Risk Protection

Imagine capturing the upside of the markets while simultaneously having large insurance companies protect your principal and any past gains from down markets. How does it work?

Let’s take a look at the “Lost Decade”…January 1, 2000 to December 31, 2009.                 $ 1,000,000 invested in the S&P including dividends on 01/01/2000 would have been worth only $ 908,800 on 12/31/2009. That represents a 9.12% loss.

$ 1,000,000 would have actually grown to $ 1,633,300 during the same period if annual gain/loss was subject to a 0% growth floor and a 12% growth ceiling. That is a 63.33% growth in value!

The difference in value between the two approaches is $ 724,500! See the chart below:


To learn more about our approach to presenting the potential value of an indexing strategy, please register and call us at 949-544-2500.