What Are Structured Notes and Are They A Good Investment?

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Are you curious about structured notes but feel like you don't really know what they are? Structured notes are basically bonds issued by big banks, but their terms are influenced and linked to a different asset, like a stock index.

***This content is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.**

We look at three main things: exactly what a structured note is, real-life examples of custom ones that have been built, and the important question of whether they are a good fit for your investment portfolio. You'll learn the key parts of a note you need to understand, such as the underlying asset, the level of protection, and the time frame. We also explain that these notes aren't just "risky" or "conservative", they are whatever you build them to be, meaning they can be designed to match your specific risk comfort and return goals.

To give you a real idea of the value these notes offer, we walk through an example of a Snowball note. This note linked to broad, reasonably priced indexes like small cap value and emerging markets, and it was designed to give a 20% annual return if those markets were just positive on the anniversary date. The benefit of this is that the potential payment would accumulate if the markets took longer to rise, meaning you could get a large payment without the market needing to go up a huge amount. We also compare it to a more defensive note that offered a lower, but still very good, 14% return but added an extra layer of protection. By the end of this video, you will have a much clearer understanding of how these powerful financial tools work, what to look for, and why getting into them is something you should only do with a financial expert who really knows what they're doing.

***DISCLAIMERS***
1. Availability Disclaimer
The structured notes referenced in this video are historical examples used for educational purposes only. They are no longer available for purchase and are presented solely to illustrate how different structures can work.

2. No Recommendation / General Education
This video is for informational and educational purposes only. It should not be considered a recommendation to buy, sell, or hold any investment or security.

3. Past Performance Disclaimer
Past performance and terms of prior notes do not guarantee future results. Future offerings may have very different features, risks, and outcomes.

4. Risks Reminder
Structured notes involve significant risks, including the potential loss of principal, limited liquidity, and complex terms that may not be suitable for all investors. Make sure you understand the terms and risks before investing.

5. Consultation / Suitability Disclaimer
This content does not take into account your specific financial situation, objectives, or needs. Please consult with a qualified financial advisor before making any investment decisions.

Видео What Are Structured Notes and Are They A Good Investment? канала The Personal CFO - Kyle Walters