RiverSource RAVA 5 Advantage offered by River Source

Introduction
Type of Product Variable Annuity
Product NameRiverSource RAVA 5 Advantage
Offered byRiver Source
Company Info

Built on a heritage of more... read more

Contract and Purchasing
Minimum Premium Payment2000
Maximum Premium Payment1000000
Minimum Additional Premium Payment50
Maximum Age at Start of Contract90
Investments
Ability to Select Asset AllocationYes
Total Number of Investment Options69 [Find annuities with more investment options]
Fixed Account
Features and Benefits
Free WithdrawalsYes
Free Withdrawal Limit10
Waiver of Withdrawal ChargesAvailable
Guaranteed Death BenefitAvailable
Are Telephone Transactions AllowedYes
Fees and Expenses
Minimum Total Fees and Expenses1.45 [Find annuities with lower fees and expenses]
Maximum Total Fees and Expenses3.08 [Find annuities with lower fees and expenses]
Minimum Mortality and Expense Risk Charge "M&E Fee"0.95 [Find annuities with lower mortality and expense fees]
Maximum Mortality and Expense Risk Charge "M&E Fee"1.4 [Find annuities with lower mortality and expense fees]
Administrative Fee50.00 [Find annuities with lower administrative fees]
Contract Maintenance Fee0 [Find annuities with lower contract maintenance fees]
Early Withdrawal Charges / Surrender Fees
Minimum Investment Management Fee0.5 [Find annuities with lower investment management fees]
Maximum Investment Management Fee1.68 [Find annuities with lower investment management fees]
Sales Compensation
Maximum Commissions7.5 [Find annuities with lower commissions] [Find annuities with higher commissions]
Contact Information
Company OfferingRiver Source
Company TypeInsurance Company
Phone Number800-333-3437
Websitewww.riversource.com
Talk to a Financial Advisor
Contact Information Connect with a Financial Advisor
Reviews and Ratings
Average Review

2/5 from 1 Reviews


Key Phrases:
Annuity Product Types: 

Product Ratings and Reviews

Rating:
2
Average: 2 (1 vote)

It's worthwhile to note that the only investment option available to owners of the Riversource RAVA 5 variable annuity (IF the owner has chosen to include an optional living benefit rider) is the Columbia-VP Managed Volatility fund.

In other words, if you select an optional living benefit feature with this VA, 100 percent of your assets must be invested in the managed volatility fund.

What, then, is the Columbia managed volatility fund?

While it's not entirely clear, the Riversource video on the fund describes a sort of constant reallocation of assets among equities and fixed income.

When "market volatility is expected to rise" (who has the market volatility crystal ball?), assets are shifted from equities to fixed income.  When "market volatility is expected to fall", assets are shifted from fixed income to equities.

What is the proxy for market volatilty and why the assumption about a directly inverse correlation between volatility and equity returns?

How well has this fund performed?  Since its inception (4/19/2012), a total return of 2.80 percent and a gross expense ratio of 1.02 percent. So 1.78 percent net since inception in April of 2012?  Ouch.  S&P is up 3.34 percent since April 2012.

Managed volatility seems good for the issuing company but maybe not so good for the VA owner? 

451 reads

While efforts are made to keep information on this page accurate and updated, the information shown on this page may be variable or out of date. Always check the issuing company's website or other public data listings for the latest information applicable to you as actual information may vary.