Stock Market Risk

After significant drops the stock market in 2008 and early 2009, many retirees and employees are aware of the risk involved with stock market investing.  The payments resulting from any transferred balances will not vary with decreases (or increases) in stock market indices after the transfer.  However, these transfers are not the only way to remove stock market exposure.  If your only concern is reducing your stock market risk, this transfer may not be your best choice.
The trade-off for avoiding stock market risk is that we use interest rates on risk-free U.S. Treasury Bonds to calculate the benefit amount.  Those interest rates are currently at historically low levels.  The lower the interest rate, the lower the benefit for a given amount transferred.  For more details on how the benefit is calculated, please see the Frequently Asked Questions.​