Upcoming Webinar - Adding Downside Protection to Your Portfolio

As markets test historical peaks, investors—especially retirees and those approaching retirement—are asking an crucial question: How well is my portfolio protected against downside risk?

A recent industry study from Innovator shed light on a significant gap between advisor perceptions and client experiences regarding risk management in retirement portfolios. The study revealed three statistics that expose a deep rift:

• 74% of clients state that they want explicit downside protection built into their portfolios.
• 76% of advisors believe they are actively providing this protection.
• Yet, only 8% of clients feel they are actually receiving it.

Nearly eight out of ten financial professionals believe they have shielded their clients from market volatility, while fewer than one in ten clients actually feel secure. This points to a fundamental structural disconnect in how risk is discussed and managed.

Unpacking the Disconnect: Diversification vs. Defined Outcomes

Why is this gap so wide? It often comes down to how "protection" is defined.

To many traditional advisors, downside protection means classic asset allocation—a diversified blend of stocks, international equities, and bonds. They may view a 15% drop in a diversified portfolio during a 30% market crash as a relative victory.

But to a retiree drawing income from their nest egg, a 15% drop can feel like a direct threat to their lifestyle and retirement timeline. Traditional diversification provides historical probability, not a contractual guarantee. When a severe market crisis hits, historical correlations can break down, and various asset classes may decline simultaneously.

While "stay the course" is standard advice, it is often harder to execute when it is your actual retirement lifestyle on the line.

How Retirees Can Implement Defined Risk Parameters

With market valuations at elevated levels, retirees face a delicate balancing act. You cannot afford to park all your capital in cash and watch inflation erode your purchasing power, but you also may not want to absorb a massive market drawdown on the eve of retirement.

To address this, portfolios can shift from broad defensive asset allocation to defined-outcome strategies.

At Rigden Capital, we look beyond traditional diversification alone. We can utilize structured vehicles and defined-outcome strategies designed to deliver predetermined risk and return parameters based on market performance. This approach may help set clear boundaries into an uncertain market.

The Trade-Off to Keep in Mind: Defined-outcome strategies are designed to mitigate downside risk, but they generally require a trade-off—such as capping your maximum potential upside or incurring specific structural costs. They are not entirely risk-free.

Tailoring Your Defense: Understanding Structured Cushions

True downside mitigation isn't one-size-fits-all. Different financial timelines require different layers of defense. By utilizing defined-outcome tools and structural buffer mechanisms, a portfolio can be customized to your specific risk tolerance:

• Buffer Protection (e.g., 10% to 30%): These strategies are engineered to absorb the first 10% to 30% of market losses over a specific outcome period. If the market drops within that buffer, your principal is designed to be shielded, allowing you to maintain equity exposure with a built-in shock absorber. Note: Losses beyond the buffer are fully sustained.
• Principal Mitigation Strategies: For the portion of your wealth where downside risk must be strictly limited, we can utilize structures that seek to eliminate downside market exposure over a set period, preserving your core capital while capping your upside participation.
• Defined Floors (Maximum Loss Caps): If you want to participate in market growth but need a definitive line in the sand, we can establish a strict floor. This ensures that no matter how severe a market crash becomes, your maximum structural loss is limited to a known, fixed percentage over the holding period.

By embedding these defined parameters directly into your portfolio, you can better understand how a market move will impact your retirement before it happens.

Cut Through the Noise: Join Our Educational Webinar

Perhaps it is time to look under the hood of your current portfolio strategy.

Rigden Capital Strategies is hosting an educational webinar for retirees and pre-retirees looking to understand modern portfolio defense strategies against market volatility. Hosted by Joshua Rigden, this session will outline actionable frameworks for managing downside risk.

Learn how to take control of your financial outcomes with defined risk parameters.

• Date & Time: Friday, July 10th at 1:30 PM ET / 12:30 PM CT / 11:30 AM MT / 10:30 AM PT
• Location: Online Webinar
• Cost: Complimentary

About Rigden Capital Strategies

Rigden Capital Strategies was founded on a simple belief: financial advice should be personal, transparent, and centered around your goals—not built on generic models or product-driven sales. With decades of combined industry experience, we’ve developed a process grounded in three core values: value, integrity, and progress.

As a fee-only fiduciary, we provide personalized, goals-based wealth planning services designed to adapt with your life. Our services include investment management, retirement and tax planning, and estate coordination. We use a mix of active and passive strategies to help clients navigate market changes with clarity and confidence.

We believe in building real relationships and delivering clear, actionable strategies—focused on long-term planning and aligned with your objectives.

Your goals, our strategies. Together, let’s make your goals happen.

Disclosure: This content is for informational and educational purposes only and should not be interpreted as financial, legal, or tax advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information provided. Investment decisions should be based on individual circumstances, and we recommend consulting a qualified professional before implementing any financial, legal, or tax strategies. Past performance is not indicative of future results, and all investments carry risks, including potential loss of principal. No investment strategy can guarantee success or protect against loss in all market conditions. Investors should carefully consider their risk tolerance, investment objectives, and financial circumstances before making investment decisions.