A mutual fund is operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives of a mutual fund. Potential benefits include diversification and professional money management.
Mutual funds offer investors a portion of a portfolio of various securities, such as stocks and bonds. You and your Golden 1 Financial Consultant1 can review your needs to find the right mutual fund type for you, such as a growth, income or balanced fund. A mutual fund can provide the professional ongoing management of a portfolio manager. Whether you’re planning for a college education, your retirement or simply looking for diversification, you may benefit from investing in a mutual fund.
An annuity is a contract between you and an insurance company to fulfill your future income goal. Benefits include tax deferral, potentially competitive returns and a lifetime income stream for the annuitant of the contract.
There are two stages to an annuity: the accumulation (pay-in) stage and the distribution (pay-out) stage. During the accumulation stage of an annuity contract, the terms are flexible. You can make one contribution or a series of periodic contributions. At the distribution stage, you have several options. You may either take out your assets in one lump sum or withdraw them periodically through a process called annuitization.* Your Financial Consultant can assist you with this process. You primarily have a choice of two types of annuities: fixed or variable.
A fixed annuity,** as the name implies, offers a fixed rate of return for a specific time period. The funds you invest are guaranteed by the insurance company. Fixed annuities are a relatively conservative investment since the investment risk is assumed by the insurance company.
A variable annuity** allows you to choose how your money is invested. Your investment choices can include stock, bond or money market sub-accounts, which are purchased in amounts called units. Variable annuities have a greater possible investment risk but offer the potential for greater gain than fixed annuities.
* Guarantees are based on the claims-paying ability of the issuing insurance company.
** There is a surrender charge imposed generally during the first five to seven years that you own the contract. Withdrawals prior to age 59 ½ may result in a 10% penalty, in addition to any ordinary income tax. The guarantee of the annuity is backed by the financial strength of the underlying insurance company.
Life insurance can play an essential part in your financial planning. Benefits include a sum of money that your dependents can use as income, the ability to cover large expenses, such as college tuition or home mortgage or as an inheritance that is free from state and federal taxes. Life insurance is a contract between you and an insurance company. In its most basic form, a life insurance contract is a promise to pay a person you choose (your beneficiary) a sum of money upon your death.
A stock is ownership in a corporation represented by shares that are a claim on the corporation’s earnings and assets.
A bond is a loan to a corporate or government agency. The bond issuer agrees to pay a specific interest rate for a length of the loan and repay the original amount of the loan at maturity.
1 The Financial Consultants of Golden 1 Investment Services are registered representatives with LPL Financial. Securities offered through LPL Financial, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. LPL Financial is a Registered Investment Advisor. LPL Financial is not affiliated with Golden 1 Credit Union nor Golden 1 Investment Services.
The LPL Financial registered representative associated with this site may discuss and/or transact securities business with residents of all 50 states.
2 You are advised to seek advice from your own tax professional and attorney.
Variable and fixed annuities are long term, tax-deferred investment vehicles designed for retirement purposes; but the variable annuity contains both an investment and insurance component. Variable annuities are sold only by prospectus. Guarantees are based on claims paying ability of the issuer. Withdrawals made prior to age 59 1/2 are subject to 10% IRS penalty tax and surrender charges may apply. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. The investment returns and principal value of the available sub-account portfolios will fluctuate so that the value of an investor's unit, when redeemed may be worth more or less than their original value.
** Investors should consider the investment objectives, risks, charges and expenses of the investment company, variable annuity contract and sub-accounts carefully before investing. The prospectus contains this and other information about the investment company, variable annuity contract and sub-accounts. You can obtain fund, contract and underlying sub-account prospectuses from your financial representative. Read the prospectuses carefully before investing.
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