(Note: This is part 3 of a series of posts about the benefits and costs of Structured CDs. Link to Part 1 (Structured CD Risks) / Link to Part 2 (Structured CD Benefits). At the time of this article, I own an S&P Index-linked Structured CD in a retirement account).
DON’T use them in a taxable account – your returns or ‘payback’ at the end of the contract is taxed as ordinary income. Continue reading
(Note: This is part of a multi-part-series covering the benefits and risks of Structured CD’s. Part One is here, which discusses the risks of Structured CDs. Part Three is here, which discusses the Where and How Structured CDs may be appropriate. At the time of this writing, I own a Structured Index CD in a retirement account).
Structured CD’s, Structured Notes, and Structured Products have received some really bad press- some deserved. But here are:
If you’re investing in CDs equal or less than $250,000 per institution/bank, your principal (initial investment) is guaranteed by FDIC insurance.
(Gubmints Note: This is part of a multi-part post, which will also extoll the virtues of Structued CDs and Structured Notes, and provide strategies on how to use them. At the time of this writing I hold an S&P Index-linked Structured CD in a Retirement Account).
