Justin Capetola, a managing partner at Blue Bell Private Wealth Management in Blue Bell, Pa., says consumers should be able to find a matching return on an index up to 45 percent or so. He recently offered his clients five-year indexed CDs that pay no interest and match the Dow's return up to 47.8 percent."These clients want to be safe, but they still want to have some chance for market participation over the next five years," he says.Other risks remain. Some indexed CDs have a "knockout" rate, which sends the return back to zero if the index soars too high. In such cases, "you're really making a bet about market volatility -- that the market will stay in a range," Geczy says.Two other areas to watch out for: taxes and fees.Typically, a bank issuing the CD will hedge against the potential cost of making a payout to you. It will pass along the cost of that hedging contract to you. Similarly, a financial adviser may charge a fee of roughly 3 percent of your investment.</snip>Sounds like the market would have to rise by at least 6% just to break even on this puppy.I'd leave this dog at the shelter.intercst
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