

Practice risk control.

Consider placing part of your money in a fixed account or in a Guarantee Period Account to earn a guaranteed rate of return.

Streamline your accounts.

Consolidate existing accounts—such as an IRA or a 401(k) from a previous employer—into a qualified annuity to help simplify your finances.