AnchorPath's patent-pending Payout Protected Account is a simple, low cost way for individuals to participate in the stock and bond markets over the long run, with the aim of producing superior levels of retirement income. The account offers individuals access to the professional investment and risk management techniques used by large financial institutions. The account is SIPC-insured*.
The Payout Protected Account contains a diversified blend of indexed stock and bond investments and a managed portfolio of risk reduction instruments that acts as a buffer to support payouts in retirement, even during crisis conditions like those of 2008 and 2009. This risk containment is achieved without subjecting the investor to the uncertain creditworthiness and cost of using third-party guarantors. All risk-control instruments utilized are exchange-traded and deemed to constitute "AAA" rated counterparty risk.
The investor directly owns the customized individual account, but enjoys low execution costs typically experienced only by large institutional accounts. The Payout Protected Account provides the highest degree of transparency possible as investors can always view all positions in their portfolio. The investments in the account are liquid and the investor can withdraw the total account value without penalty.
The Payout Protected Account allocates investments to two subaccounts:
- The Balanced ETF Subaccount - contains a low-cost blend of indexed stock and bond exchange traded funds (ETFs) and
- The Payout Protection Subaccount - includes low-cost, liquid and transparent risk reduction instruments designed to support payouts during retirement
* Securities Investor Protection Corporation (SIPC) is an industry-financed insurance plan that protects clients of most broker-dealers registered with the U.S. Securities and Exchange Commission (SEC). SIPC insures customers' securities (up to $500,000 per account) against losses due to the financial failure of brokerage firms. Losses caused by fluctuations in market value, issues with the underlying investments, trading losses and other causes of potential losses are not protected. For more information about the SIPC program, go to www.sipc.org