Portfolio

Fidelity Investments® Announces New Investment Solution: a Variable Annuity Providing Principal Protection and Growth Potential Developed with New York Life

New York Life Premier Variable Annuity—P Series, with Investment Preservation Rider—P Series Now Available through Fidelity Investments; Helps Investors Stay in Market without Fear of Loss

May 06, 2019 — BOSTON–(BUSINESS WIRE)–Fidelity Investments® today announced the launch of a new deferred variable annuity product that provides investors with growth potential while ensuring guaranteed principal protection. Developed with New York Life, the New York Life Premier Variable Annuity—P Series, with Investment Preservation Rider—P Series also offers market participation with downside protection through a simpler product design relative to other annuities currently offered in the marketplace.

“We want to offer investors a product that is simple and easy to understand, while also providing confidence during periods of market volatility,” said Bill Johnson, president of Fidelity Investments Life Insurance Company.

In fact, a study recently conducted by Cannex on behalf of New York Life confirms that this type of annuity can provide a competitive guarantee relative to other products protecting investors’ principal from loss, while still allowing a chance for growth. In addition, the new product has the added benefit of having an easy to understand pricing structure, as well as a potentially higher upside to market participation.

A Risk/Tolerance Disconnect

“We’ve observed there is a fundamental disconnect between pre-retirees’ risk tolerance and risk need. Fear of losing their hard-earned nest eggs has driven their underinvestment in equities, leaving many to fall short of their retirement goals,” said Dylan Huang, senior managing director & head of Retail Annuities, New York Life. “This new solution empowers clients to plan for retirement confidently, knowing that 100 percent of the money invested is protected against market declines over a 10-year period.”

We’ve observed there is a fundamental disconnect between pre-retirees’ risk tolerance and risk need. Fear of losing their hard-earned nest eggs has driven their underinvestment in equities, leaving many to fall short of their retirement goals...

With the introduction of this product, Fidelity Investments and New York Life continue to build on their successful partnership. Fidelity already offers several New York Life annuity products to help investors meet their retirement and investment goals, including the New York Life Guaranteed Lifetime Income Annuity II, New York Life Guaranteed Future Income Annuity II, New York Life Clear Income Fixed Annuity – FP Series, New York Life Guaranteed Period Income Annuity II, and New York Life Secure Term MVA Fixed Annuity IV.

To learn more about annuities and how they can fit into your overall financial plan, visit here.

 

 

About Fidelity Investments
Fidelity’s mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $7.4 trillion, including managed assets of $2.7 trillion as of March 31, 2019, we focus on meeting the unique needs of a diverse set of customers: helping more than 30 million people invest their own life savings, 22,000 businesses manage employee benefit programs, as well as providing more than 13,500 financial advisory firms with investment and technology solutions to invest their own clients’ money. Privately held for more than 70 years, Fidelity employs more than 40,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit www.fidelity.com/about.
Before investing, consider the investment objectives, risks, charges, and expenses of the annuity and its investment options. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Investing in a variable annuity involves risk of loss—investment returns and contract value are not guaranteed and will fluctuate.
The Investment Preservation Rider (IPR) does not protect the account value from day-to-day market fluctuations or against losses that could be realized before the completion of the holding period. That means the rider will not provide a benefit if the policy is not held for the entire holding period after it is elected or reset. Withdrawals reduce the IPR guaranteed amount proportionally, which may be more than the actual dollar amount withdrawn; so the rider is not intended for clients who anticipate taking substantial withdrawals (including IRS required minimum distributions) before the completion of the IPR holding period.
Tax-qualified plans already provide tax deferral; a variable annuity will not provide additional tax advantages. As variable annuities offer investment and insurance features, they may be subject to fees to which other tax-qualified funding vehicles are not.
Withdrawals of taxable amounts from an annuity are subject to ordinary income tax and, if taken before age 59½, may be subject to a 10% IRS penalty. Surrender charges may also apply.
Issuing company: New York Life Insurance and Annuity Corporation (“NYLIAC”), a Delaware Corporation. NYLIFE Distributors LLC, a limited liability company organized under Delaware law and member FINRA/SIPC, is the wholesale distributor and underwriter for these products. Both NYLIAC and NYLIFE Distributors LLC are wholly owned subsidiaries of New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010. Variable annuities are only offered through properly licensed registered representatives of registered broker dealers. In most jurisdictions, the policy and rider form numbers are as follows (state variations may apply): New York Life Premier Variable Annuity—P Series (ICC18V-P05 or it may be NC18V-P05); Investment Preservation Rider—P Series (ICC18V-R04 or it may be NC18V-R04). Some states may offer this rider under a different name, and benefits may vary.
Fidelity Brokerage Services, Member NYSE, SIPC, and Fidelity Insurance Agency, Inc., are the distributors; they are not affiliated with any New York Life Insurance Company. The contract’s financial guarantees are solely the responsibility of the issuing company.