I don’t believe in betting anything unless I’m pretty sure I am going to win.
And with the market the way it is, the chances of winning are looking slimmer by the day.
That’s why it’s more important than ever to look for market guarantees. And yes, there are guarantees out there.
Because of high interest rates and increases volatility, there are some of the best guarantees I’ve ever seen going on right now in the form of structured notes. And in most scenarios the guarantees end up being essentially free.
Now you may be asking, if these structured note guarantees are so great, why isn’t my advisor talking to me about them?
It’s because structured notes require you to put money in for around 5 years and not touch it. But most big-box advisors are “active” money managers meaning they are making money every time they move your money around (and charging you a fee to do it).
So structured notes aren’t that sexy, but they are the closest things you can have to a S&P guarantee.
So what is a structured note?
A structured note is basically a large bank borrowing money from you (it’s a custom-created bond), but instead of paying you a stated interest each year, they pay you interest after 5 years based on certain terms, kind of like a CD.
And since you have to wait 5-years for your return, they sweeten the deal with great rates and a buffer against losses.
And the rates on these most recent structure notes have been insane!
A recent Goldman Sachs structured note had a 200% upside participation, meaning it would double the underlying index, which was the S&P 500 futures index.
But what is even more interesting is that this structured note is protected for up to the first 20% loss of losses.
Meaning the S&P 500 futures index can go DOWN 20% and you won’t lose anything.
And if it goes down 21%, then you only loss 1% of what you put in.
I know it sounds too good to be true. But it’s a proven deal and only one of many structured notes that are out there. Look them up for yourself.
That’s what I mean by an S&P 500 guarantee. Don’t leave home without it.
P.S. Structured notes can seem complicated so I break them down in a webinar that you can view below.
(Sorry, the video’s informative but may put you to sleep, so I wouldn’t listen to while driving.)