Is Investment Edge a Variable Annuity?
Yes, Investment Edge is a variable annuity. The variable annuity structure provides a number of tax benefits that are not available under a typical taxable account, including:
- Tax-deferral during accumulation: Until withdrawals are made, any earnings are tax-deferred, as they would be in a 401(k) or IRA account. Any gains realized from trading within the account, or gains realized when allocations are rebalanced, are not taxable until the investor withdraws money in the future.
- Tax-efficient distribution for non-qualified contracts with Income Edge. If the original contribution to an Investment Edge account is made with after-tax money (i.e., you’ve already paid taxes on that money), a portion of each payment withdrawn will be tax-free.
These tax benefits make Investment Edge particularly appropriate for investors who have maxed out their contributions to tax-deferred retirement accounts, but wish to invest additional money for long-term needs.
How is Investment Edge different than traditional annuities with guaranteed benefit riders?
Investment Edge offers no guaranteed benefits, which means there are no rider fees.
What is the fee structure for Investment Edge?
Investment Edge is offered in three distinct series with their own respective management fee structures - Investment Edge ADV, Investment Edge Select, Investment Edge. Click on the Investment Edge series name to view the Fact Sheet for fee details.
How flexible is it for clients to access funds invested in Investment Edge?
Maintaining liquidity and flexibility are important investor objectives. To benefit from the powerful tax advantages offered by Investment Edge, the IRS requires that funds remain in the account until age 59½ to avoid a tax penalty. Typically, most investors are saving for retirement, so the discipline resulting from this rule is a long term positive. If an investor needs to withdraw funds before 59½, he/she can pay a 10% additional income tax penalty and pay taxes on gains.
Investors who are 59 ½ and older have multiple distribution options including the customized payment program which leverages an exclusion amount, Income Edge, other systematic withdrawal services, including our Automatic Required Minimum Distribution service and lump sum distributions. Withdrawal charges apply for Investment Edge withdrawals, but the charges on each contribution decline from 6% to 3% over five years.
How can I be appointed to sell Investment Edge?
Becoming appointed to sell Investment Edge is easy; simply call the AXA Distributors Sales Desk at 888-517-9900.
Which investor profiles would Investment Edge be best for?
Likely clients and prospects for Investment Edge are:
- Investors who have maxed out their tax-advantaged options, such as 401(k)s, 403(b)s and IRAs, and still have $25,000 or more in investable assets
- Investors who are in the wealth-building stage (under 55 years old), transition stage (55-64 years old) and retirees (65 and older)
- Investors looking to defer their investment earnings from current taxes and their distributions to improve income flow
- Investors who do not want guaranteed death or income benefits
Investors with qualified assets who are seeking streamlined portfolio management and the convenience of a comprehensive line-up of investment opportunities, including alternatives and packaged portfolios, on a single platform.
Is Investment Edge only for non-qualified accounts?
Investment Edge can offer investors with qualified assets both streamlined portfolio management and the convenience of a comprehensive line-up of investment opportunities, including alternatives and packaged portfolios, on a single platform. The Income Edge program is only available with non-qualified accounts.
Can I build my client’s portfolio with “Packaged Portfolios” and individual investments?
A: Investment Edge offers the flexibility to build a diversified portfolio for your clients from both packaged portfolios and individual investment opportunities. For simplicity and ease of choice, Investment Edge offers 120+ investment options from world-class investment managers, including Packaged Portfolios, designed to provide broad coverage of a particular investment objective or asset class with a single investment choice.
“AXA Equitable” is the brand name of AXA Equitable Financial Services, LLC and its family of companies, including AXA Equitable Life Insurance Company, MONY Life Insurance Company of America, AXA Advisors, LLC, AXA Network, LLC and AXA Distributors, LLC. All AXA Equitable companies are directly or indirectly owned by AXA Equitable Financial Services, LLC, and have offices at 1290 Avenue of the Americas, New York, NY 10104, (212) 554-1234.
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