What Is the Difference Between a Fixed Annuity and a Variable Annuity? An annuity is a contract with an insurance company in which you make one or more payments in exchange for a future income stream in retirement. The funds in an annuity accumulate tax deferred, regardless of which type you select. Because you do
What Investment Risks Should I Know About? Taken by itself, the word “risk” sounds negative. But broken down into what it really stands for in terms of investing, it begins to be a little more manageable. By understanding the different types of risk and keeping an eye on your investments, you may be able to
What Are the Different Classes of Assets? When it comes to investing their money, many people are content to take a random approach. They may have received a hot tip for a particular investment and decided to plow a large amount of money into it with no regard to the overall balance of their portfolios.
What Is Asset Allocation? Lewis Carroll, the author of Alice’s Adventures in Wonderland, once said, “If you don’t know where you’re going, any road will get you there.” This is certainly true when it comes to investing: If you don’t know where you’re headed financially, then it is not as vital which investments make up
How Can I Save for My Child’s College Education? Once you’ve determined how much it could cost to send your children to college, your next prudent step is to develop a systematic investment plan that may help you to accumulate the necessary funds. What are your funding options? Which would be appropriate for your situation?
What College Investment Options Do I Have? As tax laws change, college investment planning becomes increasingly complex. The most beneficial strategies for creating a college fund are quite similar to other investment tactics. Investment products that are tax deferred, tax exempt, or transferable without tax consequences can be especially advantageous. This could be even more
What Stock and Bond Alternatives Do I Have? Many prudent investors may have at least some of their holdings in stocks, corporate bonds, or both. In fact, when most people think of “investing,” they think of Wall Street and the stock markets. Many fail to realize that there are a number of ways to invest
What Is Dollar-Cost Averaging? Every investor dreams of buying into the market at a low point, just before it hits an upswing, and garnering a large profit from selling at the market’s peak. But trying to predict market highs and lows is a feat no one has ever fully mastered, despite the claims by some
Is a Home Equity Loan Right for Me? Taxes are becoming an ever-increasing burden to Americans. Through the Tax Reform Act of 1986, Congress reduced or eliminated many of the ways that taxpayers can lower their taxes. Interest deduction is one of the areas that has been strongly affected by this tax reform legislation. Since
529 Lesson Plan: High Scores for 529 College Savings Program Looking for a tax-advantaged college savings plan that has no age restrictions and no income phaseout limits — and one you can use to pay for more than just tuition? Consider the 529 college savings plan, an increasingly popular way to save for higher-education expenses,
