A variable annuity offers the potential for investment growth along with tax deferral, but at a higher cost compared to fixed annuities. With variable annuities, you can invest in subaccounts like mutual funds, and when ready, convert the balance into income payments. 

While the returns and income depend on investment performance, many insurers guarantee a minimum payout. However, these annuities often come with high fees and restrictions on early withdrawals. The best variable annuities have low fees, flexible withdrawal options, income guarantees, and are backed by financially strong companies. Here are three of the best options in the current market: 

• Lincoln Financials’ American Legacy Target Date Annuity, Annual Fee 0.10% to 0.90%
• Pacific Life’s Pacific Odyssey Variable Annuity, Annual Fee 0.30%
• RiverSource RAVA Vista Variable Annuity, Annual Fee 1.00%

Finsum: There is currently more value in annuities than there was a decade ago due to the risk levels compared to bond markets and the return profile. 

Private credit has shifted from corporate finance to consumer lending, with firms like Elliott, Carlyle, and Fortress purchasing billions in loans from FinTech’s. Companies like Klarna, SoFi, and Upstart, once dominant, have struggled with high costs and rising interest rates, prompting them to offload loans. 

By moving loans off their balance sheets, these FinTech’s hope to boost new lending, though the long-term financial impact is uncertain. Upstart, known for its AI-powered underwriting, faces substantial risks from loan defaults, leading to significant losses. 

Private investors, focused on high returns from loan interest, are seizing opportunities, as seen in deals that boosted stock values for Upstart and SoFi. Despite FinTech’s’ ambitions to disrupt traditional banking, private credit is now positioned to challenge their dominance.

Finsum: We’ll see if private credit can improve where fintech has not, but this could drastically change the industry. 

Holiday travel can bring excitement, but it often comes with a range of stressors due to the sheer volume of people traveling. 

1. Book Early and Use Price Alerts: To avoid the stress of skyrocketing fares, it’s crucial to book your holiday travel as early as possible. Setting up price alerts on websites like Skyscanner can help you track fluctuations and snag the best deal when the time is right. 

1. Consider Less-Crowded Destinations: For example, if you’re dreaming of sun and sand, opt for alternatives to crowded hotspots. Instead of Cabo, try Todos Santos for a more relaxed, affordable getaway with fewer tourists. 

1. Have a Backup Plan: Preparing a solid backup plan is key. Consider purchasing travel insurance to cover potential disruptions, and map out alternative routes to your destination in case your flight gets canceled. 

Millions are hitting the road, airports, and train stations, all with the same idea of seeing loved ones or taking a vacation at the same time.

Finsum: I love using flight monitoring services and historical averages to minimize my holiday flight costs. 

Innovator Capital Management has launched a new ETF targeting the Russell 2000, adding to its Managed Floor suite. This ETF offers small-cap exposure with a built-in downside cushion, limiting potential losses to around 10% over a rolling 12-month period. 

Unlike traditional defined outcome ETFs that lock in a fixed downside and upside cap, this fund employs a laddered options strategy for more flexibility and dynamic risk management. As volatility looms due to uncertainties around the election and interest rates, the fund aims to attract investors who are cautious about small-cap risks but still want exposure. 

This move capitalizes on increased investor interest in small-caps while addressing concerns about potential market downturns. Ultimately, Innovator's strategy is designed to provide both growth opportunities and a safeguard against significant losses.

Finsum: Small caps can outperform in a falling rate environment and this could be a great option for new buffer ETF investors. 

CAIS, a leading alternative investment platform for independent financial advisors, has launched CAIS Advisors, a registered investment advisor aimed at improving portfolio construction tools. Headed by Chief Investment Officer Neil Blundell, CAIS Advisors plans to offer advisory services and customizable alternative investment portfolios.

Blundell highlighted the challenges advisors face when integrating alternative investments into broader portfolios and emphasized how CAIS technology simplifies this process. The new division will also introduce multi-manager registered solutions, spanning private equity, real assets, and hedge funds.

 Additionally, CAIS will debut Compass, a tool designed to streamline portfolio construction using alternative investments. These launches were unveiled at the CAIS Alternative Investment Summit.

Finsum: Model portfolios and construction tools can greatly improve advisor effectiveness and efficiency.