Plan Features

Take advantage of the following services:

• Dividend Reinvestment
  
• Direct deposit of settlements into checking/savings accounts
  
• Consolidated statements, including mutual fund and annuity positions
  
• eStatements
• Online Account Access

What are Stocks?

Stocks represent partial ownership of a company. There are two (2) ways to make money through a stock. One would be to "buy low and sell high" also called stock appreciation. The other is through dividends. A dividend is a way for a company to give a portion of its earnings to share-holders but not all stocks offer dividends payments.

Pros

• Could mean a higher rate of return

Cons

• Is a higher risk investment

What are Bonds?

Bonds are issues by governments, companies, and other entities. It can be thought of as a loan and and are issued for a specific period of time. When issued the value is also called face value. Regular interest payments are made to the investor called coupon. After the bond has matured issuer repays the face value back to the investor.

Pros

• Is a lower risk investment

Cons

•  Investor could default on repaying the bond 
• Typically has a lower rate of return

Mutual and Money Market Funds

What are Mutual Funds?

A mutual funds in made up of a group on investors who come together to buy a various number of investments including stocks and bonds. This means the risk and gains are shared by a larger amount of people. It can be a way to diversify your investments. Mutual funds can come in different levels of risk so they can still be as individual as you are. Mutual funds may come with fees and changes along with a minimum investment amount. A diversified portfolio does not assure a profit or protect against loss in a declining market.

Pros

• Diversified Portfolio
• Risk is Shared
• Variety of Mutual Funds Options Available

Cons

• Possible Fees for Investment Manager
• Minimum Investment Amount

What are Money Market Funds?

Money Market Funds are lower risk investments and are typically invested in things like treasury bills and other stable instruments. Money markets are short term liquid investments. These investments may come with fees and usually have a minimum balance needed to open and maintain the account.

Pros 

• Lower Risk Investment Option
• Short Term Investing

Cons

• Lower Return on Investment
• Minimum Balance
• Possible Fees

Pros

• Annuities are Tax-Deferred
• Can be used as another option for lower risk investment in a retirement portfolio
• Additional features through riders for long term care or income

Cons

• Many annuities have a surrender charge associated with them. To counter act they may also have a free withdrawal percentage that can be taken each year without having to pay the surrender charge
• IRS penalty on withdrawals before 59 1/2 - this is because it is a retirement instrument
• Some annuities have fees associated with them