Have you heard about structured notes, and what questions do you have about them?
Structured notes are issued by a bank to perform in either the risk management growth or income categories. A bank looks at elements such as interest rates, volatility in the market, and some indices before issuing structured notes.
In this episode of the Secure Your Retirement podcast, we talk about structured notes, what they are, how they work, and their purpose over a glass of cabernet sauvignon wine. Listen in to learn about the coupon and principal barriers and how we work to minimize the risk.
In this episode, find out:
- How structured notes are built to give us risk management growth or income.
- How the bank issues structured notes and the risk attached to the bank you choose.
- How we build structured products to minimize the risk occurring to less than 10%.
- How the coupon barrier works and protects you from losing your principal.
- Why we have to think about the issuing bank and barriers regarding structured notes risks.
- Factors to consider before buying or selling structured notes to avoid losing money.
- What it means for the structured notes to be “called” and how we work around that.
- Why the availability and affordability of structured notes make them good tools during volatility.
- “Structured notes are structured to give us risk manage growth or income.”-Radon Stancil
- “On the principal barrier, the only way you can lose money in this structured note is at the end of the term, not on the month.”- Murs Tariq
If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!
To access the course, simply visit POMWealth.net/podcast.