Alternative Investments: Rapid Fire

What this video covers

• How general partner (GP) and limited partner (LP) liability differ, and why an LP who participates in management loses the liability shield entirely
• Why limited partnership illiquidity (7 to 12+ year holding periods, no active secondary market) disqualifies near-retirees regardless of financial strength
• The limited partnership tax trap: phantom income taxed on a Schedule K-1 (Form 1065) without cash distributions, and losses that generally offset only passive income
• Why an exchange-traded note (ETN) is an unsecured debt promise, not a fund: no underlying assets, no Federal Deposit Insurance Corporation (FDIC) insurance, and the 10 to 30 year maturity reality
• What "principal protected" actually means for ETNs and structured products: protection holds only at maturity, and early sale can produce steep losses
• Why leveraged and inverse funds reset daily, causing volatility decay that erodes value even when the underlying index is flat over multi-day periods
• The most common exam trap: why a long-term investor seeking leveraged market exposure is never the correct answer for leveraged or inverse fund suitability