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Navigating Volatile Markets: Two Strategies Lockheed Martin Employees Can Use to Balance Growth and Protection

'Lockheed Martin employees who recognize the emotional impact of market swings and adopt strategies to balance growth with principal preservation can better position themselves for long-term financial health, rather than letting short-term fear drive critical decisions.' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'Lockheed Martin employees who combine disciplined strategies like anchor and protected accumulation approaches can help reduce the influence of loss aversion and support more consistent retirement outcomes over time.' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

The impact of market volatility on investment behavior and long-term growth for Lockheed Martin employees.
Two established strategies—anchor strategy and protected accumulation—for balancing growth and principal preservation.
Key considerations and practical tips for addressing loss aversion, including the role of diversification and liquidity in retirement portfolios.

In unpredictable markets, Lockheed Martin employees can find balance between building wealth and managing losses.

Market volatility often triggers strong emotional responses, especially the fear of losing hard-earned savings. For Lockheed Martin employees, it’s important to recognize that decisions made out of fear—such as selling off assets during market downturns—can have lasting negative effects. For instance, after the 2008–2009 financial crisis, many investors shifted large sums into cash and missed out on the long-term gains that followed, demonstrating how efforts to sidestep risk can inadvertently limit future growth.

Market swings are a constant, but impulsive reactions to short-term turbulence can disrupt even the most well-crafted investment plan. Maintaining some exposure to equities is essential for long-term growth, yet hesitancy due to risk aversion is common. As Wealth Enhancement advisor Wesley Boudreaux notes, this reluctance may hinder wealth building for Lockheed Martin workers, particularly as inflation reduces the value of cash held on the sidelines.

The good news is that prioritizing both growth and limiting losses does not have to be an either/or proposition. Lockheed Martin employees can use established strategies that help reduce downside risk while still participating in potential market gains.

Why Timing the Market Rarely Works

Attempting to “time the market” by guessing ups and downs is notoriously difficult, even for seasoned professionals. Missing just a few of the market’s strongest days can substantially cut long-term returns. According to Fidelity research, skipping the ten best days in a 20-year period could reduce overall gains by half. ¹ For Lockheed Martin team members, fully stepping away from stocks could mean missing out on one of the best long-term tools for keeping up with inflation and meeting income needs throughout retirement.

Those with a time horizon of at least five to ten years may benefit from strategies that balance market participation with preservation of principal. The anchor strategy and protected accumulation approach are two practical methods Lockheed Martin employees can consider.

Anchor Strategy: Building Stability Into Your Portfolio

This approach divides a retirement portfolio into two parts: a conservative “anchor” and a growth-focused section. The anchor portion often uses certificates of deposit (CDs) or single-premium deferred annuities (SPDAs) that offer fixed or consistent returns. For example, investing $82,200 in a five-year SPDA yielding 4.0% can mature to $100,000, ² with the remaining funds allocated to stocks or equity funds for growth potential. The anchor provides the reassurance that the initial principal is restored at maturity, even if growth investments underperform.

For cautious Lockheed Martin employees, this technique helps reduce the likelihood of losing initial investments. However, it’s important to remember that inflation can still erode purchasing power over time. Additionally, annuity or CD interest in taxable accounts may be subject to annual taxes, even though tax-deferred accounts offer certain benefits.

Protected Accumulation: Growth Potential Plus Principal Preservation

This approach leverages certain deferred variable annuities—especially those with a Guaranteed Minimum Accumulation Benefit (GMAB) rider. Under this strategy, Lockheed Martin employees may invest a higher percentage in equities, sometimes more than the 15–20% seen in anchor portfolios. The GMAB feature, for a fee, provides for the principal to be restored to at least the original investment after a set period, even if the market underperforms. ³

An additional advantage is the “step-up” option found in many GMAB riders. If your investments increase, you can reset your principal floor to the new higher value, locking in gains and beginning a new investment period. For example, if your Lockheed Martin retirement portfolio with a GMAB rider grows from $100,000 to $110,000 in the first year, you can set $110,000 as your new principal floor. However, note that step-ups may result in higher fees, and annuity features vary among providers.

As with all financial tools, Lockheed Martin employees should review terms, features, and costs carefully when considering annuities or other investment products.

