There are two kinds of offers: one - of - a-kind opportunities like a 100,000 - point signup bonus from a bank with good risk controls, and opportunities with
potentially unlimited upside.
Usually there's a set maximum return, on the order of 2 % to 3 % per year, but some products offer
unlimited upside returns.
Regardless of this fact, the vast majority of annuities sold today are variable because people want to have their cake (
supposed unlimited upside) and eat it too (some contractual guarantees).
It is more challenging to be short, subject to squeezes; the return max out at 100 % — versus
unlimited upside for longs.
However, a VUL must be sold by a registered representative (one approved by FINRA) because there is
unlimited upside as well as unlimited risk with the funds inside.
Limited downside,
unlimited upside... can't really get better than that, huh?
The obvious advantage to outright stock purchase is
unlimited upside.
There is
unlimited upside potential in my opinion!
In traditional investing, the average investor can't outright short the market by selling stocks or indexes short because of
the unlimited upside risk.
Long options are tools that can be used to create asymmetric trades with a built in downside and
unlimited upside.
Since it invests directly into the market, a variable life policy has potential
unlimited upside and downside, placing it into a higher risk vs reward category that IUL insurance..
Payoffs from research are from Extremistan; they follow a power - law type of statistical distribution, with big, near -
unlimited upside but, because of optionality, limited downside.»
«Should things perform well, you'll have
unlimited upside.
Now with a Variable Universal Life, you can have a higher risk but also
an unlimited upside so it is ideal for active investors that want tax advantages of life insurance but the ability to pick any investments for their cash value.
In this sense, a universal life policy offers the best of both worlds — protection on the downside with
unlimited upside potential.