ELCDs - Seeking Safety With Better Return

Q. I currently have some retirement savings sitting in a company-sponsored 457 plan that is earning 3-4% annually. I am quite risk-adverse and thought that ELCD's might provide safety with better return. Is my assumption true and do you know of any highly rated offerings and credible brokers who sell them?

A. The ability of ELCDs to earn greater than the 3-4% of your 457 is entireley
dependent upon the return of the S&P 500. With most ELCDs that allow you to get a full 100% of the return, they don't provide any return other than that of the index so, although you wouldn't lose principal, you might not see return. You should be able to find some that provide a minimum return but they will give you less of the index.

As far as where you can look for them, I would check with Fidelity. You should be able to open a retirement account and roll your 457 to it if there has been a 'triggering event'. With Fidelity, you should be able to buy them with very little cost.

Your posted comments on this and other questions are welcome.
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