Navigating Market Turbulence: Capital Preserving Funds (Mini-series, part 3)

Yes, we can do this.

One of the most common concerns we hear from clients is: ‘we don’t want to lose money.’ That sentiment is completely understandable. The cost of everyday essentials continues to rise, and for many Americans, middle-class milestones such as homeownership are becoming increasingly out of reach.

While it’s natural to be cautious in today’s economic environment, being overly risk-averse can actually work against you. Inflation, though well below its peak of over 9% a few years ago, still stood at 2.7% in July 2025. Compare that with traditional bank savings accounts—where interest rates often fall below 0.5% (Bank of America: 0.1–0.4%; Chase: 0.1–0.2%; Wells Fargo 0.1%)—and the reality is clear: savers are effectively losing more than 2% of their money each year in real terms.

That’s where Coastline Private Advisors comes in. In our previous insights, we highlighted alternatives to traditional savings accounts—options that can outperform even the high-yielding online accounts. But the opportunities don’t stop there. In this section, we’ll explore strategies designed to preserve your capital while seeking even higher returns. Let’s dive in.

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No one wants to take out money on a down market.

We have a strong conviction in equities. While Money Markets and Treasuries can offer inflation-beating, guaranteed returns, U.S. equities—particularly those from the nation’s largest 500 companies—stand out as a powerful engine for wealth creation. Their long-term performance has consistently delivered impressive results for investors.

That said, higher returns come with trade-offs. Equity investing carries the risk of capital loss, and life events don’t always wait for the markets to recover. Being forced to withdraw during a downturn can lock in losses—an outcome no investor wants. Striking the right balance between growth potential and capital preservation is key.

So, what options are available? At Coastline Private Advisors, we help clients access investment funds designed to capture the upside potential of equities—without the corresponding downside risk. These Capital Preserving Funds are specialized strategies that can generate returns of up to 7% while protecting against capital losses, making them an attractive solution for conservative investors navigating today’s volatile markets. As an added bonus this fund also offer a modest yield of about 0.80%. While 0.80% is far from astronomical, it still beats savings account rates from the US's biggest traditional banks.

Upsides come to those who wait!

The key, however, is patience. To realize the full benefit, funds must typically remain invested for a full year. While early withdrawals are possible, they limit your ability to capture the maximum 7% upside. By committing to the strategy and allowing time to work in your favor, investors position themselves for potential gains that outpace inflation by as much as 5%—a significant advantage over both traditional and high-yield savings accounts.

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While factors such as investment minimums and windows should all be carefully considered, Capital Preserving Funds offer an attractive option for conservative investors seeking liquidity, capital preservation, and access to the best of the stock market - capital gains!

So, how can you take advantage of this safe yet rewarding investment opportunity? It’s simple—reach out to our Principal Advisor at mark.golez@coastlineprivateadvisors.com. We’ll provide the guidance, expertise, and personalized strategies to help you build confidence in your investments and stay on track toward your financial goals.