What to do when a structured note matures
You can reinvest in a new structured note or choose alternative products that provide a good return on investment. Notes prevent you from adding funds once locked in and carry underlying issuer risks, leading many to seek more flexible options. If the matured investment is in an IRA, the money must be rolled into another IRA to avoid incurring fees.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
- 1Moving the money into a self-directed brokerage account.
- 2Investing in broad global stock index funds like VT or VTI.
- 3Using a balanced index fund that includes bonds for less volatility.
- 4Performing a direct rollover from an insurance IRA to a major discount brokerage
- 5Investing rollover funds into a low-fee three-fund portfolio
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“My structured note became mature. I have the option to add more money into the structure note or go with another product.”source ↗
“After looking more into structured notes, I learned about the Lehman Brothers. It did not sit well with me. Plus, you can add any more money to the note after you have been locked in.”source ↗
“So, what are other options besides the structured note that can give me a good ROI?”source ↗
“Since it’s an IRA - I assume that I will need to roll it into another IRA - correct? I am 62 so don’t want to incur any fees on it at this point.”source ↗
“I have to connect with the person who has taken it on and I'm guessing he may want to know what I should do with it when it matures next year. I won't need the money then -- do i reinvest in the same thing? something different?”source ↗
Where this came up
People with this problem also raised
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