Wells Fargo’s new SGI Wise US Index Equity Linked CD is Annuity FYI’s top pick for this investment vehicle. The equity linked CD is a great investment choice, especially with people who have a six year investment window. Equity linked CD’s have the added benefit of being FDIC insured which is a comfort to many investors. They are also linked to the market so that you can reap the rewards of a market upswing.
There are many reasons that Annuity FYI recommends the Wells Fargo wise indexed cd. Not only is your principal guaranteed by Wells Fargo, it is also insured by the FDIC up to their maximum amount allowed. With no cap or spread, this equity linked CD boasts 90-110% participation. The index is easy to understand and transparent to investors. While the SGI Wise US long-short index is new, it has been tested back to 1992 to determine the returns investors would have received. With this information, it was determined that the SGI Wise Index performed above the S&P 500 over many timeframes. Investors have the potential to do much better than the current low interest rates have been offering.
There a few things to consider when you compare equity linked CDs. You do not want to purchase the product if you will need your money before the six year holding period is up. While the 1% penalty isn’t that significant, it is best not to make withdrawals until the CD matures. Any gains you receive will be paid at the end of the six years and there are no dividends. With those considerations, if you think an equity linked CD may be right for you, contact one of our experts.