Volatility and The Gondola SafeTank
“Avoiding losses is more important than chasing gains.”
Sage Investor 
This is one of the hardest and most dangerous dynamics to protecting an investor’s portfolio.
The ups and downs of the market (called volatility) can be the difference between a comfortable retirement and running out of money.

Most investment strategies address this under the subject of “risk tolerance.” They, in some ways, FORCE you to accept risk. With Gondola’s SafeTank, we have created something that removes volatility from the equation.

We ask you to ask yourself the following question:
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“What if you could remove as much risk as possible from your investments, but still generate a competitive return?” We think we know how you would answer.

With a Gondola SafeTank, we select products where returns are a feature.
How we do it.
These products are contracts where the contract owner agrees to provide regular installments to fund the account.
  • Allows the account to grow at a guaranteed rate
  • Rates can change over time but are never less than zero
Numbers don't tell the whole story.

Products with guaranteed rates tend to grow more slowly, but the returns will always be there.  Returns on the higher end of the spectrum do introduce some risk, as the rate of return is tied to the stock market, but the risk exists only to the degree that the investment grows.

In other words, it will not lose money but only grow at differing rates.

*This scenario does not account for the complication of tax planning for the non-Gondola SafeTankSM portfolio. Taxes can have just as bad of an effect. Learn more about tax efficiency in our article, Taxes and The Gondola SafeTankSM.

Loss
Required Gain To Break-Even
50% loss
100%
40% loss
66.67%
30% loss
42.86%
20% loss
25%
10% loss
11.11%
0%
50%
Loss
Required Gain to Break-Even
-50%
100%
-40%
66.67%
-30%
42.86%
-20%
25%
-10%
11.11%
When something is asymmetrical that means one part doesn’t match the other.
The Dangers of Keeping Volatility in Your Investments
Stock market losses are one of the best examples of something that’s asymmetrical. Say there was a catastrophic downturn in the market and a portfolio tragically loses 50% in value.  That same portfolio won’t return to its original value until it doubles. Meaning, recovery from a 50% loss requires a 100% gain.
The Pain of Ups and Downs

Even the day-to-day ups and downs of the market create pain for investors. At the most basic level, any investor experiences stress from the headlines he or she sees when reading the news. Flying high when the market is doing great is tempered by feelings of negativity when all is not so well.

Logistically though, drawing down into a bear market has a major effect on how long your money will last.
Why SafeTank

At the end of the day, when you look at your Gondola SafeTankSM balance, you know, without a doubt, that’s how much money you have. A SafeTank removes the confusion and concern around whether the balance will be less tomorrow, and the confidence in knowing that, due to its fundamental structure, the value of a Gondola SafeTankSM will only increase, provided that it has been funded at a rate high enough to maintain the balance between growth minus fees and withdrawals.

tax icon
Tax Free
Taxes are something you can anticipate, control and reduce.

With a Gondola SafeTank, investors no longer have to play a guessing game of how much money taxes will reduce their hard-earned gains

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