Can protecting the nest egg against major loss increase market participation & retirement confidence?

Today’s retirement savers and investors face a very different reality compared with investors of past generations.

Financial markets have become global, complex and increasingly volatile. This presents a unique set of challenges for many clients as they plan and prepare for retirement. Additionally, retirees today are living longer than they did decades ago. They’re also facing much higher healthcare costs that often rise faster than the rate of inflation. And as for consumer price inflation, that too has been outpacing the low interest rates of conservative investment options.

How can you help clients feel confident about participating in markets to take advantage of growth opportunities without fearing catastrophic loss of their hard-earned nest eggs? 

This can be a delicate balancing act, as every investor has their own level of risk tolerance, desire for upside growth and need for a measure of downside protection. That’s why financial professionals are taking a closer look at TruStage™ ZoneChoice Annuity, underwritten by MEMBERS Life Insurance company. 

Getting to know the new reality of markets and investing

As the investment marketplace becomes increasingly globalized and interdependent, it also becomes more complex and unpredictable. Markets can be volatile, as demonstrated by upheavals and unpredictable outcomes in recent years. No one can predict the future, and as technologies, industries and economies advance and evolve, it can be even more difficult to anticipate what lies ahead.

Low earnings on traditional conservative investments can easily be outpaced when inflation runs high. Amid volatility, many clients seek a wealth strategy that incorporates diversification to mitigate risk and smooth out the bumpy ups and downs of the markets. Diversification doesn’t guarantee success, but in between market rallies, investors with diversified allocations can often find comfort in knowing their exposure is limited because their eggs aren’t all in one basket.

Protection against loss is vital for many clients as retirement nears

For some clients, diversification doesn’t provide quite enough confidence and clients may look for a strategy that also provides some downside protection guarantees. That’s where an annuity product such as TruStage ZoneChoice annuity may offer the balance of protection and growth potential some clients are looking for to feel comfortable participating in market returns.

ZoneChoice allows clients to participate in index-linked growth while offering protection from loss through a selection of buffers and floors:

  • Buffers provide a measure of protection against market losses up to a certain percentage
  • Floors create a guaranteed return, regardless of market performance

Clients choose their allocations, then choose individual levels of downside protection (floors and buffers) and corresponding levels of upside growth potential (caps and participation rates).

As a result, some clients may feel more confident participating in markets, to get the upside potential they need, even into retirement.

TruStage ZoneChoice Annuity enhances personalization options

ZoneChoice offers 9 distinct accounts in one annuity product to enable clients to personalize their strategies with a balance of protection and growth potential. Clients make allocations to selected accounts and choose a buffer, floor or combination of both.

Recent enhancements to ZoneChoice include the addition of the Dimensional US Small Cap Value Systematic Index (“Dimensional Index”). The Dimensional Index may be a compelling complement to a large cap market exposure for clients seeking diversification.

Additionally, an added transfer feature now provides clients greater flexibility to control their investments. And clients can now choose between one-year and six-year buffer allocation terms, for more ways to balance protection and growth potential. Altogether, these enhanced features offer clients even more flexibility and personalization to find a balance that suits their individual risk tolerance and financial goals.

Learn more about ZoneChoice and Dimensional Small Cap Value Index

You can help clients create a diversified portfolio with a personalized strategy for growth that also helps protect the wealth they’ve worked so hard to earn and save.

With ZoneChoice, clients can select market segments, floors, buffers, and terms of one year or six years. That adds up to an impressively wide range of personalization options — for wide-ranging risk tolerances and wealth objectives.

Use our ZoneChoice Client Guide to help explain the new reality of investing and retirement, and how clients can create a personalized annuity that balances their needs.

Learn more about the Dimensional US Small Cap Value Systematic Index.


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