We're all uncertain of a few important things – how long we’ll live, what healthcare expenses might arise, and how much we’ll be able to leave behind to loved ones. It’s impossible to know how much we'll actually need, leaving us working longer or spending less in retirement.
Even wealthy investors can outlive their savings or end up living in frugality. Savvly is on a mission to change that by delivering investors an additional income stream in retirement.
of today’s 65-year-olds can expect to live past 90
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of people run out of money before they reach 85
the average cost of healthcare in retirement
Savvly helps remove some of the uncertainty out of retirement planning. Just a tiny investment can give you lifetime payouts made up of your investment's market returns plus a long-life bonus.
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It’s an alternative investment that can pay you market returns and long-life bonuses.
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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 future expenses, built on a tiny fraction of your portfolio.
It’s not an actively managed fund. It’s a private investment in an ETF that tracks the S&P 500.
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It can give you long-term financial security at a fraction of the cost of alternatives.
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It’s not an annuity. But it can still provide a sizable income stream for long-term protection.
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Payouts can replenish your account balance over time, helping ease your retirement worries.
Uniquely designed to reallocate early withdrawal fees as a bonus to those who live long lives.
Even if the market goes down, there's a second source of return that can provide an upside long-term.
Investing starts at $100/mo, with no long-term commitments. Start, stop, or change amounts anytime!
Assets are invested in leading low-cost ETFs by the largest asset management companies in the world.
Savvly is taxed as a long-term gain so you and your beneficiaries can keep more of your investment.
In-kind distribution: Savvly payouts are distributed in-kind, meaning they are not taxed until the shares are sold.
Long-term capital gains: Savvly is taxed at the long-term capital gains tax rate.
Tax basis step-up: A basis step-up can greatly reduce the taxes beneficiaries owe. For example, if a client holds all their shares until they pass away, their family may not need to pay income taxes on the profit.
Minimum
Investment:
$100/mo. Change or
stop anytime.
Management
Fees:
0.5% (50 bps)
annually.*
Return on
Investment:
Returns of index fund plus the Savvly bonus.
Easily link your bank account to invest with after-tax money. Set up a monthly draw or invest just once.
Your money, alongside other Savvly investors’ contributions, is automatically invested in a low-cost ETF that tracks the S&P 500.
You retain ownership of your investment and its market performance.
When you reach your payout ages, you’ll get a payout that consists of your investment's market returns and your Savvly long-life bonus.
Just like a traditional pension, the longer you live, the more you can get over time.
Payouts are designed to return 2-3x more than investing in the same funds on your own, as long as you live until your payout ages and do not withdraw early.
When some investors withdraw or pass away early, their market returns (and potentially a small fraction of their initial investment) are reallocated to other investors as the Savvly bonus.
Savvly estimates payouts through the same actuarial science insurance companies use, but with enhanced benefits for investors.
If an investor withdraws or passes away before their payouts start, they or their beneficiaries would receive the majority* of their investment back. Their market returns would be reallocated.
Your investment is always held with the largest asset management firms, like Vanguard.
Your ETF shares are held in custody not by Savvly, but by an independent third-party custodian, Interactive Brokers.
Your assets are never on Savvly's balance sheet. If something happens to Savvly, you'll get your investment back.
As with any other investment, investing in Savvly carries some risk.
If a client withdraws early or passes away before receiving they or their estate will receive 75-100%* of their investment back. All investment gains are reallocated to other Savvly investors. For example, if an investor takes early withdrawal after 10 years, they get 85% of their investment back.
Client assets are invested in Vanguard VOO, an S&P 500 index fund with expected market fluctuation and growth over time. Even though markets have historically grown long-term, growth is not guaranteed. The client always retains ownership of their investment, however, even the largest asset managers such as Vanguard may have unexpected outcomes.
Savvly estimates client returns with actuarial science, the same science insurance companies have been using for years. Early withdrawal assumptions may be different than what was estimated, resulting in a smaller or larger long-life bonus. While market performance has a higher impact on returns than actuarial assumptions, results may very.
Explore these hypothetical examples of how investors use Savvly to reach their retirement goals.
At 75, he can get payout of $98k. At 80, he can get $132k. At 85, he can get $184k. And at 90, he can get $252k for a total of $666k!
That's $451k more than what he could get investing the same market-tracking ETF on his own!
Knowing he can expect long-term payouts to replenish his accounts, Matt can retire 3 years early at 62, and still have money by age 100.
Download the app and find out how Savvly can help you reach your retirement goals.
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Assumes S&P average growth of 8% per year.
Beth has $500k saved for retirement and can expect $18k annually in Social Security. With annual expenses of $50k, she could run out of money at 97.
But with her $50k investment in Savvly, she can get long-term payouts that total $672k. At 80 she can get $82k, at 85 she can get $115k, at 90 she can get $176k, and at $95 she can get $298k.
With Savvly, Beth could boost her spending by 20% to $60k each year and still have $220k left at age 100!
Download the app and find out how Savvly can help you reach your retirement goals.
Download AppAssumes S&P average growth of 8% per year.
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By the time Ray turns 90, he could receive a total of $1.4M across four payouts, compared to just $496k if he invested in the market on his own.
If he leaves the $1.4M in his estate, once the shares are inherited, the tax basis could potentially be stepped up from $120k to $1.4M. This means Ray's family may not pay long-term capital gains tax on the profit of $1.2M or more!
Download the app and find out how Savvly can help you reach your retirement goals.
