Fulcrum Self-Directed: Better Options for Your Retirment Savings

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Commercial Paper as an Alternative Investment

Commercial paper is typically offered by very large companies and is not necessarily invested into by a smaller investor.  The reason for this is that usually the minimum investments are $100,000.

Commercial paper is, in simple definition, an unsecured promissory note.  Usually these large companies are raising capital in this manner versus borrowing from a bank(s).  They are seeking this capital usually to meet short-term debt obligations of the company.  Because it is not secured with collateral, typically the only companies selling commercial paper are companies with outstanding credit ratings.  The commercial paper is sold at a discount from its face value.

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About John Park

John

As co-founder of Fulcrum Self-Directed, John Park believes in the power of self-directed plans tempered by the individual responsibility to operate the plan in compliance with IRS and DOL regulations. As such, Fulcrum Self-Directed is in a unique position to assist a client in establishing an IRS compliance self-directed plan, while guiding clients with their responsibility to operate and administer their plan.

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