Image Credit: Alex Nabaum
One of Wall Street’s hottest investments lets you participate in most of the gains on stocks while sidestepping some of the losses.
The most important word in that sentence is “some.” If you buy a so-called buffered annuity, your satisfaction will depend on how well you understand that you are protected against some losses, not against all.
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This article was originally published on The Wall Street Journal.
Further reading
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
Joe Halpern, “Buffered Annuities: Buyer Beware“
Joachim Klement, “The Virtuous Investor: Rule 16“