Finally, a new retirement product is here
Savvly is the first product category of its kind designed to provide two sources of return. When you live a long life, it can pay you market returns and substantial long-life bonuses that are uncorrelated with the markets.
Take Savvly for a test drive
LOW FEE STRUCTURE
Savvly fees are just 0.5% annually. Refer to the Private Placement Memorandum for a comprehensive view of terms, which may include transaction fees associated with liquidation events.
LOW COMMITMENT
Invest as much and as often as you want. Minimum investment is $100/mo or $1,000 one time. For a limited time, new clients can withdraw from Savvly with no penalty for the first two years.
MOBILE APP
Be sure to download our mobile app to learn even more about Savvly, play out scenarios with the estimator, and view your Savvly balance.
What Savvly is (and isn't)
It’s an alternative retirement investment that can pay out market returns and long-life bonuses.
It’s not an insurance policy. It can provide significant payouts while you’re still alive.
It’s a tax-efficient way to hedge against the expenses that come with a long life, built on as little as 5% of your savings.
It’s not an actively managed fund. It’s a private, secure investment in an ETF that tracks the S&P 500.
Savvly late-life payouts can give you financial confidence at a fraction of the cost of the alternatives.
It’s not an annuity, but can still provide a sizable income stream for long-life protection.
What you can experience
Meet Sally, your Savvly AI advisor
Case studies
Read some examples of how people can benefit from using Savvly in their investment strategy.
Savvly helped Dana leave her daughters a fortune
Dana recently sold her business for $10M, leaving her enough to retire comfortably. However, she wants to make sure she leaves as much as possible to her two daughters, while optimizing his tax efficiency.
Dana puts $300K into the Savvly longevity pool and selects a payout age of 90. Her Savvly investment would have grown to ~$3.8M in 35 years, but with her Savvly multiplier, it ended up being $10.8M!1 Plus, Dana had more than enough in other assets to hold those shares with unrealized gains until she passed away at 96. Those shares (now worth over $16.6M and still untaxed) were left to her children, at which point the tax basis stepped up from $300K to $16.6M.
Savvly helped Fred retire early and spend more now
Fred, 57, wants to spend less time working and more time traveling. To hit his target income of $15,000 per month, he’ll need $4.5M2, but he currently has just $3.6M. This means he’ll need to work four more years before he can start living his retirement dreams3.
Fred allocates less than 10% of his portfolio to Savvly and selects a payout age of 85. This lets him retire today, since the lump-sum payout will have him covered later in life. Plus, with his Savvly payout, he would have over $6.4M left at age 85, so he can rest assured he can maintain his lifestyle and won’t expect to outlive his savings. With Savvly, Fred can put in his notice at work today and start planning his first adventure!
3. Assumes net accumulation of $61K per year until retirement, retirement portfolio real growth of 4% per annum, and S&P 500 real growth of 7.5% per annum
Savvly helped Victor enhance his lifestyle now
Victor has built up wealth of $20M over his career and is ready to retire at 65 years old. He has a couple of wishlist items that add up to $5M. He wants to make these purchases, but knows he needs to protect his estate, too.
Victor’s adviser showed him that a small $500K investment in Savvly with a payout age of 90 can make this happen. By serving as a counterbalance to longevity and taking advantage of the fact that HNW individuals live longer, Victor could still make all of the purchases and investments he desires, sacrifice nothing, and still leave $12.6M to his children!4
Your questions, answered.
What makes Savvly work?
When some investors withdraw or pass away early, their market returns (and in some cases, potentially a small fraction of their initial investment, based on the 75% +1% for each year formula) are reallocated to other investors. This results in late-life payouts that can provide 2-3x greater returns than investing in the same funds without Savvly.
What type of investment is Savvly?
Savvly is an alternative investment structured as a Limited Partnership.
Savvly is not an insurance policy or annuity. There is no insurance company taking profits. Instead, that money goes to all the Savvly investors.
Savvly is not a traditional investment fund. Assets are invested in a brand name fund that tracks a major stock market index like the S&P 500. Savvly does not manage this fund. It is held by a third-party custodian, Interactive Brokers.
Is Savvly investing my money?
