What are barrier notes? And should they have a place in your retirement portfolio? While barrier notes promise higher returns and some downside protection, certified retirement counselor Mark Struthers explains why these complex investments might be more trouble than they’re worth.
Listen in as he breaks down how these products really work, what alternatives could serve you better, and how to ask the right questions before adding them to your retirement portfolio. You’ll learn about potential risks, as well as how to evaluate the suitability of barrier notes in the context of your overall retirement strategy and long-term financial goals.
What You’ll Learn:
- What barrier notes are and how they work.
- An example of the pros and cons of a 4-year barrier note.
- Why structured products often sound better than they actually are.
- The hidden risks of barrier notes.
- Structured notes vs. high-yield bonds vs. private credit.
- Key questions to ask before adding structured products to your portfolio.
Ideas Worth Sharing:
- “Chances are, you did not choose this yourself. Chances are, this was someone selling it to you.” – Mark Struthers
- “Always ask yourself: Why is this in my portfolio? And what are the alternatives?” – Mark Struthers
- “These are things that are complex, and at times I think their design—the complexity—is often designed just to, well, honestly, kind of confuse people.” – Mark Struthers
Resources:
- Work with Mark Struthers
- Subscribe to our Healthy & Wealthy newsletter and get our 2025 Tax Cheat Sheet: Subscribe here
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Disclosure:
Investment advisory services are offered through Sona Financial LLC (DBA Sona Wealth Advisors, Sona Wealth, Sona Wealth Management), an investment adviser registered in the state of MN. Sona Financial only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided a copy of the firm’s ADV Part 2A brochure and document.
This video or article is for educational purposes only and is not exhaustive. Nothing discussed during this show/episode should be viewed as investment advice. Diversification and/or any strategy that may be discussed does not guarantee against investment losses but is intended to help manage risk and return. If applicable, historical discussions and/or opinions are not predictive of future events. The content is presented in good faith and has been drawn from sources believed to be reliable. The content is not intended to be legal, tax, or financial advice. Please consult a legal, tax, or financial professional for information specific to your individual situation.
This content has not been reviewed by FINRA.