Annuity - live off your wealth
Get a monthly income from your accumulated wealth. Your money keeps working while you enjoy the results.
What is an Annuity?
Investing is a time of building your wealth. Afterwards comes the time when you can start enjoying what you have built. A passive monthly income is the goal of every investor, and this is exactly what the annuity is for. It is a unique way of turning your portfolio into regular payouts.
Monthly income
Every month, a portion of your invested assets is automatically sold and sent to your account. We increase your income every year to keep pace with inflation.
Tax exemption
Your assets will be invested in ETF funds, whose gains may be exempt from tax for residents of certain European countries once the relevant legal conditions are met. Depending on your country of residence, this may allow you to withdraw more income from your savings.
Customizable
We will help you adjust investment risk according to your goal - whether you want to leave an inheritance from your savings or spend it all. You can also customize the amount of your monthly income.
How does the Annuity work?
You enter the amount from which you want to receive a monthly annuity.
You choose whether you want to gradually consume the assets or preserve them long-term.
Based on your preferences, we will recommend a suitable monthly annuity amount.
Each month, part of the portfolio is sold and the annuity is sent to your account.
The remainder of the portfolio stays invested and continues to earn.
Koľko peňazí potrebujem na mesačnú rentu?
Orientačnú výšku potrebného majetku môžete odhadnúť pomocou pravidla 4 %. To hovorí, že by ste zo svojho portfólia mali v prvom roku vybrať približne 4 % majetku. Za takých podmienok by vám peniaze mali s vysokou pravdepodobnosťou vydržať vyplácať príjem dlhé roky, aj ak ho budete každoročne navyšovať o infláciu.
V praxi to znamená, že si potrebujete vybudovať majetok vo výške 25-násobku želaného ročného príjmu.
| Monthly income | Výber prvý rok | Potrebný majetok (25x) |
|---|---|---|
| €500 | 6 000 € | 150 000 € |
| 1 000 € | 12 000 € | 300 000 € |
| 2 000 € | 24 000 € | 600 000 € |
Skutočná vhodná výška kapitálu závisí aj od toho, ako dlho chcete príjem čerpať, prípadne či chcete časť majetku zachovať pre dedičov. S výpočtom sa nemusíte trápiť sami, pri otváraní účtu vám poradíme ideálnu výšku mesačného výberu.
Advantages of the Investment Annuity
Higher returns without tax
Broad risk diversification and attractive returns even during withdrawals, which may be exempt from tax for residents of certain European countries, depending on your country of residence.
Low fee
Only one fee: 1% annually + VAT for management. If you invest at least 100,000 euros, you gain Elite status and your fee drops to 0.85% annually + VAT. With a 500,000 euro investment, you can invest with a fee of only 0.65% + VAT.
Without commitment
You do not have to lock your investment for a specific period. You can freely change the withdrawal amounts according to your situation; we do not charge any extra fees for that.Who is the annuity for?
For everyone who has secured themselves and built wealth. Whether you have invested long-term, inherited, or sold your company, Finax offers you an ideal automated solution for long-term asset withdrawal, retirement, and passive income. We brought a revolutionary product with a minimum investment of 50,000 euros.
Want to dive deeper into the Annuity?
Why have a payout portfolio at all?
Prices rise long-term by about 2–3% annually. Imagine you have saved 50,000 euros today, from which you want to secure additional income during retirement over the next 15 years. With average inflation rates, the value of your savings may drop by more than 10,000 euros in 10 years. You can protect your hard-earned assets if you keep them invested even during income withdrawals. The money will keep working and appreciating. Since most people plan to withdraw money over a long period (even 10–20 years), they can afford moderate investment risk. If market declines occur, you have enough time to wait for your investment to recover. You will need a large part of your savings only after many years. Our robo-advisor will help you set the right risk level and monthly withdrawal amount. You just fill out a questionnaire, and we will recommend the strategy best suited for you.
What are the alternatives?
In the case of corporate bonds, for example, the problem is that they often involve extremely high risk. Your income depends on one company or group, which could cause you to lose a large part of promised money if it goes bankrupt. Additionally, their disadvantage is that income must be taxed. Taxes are also a disadvantage with dividend stocks because dividends paid are subject to taxation. Renting real estate is not completely passive income. Caring for property (especially if you have several) requires a lot of time and energy. You must handle minor repairs as well as major renovations, broken doors, or lease agreements. From our perspective, the purpose of assets should be to free you from such hassles so you can spend more time with family or hobbies.
In the case of the 2nd and 3rd pension pillars, the biggest disadvantage is investment setting during the payout phase, i.e., after retirement. During this phase, savings are almost exclusively invested in bonds, although many people plan to withdraw their pension for more than 10 years. For such a long period, it is better to add stocks to the portfolio so you do not lose returns and can enjoy a higher income from your assets.
What happens to my account when I die?
When opening an Annuity account, you indicate whether you want to gradually draw down all your money or preserve its value for future generations. If you want to leave an inheritance, the recommended monthly withdrawal will usually be lower. If your goal is to gradually use up all your assets during your lifetime, you can draw a higher monthly income.
How do we set the investment risk and recommended monthly withdrawal?
When recommending a suitable strategy and withdrawal amount, the robo-advisor considers several factors. First, it looks at how much you will depend on income from Finax. If it is your main source of money, it will recommend lower risk. It also takes into account whether you want to preserve your assets’ value for future generations or spend it all. If you want to spend it all, you can afford a higher monthly income. Lastly, we ask if you are willing, during market downturns, to be frugal and withdraw a somewhat lower amount from your portfolio. If yes, you can afford a slightly riskier strategy and higher income during growth years.
Minimum deposit and investment period setting
The minimum height of investment in this product is €50,000. Clients who have been with us for at least five years may invest as low as €10,000.
Also, for the annuity, we assume you will draw from your savings for at least 10 years. The product is designed for long-term income withdrawal from assets, for example, after retirement. This does not mean you cannot withdraw your money early if needed - the product has no lock-in, and you can request withdrawals anytime without fees. For exceptional cases, we made the annuity available from a 5-year horizon if you want to secure your children during university studies, for which you have been saving. For horizons shorter than 10 years, we offer only one risk combination - 30% stocks and 70% bonds.
Create your investment plan today
Got questions?
Finax offers several discounts that can make your investing with us even more beneficial. We regularly bring special offers to our clients and, in addition, provide long‑term discounts that allow you to have part of your assets managed without a portfolio management fee: a discount for inviting a friend or for transferring your investments to Finax from another provider.
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