Financial Products

Annuities

There are two basic types of annuities. Fixed annuities earn a stated annual rate of return paid by the insurance company for a specific period. Even with a fixed annuity the rate may change at each year if the insurance company chooses. Variable annuities, on the other hand, are subject to market risk.

Life Insurance

Life insurance can provide an important role in a financial plan. Although most people only think of life insurance as strictly insurance for death, it can actually be used as an investment vehicle with specific advantages over other approaches depending on your situation. Furthermore, it provides money for your loved ones, or actually anyone you designate, after you're gone. The person you designate is called the "beneficiary." In particular, life insurance proceeds might be used to pay debt, the cost of the funeral, estate taxes, future college tuition, or any other current or anticipated expense.

Mutual Funds

A mutual fund allows investors to place their money in collective investment that pools money from many investors. Mutual funds are professionally managed and invest in stocks, bonds, short-term money market instruments, and/or other securities.

REITS (Real Estate Investment Trust)

The REIT structure was designed to provide a structure for investment in real estate. Like other corporations, REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges like shares of common stock in other firms. They may also specialize in certain types of real estate, such as medical office buildings or shopping malls.

Investors are urged to consider the investment objectives, risks, charges and expenses before investing and to obtain and read a copy of the REIT prospectus. REITS are not guaranteed investments and investors may lose principal. REITS are illiquid. Many REITs do not trade in a public market and must be redeemed from the issuing company. REITs are subject to the risks of the real estate market. They can be negatively affected by such factors as property values, vacancies, and lease defaults.

Unit Investment Trust

A Unit Investment Trust (UIT) is a US investment company offering a fixed (unmanaged) portfolio of securities having a definite life. A UIT portfolio may contain one of or a variety of securities. The two main types of securities are stock (equity) trusts and bond (fixed income) trusts.

Oil and Gas Programs

There are many different ways to diversify your portfolios into Oil and Gas energy programs. Diversification does not ensure a profit or guarantee against loss; it is a method used to help manage risk. These programs use investor money to get energy out of the earth and pay investors back from any energy produced from the investment. These programs vary greatly in terms of their approach to accepting and paying investors, although many carry potential tax benefits.

Copyright, Polaris Financial Planning