Move over IRAs and 401ks, there’s a new retirement product called Market Trust in town.
Like other Save products, our newly-launched Market Trust combines market-driven APY** with principal protection when held for the full term.4 Market Trust marks the first time we have made our advisory technology available to retirement-saving customers and advisers.4
Market Trust helps make up for lost time safely through a conservative investment program using S&P 500 Risk-Controlled Portfolio that achieves principal protection based on a five-year term and a variable APY** of 12.48% based on historical performance.
But how can Market Trust provide such a high variable APY?**
After you make a deposit, Save’s investment team works with our partners to fund investments in your selected portfolio which will produce a variable APY.** Your returns could be higher or lower than the advertised APY** depending on the performance of the portfolio, but they can never be lower than zero.
In other words, your APY is derived from the performance of those investments — and if they perform well, so will the APY.**
How can we offer principal protection for Market Trust?
A Market Trust program is principal guaranteed if held for the complete 5-year term. When a program is started, we open an investment account at Apex Clearing (SIPC-insured) and set up a Trust. Based on your investment profile, we allocate investments to your program. The allocations guarantee your principal and provide market upside. Your program will mature after five years.
Most Market Trust’s investments go into the S&P 500 Risk-Controlled portfolio. Learn more about investments on our investment portfolio analysis page. On a daily basis, you will be able to see your program performance by logging into your Save app.
After five years, when the investment program matures, any net returns are paid out in cash or participants can elect to renew the program for an additional 5-year term based on availability.
Market Trust is ideal for people who:
- Are comfortable with an investment of five years or more
- Are comfortable exchanging limited liquidity during the five-year period for higher return potential
- Are 55 years old or older and intend to use this program for retirement savings
An additional benefit of Market Trust is the way it’s taxed. Any Market Trust investment gains are taxed as long-term capital gains like any other market investment, as the term is over 1 year.2 The interest paid by the guaranteed interest rate product is tax deferred until maturity at which time it is taxed as ordinary income tax.2
In comparison, returns from other investment products such as CDs and fixed-indexed annuities are normally taxed as income. The investment portion of Market Trust gives users a tax advantage they wouldn’t normally receive.
Furthermore, Market Trust customers can benefit from the Save Referral Program. Customers who refer earn bonus equivalent portfolio investments†† of $10,000 for both themselves and each friend they refer to Market Trust.
If you’re worried about retirement, let us help you make up for lost time safely through a conservative investment program that achieves principal protection based on a five-year term and a market-driven variable APY** of 12.48%. Explore Market Trust.
** An APY (or annual percentage yield) is the yearly return on a bank or investment account. The Save Market Trust Program is a hybrid product and service that includes allocations to (1) a guaranteed interest rate product and (2) an investment within Save’s portfolio of strategies. Guaranteed interest rate products include but are not limited to annuities or other insurance products. The investment portion of the Save Market Trust Program offers the potential to earn an APY with a variable rate (Variable APY). The Variable APY, if any, is derived from the investments made by Save on behalf of the customer within Save’s portfolio of strategies over the duration of the Program term length selected by the customer. The Variable APY, if any, will be equal to the cumulative return for the investments selected for you by Save for the selected Program term on the applicable maturity date, net of advisory fees. The Variable APY may be 0% but will never be less than 0% per annum (Minimum Variable APY). If the Variable APY applicable to a particular maturity date is equal to the Minimum Variable APY, the customer will not receive any Variable APY return for that investment upon maturity. Variable APYs are subject to change at any time. Variable APY is not guaranteed. The Variable APY advertised and presented for the Market Trust Program is based on historical performance in the S&P 500 Risk-Controlled Portfolio from 2009 to present and reflects the back-tested hypothetical customer account returns that could have been produced by the historical performance if the investment is held for the entire term selected. All back-test statistics are hypothetical and have been designed with the benefit of hindsight. For more detailed information please see Hypothetical Back-testing. Variable APYs presented for all portfolios are shown net of fees. Both historical performance and hypothetical back-tested performance are no guarantee of future performance and actual results will vary. Withdrawal prior to the end of a term will result in additional withdrawal or surrender charges and may result in additional associated costs.
2. Articles and customer support materials provided by Save Advisers are for informational and general educational purposes only and are not investment or financial advice. Additionally, Save Advisers does not provide tax, legal or accounting advice, and investors are encouraged to consult with their personal advisers.
4. The minimum investment amount for a Save Market Trust is $10,000 for a 5-year term. Management Fees associated with the investments may reduce earnings on the Account. Withdrawal prior to the end of a term will result in additional withdrawal or surrender charges and may result in additional associated costs. Customer funds allocated to Market Trust will be deposited initially into a non-interest-bearing deposit account at a partner bank. The exact amounts allocated for both the purchase of the annuity and the purchase of the investments may vary and are dependent on prevailing market rates. Customers will be able to view exact allocations within their Save account. The majority of the Market Trust assets will be used to purchase an annuity contract issued by a life insurance company that is not affiliated with Save Advisers. When the annuity contract is ready for funding, Customer funds will be transferred from the deposit account to the issuing insurance company. The annuity contract will be held within a grantor trust where the client is the grantor of the grantor trust and the annuitant under the annuity contract; and the Company is the trustee of the grantor trust. The majority of the assets that remain after the purchase of the annuity contract will be allocated to a third-party custodial clearing broker and used by Save to purchase investments on the Customer’s behalf, with any remainder to be held as cash reserve in the Customer’s clearing broker account. The investment portion of the Market Trust account and service is provided by Save Advisers. Neither Save Advisers nor any of its investment affiliates is a bank. The annuity contract is backed by the issuing life insurance company, subject to its financial strength and claims-paying ability. The insurance companies that Save chooses for the Market Trust Program are all U.S.-domiciled life insurers that have been issued a B++ (Good) or higher Financial Strength Rating by A.M. Best. A.M. Best is a large third-party independent reporting and rating company that rates an insurance company on the basis of the company’s financial strength, operating performance, and ability to meet its obligations to contract holders.