Quote:
Originally Posted by fanaudical
My understanding is that structured CD's make money as long as the funds/investments they are linked to make money. Best case is you make some money on the CD. Worse case is you get your money back with zero interest (for the FDIC-insured structured CD's).
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That is correct. I like the JP Morgan efficiente index as it averages roughly 5%, has had only had one negative year and was positive in 2008.
Worse case is you get your money back and that is what someone looking for "preservation of capital" is asking for. Putting money into the S & P 500 or other equities would not fall under "preservation of capital". That would fall under long term growth and willing to risk principal.