By now it’s perhaps common knowledge that cold hard cash just sitting under your mattress or even in your safe loses its purchasing power as the days tick by and that you should rather try to find a way to make your money work for you. Your desire to learn more about investing over saving probably also has you aware of the fact that it’s better to spread your risk and not put all your money in high risk, high reward investment schemes, even if it were to be with a big financial institution.

Up until just recently investing your money was simply a matter of dividing it up and allocating investment amounts to various risk brackets. So you’d earmark a portion of your money for higher risk investments; money you’d essentially be okay with losing should the worst happen, and you’d then also allocate a good portion of your money to low-risk investments, essentially saving this money at very little to no risk.

But There’s No Such Thing as ZERO RISK

Ask any normal Greek or Cyprian resident if they believe the money one puts in the bank is completely safe, and they’ll provide you with a practical example of how there is simply no such thing as zero risk when it comes to money. A millionaire who is a resident in France will give you a similar response if you ask them the same question, albeit taking different circumstances into consideration, specifically with reference to the proposed colossal wealth taxes facing wealthy individuals in France. At the worst of times, financial law allows the money you have in the bank to be reached into, primarily to off-set some of the burdens that may develop around the well-being of the global financial system as a whole. A very specific series of events would have to play out though, leading up to that dire scenario, with a lot of warning signs presenting themselves to those of us who’d want to take action and off-set the associated risks. But here’s the question: if the money you supposedly save in the bank at “zero risk” isn’t as safe as it is made out to be, why not make the most of it as well?

Having Your Financial Cake and Eating It Too

This is where the benefit of structured notes comes to the fore in that you can now protect your money as solidly as a traditional long-term fixed investment or a savings account would, while at the same time making every last penny work for you. This is a wealth building and wealth management tactic that’s actually been practiced for a while, but is now also available to the average person on the street who’d have otherwise not known how to keep their money safe while taking advantage of some investment opportunities with huge potential rewards. Think of it as acting on a hunch that a newly-listed company is all set to blow up in a huge way, yet you don’t want to put all your life savings into its stock, but rather want to partially invest while ensuring your principal savings remain intact, whatever happens from then on.