by KYW's Salil Gutt
The melt down in the stock market has spurred a ton of financial products with the word "guaranteed" in them.
Time to step back a bit and think. There has been a dramatic loss of trust in the financial services industry whose companies have been responsible for the current mess we are in.
Many of the annuity or non-traditional investment products are backed by the stability of the firm that sells them. It could take awhile before we know who is really solid enough or will they implode in short order as has been the norm so far.
It is important to note that these types of investments are different from the traditional stocks, bonds or mutual funds held in brokerage accounts. The latter are held in brokerage accounts that are insured by SIPC, the Securities Investor Protection Corporation, and supplementary insurance.
So consumers should be rightfully wary when the investment firms and insurance companies starts to promote investments that come with guarantees. Guarantees are only good if the firm stays in business.
It may be wiser to let the dust settle by investing in shorter duration FDIC insured CD's in the interim.
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