Slide 10 of 22
If the objective is to safeguard principal, a Certificate of Deposit is one option. CDs are insured by the Federal Deposit Insurance Corp up to $250,000. Holding money in a money market fund is another approach. Money market funds are investment funds that seek to preserve the value of your investment at $1.00 a share. However, it is possible to lose money by investing in a money market fund. Individual bonds, income-oriented mutual funds, and fixed annuities can be structured to generate a steady stream of income. Bonds have different maturities and are subject to interest-rate, credit, and inflation risk. When interest rates increase, bond prices generally will fall, which may affect a bond or a bond fund's performance. Bonds redeemed before maturity may be worth more or less than their original cost. Market conditions will affect the return and principal value of bonds and bond funds. Income-oriented mutual funds may be appropriate for certain types of investors. The guarantees of an annuity contract depend on the issuing company’s claims-paying ability. Annuities have fees and charges associated with the contract, and a surrender charge also may apply if the contract owner elects to give up the annuity before certain time-period conditions are satisfied. The earnings component of an annuity withdrawal is taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. A surrender charge may apply if the contract owner gives up the annuity before time-period conditions are satisfied. For growth potential, individual stocks, growth-oriented mutual funds, and variable annuities may be appropriate. Individual stocks will fluctuate in value and, when sold, they may be worth more or less than the initial purchase price. Mutual funds and annuities are sold only by prospectus. You should consider the charges, risks, expenses, and investment objectives carefully before investing or entering a contract. A prospectus containing this and other information about the investment company or insurance company can be obtained from your financial professional. Read it carefully before you invest or send money.