How Structured Income Notes Work

*Work With Us:* https://hbwretirement.com/ *More Retirement Videos:* https://hbwretirement.com/media What if the stock market dropped 20%, but you could still collect income from your investments? And what if you could potentially receive your original investment back even after a significant market decline? Sounds too good to be true? There's a catch. In this video, I'm walking through an investment strategy that many people approaching retirement may not be familiar with. And no, it's not an annuity. We'll use a hypothetical $100,000 investment with a 12% annualized contingent coupon and a 30% downside barrier to illustrate how structured income strategies work. I'll walk you through four scenarios: 1. *The market drops and recovers:* How you could still collect monthly income even after a significant market decline. 2. *The market rises:* What happens when an investment triggers its autocall feature and returns your principal early. 3. *The market crashes:* How you could collect income throughout the investment and still lose a substantial portion of your principal. 4. *The market recovers:* How you could miss several income payments but still receive your full original principal at maturity. We'll also look at the stagflation era of 1968 through 1982, when high inflation made preserving purchasing power particularly difficult, and discuss why different approaches to retirement income may be worth evaluating. Finally, I'll explain how these strategies can be customized through different available income rates, downside barriers, underlying investments, and investment terms. *About HBW Advisory Services* I'm Dillon Determan, a retirement income advisor with HBW Advisory Services, located off Douglas Boulevard in Roseville, California. I help individuals and families approaching or already in retirement with ongoing wealth management, investment management, retirement income planning, and tax-aware financial strategies. If you're in Roseville, Rocklin, Granite Bay, Lincoln, or the surrounding area and are looking for a long-term financial advisor, visit the link above to learn more about working together. *Important Disclosure* This video is for educational purposes only and is not individualized investment advice. The investment terms and scenarios presented are hypothetical illustrations. Actual terms vary. Coupon payments are contingent and are not guaranteed. Downside barriers do not eliminate investment risk, and investors may lose some or all of their principal. Structured notes also carry issuer credit risk, liquidity risk, and other risks. Any potential principal repayment is subject to the terms of the investment and the issuer's ability to meet its obligations. 0:00 Introduction: $1,000 a Month in a Down Market? Copy all 0:59 How Structured Notes Work 2:03 Scenario 1: Market Drops 32%, You Still Get Paid 3:08 Scenario 2: What Happens When Markets Rise? 4:56 Scenario 3: How You Can Lose Money 6:37 Scenario 4: Missing Income Payments 7:42 Comparing Income Rates and Downside Protection 8:47 What the 1970s Teach Us About Retirement Income 9:47 Important Risks of Structured Notes 10:22 Building a Complete Retirement Income Strategy 11:04 Work With a Local Roseville Financial Advisor