Investing savings in structured investments vs stockmarket
(Senior Monkey, 67
Points)
on 7/28/12 at 1:03pm
How are you guys investing your bonuses/ money saved from internships ?
that you wont need for 2-3 years
Are Structured Investments worth it ? or is the risk-reward ratio too in favour of the Bank ?
I prefer having a fixed income at the end so I can plan around it but at the same time dont want to get ripped off.





cash is king
cash is king
Yeah, structured products are
Yeah, structured products are not bad. Obviously, you want the yield to be above inflation. Check out a high yield fund
The difference between successful people and others is largely a habit - a controlled habit of doing every task better, faster and more efficiently.
mhurricane: Yeah, structured
Yeah, structured products are not bad. Obviously, you want the yield to be above inflation. Check out a high yield fund
What if the Bank goes bust ?
Banks nomally invest 85% of your cash in 0% bond and invest the rest in stockmarket.
Some people in 08 invested in bank A. Bank A buys a bond from lehman and people lost all their cash even though the stock part didnt crash. as Struc invest are not protected by FDIC all in the pursuit of 5% extra intrest
With stocks its more transparent and you know your exposure but weaker returns
You still think its worth it ?.
jam011: mhurricane: Yeah,
Yeah, structured products are not bad. Obviously, you want the yield to be above inflation. Check out a high yield fund
What if the Bank goes bust ?
Banks nomally invest 85% of your cash in 0% bond and invest the rest in stockmarket.
Some people in 08 invested in bank A. Bank A buys a bond from lehman and people lost all their cash even though the stock part didnt crash. as Struc invest are not protected by FDIC all in the pursuit of 5% extra intrest
With stocks its more transparent and you know your exposure but weaker returns
You still think its worth it ?.
Yeah, I was thinking about getting the exposure through an ETF. Even further, I do not think Barclays, or Blackrock are going to go "bust."
The difference between successful people and others is largely a habit - a controlled habit of doing every task better, faster and more efficiently.
mhurricane: jam011: mhurr
Yeah, structured products are not bad. Obviously, you want the yield to be above inflation. Check out a high yield fund
What if the Bank goes bust ?
Banks nomally invest 85% of your cash in 0% bond and invest the rest in stockmarket.
Some people in 08 invested in bank A. Bank A buys a bond from lehman and people lost all their cash even though the stock part didnt crash. as Struc invest are not protected by FDIC all in the pursuit of 5% extra intrest
With stocks its more transparent and you know your exposure but weaker returns
You still think its worth it ?.
Yeah, I was thinking about getting the exposure through an ETF. Even further, I do not think Barclays, or Blackrock are going to go "bust."
Did anyone think Lehman would go bust ? Barclays might not but they may only be a selling agent the actual Investment maybe with a unkown greek bank or the bond part fails. The lack of transparency is what puts me off them
http://www.guardian.co.uk/money/2008/sep/27/funds....
"Thousands of British people who invested in stockmarket-linked plans face losing some or all of their money after discovering to their horror that their investments were backed by bankrupt US bank Lehman Brothers, it emerged this week."
http://missoldinvestments.co.uk/
http://m.cbsnews.com/storysynopsis.rbml?pageType=m...
Lots of people say struc invest suck others say they rock
jam011: How are you guys
How are you guys investing your bonuses/ money saved from internships ?
that you wont need for 2-3 years
Are Structured Investments worth it ? or is the risk-reward ratio too in favour of the Bank ?
I prefer having a fixed income at the end so I can plan around it but at the same time dont want to get ripped off.
Don't buy structured notes. The embedded fees are very high, you are not getting anywhere close to fair value. Plus, you are taking the credit risk of the bank...you are most definitely not getting fair value for that. Plus, try to sell them early and see what happens...you will get your face ripped off. They tend to make them more complex, specifically to make it more difficult for you tell how hard you are getting f-cked.
I'm a lover, not a fighter, but I'm also a fighter, so don't get any ideas.
My WSO Blog
SirPoopsaLot: jam011: How
How are you guys investing your bonuses/ money saved from internships ?
that you wont need for 2-3 years
Are Structured Investments worth it ? or is the risk-reward ratio too in favour of the Bank ?
I prefer having a fixed income at the end so I can plan around it but at the same time dont want to get ripped off.
Don't buy structured notes. The embedded fees are very high, you are not getting anywhere close to fair value. Plus, you are taking the credit risk of the bank...you are most definitely not getting fair value for that. Plus, try to sell them early and see what happens...you will get your face ripped off. They tend to make them more complex, specifically to make it more difficult for you tell how hard you are getting f-cked.
So stick to bonds and high yield stocks ?
How easy is it to buy eg 4 year bond for energy company just 1 year before it expires
jam011: So stick to bonds and
So stick to bonds and high yield stocks ?
How easy is it to buy eg 4 year bond for energy company just 1 year before it expires
A round lot is 100 bonds, with a $1,000 face value. Normally, you would get pretty crummy executions with 1 round lot. If less than 1 round lot, prep the Astroglide.
How much $$$ are you investing?
I'm a lover, not a fighter, but I'm also a fighter, so don't get any ideas.
My WSO Blog
SirPoopsaLot: jam011: So
So stick to bonds and high yield stocks ?
How easy is it to buy eg 4 year bond for energy company just 1 year before it expires
A round lot is 100 bonds, with a $1,000 face value. Normally, you would get pretty crummy executions with 1 round lot. If less than 1 round lot, prep the Astroglide.
How much $$$ are you investing?
At $1000 each I would look at getting 3-6 but not all in one sector. Only downside of bonds is no capital appreciation
jam011: SirPoopsaLot: jam
So stick to bonds and high yield stocks ?
How easy is it to buy eg 4 year bond for energy company just 1 year before it expires
A round lot is 100 bonds, with a $1,000 face value. Normally, you would get pretty crummy executions with 1 round lot. If less than 1 round lot, prep the Astroglide.
How much $$$ are you investing?
At $1000 each I would look at getting 3-6 but not all in one sector. Only downside of bonds is no capital appreciation
You can NOT buy one bond. I can't even imagine how off market a trade like that would be. Buy a CD or something.
I'm a lover, not a fighter, but I'm also a fighter, so don't get any ideas.
My WSO Blog
SirPoopsaLot: jam011: Sir
So stick to bonds and high yield stocks ?
How easy is it to buy eg 4 year bond for energy company just 1 year before it expires
A round lot is 100 bonds, with a $1,000 face value. Normally, you would get pretty crummy executions with 1 round lot. If less than 1 round lot, prep the Astroglide.
How much $$$ are you investing?
At $1000 each I would look at getting 3-6 but not all in one sector. Only downside of bonds is no capital appreciation
You can NOT buy one bond. I can't even imagine how off market a trade like that would be. Buy a CD or something.
You can in London.I was thier for two terms people where lending money to british equivilant of walmart at 5%