Dear friends, I hope this message finds you well.

Over the last month, the markets have experienced significant volatility. The consequences of a steep downturn can be far-reaching because many people have a stake in the markets. To give you an idea, more than 70 million Americans own a 401 (401 k) or similar plan.

It is estimated that 62% of adult Americans own some stock. So, as you can imagine, the implications of abrupt changes in the market can be substantial. Even with ups and downs, investing in the markets is a good way to grow our money.

Historical data show that growth can be expected most of the time. However, there is always risk. The markets are sensitive not only to performance but also to global events and political decisions. Once your dollar is committed to whatever stock, it will be at the mercy of such volatility.

The effects of such volatility have varying impacts depending on the investor’s age.

The young investor knows that investing is a long-term proposition, some losses along the way are expected, and they have time for the markets to recover.

In turn, someone who is close to or already in retirement can be deeply affected by a big fall in the markets. This situation may force the retiree to lower their spending levels and sacrifice some of the things they are used to doing or having.

The latest financial planning research suggests that we can actually create a line of defense against market volatility and other risks, such as longevity and spending shocks.

We do this by including some of our savings in instruments that are not directly correlated to the markets, such as insurance products.

It has been found that striking the right balance between investment and insurance instruments not only protects us from unexpected events but also enables us to enjoy a higher income in retirement.

Mr. Wade Pfau, an authority on Retirement Income research, writes in one of his books, “The most efficient retirement strategies require an integration of both investment and insurance.”

Please feel free to contact me so we can discuss these strategies in more detail.

Thank you for reading.

Roberto Medina