Structured Investments Explained
Written by Sean Budlong, CFP®
Many clients have a goal of generating income off of their investments. When appropriate, we may use market linked income notes (also called Structured Investments) to potentially create a higher rate of interest for clients than what might be available from bonds or cd’s. Structured Investments are held for a specific period of time and are designed to either pay a client interest or create growth above the performance level of a particular index. These investments are linked to a market index which creates a potential risk and reward for the client. At Majestic Financial we want to make sure we understand the client’s goals so that we can help provide the right level of income. We educate our clients on these investments to determine if they may be a suitable option and review the accounts on an ongoing basis.
*Disclosures: Structured Investments are not suitable for all investors. Each structured product may encompass its own unique set of characteristics, risks and return potential. Additionally, not every structured product will be suitable for every account approved to trade structured investments. Investors should be familiar with the unique characteristics, risks and return potential of each structured product, as well as those of the referenced asset before deciding whether to invest in the product. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Market-linked notes are: not deposits, not FDIC/NCUA insured, not insured by any government agency, not bank guaranteed, subject to risk and may lose value. Investing involves risk and you may incur a profit or a loss regardless of strategy selected. Protections offered in certain structured products are subject to the creditworthiness of the issuer.
