Market Risk vs. Protected Growth – What You Need to Know

If you're nearing retirement, one of the most important questions you can ask is this:

"Is my money safe if the market drops tomorrow?"

That question has never been more relevant. Between market volatility, inflation, and rising interest rates, retirees are facing more uncertainty than ever before. And for those relying on traditional investments like 401(k)s or IRAs, the risks are very real.

In this blog, we’ll break down what market risk really means in retirement, introduce protected growth strategies like Fixed Indexed Annuities (FIAs), and explain how to create a plan that keeps you confident — no matter what the market does next.

What is Market Risk?

Market risk is the chance that your investments will lose value due to drops in the stock market. While this might not worry a 35-year-old investor with time to recover, it can be devastating for someone in or near retirement.

Why?

Because once you start withdrawing money from your accounts, you don’t get the same benefit from future market rebounds. It’s called sequence of returns risk — and it’s one of the biggest threats to retirement security.

A Simple Example

Imagine two retirees with the exact same amount of savings. One starts retirement during a bull market, the other during a downturn.

Even if the market averages out over time, the retiree who experiences losses early on while taking withdrawals can run out of money years sooner.

That’s why protecting your principal matters.

What is Protected Growth?

Protected growth means having money in a place where it:

• Does not lose value when the market drops

• Still has the potential to grow when the market performs well

One of the most common tools for this is the Fixed Indexed Annuity (FIA). Here’s how it works:

• Your money is not directly invested in the stock market

• It grows based on the performance of a stock market index (like the S&P 500)

• But when the market goes down, your account doesn’t lose value

It’s a smart middle ground between the low returns of CDs or bonds and the high risk of stocks.

Why FIAs Are Gaining Popularity

More retirees are looking to FIAs because they:

• Protect their nest egg from downturns

• Provide predictable retirement income

• Help offset inflation through index-linked growth

Plus, many FIAs now offer income riders — which guarantee you’ll never outlive your income, no matter how long you live or what the market does.

What About Traditional Advisors?

If you already work with a financial advisor, that’s great — but most advisors focus on market-based tools. Our role is to fill in the gap with income and protection-focused solutions that help stabilize your overall plan.

These strategies don’t compete with your advisor. They complement what you're already doing.

▶️ Watch our video: “Your Guide to Guaranteed Income During Retirement.”

Final Thoughts

If your current plan depends entirely on market performance, it’s time to reconsider. The goal isn’t to beat the market — it’s to build a retirement you can count on.

And that starts by balancing your growth with protection.

Want to see how your current plan stacks up?

📘 Download our Retirement Planning 101 guide to learn more.

📅 Book a free retirement income review — no cost, no pressure.