Protect Your Money. GEnerate Income
The stock market has been a tried and true way to continually grow wealth, and we believe that retiring shouldn’t exclude you from participating in the market. With a downside-protected product, you can invest in the market to generate retirement income with peace of mind.
When you add a downside protection product to your portfolio:
- You leverage the growth opportunity of the stock market to outpace most other risk-managed investments.
- Since you name your risk tolerance, you have full control over whether or not your initial investment is ever at risk.
- You have more access to your money thanks to custom time horizons and no long-term contracts.
- If you are comfortable with more risk, you can aim for higher returns with adjustable downside protection.
How It Works
Your build the product. Through our streamlined process, you can create the right investment for you and your goals. No one-size-fits-all options, no complicated bundled products and no hidden restrictions or fees.
You as the investor will drive the decisions. If you want to invest in certain stocks or sectors, you can build your custom downside-protected strategy at any time, with any stock and your chosen level of protection.
And the best part? You set the timeline for maturity with access to your money all along the way, and we do this with no insurance or annuity products involved.
Built With 3 Simple Steps
1. Choose your risk tolerance
2. Select your stock
3. Pick your time horizon
Talk to an Advisor to Modernize Your Retirement Approach
What Downside Protection Is Designed For
➤ Risk-Adverse Investing
➤ Retirement & Pre-Retirement
➤ Alternative to Annuities
➤ Portfolio Hedging Strategies
➤ Cash Protection
➤ Protected Market Exposure
How it works
Our strategies are designed to be simple and transparent. Through our streamlined process, you can create the right investment for you and your goals. No one-size-fits-all options, no complicated bundled products and no hidden restrictions or fees.
You as the investor will drive the decisions every step of the way with our 3-step approach. If you want to invest in certain stocks or sectors, you can build your custom downside-protected strategy at any time, with any stock and your chosen level of protection.
And the best part? You set the timeline for maturity with access to your money all along the way, and we do this with no insurance or annuity products involved.
Getting started
Want to keep it simple? Invest your money in the S&P 500 Index as a whole. This strategy will offer up to 100% protection for your initial investment while investing in the SPDR S&P 500 ETF Trust (SPY). This means that you stand to see returns on the upside but will never lose your initial investment amount in the case of a downturn. It offers exposure to the market for you, while maintaining the biggest key benefits of any protection strategy.
100% Protection
With S&P 500 (SPY)
7.40%
annual return*
How it compares
Confluent DIP strategy with S&P 500 (SPY)
7.40% annual return*
High Yield Savings Account
5.0% annual return*
7-Year Certificate of Deposit (CD)
1.72% annual return*
Average Money Market Account APY
0.64% annual return*
The “traditional” risk-managed investing structure feels good until you consider the opportunity being left on the table. Most strategies are seeing lower returns year after year, and some can’t even outpace the inflation levels seen in recent years. It is becoming increasingly clear that doing things the same way and hoping to skate by is becoming less viable than ever before. That is why having fresh ideas and more flexibility is more valuable than ever.
What You get
100% transparency with no hidden fees, rules or requirements. That way, you always know exactly what you’re paying for at all times.
Full control over your investments, so you can choose where and how to invest your money, unlike other risk-managed investments out there.
Daily liquidity, with access to your funds anytime, without penalties. This ensures you can access your money whenever you choose.
Smart multiplier so returns are not limited just to a fixed amount, leaving the potential to continue earning returns until maturity.
Get started on your downside protection strategy today!
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Downside protection in-depth
Principal protection offers a wide variety of customization and flexibility to invest your money as you see fit.
Click below to explore the full landscape of principal protected investments with Confluent Asset Management and see how the right principal protection strategy can revolutionize your investment approach and bolster any portfolio.
Read our case study
We understand that before investing your hard-earned money, you need to see all the facts to make an informed decision. This includes examples of what the investment might look like.
That’s why we published a case study to show scenarios applicable to the real world in which a principal protection strategy would be a powerful investment choice.
Visit our free resource library
Our team is dedicated to helping every investor achieve their financial goals, no matter what they are. As a part of this mission, we have a library of resources that cover a wide variety of investment related topics.
Whether you are interested in long-term financial planning, retirement planning, risk management or strategies to grow wealth, we have you covered.
Disclosures
To read all relevant disclosure info and risk considerations, click below:
The information provided above is for illustration purposes only and does not constitute investment advice or a recommendation. Each client has unique financial needs, objectives, and circumstances; therefore, results will differ for each individual. The data presented is as of October 1st, 2024, and the investment horizon for this strategy is 1 year, with the options expiration date being September 30th, 2025.
The strategy involves the use of options and fixed-income securities, with the Money Market yield being 4.5% and the one-year STRIPS priced at 96.2% as of October 1st, 2024. All returns and credits described in the case study are based on the completion of the full investment term. Early termination or liquidation of the strategy may result in unexpected outcomes, including a potential negative return or partial loss of the principal.
The underlying index used for this strategy is SPDR® S&P 500® ETF (SPY) to represent S&P 500 Index returns. However, the results of this strategy may vary due to the rounding of shares and contracts for trading purposes.
It is important to note that investment in this strategy does not guarantee specific returns, and past performance is not indicative of future results. Any discrepancies in returns may arise from rounding errors or other factors.
Confluent Asset Management is not responsible for any decisions made based on the information provided in this illustration, and no liability is assumed for any actions taken by clients based on this example. Please consult with a professional financial advisor to determine the suitability of this strategy for your specific financial situation.
All returns are shown after deducting fees. This illustration assumes an annual fee of 1%.
*This case study is for illustrative purposes only and is not a guarantee of future performance. All returns are net of assumed management fees of 1.5% and based on current market conditions as of the pricing date. Expected returns and principal protection levels are subject to change based on market fluctuations, available option strike prices, and management fees. Principal protection levels are up to 100% for SPY and NVDA, and 93.5% for TSLA; actual protection levels may vary. Dividend yields assumed are 1.3% for SPY, 0.54% for NVDA, and 0% for TSLA. Money market rate at the time of pricing is 4.25%. Data is as of 11/22/2024. All information provided is believed to be accurate but is subject to change. The expiry date for the strategy is December 19, 2025. Please review all offering documents and disclosures before proceeding with this investment.