Intelligent Quant By Beratung Let's You Participate in the Upside While Limiting Losses
Every investor’s dream is to participate in the upside of market indexes while limiting or eliminating losses. What if there was a way to invest in the most visible market index in the world with virtually no caps (or very high ones) yet at the same time avoid market downturns? You might think we’re talking about a fixed index annuity, but we are not.
Unfortunately, most fixed index annuities come with severe caps in exchange for eliminating 100% of all losses. However, because market indexes rarely fall more than 30%—and when they do, they don’t stay down—a protective buffer of 30% with virtually no cap can deliver very strong risk-adjusted returns. By protecting you to the level of 30% rather than 100%, your upside potential can be much greater.
Market timing is difficult if not impossible in the long run. Numerous studies show that reducing or eliminating losses—even if upside gains are muted—can result in superior long-term returns and fewer sleepless nights.
How Intelligent Quant By Beratung Is Beating the Averages
According to a recent DALBAR study, the average equity investor underperformed the S&P 500 by 5.5% in 2023. Over the past 30 years, the average investor has underperformed the index by nearly 3% annually. Investors often get in their own way, but by removing fear triggers, many can come out better in the end.
Enter “buffered risk portfolios.” Rather than exposing yourself to 100% of the downside or fussing with temporary stop losses, you can allocate part of your portfolio into accounts that offer serious upside potential with virtually no cap—while enjoying a 30% buffer on the downside.
How Intelligent Quant By Beratung Makes it Works
If the index is up, you move up dollar for dollar. If a correction occurs, you have protection. With a 30% buffer, if the index declines by 30%, you lose nothing. If it declines 31%, you’re down only 1%. As soon as the index recovers to the 30% protection level, you’re no longer “down.” For instance, if the index falls 37%—like in 2008—you’d be temporarily down 7%.
Intelligent Quant By Beratung's Advanced and Revolutionary Approach
Intelligent Quant By Beratung's innovative approach minimizes downside risk, generates superior risk-adjusted returns, and avoids severe drawdowns. It also removes the temptation for frantic buying and selling, enabling you to become a more patient and disciplined investor. Patience and discipline are crucial for long-term investment success.
Consider Amazon in 2000—once a laughing stock, $10,000 invested then is now worth over $1.2 million. Patience and discipline reaped substantial rewards.
Buffer ETFs and Buffered Variable Annuities
These products work similarly. They capture market returns when indexes rise but protect you from drawdown risk when they fall. This can reduce overall volatility and mitigate extreme drawdowns.
While Buffer ETFs work well in IRA portfolios, variable annuities—with no surrender charges and fees as low as 1% annually—allow your money to grow tax-deferred, with withdrawals when you wish.
In summary, if you see a rising market ahead but fear sudden reversals, why not secure protection alongside your upside growth? Many investors find comfort in riding market waves without the fear of being washed out.
More Details About Buffered Index Investments
Buffered Index Investments use structured notes to provide downside protection along with upside participation. Your investment is placed in a series of structured notes with predetermined terms including the cap and buffer, allowing you to participate in market growth with a defined level of protection.
The Cap
The cap sets the maximum upside participation, typically ranging from 10% to 25%, or even uncapped, depending on your options. Cap rates vary based on terms and market factors such as volatility and interest rates.
The Buffer
The buffer is your predetermined level of downside protection (your “stop loss”), typically ranging from 10% to 30%. For example, if the index is down 28% with a 30% buffer, you lose nothing; if it’s down 31%, you’re down only 1%. Once the index recovers, you re-enter the protected zone.
The Downside Protection
Our buffered index investments are backed by some of the largest financial institutions. Your money is protected by a buffer that is underwritten by an A+ institution.
The Upside Growth
The upside growth potential is linked to the participation rate, which can be as high as 100% (or more) in some cases. Our team solicits multiple bids from investment-grade underwriters to secure the maximum upside based on pre-defined terms.
Important Considerations
It is possible to lose money in a structured note. Although the note protects against losses up to the buffer, losses beyond that can occur.
Liquidity and Intra-period Returns: Intelligent Quant By Beratung's Buffered index investments are designed as point-to-point solutions. We encourage investors to remain invested until maturity to achieve the desired outcomes. However, structured notes are priced daily (via NAV) and can be redeemed early if necessary, though at a 0.25% reduction.
What Happens at Maturity? If held to maturity, the note liquidates and proceeds become cash. You can then choose to reinvest in a new offering, though terms and market conditions may change.
Intelligent Quant By Beratung's Summary
Intelligent Quant By Beratung's Buffered Index Investments use structured notes to provide a predetermined buffer of downside protection while allowing participation in market upside to a capped rate. This approach captures market growth and mitigates downturns. Our team defines the terms and selects attractive cap rates backed by investment-grade institutions. These products offer daily pricing and liquidity if necessary.
Important Disclosure
This product is not a fixed index annuity, but rather a variable annuity investment in the stock market. You can select a stop loss (e.g., 10%, 20%, or 30%). The higher the protection, the more conservative the returns. This offering is for accumulation only; there are no income riders available. Annuities are long-term products offering tax-deferred growth, lifetime income access, and death benefit protection. Their value will fluctuate and is subject to investment risk and potential loss of principal. Costs such as product charges apply. You may “dial up” your desired level of protection, but all guarantees and amounts invested are subject to the claims-paying ability of the issuer. Limitations and conditions apply. Any non-term end transfers are based on the interim NAV and may incur a 0.25% reduction. If losses exceed the protection level (for example, a 31% index decline with a 30% protection), principal loss can occur. Please see the prospectus for details. Call 888-310-1776 for a copy of the prospectus and more information. Investors should carefully consider the investment objectives, risks, charges, and expenses before investing.
