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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: garygr who wrote (21805)

11/2/2025 2:09:26 PM

From: Jeansn6

Read Replies (2) | Respond to of 23248


"If I net 4% from both in a year, I'll be happy." I am trying to understand why the buffered funds are better than one-year Treasuries or CDs because I am also considering investing in buffered funds. Take CPSN for example, if the market (referenced assets) has losses, no matter how big, you will not lose money beyond the fees but you will not earn anything either. Your upside is capped at 6.05% (net of fees): If the market goes up by more than 6.74% (the cap before fees), you get 6.05%; if the market goes up by less than 6.74%, you get the lower rate of return minus fees. If the probability of the market goes up by at least 6.74% or lose money is 50/50, the expected return is 50%*6.05%=3%. If you put your money in one-year Treasuries, you are guaranteed 3.7% return with no loss of your principal if held to maturity plus no fees. Am I not thinking this correctly?