What Lockheed Martin Employees Should Consider When Addressing Loss Aversion

Choosing between these approaches depends on factors like your investment goals, interest rate environment, product fees, time horizon, and risk tolerance. While both strategies may help limit concerns about loss, they may also restrict the full potential of a diversified portfolio. Studies show that investors may experience greater long-term success with a balanced mix of stocks, bonds, and other assets. ⁴

Liquidity is another key factor for Lockheed Martin staff. Both annuities and CDs often impose penalties for early withdrawal, which can eat into returns. The protected accumulation strategy may be less suitable for those with shorter investment horizons (under ten years).

Ultimately, psychology shapes investment decisions. For Lockheed Martin employees, knowing that principal is preserved can make it easier to pursue growth opportunities without moving entirely out of equities.

Conclusion

While loss aversion is normal, it shouldn’t be the only driver of your investment choices. Lockheed Martin employees are encouraged to weigh their personal goals, risk tolerance, and portfolio needs when considering protected accumulation or anchor strategies. Consulting with a financial professional can also help maintain proper diversification and tax efficiency. Careful planning allows Lockheed Martin workers to navigate retirement savings through changing market conditions without letting fear dictate decisions.

Combining a ladder of bonds with dividend-paying stocks is another approach for Lockheed Martin retirees to consider. Bond ladders can reduce interest rate risk and provide steady income, ⁵ while dividend equities offer both income and growth potential.

Managing your Lockheed Martin retirement portfolio to balance growth and principal preservation is like preparing a ship for a long voyage: the protected accumulation approach serves as a reinforced hull, shielding you from rough waves, while the anchor strategy keeps your financial ship steady during storms. By using both strategies, Lockheed Martin employees can confidently navigate market volatility while seeking new opportunities to grow their retirement savings.

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Sources:

1. Fidelity Investments. “ What high inflation and market volatility mean for retirees ,” Fidelity, n.d. Accessed 13 July 2025.

2. Fidelity Viewpoints. “ Fighting loss aversion: How to stay invested for growth ,” Fidelity, n.d. Accessed 13 July 2025.

3. Investopedia. “ Guaranteed Minimum Accumulation Benefit (GMAB), ” by Julia Kagan. July 25, 2024.

4. BlackRock. ' Diversifying investments .' Portfolio Construction Modules. 2025.

5. Vanguard. “ Bond trading strategies: Ladders, barbells & swaps .” Vanguard, n.d. Accessed 13 July 2025.

How does Lockheed Martin determine the monthly pension benefit for employees nearing retirement, and what factors should employees consider when planning their retirement based on this calculation? Specifically, how do the concepts of "Final Average Pay" and "Credited Years of Service" interact in the pension calculation under Lockheed Martinâ€™s retirement plan?

Lockheed Martin Pension Calculation: Lockheed Martin calculates monthly pension benefits using the "Final Average Pay" (FAP) and "Credited Years of Service" (CYS). The FAP is determined by averaging the three highest annual compensations prior to 2016, while CYS counts the years from employment start to December 31, 2019, when the pension was frozen. The benefit per year of service is calculated based on whether the FAP is less than or exceeds the Social Security Covered Compensation, with specific formulas applied for each scenario. These calculations directly affect the monthly pension benefit, which may also be reduced if retirement commences before a certain age due to early retirement penalties.

Given the recent changes in Lockheed Martin's pension policy, what implications could this have for employees who are planning to retire in the near future? How should these employees navigate their expectations regarding retirement income given that the pension has been frozen since 2020?

Implications of Pension Freeze: Since Lockheed Martin froze its pension plan in 2020, no future earnings or years of service will increase pension benefits. This freeze shifts the emphasis towards maximizing contributions to 401(k) plans, where Lockheed Martin increased its maximum contribution to 10% for non-represented employees. Employees planning for imminent retirement should recalibrate their financial planning to account for this change, prioritizing 401(k) growth and other retirement savings vehicles to compensate for the pension freeze.

What options does Lockheed Martin provide for employees regarding healthcare insurance as they approach retirement age? How do these options compare in terms of coverage and cost, particularly for those who will transition to Medicare upon reaching age 65?

