What’s Ahead
- The majority of Americans are worried about their finances and ability to retire confidently.
- Business leaders and the Bipartisan Policy Center convene at the National Summit on Retirement Savings on March 12.
- Structured Notes can be a helpful vehicle to boost investorsโ retirement confidence with downside protection, high-income potential, and customization.
Confronting Americaโs Retirement Crisis
Eighty percent of U.S. voters want Congress to help people save for retirement, according to a January Rachyl Jones/Semafor survey. BlackRock, the worldโs largest asset manager, calls out lingering retirement problems plaguing the bottom half of the American population.
To be sure, the bull market in stocks since October 2022 and a stabilization of the bond market have helped the rich and mass-affluent cohorts of the country, but many less wealthy families depend on Social Security and other programs to help them reach and enjoy retirement.
Financial Leaders and Policymakers Take Action
As the wealth divide widens, industry leaders, including BlackRock, and policymakers at the Bipartisan Policy Center joined forces to address this major financial risk at the 2025 National Retirement Summit. Larry Fink, CEO of BlackRock, and JPMorgan CEO Jamie Dimon will press lawmakers in Washington to tackle what has been dubbed an โimpending crisisโ in retirement planning.
The Semafor survey also shows that nearly half of respondents believe they will not have enough savings to retire comfortably. And ever more, 33% of respondents report having no savings at all. With one in three Americans at high risk financially, the fear is real.
More than half of those surveyed are afraid of outliving their savings more than they fear death itself. With the country at a fiscal crossroads and a higher cost of living today, legislation may be needed to support so many individualsโ long-term financial security.
Retirement Planning at a Crossroads: The Need for New Solutions
The responsibility for solving Americaโs retirement challenges doesnโt rest solely with Congress. The private sector has a critical role to play in developing innovative financial solutions that empower individuals to achieve their financial goals.
At Halo Investing, we are driven by a mission of impact before profits. By democratizing access to protective investments and reducing their costs, we are making productsโonce reserved for the ultra-wealthyโavailable to everyday investors. This commitment aligns with the progress championed by leaders like Larry Fink and Jamie Dimon, as we work to reshape the financial landscape and help more people secure their futures.
The Retirement Savings Challenge: Why Financial Security Is Multifaceted
Does Halo look to change the world? Well, yes, it has always been our mission to do something thatโs bigger than ourselves. The reality is that people live longer,ย longevity riskย is rising, inflation and market volatility remain top concerns, and traditional pension plans have gone by the wayside.
These issues are manageable for a chunk of individuals and couples who hold high-paying and stable jobs and can periodically invest through tax-advantaged accounts. But even a disciplined saver may feel daunted by retirementโs financial obligations.
Thus, todayโs retirement savings challenge is multifaceted. Effective solutions will be complex. Seeing what leaders can come up with to help people shore up their long-term finances and restore confidence will be interesting.
Moreover, thereโs the lingering concern that todayโs elevated stock market valuations may indicate a period of lower returns. Leading to even further strain on household finances.
While the March 12 summit led by BlackRock and the Bipartisan Policy Center aims to draft legislative changes, individuals must also consider new ways to bolster their retirement strategies. The Centerโs CEO, Margaret Spellings, noted, โWith Americans living longer than ever, lawmakers must prioritize policy that supports personal savings.โ One such avenue that deserves attention is Structured Notes.
How Structured Notes Can Enhance Retirement Portfolio Security
Structured Notes are an often-overlooked vehicle for boosting a retirement portfolio. IRAs, 401(k)s, and annuity products are the most commonly cited tools to save and invest for retirement, but Notes offer a unique balance of growth potential, downside protection, and income generation.
These are top issues and goals for retirees and those approaching retirement. Notesโ flexibility and customized risk/reward profiles can be used alongside other, more prevalent, investment types. Hereโs why Structured Notes should be considered for a range of folks across the wealth spectrum.
- Protection Against Market Downturns
Some of the mostย popular Notes are PPNs, orย Principal Protected Notes. PPNs provide full principal protection from market-related losses. They typically pay a return based on an equity index (known as the underlier), though there is still credit risk from the issuing bank.
PPNs are geared toward risk-averse investors, and the holder can receive back their initial investment when held to maturity, even if the market underperforms. So, PPNs can deliver peace of mind and have the potential to be a strong option for those who seek stock market exposure but cannot afford a loss. Think of PPNs as insurance against the stock market declining, just as you would have insurance on your home or car.ย - Enhanced Yield Opportunities
Young investors and those with an ample net worth can have an allocation heavy on stocks, but for those nearing or in retirement,ย a portfolioย is used to meet near-term financial needs. So, having a decent income return from a large bond sleeve is desired.ย
Income Notesย offered through Halo can feature attractive returns with enhanced yields/returns compared to a total bond market fund or an equity ETF. While many investors use Income Notes to augment a traditional bond portfolio, I like to think of them as a โbridgeโ between stocks and bonds. Meaning, Income Notes can offer greater return potential than traditional fixed income, but less risk than most equity exposure. Income Notes can also be useful combatants to a sideways market if volatility persists.ย - Flexibility to Meet Retirement Goals
Structured Notes can produce an attractive risk/return profile in uncertain market regimes, but what makes this vehicle unique is that a basket of Notes can be procured to fit an investorโsย unique risk tolerance and retirement timeline.ย
For example, an investor just starting their golden years may look to execute a โbond tentโ strategy, such as the one put forward by Michael Kitces. To do this, the investor can partner with a financial advisor and opt for a set of PPNs and Income Notes to provide a target income amount with a predetermined level of downside protection, while still participating in the upside of the market. That is the key: in retirement, investors should consider theirย personal risk toleranceย just as much as they consider the risk of the individual investment itself.ย
The Bottom Line
As some of the worldโs most powerful financial leaders and the Bipartisan Policy Center call on Congress, pensioners, and other business executives to stave off an imminent retirement crisis, there are steps individual investors and their advisors can take to safeguard portfolios. The upcoming National Retirement Summit is a needed step to improve Americansโ finances, and solutions driven by companies like Halo are needed to address the challenges of today and tomorrow.
About the author
Jason Barsema
Halo Investing
Jason Barsema is the Co-Founder and President of Halo Investing where he leads the team and product vision. With over a decade of experience managing Structured Notes, he built the Halo platform to provide all investors access to this incredible investment product. Jason previously was a Partner on a large Private Banking team at Credit Suisse, where he managed portfolios for Ultra High Net Worth Individuals & Institutions. Jason has his B.A. in Economics from Northern Illinois University and his M.B.A. from the Kellogg School of Management at Northwestern University.
Please see our Halo Disclosure Page for important disclosures.
An investment in Structured Notes may not be suitable for all investors. These investments involve substantial risks. The appropriateness of a particular investment or strategy will depend on an investorโs individual circumstances and objectives.
Content and any tools discussed are provided for educational and information purposes only. Halo Investing makes no investment recommendations and does not provide financial, tax, or legal advice. Any structured product or financial security discussed is for illustrative purposes only and are not intended to portray a recommendation to buy or sell a particular product or service.
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