The Investor Panic Relief Tool (i‑PRT)

Preparing for the next crisis:
Smart Alternatives to abandoning investments in a down market

Protect an investment portfolio using i‑PRT and let the numbers speak for themselves

This valuable tool tells the story of how the panicked investor can take action to ensure an optimal outcome. Whether the market goes up, down or stays the same, the output offers each scenario, giving the final portfolio value to be expected. This resource arms the investor with information that encourages positive behavior.

Offering a Way to Insure Against Losses

An alternative for investors:

  • afraid of imminent market decline

  • wanting to withdraw from the market based on news of the day

  • willing to upset long-term investment plan for fear of loss

An Index Put hedging strategy can be simplified to act as "insurance."

By purchasing an Index Put, whose value increases as the market declines, investors can ensure against significant market losses. DALBAR's QAIB study looks at investor behavior and consistently sees how poor market timing results in underperformance.

Designed for Advisors and Investors

Use the tool in Investor mode or in the more complex Advisor mode:

  • Enter simple information like the current portfolio value and term for which the investor wants coverage and receive an Initial Assessment.

  • Advisor mode allows you to Fine Tune with a variety of factors based on investor needs, concerns and preferences.

  • In the Quote Review, enter the information received from an actual quote and make a final review projection before placing the order.

Fight fear with protection and improve investor returns.

The best course of action can only be one that an investor is willing to take. During the crises covered here, many investors rejected the alternative of taking no action, even though the historical evidence is overwhelming that “Take No Action” is most often the best course. Investors who reject the “Take No Action” alternative should consider the i-PRT strategy that avoids the more costly and imprudent course of a full withdrawal.

A tool used as an asset preservation strategy

The following practices are essential to proper use of i-PRT:

  • Designed for use only when investors seek to abandon their investments in fear of imminent market losses.

  • Investors must be told that the best alternative is most often to “Take No Action.”

  • i-PRT is a preferred alternative to withdrawal and must be presented in that light.

  • i-PRT strategy is never offered to answer long term concerns.

Advisor Mode

For expert users to adapt forecasts more precisely to needs. In this mode there is the ability to alter the complex factors used to produce the forecasted results.

Investor Mode

For all users, this mode has easy input for an initial assessment and offers a quote review. This mode does not include the ability to alter complex factors.