No. of Recommendations: 3
The one I saw claimed that you could never lose money. If the market went up, you made money. If it went down, your balance stayed the same.

Then in the fine print, it said that your gains were limited to 3% per month. Now looking at the returns for the full months over the last 5 years, we have, in % including reinvestment of distributions form SPY:


So in the most of the months when the market went up, it did much better than 3%, and in fact about half or more is taken out during those good months. Taking that off the top, and using puts to make money during the bad months should yield a pretty good profit for the fund manager.

I did a similar analysis about 4 years ago when the salesman presented me with the deal, and of course I did not buy.

That was at one of those "free lunch" seminars at an excellent and very expensive restaurant, and I went for the meal and out of curiosity. However, even though it was an excellent restaurant, the guys giving the seminar must have gotten a special deal on the rubber chicken lunch.

I really thought that the restaurant had some minimum standards, but I guess I was wrong.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.