Complexity Is the Investing Devil

What do the following investments have in common?

  • Options
  • Covered calls
  • Collateralized mortgage obligations
  • Non-traded REITs
  • Master limited partnerships
  • Variable annuities
  • Equity-indexed annuities
  • Hedge funds
  • Principal protected notes
  • Private equity

Here’s the answer: They are all complex investments. As a result, assessing the risks involved with owning these investments can be challenging. They also generate meaningful commissions for the brokers who sell them so enthusiastically.

Read the rest of the article at The Huffington Post.

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