Quantum became aware of a new form of annuity in the 1990’s that provided annual returns tied to a stock market index, with zero returns – no losses – in years in which the stock market index was down.
Clients that selected this option enjoyed the benefits of positive returns in the up market years, and did not lose even a penny in years when market returns were negative.
The adjacent hypothetical chart provides a simplified image of the performance of such contracts in a variety of different market conditions, as well as a guaranteed minimum return available in some such contracts.
Quantum ceased to present these solutions to our clients due to unattractive, lower single digit annual participation rates they progressively offered.
Fast forward to 2023, and our enthusiasm for these solutions is greater than ever due to the potential double digit market participation rates some now offer (which are even higher than the 1990’s).
A regulatory change has also taken place relative to these investments since then. Previously governed by State Insurance Commissioners; the Securities and Exchange (SEC) now also regulates Fixed Index Annuities.
Due to this, transactions relative to such investments are made through Retirement Plan Solutions, a sister company to Quantum, also primarily owned by Erik Swenson, with broker dealer and investment advisory relationships identified in the footnotes below.
Key elements to accumulating and maintaining wealth rest in the balance of achieving positive returns in up markets, while lessening and/or eliminating the potential for principal losses in down markets.
A key to financial success throughout the entirety of retirement rests in the balance of the upside returns in positive markets, while mitigating losses in down markets.
While we have integrated forms of these solutions into our client portfolios for decades, the combination of the attractive annual upside returns now available in up markets with limited, or no loss of principal features in down markets is well beyond anything we have seen before.
The key to achieving the exact balance of upside return and principal protection you desire rests in the combination of differing types of financial solutions you integrate into your portfolio.
As you determine the percent of your assets that you seek to have protected, please make sure to incorporate the level of financial stress you desire, for it is now possible to take the best care of your well-being and your finances.
It is our pleasure to listen carefully to what you desire, then provide whatever financial assistance and/or guidance is necessary for you to achieve your desire today, and throughout the years and decades of your financial journey ahead.
