How is the Longevity Benefit taxed?
The Longevity Benefit is taxed as a qualified Roth account. Tax treatment is based on current law and may be subject to change. Savvly does not provide tax advice. Consult a qualified tax advisor regarding your specific situation.
Is the Longevity Benefit insurance?
No. Savvly is not insurance and is not regulated as such. It is an SEC-registered investment structure — a S&P 500 ETF-based index fund with a Longevity Bonus. Unlike insurance products, Savvly does not involve an insurer assuming longevity risk and does not guarantee any specific payout amount.
How is Savvly different from an annuity?
Traditional annuities provide contractually guaranteed lifetime income but typically involve higher fees, limited market participation, and ordinary income tax treatment. Savvly takes a fundamentally different approach: it is a capital markets structure that provides full S&P 500 participation, qualified Roth tax treatment, and a longevity reallocation bonus, but payouts are potential, not guaranteed. The upside is uncapped; the tradeoff is that outcomes depend on market performance and fund behavior. Consult a qualified tax advisor regarding your specific situation.
How can Savvly complement my 401(k) or IRA?
Savvly is designed to work alongside, not replace, existing retirement accounts. A 401(k) or IRA focuses on accumulation and drawdown through retirement. Savvly addresses what happens after that drawdown period ends: potential income at 80, 85, 90, and 95. Combining both tools may strengthen long-term financial resilience, though outcomes depend on individual circumstances and market conditions.
What happens if I exit the fund before a payout date?
The early withdrawal value is calculated as 75% of your contribution plus an additional 1% for each year held, capped at 100%. This percentage is applied to the lesser of your original investment (excluding any sales load) or its current market value, and is calculated for each remaining scheduled payout. When an investor exits early, their uncollected growth may be reallocated to remaining investors rather than to an insurer. For a full breakdown of assumptions and legal disclosures, please review the fund prospectus.
How does Savvly protect investor money?
Contributions are invested in low-cost S&P 500 ETFs from Vanguard and Fidelity — two of the world's largest and most trusted asset managers. Assets are held in custody at US Bank, a third-party custodian entirely separate from Savvly. Savvly never directly holds or manages investor assets.
What happens if I change jobs?
Savvly's Longevity Benefit is fully portable. If a investor changes employers, they maintain control of their account and may continue contributing personally. Their employer's contributions will stop, but the account itself, and all accrued potential benefits, which remains with the investor. This portability is a key structural difference from employer-tethered benefits.
Are payouts guaranteed?
No. Payouts at ages 80, 85, 90, and 95 are potential outcomes, not guarantees. Actual amounts depend on S&P 500 market performance, fund size and behavior, contribution amounts and timing, and other factors. Savvly is not an insurance product and does not guarantee any specific income or return. Investment involves risk, including possible loss of principal.