From an individual market perspective, the risk due to the sequence of returns against a portfolio can be the difference between leaving a legacy and running out of money in retirement.
If, during retirement, you are drawing down your investment portfolio through a market downturn, you are leaving fewer dollars to work when market rebound. Using a stable account to draw during market downturn can be of tremendous value. The same holds true during years of high run-ups in the market, quite often the year following a downturn. Withdrawal from the portfolio stunts growth.
If you are looking for a solution to mitigate potential rate hikes, political issues or global conflicts that may impact your portfolios today or in the future, a whole life insurance hedging strategy can help reduce risk and allow you to rest easier during stock market adjustments, large or small. Also, it can provide an attractive and steady stream of income regardless of market activity.
In next blogpost, we will discuss the specific benefits of a whole life insurance policy.