Beware of Complex Investment Products
We regularly meet with individuals who currently have a different advisor and they come to us seeking a second opinion on their investments. It’s not uncommon for us to meet with individuals who have complex investment products in their portfolios that their advisor recommended. These products often are sold for their “guarantees”, which understandably makes investors feel better.
Recently, one of these investments we came across was an “equity linked note” (also called “structured notes with principal protection”). At the surface, this product can be very attractive, especially to risk-averse investors as it promises to limit the downside potential while letting you participate in market returns. It’s not until you actually read the prospectus that you find the investment can have poor liquidity, limited upside potential (the company offering the product caps your returns), and high commissions paid to the advisor who sold the investment. Unfortunately, it’s often not until investors have already bought into these products that they learn it may not be in their best interest. To learn more about equity linked notes, you can read this alert found on the FINRA website.
Whether you have an investment advisor or not, we will gladly provide you a free, second opinion on your investment portfolio and discuss how we can help you reach your goals and objectives. River Capital Advisors is a fee-only investment advisory firm and we never receive any commissions from the investments or products we recommend. Additionally, we are fiduciaries who are regulated by the Securities and Exchange Commission and we are legally bound to act in your best interest at all times. Please contact us if you are interested in meeting with us.