Protected Portfolio™ System

Lifeworks Protected Portfolio™ can help you grow money during retirement and protect against loss

The challenges the Lifeworks Protected Portfolio™ addresses:

Longevity and Inflation Risk

These are risks that retirees face that can cause them to outlive their retirement savings. If a retiree allocates too much to cash or fixed-income, the likelihood that one outlives their assets increases.

Market Volatility or “Sequence-of-Returns” risk

This refers to the order in which investment returns occur. Are the first few years after retirement considered good (positive returns) years in the stock and bond markets – or bad (negative returns) years?

This risk exists when assets begin to be liquidated to provide income to the retiree in a portfolio that is depreciating in value. Losses caused by market downturns are locked in when money is with drawn from living expenses. It is impossible to recoup the losses on the money that was withdrawn and spent, even when the market goes up again.

So, for example, if a participant retired during the market downturns in the early part of 2000 or in 2007, their retirement savings would have been reduced by both the withdrawals for income and the losses in the markets, endangering the stability of their income for life.

Therefore, retirees need to consider the sequence-of-returns risk and protect against it.


Protection from Market Loss

Designed to cap the downside loss at about 10%. So in a market cycle like 2008, when the market was down 56%, this type of strategy would eliminate about 80% of the downside risk.

The Lifeworks Protected Portfolio™ can help protect some of your retirement assets in the same way you protect your car, your home, and your health. In each of these cases, you’re transferring away some of the risks of financial loss to someone else. This is no different. We go out to regulated exchanges on your behalf and buy protection.

Potential: Participate in Market Gains

Our innovative index strategy can help you aim for greater potential than low yielding bonds.

Flexibility: We understand that your financial needs and goals can change over time

Our innovative index strategy can help you participate in gains, limit the downside, and allows you the flexibility that annuities don’t – no surrender charges.

This strategy isn’t for everyone, but for people who want the opportunity to grow retirement funds, a level of protection from market volatility, can be a valuable addition to their overall financial portfolio.