What Is Downside Protection?
Downside protection strategies are designed to limit or eliminate losses when markets fall, while still offering opportunities for growth when markets rise.
This isn’t about avoiding risk altogether, it’s about balancing growth with safety so you can enjoy retirement without fear of running out of money.
Why Downside Protection Matters
You’ve worked hard to build your nest egg. But what happens when the market takes a sudden drop—right as you’re nearing or in retirement?
A 20% market decline could take years to recover from.
If you’re withdrawing money during that downturn, losses can compound even faster.
Many retirees never fully recover from early retirement market shocks.
That’s where downside protection comes in—helping preserve what you’ve already earned while still allowing for growth potential.
Common Downside Protection Strategies
Fixed Indexed Annuities – Growth tied to market performance, but with a built-in floor to protect against losses.
Principal-Protected Products – Financial vehicles that guarantee your initial investment won’t decline.
Diversification with Safety Nets – Combining traditional investments with guaranteed income solutions.
Is Downside Protection Right for You?
Not every dollar needs protecting, but every retiree should have a plan that balances Growth potential, Protection, and Income stability.