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Structured CDs

Do you have a stock portfolio insured by the FDIC?  If not … why not?

Many investors want to preserve their capital and limit downside risk, without sacrificing the ability to participate in upside market movements. Structured certificate of deposits (CDs) may be a great opportunity for both.

Structured CDs combine the safety of an FDIC-insured CD with the potential for returns based on the performance of a second asset such as the S&P 500 and other popular markets. Because they offer exposure to a variety of investment types and market sectors, structured CDs can often be available to address your unique investment objectives, risk tolerance, and market views, and they have the potential to complement other parts of your portfolio.

Structured CDs can play a role in almost any portfolio and can be particularly attractive to investors seeking exposure to specific markets or sectors, while helping to manage downside risk.

Structured CDs are not suitable for all investors. Structured CDs guarantee your principal at maturity (subject to the credit worthiness of the applicable issuer or guarantor). If an investor sells or redeems his/her investment prior to maturity, the investor may receive an amount more, or less, than his/her original investment. There may be substantial penalties for an early withdrawal from structured CDs.

FDIC Deposit Insurance coverage limits are: Single Accounts (owned by one person) $250,000 per owner; Joint Accounts (two or more persons) $250,000 per co-owner; IRAs and certain other retirement accounts $250,000 per owner; and Trust Accounts $250,000 per beneficiary subject to specific limitations and requirements. These deposit insurance coverage limits refer to the total of all deposits that an account holder (or account holders) has at each FDIC-insured bank. These are the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met. Additional information is also available at:

Source:  Structured Certificates of Deposit

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