MONEY Master the Game: 7 Simple Steps to Financial Freedom (Tony Robbins Financial Freedom)

by Anthony Robbins

1. Structured Notes. These are perhaps one of the more exciting tools available today, but, unfortunately, they are rarely offered to the general public because the high-net-worth investors gobble them up like pigeon seed in Central Park. Luckily, the right fiduciary is able to grant access for individuals even without large sums of investment capital. So listen up. A structured note is simply a loan to a bank (and typically the largest banks in the world). The bank issues you a note in exchange for lending it your money. At the end of the time period (also called the term), the bank guarantees to pay you the greater of: 100% of your deposit back or a certain percentage of the upside of the market gains (minus the dividends). That’s right. I get all my money back if the market is down from the day I bought the note, but if the market goes up during the term, I get to participate in the upside. I call these notes “engineered safety.” The catch? I typically don’t get to keep all of the upside. So you have to ask yourself if you’re willing to give up part of the upside for downside protection. Many people would say yes. These solutions become especially valuable when you come to that point in your life, close to or during retirement, where you can’t afford to take any big losses. When you can’t afford or even survive another 2008. For those looking to take a bit more risk, some notes will allow for even greater upside if you are willing to take more risk on the downside. For ...