top of page

A Buffer Asset Isn't That Complicated - Here's Why

When it comes to retirement income, having a buffer asset in your portfolio can provide invaluable protection and stability.

Some may think that implementing a buffer asset is a complex and convoluted process, but in reality, it's much simpler than it seems.

What is a Buffer Asset?

A buffer asset is an investment that acts as a cushion during market downturns or unexpected events.

The primary purpose of a buffer asset is to ensure the continuity of your income, financial goals and protect your wealth from significant losses. It offers three main things:

Stability in Market Fluctuations: Financial markets are inherently unpredictable. A buffer asset helps balance the impact of market fluctuations, shielding your portfolio from dramatic declines and reducing overall risk.

Protection Against Unexpected Events: Life is full of surprises, and financial emergencies can arise at any moment. A buffer asset provides a safety net, ensuring you have readily available funds to handle unforeseen circumstances without disrupting your long-term financial plans.

Psychological Comfort and Peace of Mind: Knowing that you have a buffer asset in place can provide a sense of security and peace of mind. It allows you to stay focused on your financial goals without constant worry about market volatilities or economic uncertainties.

Is it Hard to Get a Buffer Asset?

People seem to think acquiring a buffer asset is complicated. Really, it’s just about adding a source of income with guarantees to draw from when you shouldn’t withdraw from your main retirement account(s).

When the market is down, you don’t want to draw from your main retirement accounts like 401ks and IRAs - you want to keep the nest egg as big as possible so it can recover and earn greater returns when the market bounces back.

If you have a buffer asset, you can draw income from that account instead.

See? It’s simple.

Implementing a Buffer Asset

Contrary to popular belief, implementing a buffer asset doesn't have to be complicated. Here are a few key steps to consider:

  1. Define Your Financial Goals. Understand your long-term financial objectives and identify what type of buffer income you’d like.

  1. Choose the Right Buffer Asset. There are various buffer assets to consider, such as cash reserves, bonds, annuities, permanent life insurance, premium financed life insurance, and other structured products. Consult with a financial advisor to select the most suitable option based on your goals and risk tolerance.

  1. Regular Monitoring and Adjustment. As with any investment, it's essential to monitor your buffer asset's performance and make necessary adjustments over time. Regularly review your financial plan and assess whether the chosen buffer asset continues to align with your objectives.


A buffer asset is a crucial component of a well-designed financial strategy. It provides stability, protection, and peace of mind in the face of market uncertainties and unexpected events during retirement.

Remember, implementing a buffer asset doesn't have to be complicated. With proper planning and guidance from a trusted advisor, you can build a robust buffer asset that supports your long-term financial success. Please reach out with any questions you may have: or call 773-318-9608.



901 N Lake Destiny Drive, STE 380

Maitland, FL 32751


Be the first to hear about industry news and stay ahead of the curve on all things premium financing + tax and retirement planning.

bottom of page