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Prior To Investing, One Should Understand Your Options

STOCKS

 An investment giving you partial ownership in a company based on the number of shares you purchase. Stocks tend to fluctuate more in the short term but may perform well over time.

BONDS

An investment that functions as a loan to a government or institution in return for regular interest payments. Bonds can provide more stability than stocks, even though bonds have historically provided lower returns than stocks.

MUTUAL FUNDS

A fund allowing you to pool your money with others in a professionally managed portfolio. Mutual funds offer diversification through a mix of stocks, bonds, and other investment types. If you are investing monthly in a fund, you may benefit from dollar cost averaging.

EXCHANGE TRADED FUNDS (ETF'S)

A basket of securities traded throughout the day — just like individual stocks — on a national stock exchange. Like mutual funds, you purchase shares of an overall fund rather than individual investments.

FUTURES & COMMODITIES

Futures contracts are legal obligations to buy or sell a commodity or security at a later date “in the future”. The buyer agrees to purchase the commodity or security at a predetermined future date and price, and the seller agrees to deliver. These investments are extremely risky and are a zero sum game.

ANNUITIES

A contract between you and an insurance company requiring the insurer to make payments to you, either immediately or in the future. You make regular contributions to the annuity for a guaranteed income stream later in life.

BROKERED CERTIFICATES OF DEPOSIT (CD)

Brokered CDs are CDs issued by banks, purchased in bulk by securities firms and sold to clients through Financial Advisors. Investors do not receive physical certificates for their brokered CDs, but instead receive a periodic account statement detailing their CD holdings. This is a very safe but, very low return.

REAL ESTATE

A hard asset that appreciates in value much faster than most investments. Properties can be held for monthly income or sold for a quick profit. There are opportunities for small investors to own single family homes, condos, townhomes, and multi-family. Corporations have taken advantage of large commercial investments such as apartment buildings, office buildings, and shopping centers.

MORTGAGES

This provides for monthly income that is usually a higher return then other investments. The mortgage is secured by real estate that appreciates in value. Larger investment required with this investment and should only be purchased through a licensed mortgage broker.

Any investment has a degree of risk. Whereas, the interest and/or principal may be at risk for loss. All investments should be considered wisely and you should contact an attorney prior to investing.