Investments for Generations

HOW IT WORKS

1 Complete a risk-score

questionnaire

Certain factors in a client's investment profile are major contributors to determining an appropriate asset mix.

2 Portfolio

selection

We'll analyze your risk-score and make a proper portfolio recommendation. You'll receive a portfolio proposal for review.

3 Strategy

implementation

Accounts are opened and trades are placed based on the recommendations that are tailored to your unique situation.

4 Periodic

reviews

Accounts are constantly monitored. Automatically re-balanced and periodic reviews are scheduled.

Common Investment Vehicles

IRAs

Roth IRA

A Roth IRA is an individual retirement account that offers tax-free growth and tax-free withdrawals in retirement. Roth IRA rules dictate that as long as you've owned your account for 5 years and your age 59.5 or older; you can withdraw your money when you want to and you won't owe any federal taxes.

Traditional IRA

A traditional IRA allows individuals to direct pre-tax income towards investments that can grow tax-deferred. Individuals can contribute 100% of any earned compensation up to a specified maximum dollar amount.

Brokerage

A brokerage account is the type of account used to buy and sell securities like stocks, bonds and mutual funds. You can transfer money in and out of a brokerage account like a bank account, but unlike banks, brokerage accounts give you access to the stock market and other investments.

529

529 plans are flexible, tax-advantaged accounts designed specifically for education savings. Funds can be used for qualified education expenses for schools nationwide.

401k

A 401(k) is a defined contribution plan. The employee and employer can make contributions to the account up to the dollar limits set by the IRS.

FINANCIAL FITNESS PLANS

If you fail to plan, you plan to fail

Without a plan in place, most people don’t have a clear idea of what retirement will look like for them, or if their expectations are even realistic.

Benefits of a Plan

Identify long-term financial goals and the steps needed to
achieve those goals.
See your finances from a holistic point of view to understand how
your individual financial decisions can impact your overall financial picture.
Create integrated strategies that take into account different variables tied to your financial activities.

Build Your Plan

Understanding your unique picture

The first step in a Financial Fitness Plan involves taking a detailed look into a person’s current financial situation. This means examining a person’s savings, income, debts and current living expenses. A professional financial planner will collect a variety of financial documents, such as a list of debt balances and current assets, and determine where the person stands financially and what changes will need to be made to reach specified goals.

Creating your strategy

Once financial goals have been specified and alternative courses of action created and evaluated, it is time to develop an action plan. A Financial Fitness plan involves finding ways to achieve financial goals. Goals should be listed in order of importance and once the most prioritized goal has been completed, start working towards the next goal on the list.

Keeping you on track

Financial planning does not end when the financial plan is created. It requires regular evaluation to ensure that a person is on the right track towards reaching his or her goals. A Financial Fitness Plan may need to be revised on a regular basis as situations arise, such as a change in income or the loss of certain assets or investments.

Sectors of the Market

Sector investing offers targeted exposure to the stocks of companies in specific segments of the economy and can help you pursue growth, diversify your portfolio, and manage risks.

Real-estate

As the name suggests, the newest addition to the S&P sectors includes Real Estate Investment Trusts (REITs), as well as realtors and other companies.

Consumer Staples

Consumer staples companies provide all the necessities of life. This includes food and beverage companies, household product providers, and personal product providers. Consumer staple companies are well known, since people see their products in stores regularly.

Consumer Discretionary

Discretionary consumer products are luxury items or services that are not necessary for survival. The demand for these items depends on economic conditions and the wealth of individuals. Products include cars, jewelry, sporting goods, and electronic devices. Luxury experiences include trips, stays at hotels, or dining in a posh restaurant.

Utilities

Utility companies provide or generate electricity, water, and gas to buildings and households.

Communication Services

The communication services sector consists of companies that keep people connected. This includes internet providers and phone plan providers. The more exciting part of the sector includes media, entertainment, and interactive media & services companies.

Financials

The financial sector includes all companies involved in finance, investing, and the movement or storage of money. It includes banks, credit card issuers, credit unions, insurance companies, and mortgage real estate investment trusts (REITs).

Information Technology

The information technology – IT – sector consists of companies that develop or distribute technological items or services, and includes internet companies. Technology products include computers, microprocessors, and operating systems.

Materials

Companies within the materials sector provide the raw material needed for other sectors to function. This includes the mining companies that provide gold, zinc, and copper, and forestry companies that provide wood.

Healthcare

Health care consists of medical supply companies, pharmaceutical companies, and scientific-based operations or services that aim to improve the human body or mind.

Industrials

Industrials include a wide range of companies, from airlines and railroad companies to military weapons manufacturers. Since the range of companies is so large, the sector has 14 different industries. Two of the largest industries are Aerospace & Defense and Construction & Engineering.

Energy

The energy sector consists of all companies that play a part in the oil, gas, and consumable fuels business. This includes companies that find, drill, and extract the commodity. It also includes the companies that refine the material and companies that provide or manufacturer the equipment used in the refinement process.

FAQ

What is the difference between saving and investing?

Saving is putting money aside for future use. It's important to save so you can cover fixed expenses, like mortgage or rent payments, and to make sure you're prepared for emergencies. Generally, people put their savings in bank accounts, where up to $250,000 is insured by the Federal Deposit Insurance Corporation (FDIC).

Investing is when you put your money to work for you. You buy an investment, like a stock or bond, with the hope that its value will increase over time. Investments have the potential for greater returns than you’d receive by putting your money in a bank account.

When should I invest?

Generally, sooner is better. Historically, the longer you invest, the less impact the short-term ups and downs of the market have on your return.

Many investors sit on the sidelines, waiting for the "right" time to invest. Unfortunately, timing the market is virtually impossible. Instead, consider just getting started and remember this old investing adage: Time in the market is more important than timing the market.

Is investing risky?

Investing has risks. The goal is to manage them. We believe the best way to do this is to have a plan, know when you’ll need the money, and diversify your portfolio.

Diversification spreads your money around different types of investments, so you're not putting all of your eggs in one basket. You want to divide your money among stocks, bonds and cash investments based on your risk tolerance and timeline. Dividing even further, you could include different types of stocks. You could have stocks representing different sectors (for example, technology and health care). The ultimate goal is to own investments that don’t historically move in tandem.

What is risk tolerance?

Risk tolerance is personal. When you tell us how much risk you think you can handle, remember to consider how comfortable you are with short-term fluctuations in the value of your investments, as well as your longer-term investment goals.

A conservative approach means that you’d rather err on the side of safety, even if that means accepting the potential for lower returns. If you choose an "aggressive" risk tolerance, you’re telling us you're willing to risk the possibility of greater losses in exchange for potentially greater returns in the long run.

What do you mean by financial goals?

When thinking about your money, the most important question is: What do you want to do?

Every account is structured around a specific goal, enabling you to invest with the appropriate level of risk for each.

You can create goals including:

‐ Retire

‐ Grow your money

‐ Start a business

‐ Pay for education

‐ Buy a home

‐ Plan a wedding

‐ Buy a car

‐ Any other major purchase you plan to make