Principal Protection

We work with insurance companies offering a new breed of no-load annuities and insurance products. Some are specifically engineered to defend against principal risk. For risk-averse investors, these solutions can help keep them confident, and invested when they need to be.

Client Scenario

Nearing or in First 10 Years of Retirement

For clients in the last five years of their career, or first five years of retirement, poor market performance can be impossible to make up. Avoiding low or negative returns due to withdrawals helps protect those assets. Allocating a portion of a portfolio in principally-protected solutions like index-linked annuities, fixed annuities, or fixed indexed annuities can reduce equity exposure, and protect from losses that can shake retirement confidence. Read how Paul addressed sequence of returns risk in his portfolio.

Paul

Paul

Paul lost a significant amount of money in the great recession of 2009. As behavioral finance, teaches, he’s gun shy about losing again. Click to read Paul’s story.

Risks Addressed

Sequence of Returns Risk, Principal Risk, Longevity Risk
Lisa and Tony

Lisa + Tony

Lisa and Tony have taught for their whole professional lives. They’ll depend largely on pensions in retirement, but they want to use Lisa’s 457(b) to fund travel. Click to read their story.

Client Scenario

Conservative Investor

Conventional investing wisdom says to buy low and sell high. Unfortunately, fear and greed inspire many of us to do just the opposite. Keeping to the plan while weathering challenging markets can be impossible for conservative investors. When they are too nervous to lose principal, packaged products like no-load fixed annuities offer the assurance they may need to stay invested, and keep their money working for them to meet retirement goals and manage the risk that they may outlive their money. See how Lisa and Tony protected their principal and boosted their confidence.

Risks Addressed

Principal Risk
Client Scenario

Locking in Long Market Gains

The bull market of the last decade has driven account balances up. Not only is this good news for retirement account balances, but these new, higher balances can be protected with a simple, tax-free 1035 exchange into a low-cost annuity.

If your client invested $100,000 in a principal-protected annuity 10 years ago, and the account grew in value to $160,000, her principal protection benefit would only guarantee the amount that was originally invested: $100,000. If she moved that money to a low-cost, no-load fixed indexed annuity with a principal protection benefit, she could increase that death benefit value to $160,000. If the market took a sudden dip, $60,000 more of the asset would be protected. Learn how Jane locked in market gains her heirs.

Jane

Jane

Jane inherited money from a beloved aunt and invested it in a variable annuity. Now out of surrender, she’d like to protect all of the gains she’s enjoyed over the last decade, and invest more in equities. Click to read Jane’s story.

Risks Addressed

Principal Risk

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