Jun 28, 2013
Advisors Option: The Problems with Annuities and Structured Products.
Tricks of the Trade: The problems with Annuities and Structured Products.
Many advisors gravitate toward structured products instead of using options/derivatives in client accounts, but structured products frequently present problems:
- Accuracy
- Options Exposure
- Time Management
- Expense
- Evaluate your product.
Listener Mail: How may we be of service?
- Question from Charles Sullivan - Is the primary stumbling block for options use by advisors the fact that the leading names in the advisor space (Charles Schwab, Morningstar, etc.) seem to have no interest in these products?
- Question from Thomas Folk, CFP - Most of my clients invest through retirement accounts. Can I trade options in these accounts? If so, what strategies can I pursue?
- Question from Nathan Phillips - I have several clients with odd lot positions in Apple. I've toyed with using options in the past, but it never made sense given the size of the positions. But the launch of the new mini Apple products has piqued my curiosity. Are these products the same as regular options only with a reduced notional value? Are the any nuances or hidden issues I should be aware of before I consider using these for my clients? Thank for this program; I learn something new every episode.