Case Study: Staying Invested With Confidence Through Market Uncertainty
Dec 28, 2025
Patrick McNamara
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.
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
Diversified index exposure instead of relying on individual stocks or active managers
Income and growth opportunities while protecting capital
Better positioning for longevity risk
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.
Patrick McNamara
CFP®, Financial Advisor at Claro Advisors
About the Author
Patrick McNamara, CFP® is a Financial Advisor at Claro Advisors
with nearly 30 years of experiencein the financial services industry.
He has held senior roles at Fidelity Investments, Goldman Sachs, and
Morgan Stanley. He founded StructuredNotes.com to educate investors
on institutional-style investment strategies and structured notes.
Disclosure: Claro Advisors Inc. (“Claro”) is a Registered Investment Advisor with the U.S. Securities and Exchange Commision (“SEC”) based in the Commonwealth of Massachusetts. Registration of an Investment Advisor does not imply a specific level of skill or training. Information contained herein is for educational purposes only and is not considered to be investment advice. Claro provides individualized advice only after obtaining all necessary background information from a client.
The investment products discussed herein are considered complex investment products. Such products contain unique features, risks, terms, conditions, fees, charges, and expenses specific to each product. The overall performance of the product is dependent on the performance of an underlying or linked derivative financial instrument, formula, or strategy. Return of principal is not guaranteed and is subject to the credit risk of the issuer. Investments in complex products are subject to the risks of the underlying reference asset classes to which the product may be linked, which include, but are not limited to, market risk, liquidity risk, call risk, income risk, reinvestment risk, as well as other risks associated with foreign, developing, or emerging markets, such as currency, political, and economic risks. Depending upon the particular complex product, participation in any underlying asset (“underlier”) is subject to certain caps and restrictions. Any investment product with leverage associated may work for or against the investor. Market-Linked Products are subject to the credit risk of the issuer. Investors who sell complex products or Market-Linked Products prior to maturity are subject to the risk of loss of principal, as there may not be an active secondary market. You should not purchase a complex investment product until you have read the specific offering documentation and understand the specific investment terms, features, risks, fees, charges, and expenses of such investment.
The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy securities. Investment products described herein may not be offered for sale in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful or prohibited by the specific offering documentation.
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For all Market-Linked Products, excluding Market-Linked CDs, the following applies: Not FDIC insured // Not bank guaranteed // May lose value // Not a bank deposit // Not insured by any government agency