Structured notes are sold to fearful investors as insurance against losses, but they cap your upside and charge high fees. The speaker argues they're products designed for salespeople, not for people who actually want to build wealth.
Now, every structured note is unique, and there might be one out there that's perfect for some client out there, but probably not. There are lots of products out there that are designed to prevent the loss of money, at least on a nominal basis, and provide income. But most of the time, you're simply giving up too much upside to get those features right. You're essentially buying insurance. And if you don't need the insurance, you're throwing money away. So I would not do that. What causes people to do this is fear. Right? We're worried about we worked so hard our whole life to build this nest egg. We're certainly not going to make another, not going to earn another $12 million in our life. And so we're fearful about losing it. And they take advantage of that fear to sell us these high fee, crummy products that you don't really need.
Physician Takes a Youth Sports Team to the State Championship - MtoM Podcast #236
