The Vanguard Group has expanded its annuity offerings to include a new product designed for tax-sensitive investors who want to supplement their portfolios with a low-risk vehicle, the company announced today.
The Single 5 fixed annuity will offer a guaranteed rate of return of 5% for five years, the company said. The tax-deferred product will be underwritten by Jefferson Pilot LifeAmerica Insurance Co. and will require a minimum investment of $10,000.
Vanguards Fixed Income Group will oversee the products pool of fixed-income securities.
The firms CEO, John Brennan, said the product is designed "for investors seeking a conservative, tax-deferred investment."
Vanguard began offering a variable annuity program called the Vanguard Variable Annuity Plan in 1991.