Are ICDs Available for Qualified Retirement Plans?
ICDs are an attractive investment option for people saving for retirement who are in need of an investment that offers a potential high rate of return that keeps up with inflation to support normal living expense increases. Unfortunately, most other investments which generate high rates of return also carry higher risk. Investors, especially those between the ages of 40 and 70, cannot afford the risk of losing their principal for retirement. Benefits Your principal is protected by your local bank, if held to maturity. Another advantage is that ICDs are insured by the Federal Deposit Insurance Corporation up to a maximum of $100,000 per depositor, subject to the limitations imposed by law. The ICD is linked to the Dow Jones Industrial Average, which comprises 30 “blue-chip” stocks that represent approximately 28 percent of the market value of all U.S. stocks. Investment Advantages of Indexed CDs • Un-Capped Upside Return Potential Tied to a Stock Market Index • Principal Protection from