On the heels of a volatile two weeks, today’s 617 point loss in the Dow Jones Industrial Average (DJIA), since a near all-time high of over 27,000, has driven home the point of strategic investing. The concept of the RZ Wealth Defined Outcome StrategiesSM brings particular meaning and clarity to why our clients have chosen us to navigate difficulty in the Markets.
The vast majority of our allocation strategies contain, what we refer to as, Defined Outcome Strategies.
These strategies include:
- FDIC protection against a loss of principal with a rate of return based on an underlying index declared at maturity.
Found in structured or “equity-linked” CD’s which begin as FDIC- Insured certificates with rates dependent on a variety of underlying indices or composite allocations.
- A declared rate of interest with a specific date and value at maturity.
Found in FDIC- Insured certificates of deposit, Government, corporate and municipal issued notes or bonds.
- Guaranteed minimum interest rates and guaranteed death benefits.
Typically found in the annuity products that we have used where we expanded on the concept of insurance and have shifted the risk of the markets to the issuers of these products.
We use these types of strategies to define values at maturity in order to prevent reliance on hypothetical market values to target your significant life events – e.g., college education costs, buying a second home or retirement. We implement and improve on strategies to accumulate wealth, distribute income and build legacies.
Our Defined Outcome Strategies, which often appear lackluster or seemingly underperforming in up markets, are designed to offset the volatility and risk associated with a falling market and are best used to offset the volatility and risk associated with a falling market. These strategies are geared to provide predictable values or returns to aid in effective financial planning and in the pursuit of one’s financial goals.
As always, we are here to offer sound advice with the goal of helping you to live a richer life.
Have a question about this topic? Contact us today.