With interest rates at historical lows, the time to offer Market Linked CDs has never been better. Timothy Mobley is noting that June CAPS are the highest on Wall Street offering the potential to earn “real interest” without risking principal. Examples of some of the Income Plus CDs is the Bank of the West Seven Years Income Plus CD with variable interest linked to Fortune 100 companies such as Altria, Apple, AT&T, Campbell Soup, ConocoPhillips, Eli Lilly, Exelon, GoldCorp., St. Jude Medical and Valero Energy. This offers the investor the potential of capital appreciation based on the performance of the listed companies with a complete protection of the original deposit when held to maturity. In essence, the value of the Market Linked CD can go up with the market but cannot go down.
While anyone can invest in MLCDs and they are an excellent compliment to any well-balanced portfolio, there are a few specific types of investors who may benefit from market linked CDs the most. The Baron Group recommends Market Linked CDs mostly to retired individuals, families investing in college funds or any conservative, risk averse investors.
However, just like with any other investment decision, each individual overall investment goals need to be evaluated in order to determine the most effective investment strategy.
About the author:
Tim Mobley is the managing Agent of the Baron Group, a financial services firm helping Louisiana clients protect and grow their retirement savings, income planning that guarantees they won’t outlive their money, and Social Security tax reduction strategies so that investments are coordinated from an income tax prospective. We are proud to operate in a private and secure IRS circular 230 compliant communications network for all federal and state tax documents.
Timothy Mobley is an Advocate for Veterans and resides in Monroe, LA. He has done numerous fundraising and charity events with the Leukemia and Lymphoma Society, Lance Armstrong Cancer foundation, and the Challenged Athlete Foundation. When he is not working he loves to play tennis, bike, golf, and spend time with his family. He is a dedicated Christian, husband, and father.
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