About Conservative Investing
In Variable Products
People do need to invest to reflect their own risk profile, says John Fenton, a principal with Tillinghast in the Atlanta office. But those who want to invest conservatively in a variable product should be careful, he adds.
For instance, if they seek out bond subaccounts, they might do the same thing that investors in the 1990s did, Fenton says. That is, they may be “chasing the hot performers at the wrong time.” Bonds still carry some risk, he adds, and the returns may not be as high as desired.