Using Annuities to Increase Risk-Adjusted Returns

Deana Jackson addresses how annuities can be a valuable tool in to decrease risk in your retirement portfolio.

LOS ANGELES, Jan. 28, 2025 /PRNewswire/ -- Building a resilient financial plan hinges on striking the right balance between risk and return. In today's unpredictable market conditions, many investors are turning to strategies that protect their portfolios from downside risks while still pursuing reasonable growth. According to Deana Jackson, President of 300 Financial Group, one tool that plays a pivotal role in achieving this balance is the annuity.

"Annuities are often misunderstood," Jackson explains. "However, when used strategically, they can enhance risk-adjusted returns and provide much-needed stability during volatile market periods." A key feature of annuities is their ability to offer guaranteed income streams or principal protection, helping to mitigate risks during market downturns. By incorporating annuities into a diversified investment strategy, investors can reduce portfolio volatility and improve their chances of achieving long-term financial goals.

There are various types of annuities available, each with distinct benefits. Fixed index annuities, for instance, combine growth potential tied to market indices with protection against market losses. Jackson highlights their appeal, particularly for risk-averse investors, stating, "This combination of growth and protection makes fixed index annuities an excellent choice for those seeking a more secure investment option."

Another significant advantage of annuities is their ability to provide lifetime income. For retirees, this addresses the risk of outliving their savings. Allocating a portion of their portfolio to a guaranteed income stream allows retirees to approach other investments more confidently, often enabling them to pursue more growth-oriented strategies with their remaining assets.

Additionally, annuities offer tax-deferred growth, which benefits long-term investors by allowing their returns to compound more effectively. However, Jackson emphasizes the importance of aligning annuities with an individual's specific financial needs. "Incorporating annuities requires careful consideration of risk tolerance, time horizon, and overall goals. Working with a knowledgeable financial advisor is crucial to ensure the right fit."

Ultimately, annuities can be a powerful tool in enhancing risk-adjusted returns, particularly in uncertain markets. By offering both growth potential and protection, they help investors achieve consistent outcomes and greater financial security.

Media Contact
Sal Velazquez
(800) 980-7962

View original content:https://www.prnewswire.com/news-releases/using-annuities-to-increase-risk-adjusted-returns-302362546.html

SOURCE 300 Financial Group