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 Today there are a number of ways to invest in stocks and corporate bonds without owning individual shares. These investments include mutual funds, variable universal life insurance and variable annuities. Each has its own unique advantages; which one is right for your portfolio will depend on your specific investment goals. • Mutual Funds: Typically, a mutual fund is a collection of different stocks, bonds and other securities managed by a professional investment company and offered to investors in the form of shares. Because they spread investments over dozens of securities rather than one or two, mutual funds offer investors a greater measure of diversity. A sharp decline in the value of a single security, for instance, may be less damaging when spread over several securities. Of course, diversification does not ensure a profit or guarantee against a loss. • Variable Universal Life Insurance: A variable universal life (VUL) insurance policy is an innovative way to invest in a wide range of securities while providing death benefits protection. It operates in much the same way as a traditional universal life insurance policy by building a tax-deferred cash value through the payment of premiums. The difference is that you can select how your premium is divided among several different investment subaccounts, allowing you to participate in the ups and downs of the market. Because the cash value is not guaranteed, the return on your investment and the policy's cash value will fluctuate in response to the market's gains and losses. Withdrawals or loans against the accumulated cash value may incur surrender charges and will diminish the policy's cash value and death benefit. Poor performance of the underlying sub-accounts may necessitate the payment of additional premiums to keep the policy in-force, without which the policy could lapse resulting in potential tax consequences. Withdrawn or borrowed amounts do not participate in the performance of the underlying investment options. • Variable Annuities: A variation on the fixed annuity, a variable annuity is a long term retirement savings vehicle and allows you to make purchase payments into the contract which is made up of different investment subaccounts. Issued through an insurance company, a variable annuity allows you to select how much of your purchase payment is to be invested in each subaccount. The performance of the funding options you select will determine your contract value at any given time. Withdrawals of taxable distributions are subject to payment of ordinary income taxes and if taken prior to age 59 1/2 may be subject to a 10% penalty and/or surrender charge. Disclaimer: Securities products are offered by prospectus only, which is available from your registered representative. Please carefully consider investment objectives, risks, charges, and expenses before investing. Mutual funds investment return and principal value will flucuate with changes in market conditions such that shares may be worth more or less than original cost when redeemed. Diversification cannot eliminate the risk of investment losses. The amounts allocated to the variable investment options in variable products are subject to market flucuations so that, when withdrawn, may be worth more or less than its original value. For this and other information about any mutual fund or variable product investment please obtain a prospectus and read it carefully before you invest. |
Investment Opportunities & Options • Investment Portfolio Diversification • Stock & Bond Alternatives • Mutual Funds • Mutual Funds vs. Stocks • Traditional IRAs and Roth IRAs Banking Opportunities & Other Savings Alternatives • Savings Alternatives |
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