Coasting in Retirement – Episode 77
Happy New Year, Gulf Coast friends! Whether you’re dreaming of sandy beaches and sunset cruises, weekend adventures, or more quality time with family and grandkids, the start of 2026 is the perfect time to make sure your investment strategy is built to handle whatever the markets throw at us next.
Josh Null (host of Coasting in Retirement and owner of Gulf Coast Financial Advisors) was joined by special guest Jake Marriott (Options Portfolio Manager for Aptus Capital Advisors) for a timely deep dive into navigating today’s volatile markets. They explored Buffered ETFs, options-based strategies, and practical ways to participate in upside while managing downside risk. Here’s what stood out… and how it could apply to your retirement portfolio.
What Are Buffered ETFs and Why Are They Gaining Popularity?
Buffered ETFs are designed to provide defined outcomes over a set period, typically offering downside protection (a “buffer”) while capping upside potential. For example: a common structure might protect against the first 15% of market losses while capping gains at 10–12%.
Unlike Fixed Index Annuities, these are fully liquid ETFs that trade like stocks with no long surrender periods. They use options strategies under the hood to create this profile and serve as a modern replacement for older structured notes with better liquidity, lower fees, and no counterparty risk.
Common Use Cases:
- Helping risk-averse investors stay in the market during uncertain times instead of sitting in cash.
- Shifting asset allocation to own more equities while keeping overall drawdowns similar to a traditional 60/40 portfolio.
- Putting cash to work after a liquidity event (sale of a business, inheritance, etc.).
The Math Behind the Strategy
Looking at rolling 12-month returns since 1950, the S&P 500 has returned 12% or greater roughly 55.5% of the time. Higher caps on Buffered ETFs are powerful because they’re hit more frequently than many realize. Jake explained that reducing expenses (lower expense ratios) allows for higher caps, meaning better potential compounding over time.
For many investors, this creates a more comfortable way to stay invested without the full stomach-churning drops of pure equities.
A Solution for Concentrated Stock Positions
For those with large holdings in a single stock, especially low-cost-basis positions, Jake discussed options overlay strategies. These can be used in three main “buckets”:
- Income: Selling calls against the stock to generate yield on an otherwise non-dividend paying asset.
- Transition: Using more aggressive calls to help diversify out of the position in a more tax-efficient way. Losses in the options can offset gains from stock sales.
- Hedging: Protecting against significant drawdowns without triggering immediate taxes by selling the shares.
These strategies allow investors to manage risk and taxes while still participating in some upside.
Headlines of the Week Highlights
Josh and Jake discussed why Aptus prefers ETFs over traditional mutual funds (lower costs, intraday liquidity, and better tax efficiency), how to properly use Buffered ETFs in a broader portfolio, and whether they can help replace cash in uncertain times. They also touched on the VIX “Fear Index” and what elevated volatility means for everyday investors.
Wrapping Up: Smart Tools for Uncertain Markets
Josh and Jake made it clear: there are no guarantees in investing, and all strategies involve risk. However, tools like Buffered ETFs and thoughtful options overlays can help Gulf Coast investors stay participating in the market’s long-term growth while sleeping better at night.
If any of this resonates, whether you’re concerned about volatility, have concentrated stock positions, or simply want a second opinion on your current allocation, now is a great time to have a conversation.
Let’s Talk About Your Retirement Plan
If you’re thinking about navigating today’s markets, Buffered ETFs, options strategies, or just want to know if your plan is positioned for the years ahead, we would love to talk.
You can reach us at 251-327-2124, or visit gulfcoastfa.com and click the blue button in the upper right-hand corner to schedule a meeting. We offer:
- 15-minute introductory calls
- 30-minute Zoom meetings
- In-person meetings at our offices in Fairhope, Orange Beach, or Mobile
No pressure. No obligation. Just a clear, professional conversation. Here’s to a strong, well-protected 2026, full of confidence and financial peace of mind on the Gulf Coast.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.