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| Savvly | Savings account | Annuity contract | Investment fund | Long term care | |
|---|---|---|---|---|---|
| Provides market returns | %208.svg){kind=icon} |  | Depends | | |
| Potential market upside | | | | | |
| Manages longevity risk | | | | | |
| No credit risk | | | | | |
| Provides tax advantages | | | | | |
| No medical exam required | | | Depends | | |
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. Download the guide to see how Savvly stacks up!
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Savvly is currently available to accredited investors. You qualify if at least one of these applies to you:
You earn $200k/year or more
You and your spouse earn $300k/year or more
You have a net worth of $1M or more
You are an investment professional
But it's important to know, we're working hard on making Savvly available to all investors very soon.
Download AppNow more than ever, in the wake of inflation, supply chain disruption, wars, and the rise of AI, there are no shortage of factors impacting the global economy. This guide will not only educate and refresh your memory on the fundamental principles of investing, but also enlighten you with some expert tips that are often overlooked.
Invest Smart Guide
© 2024 Savvly. All rights reserved.
Savvly Advisor, LLC is an exempt reporting advisor. Information presented is for educational purposes only intended for a broad audience. The information does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Savvly Advisor, LLC has reasonable belief that this marketing does not include any false or material misleading statements or omissions of facts regarding services, investment, or client experience. Savvly Advisor, LLC has reasonable belief that the content as a whole will not cause an untrue or misleading implication regarding the advisor’s services, investments, or client experiences.Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, nature and timing of the investments and relevant constraints of the investment. Savvly Advisor, LLC has presented information in a fair and balanced manner.Past performance is not indicative of future performance. Principal value and investment return will fluctuate. There are no implied guarantees or assurances that the target returns will be achieved or objectives will be met. Future returns may differ significantly from past returns due to many different factors. Investments involve risk and the possibility of loss of principal. The values and performance numbers represented in this report reflect Savvly Advisor, LLC’s management fees. The values used in this report were obtained from sources believed to be reliable. Performance numbers were calculated by Savvly Advisor, LLC using the data provided. Please consult your custodial statements for an official record of value. Savvly Advisor, LLC is not giving tax, legal or accounting advice, consult a professional tax or legal representative if needed. Savvly Advisor, LLC is an exempt reporting advisor and is the investment manager of Savvly Investment Fund 1, L.P., a 3(c)-7 fund and Savvly Investment Fund 2, L.P., a 3(c)-1 fund. The case study examples assume reinvestment of capital gains and dividends, but do not reflect the effect of any applicable sales charges, advisor fees, or redemption fees, which would lower these figures. The case studies are not intended to imply any future performance of the fund.
These case studies are for illustrative purposes only, to help show possible performance for investors. These case studies are created based on various assumptions, and there is no guarantee that these same results will be achieved by investors. The use of hypothetical returns naturally entails inherent risks and limitations. These returns do not represent the performance of any particular investor, account, or portfolio. No representation is being made that any investor will, or is likely, to achieve gains or losses similar to those presented. Please consider these and other factors carefully and do not place undue reliance on hypothetical information. These case studies are based on the following assumptions:
• Case studies assume a 3% early withdrawal rate before payout or death. In case of death or early withdrawal, beneficiaries receive 75% plus 1% for each year the clients remain in the fund, of the lesser of their initial investment or the current market value of that investment.
In addition to standard investment risks, the actual payouts received by clients may be impacted by sequence of returns risk and the volatility experienced within the sequence of returns. Sequence of returns risk is the risk that comes from the order in which investment returns occur. Significant market declines near payout age may reduce that amount received unless a client chooses to extend their investment over a longer duration.In addition to investment risks, the long-term total return of the Savvly is impacted by actual redemption rates (either voluntary or upon death) of Savvly investors. Total returns may decline if mortality rates or voluntary redemptions decline and may increase if mortality rates or voluntary redemptions increase. To the extent investors live longer than predicted by the mortality table, the return provided by the longevity reallocation mechanism will be reduced. No assurance can be given that the mortality experience of Savvly will conform to that reflected in the Actuarial Life Table.
Unlike traditional mutual funds or exchange traded funds (“ETFs”), Savvly operates unique investment fund structures and investors should carefully consider whether their financial condition and investment objectives are aligned with these retirement-focused investments. Savvly may be suitable for an investor primarily concerned about ensuring sufficient capital for the later years of retirement. Savvly may not be suitable for an investor whose primary objective is short term growth. Payouts from Savvly are tied to the life of the investor and, accordingly, people with serious or life-threatening health issues should not invest in Savvly.Savvly is not an insurance company, Savvly investments are not insurance or annuity contracts, and investors will not have the protections of insurance laws. Payouts from Savvly are not guaranteed or backed by an insurance company or any third party, nor are they exposed to counterparty risk from Savvly, as investors have title to assets in the underlying limited partnership in the event that Savvly stops operating.The long-term total return of Savvly may be impacted by volatility and sequence of returns risk. The long-term total return of Savvly will also be impacted by actual redemption rates, and may increase or decline as mortality rates or voluntary redemptions increase or decline. This is not a complete list of the risks associated with an investment in Savvly.Please read the Private Placement Memorandum before investing. Important information about Savvly is contained in the Private Placement Memorandum. Management fees and expenses all may be associated with investments in private placement opportunities. Private placements are not guaranteed, their values change frequently, and past performance may not be repeated.Savvly Advisor LLC is the Manager of funds invested in Savvly. For further information on Savvly, please visit www.savvly.com. Savvly and the Savvly logo are trademarks of Savvly Advisor LLC, registered in the United States.
