The #1 fear of retirees is running out of income during retirement.*
In a low yield world, with costs of living and healthcare on the rise, retirees are in a unique dilemma previous generations didn’t face. The 40% bond portion of a 60/40 portfolio historically performed it’s dual role of capital preservation and income. Low yields have eroded income and if rates rise the capital preservation role of bonds will be severely challenged.
Addressing the Distribution Conundrum — While interest rates on bonds are being lowered, even into the negative, sluggish global growth and inevitable deleveraging has many experts projecting low returns for equities going forward. In addition to this difficult investment environment, investors face various risks such as investment timing or sequence of returns risk, volatility risk, bear market risk and other risks.
How are retirees going to ensure they don’t run out of money while in distribution?
Staying Power for Retirement Assets – Remaining Invested, Withdrawing Funds, and Outpacing Inflation.
At Swan Global Investments, we believe this Distribution Conundrum is also a profound opportunity. Advisors that can provide investors with strategies that create the opportunity for asset growth and protection will solve this conundrum and be immensely rewarded.
The Swan Defined Risk Strategy (DRS)* is designed to seek consistent returns, while seeking protection against major bear market losses, with a reliable performance track record since 1997.
A Complement to Fixed Income — The ‘Investing for Income’ presentation demonstrates how the DRS, by potentially generating consistent equity returns while reducing volatility and seeking bear market protection, can serve as a retirement account that can sustain systematic withdrawals.