No. Savvly is not a traditional investment fund. Savvly does not buy and sell investments for return. Instead, money is invested in a low-cost ETF fund: Vanguard S&P 500 ETF (VOO). This investment in VOO is held by a third-party custodian, Interactive Brokers, which ensures the integrity and security of the investment. Savvly’s role is to manage the payouts and the reallocation mechanics among Savvly investors.
How does Savvly secure funds?
Investments are held securely in a Limited Partnership owned by the investor and the other participants, not by Savvly. Investors' money is not on Savvly’s balance sheet. Via the Limited Partnership, investors retain ownership of their funds.
What happens if Savvly ceases operations?
In the highly unlikely case Savvly ceases operations, ETF shares including any market gains and Savvly bonus will be transferred back to the investors.
Who can invest in Savvly?
Accredited Investors, who earn more than $200k per year (or $300k per year with a spouse), have a net worth of $1M or more, or are an investment professional.
What is the investment minimum?
The minimum investment is $1,000 for or $100/month installments.
How much should someone invest in Savvly?
For most people, we recommend investing no more than 10% of your total portfolio in Savvly.
How much of my initial investment goes into the private social security pool?
When a new participant invests, their entire investment goes into the private social security pool. Tiny fractions of cash may remain uninvested, but still allocated to each participant.
Which accounts are eligible?
Participants should use after-tax funding sources for small periodic investments from the bank accounts. Qualified money (eg, IRA, 401k) can be invested in Savvly via lump-sum payments. Connect with a Savvly financial specialist to learn more.
How does Savvly estimate payouts?
Savvly estimates payouts through the same actuarial science insurance companies use, but with enhanced benefits for investors. Similar to traditional Social Security, the longer you live, the more you can get over time.
Are there medical requirements?
No. There is no medical exam required and participant funding levels are not impacted whatsoever by medical history. Do not invest in Savvly if you expect a short life.
What if I withdraw or pass away before the payout age?
For early distribution, participants will receive 75% of their initial investment + 1% for every year invested in Savvly. Savvly will retain a small fee, and the remainder of the balance will be shared among the other Savvly investors.
Is there an option for couples?
Yes! Couples can invest in Savvly independently as long as the total amount invested meets the minimum requirement.
What's the minimum investment period?
The investment must be held for at least five years, and the minimum payout ages are 75 (men) and 80 (women). Investing when you are young is expected to provide the best benefits.
When and how is my payout received?
Standard payout ages are 75, 80, 85 and 90 for men, and 80, 85, 90 and 95 for women who are expected to live longer lives.
By speaking with a Savvly specialist, some participants may choose their own payout age. It can be any age 70+ for men and 75+ for women, provided a minimum investment hold period of five years. The Savvly specialist can help you select your payout age based on your individual needs. Selecting your own payout age may require higher minimums and consultation.
Why has nobody offered this before?
Savvly’s new model for longevity risk protection was inspired by a new wave of regulations, such as the Secure Act, which aims to help Americans experience greater prosperity in their later years.
More questions?
Reach out to our team at meet@savvly.com or book a meeting here.
Savvly Questions
Is it a traditional investment fund?
No. Savvly is not an insurance policy or annuity. There is no insurance company taking profits from the investment pool. Instead, that money goes to other investors in the Savvly pool.
What type of investment is Savvly?
Savvly is an alternative investment structured as a Limited Partnership.
So, Savvly is investing my money?
No. Savvly is not a traditional investment fund. Instead, your money is invested in the top S&P 500 tracking fund VOO, managed by Vanguard and held by interactive brokers. Savvly's role is to manage the mechanics of the new participants entering the pool and exiting the pool.
Why has nobody offered this before?
Savvly’s new model for longevity risk protection was inspired by a new wave of regulations, such as the 2019 Secure Act, which aimed to help Americans experience greater prosperity in retirement.
What happens if Savvly goes out of business?
In the unlikely case that Savvly goes out of business, all investors retain ownership of their investments via the limited partnership. Clients assets are never on Savvly balance sheet.
Investing Questions
Who can invest in Savvly?
