In this training video, we explore how to model variable annuities within the Voyant software, with a special focus on their behavior and benefits during a market downturn. Learn how to illustrate income guarantees, account for market volatility, and demonstrate the potential stability these products can provide in uncertain times.
Transcript
In today’s training, we’re going to cover variable annuities for the US market and how to model them to show their benefit during a market downturn.
Adding a Market Loss to the Plan
First, I’ll show you how to add a market loss into a plan so you can illustrate the impact on a client’s assets.
Scroll down to the Plan Settings section.
Select Major Loss.
Customize the market loss parameters — you can model between 1 and 5 years of downturn.
In this example:
Duration: 3 years
Losses: -15%, -10%, -5% (fixed growth loss)
The software will automatically determine the allocation percentile for these values and adjust any accounts using a custom portfolio accordingly.
Click Done.
Placing the Major Loss Event in the Timeline
Go to the Timeline.
Click the plus (+) button → Event → Major Loss.
Special events like this cause changes in the plan.
The event defaults to the age you selected in Plan Settings, but you can change it.
Click Done to save.
Now, at age 65, the plan includes the major loss event. You’ll see the progress bar drop accordingly.
Returning to the dashboard, you can now see red indicators in the later years (starting at age 82) due to this loss.
Creating a What-If Scenario with a Variable Annuity
Next, we’ll create a What-If scenario to see how adding a variable annuity could provide additional fixed income in the later years.
Create a new Variable Annuity plan.
Go to the plus (+) button → Retirement → Variable Annuity.
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Enter the annuity details:
Name: (e.g., policy name)
Funding: Select Yes if funding from an existing account in the plan; No if it’s already existing.
Type: Qualified annuity.
Enter policy details: Fee rate, surrender period, death benefit.
Growth section: Enter growth assumptions.
Timing: Confirm when the annuity enters the plan.
Beneficiary: For this example, the client is single, so “Charity” is listed as the ultimate beneficiary.
Withdrawal limit: Leave default (max without penalty).
Enabling GMIB
Turn on GMIB Rider.
Enter the interest rate.
Leave inflation set to simple.
Enable step-up with a frequency of every 3 years.
Funding the Annuity
If funding from an existing source:
Select Brent’s 401(k) (qualified annuity).
Transfer: $300,000 (specific amount).
Click Done to save.
Now the plan includes a funded annuity.
In Details, you can see payments starting in 2030 and continuing through the end of the plan.
Comparing Plans
To show the difference between having a variable annuity versus not:
Go to Compare Plans → Chart View.
Compare Current Situation (Major Loss) vs. Variable Annuity scenario.
Example: Year 2042
Current Situation (Major Loss): Shortfall = $58,100
Variable Annuity: Shortfall = $34,000
This reduction is due to:
The GMIB rider
Fixed income from the annuity
Even after early market losses, the client has a more dependable income in later years.
Example: Age 87
Without Annuity: Shortfall = $56,481
With Annuity: Shortfall = $33,545, plus $27,722 in annuity income.
This demonstrates the benefit of adding a variable annuity as a buffer in down markets.
I hope this was helpful. If you have questions, you can:
Email support@planwithvoyant.com, or
Click your client’s name in the top right → Request Support, enter your question, and share client access.