Buffered notes

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eagleeyes
Posts: 62
Joined: Sat Dec 28, 2013 2:49 pm

Buffered notes

Post by eagleeyes » Wed Sep 13, 2017 9:46 pm

Buffered notes. Had never heard of this investment instrument. Can someone elucidate risk and benefits? Does it have a role in retirement planning?

123
Posts: 2313
Joined: Fri Oct 12, 2012 3:55 pm

Re: Buffered notes

Post by 123 » Wed Sep 13, 2017 9:58 pm

I think buffered notes add another layer of hocus-pocus to structured notes. My assets are important to me so I don't think I would bother.
The closest helping hand is at the end of your own arm.

Grt2bOutdoors
Posts: 16778
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Buffered notes

Post by Grt2bOutdoors » Wed Sep 13, 2017 9:58 pm

Google is your friend. It's a structured product designed by investment banks to generate sales for them, leading to nice fat commissions for those who sell them. As for you, the purchaser, they are designed to make you believe they are fine for "retirement planning" and will offer you downside protection. Do not be fooled, you will pay going into it, pay while you are in it and pay on the way out the door. Read the attached and let us know why and how you'll be paying.

http://uswealth.hsbcnet.com/pdf/Buffere ... 6.2016.pdf

If it takes more than 1 page to explain the product you should run the other way.

https://www.forbes.com/sites/greatspecu ... 34f800a721

And discussed on this boglehead thread from 2010: viewtopic.php?t=63389
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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