Healthcare Options Near Retirement: As Lockheed Martin employees approach retirement, they can choose from several health insurance options. Before Medicare eligibility, they may use COBRA, a Lockheed Martin retiree plan, or the ACA's private marketplace. Post-65, they transition to Medicare, with the possibility of additional coverage through Medicare Advantage or Medigap plans. Lockheed Martin supports this transition with a Health Reimbursement Arrangement, providing an annual credit to help cover medical expenses.

Understanding the complex nature of Lockheed Martin's pension and retirement benefits, what resources are available to employees to help them navigate their choices regarding pension claiming options? In what ways can the insights from these resources aid employees in making informed decisions about their financial future?

Resources for Navigating Retirement Benefits: Lockheed Martin employees have access to resources like the LM Employee Service Center intranet, which includes robust tools such as a pension estimator. This tool allows for modeling different retirement scenarios and understanding the impacts of various pension claiming options. Additional support is provided through HR consultations and detailed plan descriptions to ensure employees make informed decisions about their retirement strategies.

For employees with varying years of service at Lockheed Martin, how can their employment history impact their pension benefits? What strategies should individuals explore to maximize their benefits given the different legacy systems that might influence their retirement payout?

Impact of Employment History on Pension Benefits: The length and nature of an employee’s service at Lockheed Martin significantly influence pension calculations. Historical changes in pension policies, particularly the transition points of the pension freeze, play critical roles in determining the final pension benefits. Employees must consider their entire career timeline, including any represented or non-represented periods, to understand and maximize their eligible pension benefits fully.

How does the Lockheed Martin retirement plan ensure that benefits are preserved for spouses or dependents after an employee's passing? How do different claiming options affect the long-term financial security of the employee's family post-retirement?

Benefit Preservation for Dependents: Lockheed Martin's pension plan includes options that consider the welfare of spouses or dependents after an employee's passing. Options like "Joint and Survivor" ensure ongoing benefits for surviving spouses, while choices like "Life with X-Year guarantee" provide continued payments for a defined period after the employee’s death. Understanding these options helps secure long-term financial stability for beneficiaries.

What steps can Lockheed Martin employees take to prepare financially for retirement, especially if they have outstanding loans or financial obligations? How crucial is it for employees to understand the conditions under which these loans must be settled before retirement?

Financial Preparation for Retirement: Employees approaching retirement should focus on clearing any outstanding loans and maximizing their contributions to tax-advantaged accounts like 401(k)s and Health Savings Accounts (HSAs). These steps are crucial for ensuring a smooth financial transition to retirement, minimizing potential tax impacts, and maximizing available retirement income streams.

With the evolution of Lockheed Martin's retirement initiatives, particularly the shift toward higher 401(k) contributions, how should employees balance contributions to their 401(k) with their overall retirement savings strategy? What factors should they consider in optimizing their investment choices post-retirement?

Balancing 401(k) Contributions: With the pension freeze, Lockheed Martin employees should increasingly rely on 401(k) plans, where the company has increased its contribution cap. Employees must balance these contributions with other savings strategies and consider their investment choices carefully to ensure a robust retirement fund that can support their post-retirement life.

How does Lockheed Martin's approach to retirement planning include the management of health savings accounts (HSAs) for retirees? What are the tax advantages of HSAs, and how can employees effectively utilize this resource when planning for healthcare expenses in retirement?

Management of HSAs for Retirees: Lockheed Martin encourages maximizing contributions to Health Savings Accounts (HSAs), which offer significant tax advantages. These accounts not only provide funds for current medical expenses but can also be used tax-free for healthcare costs in retirement, making them a critical component of retirement health expense planning.

What is the best way for employees to contact Lockheed Martin regarding specifics or questions about their retirement benefits? What channels of communication are available, and how can they access the most current and relevant information regarding their retirement planning? These questions aim to encourage thoughtful consideration and discussion about retirement planning within Lockheed Martin, addressing various aspects of the company's benefits while promoting engagement with internal resources.

Contacting Lockheed Martin for Retirement Benefit Queries: Employees should direct specific inquiries about their retirement benefits to Lockheed Martin's HR department or consult the benefits Summary Plan Descriptions available through company resources. These channels ensure employees receive accurate and comprehensive information tailored to their individual circumstances.

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For more information you can reach the plan administrator for Lockheed Martin at 6801 rockledge drive Bethesda, MD 20817; or by calling them at 863-647-0370.