Cash Value Management Tools: What They Are and How They Work

Shawn Plummer

CEO, The Annuity Expert

Cash value management tools are a type of investment that allows you to grow your money while also having access to it when you need it. These tools can be a great way to save for retirement or other long-term goals. This guide will discuss what cash value management tools are and how they work. We will also provide tips on choosing the right tool for you!

What Are Cash Value Management Tools?

The automatic fund-reallocation options offered by insurance companies selling variable annuities to aid contract owners in managing cash value include asset allocation, automatic asset rebalancing, interest sweep, and dollar-cost averaging.

Most people are familiar with asset allocation, which divides your investment into different types of assets such as stocks, bonds, and cash. Automatic asset rebalancing is similar to asset allocation but automatically adjusts your investment mix back to your target asset allocation. Interest sweep means that any interest earned on your investment is automatically reinvested. Dollar-cost averaging is an investment strategy that involves buying a fixed dollar amount of a security at regular intervals, regardless of the price.

When you invest in a cash value management tool, you essentially give up some control over your money in exchange for managing it automatically. Depending on your financial situation, this can be a good or bad thing. If you are comfortable letting someone else manage your money, then a cash value management tool can be a great option. However, if you prefer more control over your investments, this may not be the right choice for you.

Tips for Choosing a Cash Value Management Tool

There are a few things to remember when choosing a cash value management tool.

  • First, you need to decide what your goals are. For example, are you trying to save for retirement or grow your wealth over time? Once you know your goals, you can start to look at different options and compare them.
  • Another thing to consider is how much risk you are willing to take. Cash value management tools can be a great way to grow your money, but they also come with risks. If you are not comfortable taking risks, you may want to consider another option.
  • Finally, you need to look at the fees associated with each tool. Some cash value management tools have higher fees than others. Make sure to compare the fees before you make a decision.

If you need help choosing the right stocks, we recommend the following:

Help Choosing Stocks
The Motley Fool


Cash value management tools can be a great way to grow your money and reach your financial goals. However, it is essential to do your research and choose the right tool for you. With so many options available, it can be overwhelming to make a decision. But if you keep your goals in mind and compare the fees, you can find the right cash value management tool!

Thanks for reading! We hope this guide was helpful. If you have any questions, please feel free to contact us. We are always happy to help!

Request A Quote

Get help from a licensed financial professional. This service is free of charge.

Contact Us

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

Scroll to Top