Maximizing Retirement Savings with Structured Investments: A Comprehensive Guide for Clients

Are you looking to maximize your savings for retirement? If so, structured investments may be the perfect tool for you. Structured investments, also known as structured notes, offer a unique combination of benefits that can help you limit risk while potentially increasing returns.

A recent study from CAIS found that many advisors are looking to increase their allocation of structured investments in their portfolios. These investments can be linked to a variety of underlying assets, such as equities, commodities, currencies, interest rates, and credit. This flexibility allows investors to pursue riskier investments while still protecting against losses during market declines.

Jason Barsema of Halo Investing emphasizes the importance of adding structured notes to clients’ portfolios, comparing it to driving a car without insurance. These investments provide a level of protection that can be crucial in uncertain market conditions.

While structured notes have been popular in Europe and Asia for decades, they are gaining traction in the United States. Issuances of structured notes reached $130 billion last year, according to CAIS. Platforms like iCapital and Mariner Wealth Partners are expanding their offerings to include structured notes, making them more accessible to retail investors.

When considering structured investments, it’s important to weigh factors such as the creditworthiness of the issuer, availability of principal protection, potential fees, and tax implications. Liquidity can also be a consideration, as structured notes are typically only available for sale at maturity.

Structured notes can be customized to meet individual needs, offering a range of outcomes related to growth, yield, protection, and risk-reward profiles. They can provide exposure to various markets and asset classes, making them a versatile tool for advisors looking to optimize their clients’ savings.

As older clients approach retirement, structured notes can be a valuable addition to their portfolios. These investments offer steady cash flow and protection against market declines, making them an attractive option for clients looking to preserve their wealth.

In conclusion, structured investments offer a unique combination of benefits that can help investors maximize their savings for retirement. By working with a knowledgeable advisor and carefully considering the advantages and disadvantages of structured notes, you can make informed decisions about incorporating these investments into your portfolio.