Structured Product

An instrument that pairs a traditional security such as a bond with a derivative which gives a pay-off based on the performance of something else, such as the price of gold or a stock market index. They’ve proven popular as they give retail investors access to otherwise hard-to-reach asset classes such as interest rate spreads, currency or commodity derivatives. Structured products come in all shapes and sizes – some offer principal protection while others offer leverage, and they’re often extremely complicated. The return on the performance component can be capped or not realized all together if the underlying asset performs below expectations.. Being highly customized, structured products can be illiquid. As any returns on the performance component are not reaped till maturity, structured products are often considered buy-and-hold investments.

A Clear Line in the Canadian Annuity Market

Canadian Finance Minister Jim Flaherty intends to propose legislation that bans banks from selling products that are similar to annuities. Canadian law already prevents banks from selling annuity products. Canadian finance officials are apparently concerned that the lines between annuity and banking products are increasingly blurred. Bank products that are represented as lifetime cash flow vehicles presumably fall under this area of concern. This hybrid or blurred product category more than...
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Writing the Book on Retirement Portfolios

Anyone thinking about retirement income should pick-up a copy of Retirement Portfolios by Michael Zwecher.  This recommendation applies to both financial...

Structured Product Risks are a Hot Topic

Structured products are hot. U.S. sales rose 46 percent in 2010 to $49.5 billion. The appeal is understandable in the wake of the financial crisis. As folks in the indexed annuity business know, a floor of principal protection or "guaranteed" income combined with some upside potential is an easier sell in the current environment. Structured products also happen to be a hot topic with regulators. For example, FINRA just issued a warning to investors about structured products with principal...

Glenn Daily on Buying Annuities and Why it Might Make Sense to Wait

Glenn Daily is one of the top financial advisors in the country. 

Specializing in life insurance and annuities, Glenn is widely...


NAPFA Provides Consumers with Quality Control while Maintaining Flexibility for Financial Advisors

NAPFA is the National Association of Personal Financial Advisors.

NAPFA membership consists of financial advisors who provide comprehensive...