Please consult your firm’s Compliance department or electronic policy before sharing from this site. This material is intended to provide educational information regarding the features and mechanics of the product and is intended for financial professional use only. It should not be considered, and does not constitute, personalized investment advice. The issuing insurance company is not an investment adviser nor registered as such with the SEC or any state securities regulatory authority. It’s not acting in any fiduciary capacity with respect to any contract and/or investment. Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the product’s benefit rules, as applicable. There are a multitude of different products that may be accessed for retirement income needs. For example, stocks, bonds, mutual funds and variable annuities are securities and have different risk/reward characteristics, liquidity properties and tax consequences, particularly when compared to products such as CDs, savings accounts, money market accounts and fixed annuities. Certificate of Deposits (CDs) are bank products that are FDIC insured. Money Market funds are securities and are not FDIC insured and although these funds seek to preserve the value of an investment at $1.00 per share, there is no guarantee they will maintain this value. Repositioning of assets from an existing product may not be suitable for all clients. Clients should carefully consider factors such as remaining surrender charge schedule, possible market value adjustments and any other charges before determining if repositioning and/or exchanging of an existing asset, including annuity contract, is right for their particular situation. State insurance replacement regulations may also apply. A fixed index annuity is intended for retirement or other long-term needs. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed index annuity is not a registered security or stock market investment and does not directly participate in any stock or equity investments or index. Taxable distributions (including certain deemed distributions) are subject to ordinary income taxes, and if made prior to age 59½, may also be subject to a 10% federal income tax penalty. Payments from IRAs are taxable in accordance with the normal rules surrounding taxation of payments from an IRA. Early surrender charges may also apply. Withdrawals may reduce any optional guaranteed amounts in an amount more than the actual withdrawal. This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult a tax or legal counsel for advice. 1The “S&P 500® Index” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by Forethought Life Insurance Company. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicenses for certain purposes by Forethought Life Insurance Company. Forethought Life Insurance Company’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index. Indices are not available for direct investment. Annuities are issued by Forethought Life Insurance Company, 10 West Market Street, Suite 2300, Indianapolis, Indiana.Registered products are underwritten and distributed by Global Atlantic Distributors, LLC. Life Insurance is issued by Accordia Life and Annuity Company, 215 10th St, Des Moines, Iowa; and preneed life insurance is issued by Forethought Life Insurance Company. Products, features, and marketing materials are subject to state and firm variations and availability. Read the Contract for complete details. Global Atlantic Financial Group (Global Atlantic) is the marketing name for The Global Atlantic Financial Group LLC and its subsidiaries, including Accordia Life and Annuity Company, Commonwealth Annuity and Life Insurance Company, Forethought Life Insurance Company and Global Atlantic Re Limited. Each subsidiary is responsible for its own financial and contractual obligations. These subsidiaries are not authorized to do business in New York. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE PUBLIC. 4098547.1
FAQs
Is the Rule of 120 the Best Way to Create a Balanced Portfolio? ›
While the Rule of 120 can help avoid common investment mistakes, such as avoiding equities due to fear of risk or neglecting bonds altogether, it doesn't account for the complexities of individual financial situations and risk tolerances.
What is the rule of 120 in investing? ›The Rule of 120 (previously known as the Rule of 100) says that subtracting your age from 120 will give you an idea of the weight percentage for equities in your portfolio.
What is the best portfolio balance? ›The best way to balance your portfolio should account for your risk tolerance, financial plans, and evolving needs over time. A good way to minimize risk is by creating a diversified and balanced portfolio with stocks, bonds, and cash that aligns with your short- and long-term goals.
What is the 120 rule for investments? ›The 120-age investment rule is a theory directing investors to keep a higher allocation of riskier investments for longer. This approach helps build more wealth over time, which is critical for the increased average lifespan of retirees.
Do I have a balanced portfolio? ›Typically, balanced portfolios are divided between stocks and bonds, either equally or with a slight tilt, such as 60% in stocks and 40% in bonds. Balanced portfolios may also maintain a small cash or money market component for liquidity purposes.
What is the 60 30 10 rule in investing? ›The 60/30/10 budgeting method says you should put 60% of your monthly income toward your needs, 30% towards your wants and 10% towards your savings. It's trending as an alternative to the longer-standing 50/30/20 method. Experts warn that putting just 10% of your income into savings may not be enough.
What is the 1 rule of investing? ›Warren Buffett once said, “The first rule of an investment is don't lose [money].
What is the 50 30 20 rule for investing? ›The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
What is the most efficient portfolio? ›The portfolio P is the most efficient portfolio, as it lies on both the CML and Efficient Frontier, and every investor would prefer to attain this portfolio, P. The P portfolio is known as the Market Portfolio and is generally the most diversified portfolio.
What is the best benchmark for a balanced portfolio? ›Investors often use the S&P 500 index as an equity performance benchmark because the S&P contains 500 of the largest U.S. publicly traded companies. However, there are many types of benchmarks that investors can use depending on their investments, risk tolerance, and time horizon.
What is the best portfolio ratio? ›
If you are a moderate-risk investor, it's best to start with a 60-30-10 or 70-20-10 allocation. Those of you who have a 60-40 allocation can also add a touch of gold to their portfolios for better diversification. If you are conservative, then 50-40-10 or 50-30-20 is a good way to start off on your investment journey.
What is the 120 rule? ›The NEC 120% rule limits the size of additional power sources (PV or battery) to within an acceptable safety limit based on the equipment label rating. In this case, the PV breaker would be limited to a maximum of 40 amps. 240 amps minus the 200 amp main breaker = 40 amps max.
What is the 120 rule 401k? ›The 80/120 rule applies for those plans that fluctuate between 80 and 120 participants each plan year. In its simplest form, those plans with participants between 80 and 120 at the beginning of a plan year may consider using the same category—a small plan or a large plan—that was used in the previous plan year.
What is the 70 20 10 rule for investing? ›The 70-20-10 budget formula divides your after-tax income into three buckets: 70% for living expenses, 20% for savings and debt, and 10% for additional savings and donations. By allocating your available income into these three distinct categories, you can better manage your money on a daily basis.
What is the 5% portfolio rule? ›As an investor you will find many products and many options to invest in. The 5% rule says as an investor, you should not invest more than 5% of your total portfolio in any one option alone. This simple technique will ensure you have a balanced portfolio.
How do you create an optimal portfolio? ›Diversification and Asset Allocation
The key to generating consistent returns is to hold a blend of asset classes that are not highly correlated including stocks, bonds, real estate, commodities, and cash. The exact makeup of this mix should align with your personal risk tolerance, investment timeline, and objectives.