We continuously search for investments that are safe, have good growth prospects, and are priced right. The newest generation of FDIC insured Structured CDs meet our standards. These CDs add diversity to a portfolio because they are based on six major asset classes. A high level of protection is provided by the FDIC insurance.

The fact that in declining markets your principal is insured and in rising markets you earn 100%+ of the gains of the associated index make these CDs very attractive.

The FDIC insurance is $250,000 per account. The gains are based on the index appreciation. The index provides exposure to equities, fixed income, emerging markets, alternatives, commodities, inflation protection, and cash equivalent asset classes.

First, only the above asset classes that provided the highest historical returns over the past six months are selected for the portfolio. Then the portfolio is restricted to a maximum exposure for each asset class. Finally, the asset classes are weighted in order to reduce the volatility of the portfolio. The model increases the cash position, sometimes significantly, when too few opportunities are available.

As is the case with all investments we recommend, we receive no commissions or fees. All recommendations are made simply because we believe them to be in your best interests. These CDs may be appropriate for some of our clients. Please mention them to us if we don’t mention them to you and you are interested.

Sincerely,

Katz Family Financial