No. Client money is invested in a brand name fund that tracks a major stock market index. Savvly does not manage this fund. It is held bSavvly is currently available to accredited investors and qualified purchasers. To qualify as accredited, an individual must earn more than $200K/year (or $300K/year with spouse), have a net worth over $1 million, or be an investment professional (e.g., a licensed associated person of a broker-dealer or investment adviser). To qualify as a qualified purchaser, an individual must have a net worth of $5 million or more. The minimum investment is $10,000 for accredited investors and $100,000 for qualified purchasers.y a third-party custodian.
Which accounts are eligible?
Clients should use after-tax funding sources.
Is there an option for couples?
Couples can invest in Savvly independently as long as the total amount invested meets the minimum requirement.
How do I select the amount of my initial investment?
We start with a recommendation of a 5-10% portfolio allocation.The Savvly team is available to help you during this process. Email us at info@savvly.com or schedule a call on savvly.com.
Payout Questions
How should I select my desired payout age?
We recommend a standard multiple payout option that should fit most client needs, but clients and their advisers can customize them. We typically recommend a payout age of 75 or older.
Can I invest my Savvly funds in any funds other than the pre-selected market-tracking ETF?
Currently, we invest all funds into Vanguard S&P 500 ETF (VOO). We will notify you when more options become available.
When and how is the payout received?
You and your adviser will choose your own payout age or use our recommended multiple payout age option. The payout age can be any age 70+ for men and 75+ for women, provided a minimum investment hold period of 5 years. On that date, you will receive a one time payment in a single in-kind transfer of assets. This amount equals the return-adjusted value of the Vanguard index fund, plus your share of the Savvly longevity pool. This transfer is executed under the Limited Partnership agreement.
Can I distribute investments across several payout ages?
Yes, as long as the total amount invested meets the minimum requirement.
What if I withdraw or pass away before the selected payout age?
In this case, your original investment (75% + 1% for every year with Savvly, applied to the lesser of either the initial investment or current market value) is returned back to you or your estate. This applies unless it's within two years of the initial investment. See Early Withdrawal Penalty Clause.
Is There an Early Withdrawal Penalty Clause?
For the first two years, clients can withdraw from Savvly with no penalty. In this case, they will receive their initial investment, adjusted for the returns from the Vanguard ETF fund.
Savvly compared to annuities
Another way to add long-life protection is through buying an annuity. This investment option is popular for good reason — it provides a regular monthly income on top of Social Security. However, some annuities may have large overhead expenses and significant portions of market and mortality gains may not go to clients.
In the example below, Jim purchases an annuity while Wendy opts for Savvly.
See how they compare.
Jim makes annuity premium payments to an insurance company, typically a large portion of his savings.
Wendy allocates just 5% of her total portfolio to Savvly.
If the market grows, the value of the annuity grows slower than the market because it’s hedged against market drops.
Her investment, alongside other Savvly investors’ contributions, is invested in a market tracking ETF. Accumulation of the investment is not guaranteed; however, the investment follows the market and historically sees an average 8-9% market growth/year.
The investment portfolio performs as guaranteed and returns slow growth over time.
Wendy’s investment performs as the market dictates and returns growth over time.
There is no additional source of growth.
Some investors pass away or withdraw before their payout age. As initially agreed, their investment gains are reallocated to Wendy and the other Savvly investors.
Regular payments are made to Jim. The cash value of Jim’s investment drops during the annuitization
When Wendy reaches her payout ages of 80, 85, 90, and 95, she receives payouts that include the market returns of her investment and her Savvly long-life bonus. This replenishes the value of her account.
The insurance company may keep a significant portion of Jim’s market returns in exchange for guaranteed income.
All market returns (and potentially a small portion of their initial investment) from those who pass away or withdraw before their payout age are reallocated among Savvly investors, including Wendy.
Jim would choose an annuity because he's worried about losing money in the market and wanted some regular monthly income on top of Social Security.
Wendy would choose Savvly because she wants the most out of her retirement dollars. The late-life payouts replenished her account and helped protect her estate from unexpected expenses.
If you want regular income and protection even though it may not keep up with inflation, you could consider investing a sizable portion of your assets in an annuity.
If you want to protect yourself and your estate with a minimum investment linked to the market with a potential additional upside, the Savvly long-life bonus, you could consider investing as little as 5% of your portfolio in Savvly.
Speak with a Savvly specialist to learn more.
