Ivy Funds Variable Insurance Portfolios (VIP)
As baby boomers approach retirement, and with many already in retirement, they face a struggle to build nest eggs that are capable of lasting 20 or 30 years. A recent study by the Employee Benefit Research Institute indicated that, the percentage of workers planning to work after they retire has increased to 72 percent in 2009 (up from 66 percent in 2007).* Consequently, more investors are considering annuities as a source of a guaranteed stream of income later in life.
An annuity is a contract between you and an insurance company to provide you future income, usually during retirement. Key to the ongoing earnings growth potential of variable annuities are the underlying investments. Ivy Funds Variable Insurance Portfolios serve as the underlying investment for a number of insurance products, including variable annuity contracts and variable life insurance policies.
Ivy Funds Variable Insurance Portfolios, Inc., formerly known as W&R Target Funds, Inc., was launched in 1987 and today includes 20 individual portfolios and 5 managed fund-of-funds portfolios covering most major asset classes.
An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market funds.
This risk/return potential spectrum shows our assessment of the potential levels of risk vs. return among the four broad asset classes offered within the Ivy Funds. Placement of the four asset classes on the spectrum has been determined by examining the risk profile (based on standard deviation) of each of the funds within each asset class. Individual funds listed under each of the four asset classes will vary in risk and potential return relative to other funds within the Ivy Funds family. All funds involve a certain degree of risk, and there can be no assurance that any of these funds will experience more or less volatility or reward than any other fund.
Whether an annuity is right for you depends on your risk concerns, liquidity needs, tax situation and other personal considerations. You should consult your financial advisor to answer questions about your specific situation or needs.
You should consider the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product carefully before investing. The portfolio prospectuses and variable insurance product prospectuses (available from your financial advisor or applicable insurance company) contain this and other information. Please read the prospectuses carefully before investing.
Ivy Funds Variable Insurance Portfolios, Inc., distributed by Waddell & Reed, Inc., are only available as investment options in variable life insurance policies and variable annuity contracts issued by participating insurance companies. They are not offered or made available directly to the general public.
There are charges and expenses associated with annuities and variable life insurance products, including mortality and expense risk charges, management fees, fund expenses, distribution fees, administrative fees, expenses for optional riders and deferred sales charges for early withdrawals. Withdrawals before age 59 ½ may be subject to an IRS penalty in addition to taxes. Enhanced death benefits and living benefits are offered for an additional cost.
Please remember that an investment in an underlying fund involves risk. Investment return and principal value of a mutual fund investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.
* 2009 Retirement Confidence Survey, Employee Benefit Research Institute. www.ebri.org