What If You Could Reallocate and Sell Your Assets at Up to 22% Higher?

With the S&P 500 near 7,700, many economists, advisors, and investors are surprised by the double-digit returns delivered in 2023, 2024, and 2025.

For clients approaching or already in retirement, these gains raise difficult questions:

• Should I sell and de-risk my portfolio?
• What if the market keeps going higher and I sell too early?
• What if the market crashes and I don't lock in gains, will I need to work longer or even go back to work?

With constant headlines about recession risks, stagflation, stretched valuations, inflation, and how many future Federal Reserve rate cuts are coming, it's natural to feel anxious about today's markets.

While no one can predict the exact top or perfectly time the market, most investors would likely welcome the chance to realize gains if they could sell part of their portfolio at levels 13%–22% above where markets stand today, without waiting for an uncertain future.

What If the Market Was 22% Higher?

What if there was a way to help your clients potentially sell the S&P 500 at 8,600, 9,000, or above 9,200, without the risk of a future correction or bear market?

Imagine being able to lock in gains today, without needing the market to climb higher, while still giving your clients the chance to participate in additional upside, and doing so with principal protected from market declines, subject to the terms and guarantees of the issuing insurance carrier.

Consider a fixed indexed annuity (FIA) to potentially achieve just that.

1. Principal protection with growth potential. FIAs are contracts backed by the financial strength and claims-paying ability of the issuing insurance company. Interest can be credited based on the performance of an index of choice (such as the S&P 500, Nasdaq 100, or Russell 2000) while principal is protected from index-linked losses, subject to the carrier's terms and guarantees.

2. Attractive premium (cash) bonuses. Many of today's FIAs, offered by A-rated carriers, provide premium bonuses ranging from 5% to 27%, with some offering up to 22% or more, creating an immediate credit to retirement savings at today's market levels.¹

3. Liquidity options. Most FIA contracts include free partial withdrawal features, giving access to funds should unexpected needs arise, subject to contract terms.

Case Study: Mr. Jones, Age 65

For illustrative purposes only. This does not represent an actual client of Cornerstone. Individual results will vary based on product selection, index performance, caps, participation rates, and contract terms.

Profile: Age 65, thinking of retiring in the next couple of years. $1,000,000 invested in the market. Moderate to conservative risk profile; wants to de-risk part of his portfolio. Concerned markets could be getting expensive, but worried about selling too early. S&P 500 near 7,700 as of September 2026.

Proposed solution: Liquidate $400,000 and allocate to an FIA with a 20% premium cash bonus. $400,000 is immediately valued at $480,000: an $80,000 cash bonus added to principal. For illustration only, this bonus is equivalent to Mr. Jones locking in a value comparable to selling the S&P 500 at 9,240 on the date of this example. It is a contractual bonus credit, not an actual market transaction.

Mr. Jones allocates his $480,000 equally across FIA index options linked to the S&P 500, Nasdaq 100, Russell 2000, and MSCI EAFE indices, each with an annual cap of 6%–8%. If the indices rise 15% in a given year, his credited gains are limited to the cap: he would earn between 6% and 8%, depending on the contract.

If the indices decline, even sharply during a correction or bear market, Mr. Jones's principal is protected from index-linked losses, and no negative index returns are applied, subject to the terms and claims-paying ability of the issuing carrier. In other words, his $480,000 is positioned to benefit from positive index performance while insulating that portion of his portfolio from downside market risk, subject to contract terms.

If the market were to enter a bear phase and Mr. Jones wanted to reallocate a portion of his FIA back into stocks, his contract may allow him to move up to 30% of the initial premium, subject to contract terms.

Research by Wade Pfau, PhD, and Yale Emeritus Professor Roger Ibbotson has examined how adding a fixed indexed annuity allocation to a retirement portfolio can help manage sequence-of-returns risk and portfolio volatility while supporting retirement income goals², an approach worth discussing with your financial professional.