Case Study: Staying Invested With Confidence Through Market Uncertainty

Pre-retirees replace stagnant cash and risky stock holdings with a resilient, growth-oriented strategy

Client Profile

Kirk and Ellen, pre-retirees
Primary holdings: High-yield savings, CDs, individual stocks, active funds
Primary concern: Stagnant cash returns, full downside equity risk, and longevity in retirement

The Challenge

Kirk and Ellen were stuck: their cash was safe but barely growing, while stocks required constant attention and carried full downside risk. As retirement approached, they wanted a way to stay invested confidently, reduce complexity, and protect against market downturns—goals that often lead investors to explore how structured notes work to balance growth and protection.

Our Approach

We introduced a combination of market-linked income notes and barrier growth notes tied to broad market indexes, providing:

• 100% principal protection up to 30–40% market declines

• Participation in full market growth with built-in downside buffers, similar to approaches used in structured notes downside protection strategies designed to help investors stay invested during volatility.

• Diversified index exposure instead of relying on individual stocks or active managers

• Income and growth opportunities while protecting capital, a key objective behind many structured notes income strategies used by investors approaching retirement.

• Better positioning for longevity risk

Managing Market Uncertainty Without Leaving the Market

Periods of market uncertainty often lead investors to move large portions of their portfolios into cash. While this may reduce short-term volatility, it can also limit long-term growth potential and reduce the ability of a portfolio to keep pace with inflation. Structured notes offer an alternative approach by allowing investors to remain invested while defining potential outcomes in advance.

Many structured strategies incorporate features such as buffers or barriers that absorb a portion of market losses before investors experience downside exposure. This structure allows investors to participate in equity market performance while reducing the psychological stress that often accompanies market volatility.

For pre-retirees like Kirk and Ellen, this type of approach can provide greater clarity around potential investment outcomes. Knowing the parameters of protection and participation ahead of time allows investors to focus on long-term financial goals rather than reacting to short-term market movements.

Structured Notes and Retirement Longevity Planning

Longevity risk—the possibility of outliving one’s savings—is a growing concern for many investors approaching retirement. Balancing growth potential with capital preservation becomes increasingly important as individuals transition from accumulation to income and wealth preservation strategies.

Structured notes can play a role in addressing this challenge by offering defined growth opportunities alongside protection features. By allocating a portion of a portfolio to structured strategies, investors may gain exposure to equity markets while managing downside risk in a more controlled manner.

This balance between growth, income potential, and protection can help investors maintain portfolio sustainability over longer retirement horizons. When used as part of a diversified investment plan, structured notes can help support both retirement income needs and long-term wealth preservation.

The Outcome

After reallocating part of their portfolio:

• Double-digit income and growth potential

• Defined downside buffers to reduce stress during market declines

• Clear expectations for long-term outcomes

• Greater confidence heading into retirement

• Portfolio structured to support longevity and sustainable wealth

Kirk and Ellen now have a portfolio that lets them stay invested, sleep well at night, and pursue retirement goals with confidence.

Illustrative example only. Not a guarantee of future results.