NU Online News Service, Feb. 19, 1:10 p.m. – The Vanguard Group, Valley Forge, Pa., has introduced a new fixed annuity underwritten by Jefferson Pilot LifeAmerica Insurance Company, Omaha, Neb., a unit of Jefferson Pilot Corp.
The Vanguard Single 5 annuity offers a guaranteed rate of return for five years and annual fixed interest rates thereafter.
Vanguard’s Fixed Income Group, which oversees more than $185 billion in assets, will manage the pool of fixed-income securities that backs the annuities.
The company says it designed its new annuity for investors who would like to supplement other forms of retirement savings, such as 401(k) plans and individual retirement accounts.
The new Vanguard annuity provides the option to annuitize the contract at any time without charge. The initial guaranteed interest rate is 5%, with a minimum purchase of $10,000.