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Growing your investments life insurance annuity stocks 401k california 30s 40s 50s 60s 70s


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life insurance, annuities, stocks, 401k, investments, california retirement plan
Growing your investments life insurance annuity stocks 401k california 30s 40s 50s 60s 70s connie dello buono 4088541883 CA life Lic 0G60621

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Growing your investments life insurance annuity stocks 401k california 30s 40s 50s 60s 70s

  1. 1. Growing your investments • Life Insurance: Providing Financial Protection • Annuities: Creating Guaranteed Income for Life Connie Dello Buono Financial Rep San Jose CA CA Life Lic 0G60621 408-854-1883Theres almost nothing as exciting as making plans for yourfuture. Who doesnt like thinking about their dream home,that special vacation, or being able to provide your kids withall the opportunities they need to be successful on their own?Not to mention what may be the most exciting plans of all -having enough money saved up to really enjoy yourself inretirement.Meeting your savings and investment objectives requireshard work, good judgment and lots of discipline. This Website will only scratch the surface of the many savings andinvestment options available to you, so youre encouraged tovisit the other sites we recommend.
  2. 2. But to get you started, here we describe some of the coreproducts in the asset accumulation part of the financialplanning pyramid:Stocks - Stocks are defined as shares in the ownership of acompany. Today, over half the population is invested in thestock market in one way or another. Over the long-term, itsone of the surest ways to build wealth. However, investing inequities, as stocks are also known, does carry somesignificant risk as weve learned over the past few years.To minimize your risk, it often makes sense to diversify yourinvestments across a variety of sectors (i.e., dont put all ofyour money in tech stocks). It can also be a good idea toseek the advice of stockbrokers or other investment advisorswhose full-time job is to advise clients on where to investtheir money.For more information, click here.Bonds - Bonds are debt investments that can be used inyour portfolio to balance the financial risks inherent ininvesting in equities.A bond is a loan to an entity (a government or corporation)that needs funds for a defined period of time at a specifiedinterest rate. In exchange, the entity will issue you acertificate that states the interest rate you are to be paid andwhen your loaned funds are to be returned (maturity date).Interest on bonds is usually paid every six months.
  3. 3. Mutual Funds - Mutual funds are collections of stocks orbonds which, by definition, create instant diversification inyour portfolio.There are two main types of mutual funds. Index funds seekto mimic "the market" by buying representative amounts ofeach stock in a particular index (e.g., the S&P 500). "Activelymanaged" funds rely on investment professionals to makethe investment decisions. Because fund managers costmoney, the expense fees for index funds tend to be muchlower.As with stocks, you can certainly do your homework and saveon commissions and fees by picking your own mutual funds.But with over 8,000 mutual funds from which to choose, youmay want to seek the advice of an investment professional.401K Plans - 401K plans are voluntary retirement plansoffered to employees of a growing number of companies.These plans allow employees to set aside and invest a certainpercentage of their pretax income. The funds and theirgrowth are not taxed until the funds are withdrawn. Manyemployers also match their employees investments up to acertain percentage.With most 401K plans, employees have a variety ofinvestment options from which to choose. If youre yearsfrom retirement, you should probably invest almost entirelyin stock funds. If retirement is approaching, its time toreduce risk by shifting some money to bond funds, cash orsome other type of fixed-income investment. Keep in mindthat the penalties are pretty stiff for withdrawing funds earlyfrom your 401K plan.
  4. 4. Also, you should know that 401K plans, though increasinglypopular, are not offered by all employers and are just oneform of retirement plan. There are Defined Benefit Plans,Individual Retirement Accounts, Simplified EmployeePensions, 403B plans, and Keogh plans, just to name a few.For a comprehensive list of the many types of retirementplans and good descriptions of each, click here:For more information about investing basics, here are someWeb sites we recommend:Investopedia.com