The Income Power of Structured Notes
Building a multistream portfolio
At Axiom, we believe that long-term wealth isn't just about how much you accumulate—it's about how many streams of income you create. That’s why we talk so much about what we call a multistream strategy. Most households rely on two sources of income—typically W-2 jobs or a business plus one spouse’s employment. But what happens when you want more freedom, more flexibility, or more financial margin?
For many of our clients, structured notes have quietly become one of the most effective ways to add a new income stream to their household.
What Are Structured Notes?
Structured notes are hybrid investments issued by banks that combine the features of bonds with option-based strategies. When structured for income, they’re designed to provide regular, defined coupon payments—often with considerable downside protection. At Axiom, we focus on income-based structured notes that offer meaningful payouts with built-in buffers, especially valuable during periods of market volatility.
But here’s where it gets interesting: most advisors don’t offer structured notes, especially not in a way that fits seamlessly into a long-term strategy.
Why? Because it takes time, effort, and real infrastructure to do it right.
Our Strategy: Dollar Cost Averaging + Diversification
Where others might allocate a lump sum into one or two notes, we recommend a different path. The approach spreads structured note purchases over 6 to 9 months—investing in 2–6 notes per week—which allows our clients to:
Diversify across multiple issuers (banks),
Diversify underliers (stocks, ETFs, or indexes),
Capture different pricing across varying market conditions,
Avoid concentration risk by owning 20–40 notes at a time.
This creates a well-diversified, income-producing sleeve in the portfolio, intended to smooth out volatility.
Why Structured Notes Work So Well Right Now
Structured notes have been widely used across Europe and Asia since the 1980s—long before they gained popularity in the U.S. In fact, Europe accounts for a significantly larger share of the global structured note market. While the U.S. was late to the table, we’re catching up fast. The U.S. market saw over $149 billion in structured note purchases in 2024, and that number continues to grow. As adoption increases, so does innovation—and we’re proud to be at the forefront of an innovative method designed to reduce risk.
Especially in times of market volatility, notes typically shine. Not only is pricing frequently better in volatile markets, but the principal protection buffers—make them a compelling complement to more traditional tools like annuities, real estate, or business income.
A Real-World Story
One couple came to us earlier this year with a question many people face: Are we building wealth, or just deferring life? They’d spent decades saving diligently, but their entire portfolio was generally geared toward growth—not income. They told me they were proud of what they’d built, but didn’t feel they had the freedom to enjoy it.
When we reviewed their situation, we found that nearly all their assets were in stocks and bonds, but the dividends from stocks and their bond income weren’t enough to support the life they truly wanted to live. Through a carefully designed structured note strategy, we introduced a new monthly income source—their first addition to a multistream strategy.
Now, they’re using a portion of that income to fund the lifestyle they want—today—while still growing their wealth over time. While their overall growth trajectory may be slightly reduced, it’s a conscious and worthwhile tradeoff for the joy and freedom they’re experiencing now. Most importantly, they’ve shifted from a scarcity mindset to one of intentional abundance.
Final Thoughts
Structured notes aren’t the answer to every question. They’re not a silver bullet. But when used thoughtfully, they can be a powerful addition to a portfolio—especially when income, diversification, and resilience are your goals.
If you’re building toward more freedom, more flexibility, and a portfolio that truly supports your life, structured notes may be worth understanding more deeply.
Want to explore more strategies like this?
Follow along as we continue to share how real families are building financial margin and momentum through multistream income strategies.
Mike Bargetto
Financial Advisor
Axiom Wealth Solutions
The information contained herein is provided for educational purposes only and the information should not be construed as a provision of personalized investment advice. Under no circumstances should this information be construed as an offer to sell or a solicitation of an offer to buy a particular product or service. Past Performance does not guarantee future results.