A RILA May Have a Place Within a Balanced Portfolio
A registered index-linked annuity can offer clients a different way to add a level of protection to a portion of their portfolio.
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One of the important benefits of a registered index-linked annuity (RILA) is that it provides a level of downside protection. That benefit may give clients more confidence that, even if markets decline, a portion of their portfolio can better weather market swings. That idea of steadiness has often been tied to the role of bonds. But bond volatility in 2023 was at its highest level since 2008,1 and clients may be looking for a different way to add some protection to a portion of their investments.
In this video, Kevin Russ, Director of the Advanced Markets Group at Brighthouse Financial, talks about how financial professionals can explain to clients why a traditional mix of stocks and bonds may not be the only strategy for creating a balanced portfolio. Kevin also discusses how the level of protection associated with a RILA may help increase confidence in their long-term plan.
1 Why the Bond Market Is Getting Whipped by Volatility. Bloomberg, January 22, 2024.
This material is for general informational purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax, accounting, investment, or fiduciary advice. Brighthouse Financial and its affiliates did not consider any individual’s circumstances in preparing this information. Clients should confer with their tax, legal, and accounting professionals in addition to consulting with a financial professional.
Annuities are issued by, and product guarantees are solely the responsibility of, Brighthouse Life Insurance Company, Charlotte, NC 28277 and, in New York only, by Brighthouse Life Insurance Company of NY, New York, NY 10017 (“Brighthouse Financial”). Variable products are distributed by Brighthouse Securities, LLC (member FINRA). All are Brighthouse Financial affiliated companies. Annuities are long-term investments designed for retirement purposes. The contract prospectuses and contracts contain information about each contract’s features, risks, charges, expenses, exclusions, limitations, termination provisions, and terms for keeping the contract in force. Prospectuses and complete details about each contract are available from a financial professional and should be read carefully. Product availability and features may vary by state or firm.
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