Welcome to the age of the “finfluencer.” Some voices bring real experience, many optimize for clicks, not your interests. At Hill Investment Group, we believe good advice should be simple, clear, and grounded in evidence, not hype. This new series examines popular claims circulating online or in print, and separates signal from noise.

We aim to inform, not entertain; substance over speculation.

Heard something at work, on the course, or on social media that has you wondering, “Should I pay attention to this?” Share it with us at zenz@hillinvestmentgroup.com. We will help unpack it. Submissions are confidential. With your permission, we may quote an anonymized version in a future post.

Please note: Submissions are reviewed for educational purposes only and do not constitute personalized investment advice.

Structured notes—sometimes called structured or derivative products—are contracts issued by banks or financial institutions. Their performance depends on how certain markets behave, but with specific features built in.

For example, a note may be linked to the S&P 500, offering returns up to a maximum (say 9%) while limiting downside risk. If the market declines, you might receive your principal back. If the market rises, your return is capped at the maximum.

These products typically combine bonds with options. The bond portion provides stability or income, while the options alter the return profile with added features such as caps, buffers, or payouts tied to specific outcomes. Importantly, they do not create new investment opportunities; they repackage existing securities in different ways.

Structured products are often designed and priced by the issuing institution. A simple illustration:

1. Package bonds and options that may be worth slightly less than the purchase price.
2. Market the package in a way that addresses an investor’s concerns (for example, fear of loss or desire for enhanced returns).
3. Sell it at a markup.

The difference, though it may look small, represents revenue for the bank. Like insurance, protection, or enhancement features come at a cost, which is reflected in the structure’s design and pricing.

Structured notes are not “free.” For every feature that reduces downside risk, there is typically a tradeoff in the form of reduced upside potential. For example, capping gains in strong years may limit long-term growth.

Other considerations can include:

• Complexity: The payoff formulas are often difficult to evaluate without specialized knowledge.
• Liquidity: Notes may be hard to sell before maturity.
• Taxes: Some structures can create less favorable tax treatment.
• Transparency: It may be difficult to fully assess all costs and risks.

These factors mean that outcomes may differ significantly from expectations, and actual results depend on market conditions and the structure itself.

At Hill Investment Group, our philosophy is that portfolios should be built around a client’s unique risk profile using tools that are transparent and cost-efficient. Instead of relying on complex products, we focus on combining equities and high-quality fixed income in a way that is diversified, tax-aware, and grounded in decades of academic research.

This approach does not promise to eliminate risk or guarantee returns. Rather, it seeks to create a risk/return balance that clients can understand and commit to over the long term.

Structured notes can sound appealing because they are often presented as solving two problems at once, offering upside with protection on the downside. In practice, they involve tradeoffs that should be carefully weighed. For many investors, a straightforward evidence-based portfolio may provide more transparency and better alignment with long-term goals.

We’re excited to introduce the newest member of our team, Griffin Lewis, a proud University of Texas graduate (like two of his teammates here at HIG). In the past, we prioritized hiring by location. Today, we focus on finding the best possible person for the role: people whose values match our own. That’s true across the board, from full-time team members to interns. Though we differ in many ways, the qualities we share—being old souls, a connection to the outdoors, joy in serving others, and a deep commitment to our craft—make us, in short, a team of caring nerds.

Griffin embodies these traits fully. You will see him jumping in wherever he’s needed—whether that’s supporting service, trading, or operations—so that you experience seamless care from our entire team. His “utility player” mindset means he’s always looking for ways to make your life easier.

Shaped by a family that taught him resilience, inspired by a sister who set a high bar early on, and sharpened by experiences as both a behind-the-scenes problem solver and a door-knocking entrepreneur, Griffin brings both grit and heart to our work. Outside the office, you’ll likely find him logging long runs or cycling laps around Lady Bird Lake, or chasing down sunrises and spontaneous adventures. 

We’re thrilled for you to get to know him. Are you a “caring nerd?” or do you know one? Check out our career opportunities here.

At Hill Investment Group, we spend our days immersed in markets and evidence. We know most people don’t, and our clients rely on us to do that work for them.

Even the most financially literate investors can encounter misconceptions, often picked up from friends, social media, or the financial press. Many of these are rooted more in behavior and emotion than in evidence.

Here are a few we hear regularly, along with an evidence-based perspective on each.

It can be easy to think of dividends as “free money” from an investment, and some even choose funds solely for their dividend yield. The reality is that when a company pays a dividend, the value of its shares is reduced by the same amount. For example, if you hold a $20 share and it pays a $2 dividend, you now have $2 in cash and a share worth $18—the total value is unchanged.

Companies that reinvest profits into their business sometimes create more long-term growth than those that pay them out. At Hill, we view dividends as one element of total return and often as a way to rebalance portfolios in a tax-efficient manner.

For clients who rely on investments for retirement income, we may help design a withdrawal plan by selling shares. This approach allows:

• Investment decisions to be based on total return, not dividend yield alone.
• Greater flexibility to manage tax impact by choosing which holdings to sell.

This can be more tax-efficient than receiving dividends automatically, which are taxable whether you need the income or not.

No one enjoys seeing an investment go down. But in certain cases, realizing a loss can provide a tax benefit while keeping your long-term plan intact.

For example, tax-loss harvesting involves selling an investment that has declined, capturing the loss to reduce taxes today (or in future years), and reinvesting in a similar security to maintain your portfolio’s strategy.

This doesn’t remove the reality of market downturns, but it can turn them into opportunities for tax management. While individual investors may not do this on their own, professional advisors often monitor for these opportunities as part of portfolio management.

Because U.S. companies are most familiar, many investors lean heavily toward them—sometimes without realizing it. Yet the U.S. represents only about half of the global market, which means there is significant opportunity beyond our borders.

Diversifying globally can help manage risk and position a portfolio to benefit from growth wherever it occurs. History has shown that different markets lead at different times. For example, U.S. stocks lagged from 2000 to 2010 while international markets performed better. In other periods, U.S. stocks have led. Since no one can predict which region will outperform next, broad diversification helps reduce reliance on a single market.

Investing comes with complexity, and misconceptions are common. Our role is to help clients cut through the noise and make evidence-based decisions that support a long-term plan.

If you know someone who might be interested in learning more about this approach, we’re glad to share educational resources or have an introductory conversation. They can reach us at askanadvisor@hillinvestmentgroup.com.