In 2005, I found a no-downside, unlimited-upside deal…
It seemed to be too good to be true. So I flew to London to check it out.
The worst-case return was 7% annual interest for 10 years. But if the asset went up more than that, I could sell it and pocket the gain.
In short, there ARE deals out there with zero downside and unlimited upside… even today, as I’ll show you…
[ad#Google Adsense 336×280-IA]When I found that deal in 2005, the asset was Beatles autographs.
So the Beatles have been hanging on my wall for eight years now.
(I have two more years to go on this contract before I decide whether to sell or take my 7% a year.)
The terms were so good, it almost didn’t matter what the asset was…
And I’m always on the hunt for an “unfair” deal like this… one where my downside is limited (preferably zero) and my upside potential is unlimited.
Today, one safe source of these no-downside, unlimited-upside deals is MarketSafe CDs from EverBank.
Here’s how EverBank’s website describes it:
You can’t lose with a MarketSafe CD. When the CD matures, the least you’ll get back is 100% of your deposited principal.
Of course, that would only happen if the market (or reference index) it’s tied to loses ground over the CD term. Conversely, if the market performs well, you’ll earn a market upside payment on top of your principal.
EverBank hasn’t issued a MarketSafe CD in a while, but it has a new one out now…
Similar to my 2005 Beatles deal, EverBank offers you unlimited upside potential. The sky is the limit – your return potential is not capped. And your investment is FDIC-insured – so your downside risk is protected. Now that’s the way I like to invest!
EverBank has added a great wrinkle in this deal as well… If the underlying investment is up by any amount at all when the CD expires – even by just 0.001% – then EverBank will pay you out a minimum of 15%. If the actual return is higher than 15%, you will be paid out whatever the higher percentage is.
So there are three possible outcomes:
• Zero loss. If the underlying investment loses money, you don’t.
• A 15% return. If the underlying investment returns is greater than zero and below 15%.
• A return higher than 15%. If the underlying investment goes up by more than 15%.
EverBank calls this particular CD the Evolving Economies MarketSafe CD. Your money is invested outside of the U.S. dollar, in emerging-market currencies. These currencies were hit hard in the 2007-08 financial crisis, and EverBank put this CD together believing they could be ripe for recovery.
As far as I can tell, your only downside risk here is TIME… It’s a five-year CD. That’s shorter than my Beatles deal, but it’s still five years.
My favorite deals are no-downside, unlimited-upside deals. They’re hard to find – but they do come around. They’re out there.
One worth looking into now is the Evolving Economies MarketSafe CD from Everbank.
You can learn more about EverBank’s MarketSafe CDs right here.
P.S. Just to be clear, I don’t receive any money for writing about EverBank in DailyWealth. I write about EverBank because it offers interesting products and has always taken great care of my readers. But in the interest of full disclosure, you should know that EverBank does have a marketing agreement with my publisher’s parent company, Agora.