Why Our Clients Aren’t Worried About Market Volatility
In recent weeks, market volatility has dominated financial headlines. Recent tariff policies have triggered market fluctuations, leaving many investors worried about their financial future.
Yet amid this uncertainty we have helped clients find stability and calm.
When market turbulence hits, most financial advisors receive a flood of anxious calls from clients. At Pfister Financial Services, we’ve experienced something different. Our clients aren’t panicking—and there’s a strategic reason why.
The difference lies in our approach to financial planning. Our clients don’t depend on market-dependent investments. Instead, we’ve implemented comprehensive risk mitigation strategies that protect our clients regardless of market conditions.
The Risk of All-In Market Exposure
Historical data tells us that the S&P has positive returns in approximately 7.5 years out of 10. This makes equities an essential component of long-term wealth building.
However, being fully invested in the market creates significant vulnerabilities:
Retirement Timing Risk: If you’re planning to retire during a market downturn, your entire financial future could be compromised.
Distribution Phase Vulnerability: Taking distributions from declining assets will guarantee losses and permanently damage your principal.
Tax Inefficiency: Traditional qualified accounts create tax burdens both during accumulation and distribution phases.
Our Strategic Buffer Asset Approach
The cornerstone of our strategy is what we call “buffer assets.” These are what are referred to as “non-correlated financial vehicles.” This means they maintain steady growth regardless of market performance. So even if the market tanks, these non-correlated assets will continue growing for you.
These assets provide critical protection when markets decline, while allowing clients to maintain appropriate market exposure for long-term growth.
The most effective buffer asset in our arsenal? Properly structured, optimally funded permanent life insurance.
Why Permanent Life Insurance Is the Ultimate Buffer Asset
Unlike market-based investments, properly structured whole life insurance provides:
Guaranteed Growth: The cash value component grows at a guaranteed rate (typically around 3%) plus potential dividends.
Non-Correlation with Markets: Values grow steadily regardless of market performance, thanks to conservative investments in high-quality bonds and stable assets.
Tax Advantages: Growth accumulates tax-deferred, and distributions can be structured to be tax-free.
Liquidity Access: Provides immediate access to capital without having to sell depreciated assets during market downturns.
People watch their retirement balance fluctuate wildly, especially with recent market volatility. But our buffer asset strategy creates financial stability that isn’t affected by market volatility or tariff news.
The Rockefeller Method of Wealth Preservation
Our approach is inspired by time-tested wealth preservation strategies used by some of America’s most enduring fortunes. Look at the contrasting stories of two of America’s wealthiest business titans: Cornelius Vanderbilt and John D. Rockefeller.
The Vanderbilt fortune—once worth more than $250 billion in today’s dollars—was squandered in just a handful of generations. Meanwhile, the Rockefeller fortune has remained intact for six generations and counting.
Why? The Rockefellers implemented strategic safeguards that protected their wealth from market volatility, taxes, and even spendthrift heirs. This is what our strategic partner Garrett Gunderson refers to as the Rockefeller Method in his book What Would the Rockefellers Do?.
At the heart of this strategy was a focus on non-correlated assets, which provide stable, predictable growth. The Rockefellers understood that market volatility is inevitable, but its impact on your financial security is optional with proper planning.
Creating a Three-Tiered Protection Strategy
For clients in or approaching the distribution phase of life, we recommend a three-year buffer strategy. This means having sufficient cash value in permanent life insurance policies to cover at least three years of income needs.
This approach provides critical benefits:
It allows clients to leave market investments untouched during downturns.
It prevents the need to sell depreciated assets at a loss.
It provides time for market recovery before withdrawals become necessary.
The Power of Certainty in Your Financial Plan
There is tremendous economic value in certainty. When you have predictability and guaranteed standards of performance, you can make decisions with more peace of mind and confidence. You experience less stress, lose less sleep, and don’t watch your emotions follow your money when markets decline.
Unlike traditional investment vehicles, properly structured whole life insurance offers unmatched certainty. Your cash value is both accessible and guaranteed—you know exactly, year by year, what minimum amount will be there.
This certainty extends to five critical guarantees:
A guaranteed minimum interest rate.
Premiums guaranteed never to increase.
A guaranteed death benefit.
Guaranteed cash value growth.
Guaranteed access to your cash value.
This certainty creates a foundation of financial stability. It allows you to participate in market growth opportunities without the anxiety that typically accompanies market volatility.
Beyond Basic Investment Planning
This approach extends beyond just weathering market volatility. It creates comprehensive protection against multiple risk factors:
Tax risk mitigation through tax-efficient growth and distribution strategies.
Longevity risk protection by creating stable, lifelong income streams.
Legacy planning efficiency by avoiding the tax burdens often placed on inheritors of qualified funds.
Remember, most traditional qualified retirement accounts create a significant tax burden for beneficiaries. When your children inherit these accounts during their peak earning years, they face rushed withdrawals and heavy tax burdens.
Taking Strategic Action
If recent market volatility has you concerned about your financial future, it’s time to reevaluate your approach.
At Pfister Financial Services, we specialize in building safeguards into comprehensive investment strategies. Our approach isn’t just about surviving market volatility—it’s about creating financial stability that supports your goals in any economic environment.
As we often tell our clients: protection leads to production, not just in terms of earning money, but in terms of your quality of life. That peace of mind will translate into clarity, joy, and the mental space that allows you to generate and produce more.
Ready to learn how these strategies could work for your specific situation? Contact us today to schedule a Discovery Call and discover why our clients remain confident even when markets are unpredictable.
Want to learn how the Rockefellers preserved wealth for generations? Get your free copy of What Would The Rockefellers Do?. Discover how you can protect your legacy for the ones you love.
Mark Pfister is the founder of Pfister Financial Services, providing professional counsel for the financial needs of individuals, families, business owners and professionals since 1988.
