Idea One: Consider a Fixed Index Annuity. These contracts are designed to give investors exposure to increases in stock market values, in a way which protects them from losses during downturns. This is possible because they are issued by insurance companies, who have the legal authority to make financial guarantees. FIAs also have lots of options for converting savings back into income during retirement years. For many, they form the anchor leg of a low risk portfolio
Idea Two: Consider rental property. Many institutional investors look to real estate as a means to out-earn bonds without having to over-allocate to stocks. Individuals often find a good portfolio allocation in the form of an income producing property. Because rental properties don’t earn their yields based on market movements, they are a good diversifier. And the abundance of rental agents and management companies makes it easy to invest in this asset class without having to be directly involved in the operation.