How to help protect against market volatility

As investors near retirement, portfolio diversification becomes increasingly important to manage risk and preserve capital¹

Research shows that having sufficient retirement income is a top priority for Americans and that financial advisors generally recommend a thoughtful balance between growth and protection. Having exposure to asset classes that provide diversification may help insulate you from market shocks so you can enter retirement with healthy cash flow. As you assess your portfolio, it is worth reviewing two shock-absorbing financial assets you may have overlooked.

Whole life insurance

In addition to cash value growth, and a guaranteed death benefit to protect your heirs, whole life insurance offers predictable premiums and potential tax advantages.^2,3,4

Whole life insurance may help to balance other assets in an investment portfolio. A whole life policy is insulated from market fluctuations and provides guaranteed cash value growth that can supplement long-term goals, such as retirement, and help finance near-term ventures like an education or business.⁵

The proper amount of whole life protection depends on your age, your dependents, and your earning power.

Annuities

Most people are happier in retirement when they can spend less time worrying about their finances. An annuity can provide this peace of mind with a reliable income stream throughout retirement. Essentially, an annuity is a form of insurance that ensures you have guaranteed income in the future.

For example, with a fixed deferred annuity, you know exactly how much you’ll receive each year. At retirement, you may choose to begin to receive a set payout at defined intervals (called “annuitization”), typically monthly, quarterly, or annually. Properly designed, an annuity can provide payments for your entire life, no matter how long you live. This steady income can be a useful hedge while facing market volatility.

As part of the mix in a retirement planning strategy, annuities help reduce uncertainty. You can work with a financial advisor to estimate your costs in retirement and explore an annuity to round out your portfolio. That way, you can spend your other retirement savings with greater confidence.

Annuities typically grow tax-deferred, which means you don’t pay taxes on the earnings until you withdraw the money or convert it to a stream of payments. This may provide a tax advantage, especially if you’re in a lower tax bracket at retirement.⁶

Bearish or bullish, no single investor has control over the market. But you can control how you prepare for the highs — and lows — to come.

Talk to a Park Avenue® Wealth Management financial advisor about diversifying your investment portfolio.

Diversification does not guarantee profit or protect against market loss.
Some whole life polices do not have cash values in the first two years of the policy and don’t pay a dividend until the policy’s third year. Talk to your financial representative and refer to your individual whole life policy illustration for more information.
All whole life insurance policy guarantees and annuity guarantees are subject to the timely payment of all required premiums and the claims-paying ability of the issuing insurance company. Policy loans and withdrawals affect the guarantees by reducing the policy’s death benefit and cash values.
Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.
Policy benefits are reduced by any outstanding loan or loan interest and/or withdrawals. Dividends, if any, are affected by policy loans and loan interest. Withdrawals above the cost basis may result in taxable ordinary income. If the policy lapses, or is surrendered, any outstanding loans considered gain in the policy may be subject to ordinary income taxes. If the policy is a Modified Endowment Contract (MEC), loans are treated like withdrawals, but as gain first, subject to ordinary income taxes. If the policy owner is under 59½, any taxable withdrawal may also be subject to a 10% federal tax penalty.
Kates, Stephen, and Chalisa, Aamir M., How Are Annuities Taxed?, Annuity.org, Jan. 21, 2026

This material is intended for general use. By providing this content Park Avenue Securities LLC and your financial representative are not undertaking to provide investment advice or make a recommendation for a specific individual or situation, or to otherwise act in a fiduciary capacity.

Whole life insurance

Annuities

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