You’ve worked hard to build the life you’ve wanted. Insurance can protect you and those you love from an unexpected death, illness and even from living longer than expected. By protecting yourself with life and long term care insurance, and with an annuity, you can strive to protect your future.

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Life Insurance

Term Life

Why Term Life Insurance?

Life Insurance could be the right choice for you if you need coverage for a set time. Term insurance is typically more economical. Coverage ends when the term expires. Choose a 5-, 10-, 15-, 20- or 30-year term based on your specific needs and your vision of the years ahead.

Term Life Insurance is intended to help replace lost income and cover needs that will go away over time. It is insurance for a specific number of years. Most policies have coverage that will not change for the length of the term selected. Many proprietary content term insurance policies have an option that allows you to convert to a permanent policy without a medical exam.

Whole Life

How Does Whole Life Differ From Term Life?

Unlike term insurance, whole life offers coverage for your entire life. And it accumulates cash value, which is accessible in the form of loans or withdrawals. So whole life can represent a future source of money as well as protection. The premiums are guaranteed to remain the same throughout your lifetime.

Accumulation of Cash Values

Cash values accumulate at a fixed rate. The cash value can be used to purchase extended term insurance, or to purchase paid-up insurance, or the policy can be surrendered for its cash value.

Frequently Asked Questions

What are some reasons to buy Life Insurance?

• Helps you prepare for the unexpected (such as death or a loss of a job).
• Designed to safeguard growing financial commitments (marriage, children, mortgage, etc.).
• Helps to protect loved ones if you and/or your spouse should die prematurely.
• Can build and protect funds for a child’s college education.
• Can accumulate and secure money for retirement.

What type of insurance do I need?

There are obvious advantages to both term and whole life insurance. You may need both. And you may want to supplement your current coverage. So how do you know which coverage is right for your situation?  We don’t expect you to be the expert. An LPL Financial Advisor located at Marine Federal Credit Union can help you go through all the options so you can choose what’s best for you.

How much life insurance do I need? 

A general guideline is five to ten times your current salary. (This current recommendation represents the total of all life insurance policies and is only a general guideline. The amount of coverage you need will depend on your needs and circumstances.) 

Questions you may want to consider when determining your particular family’s life insurance needs are:

• Do you have a financial plan to pay for your children’s education?
• Do you have a savings plan to help cover financial emergencies?
• If your family were to lose an income, would the other family members be able to maintain their lifestyle? Would your (and/or your spouse’s) survivors be able to stay in your home and pay the mortgage? If necessary, what would your family do for childcare?
• If you or your spouse were to die suddenly, would your family be burdened by large debts?

What do I need to know about beneficiaries?

• A beneficiary is a person or organization (e.g., charity) who receives insurance benefits at the time of the insured person’s death.
• You can choose anyone to be your beneficiary and you can have more than one beneficiary.
• In general, benefits paid to your beneficiary, are not subject to federal income tax.

*This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This information is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation, or activities which may affect the type of insurance that would be right for you.

Long-Term Care

The day may come when you need long-term care. It can be very expensive, and Medicare doesn’t usually supplement that cost. Without a way to pay for the expenses associated with long-term care, your savings could be at risk, as well as the financial security you planned on leaving your family. Are these familiar concerns of yours? Here are some important questions and answers about Long-term Care Insurance.

How does Long-term Care Insurance cover these costs?

In simple terms, Long-term Care Insurance helps provide the dollars to pay for care that you would otherwise have to pay for yourself. Depending on the level of coverage you choose, the insurance will assume some or the entire financial burden should you require care in a nursing home or assisted living facility, or if you require home health care. Having the money to help pay for care can give you and your family the control to decide what is best when it comes to providing for your care.

Long-term Care Insurance can help protect your savings and assets, preserve your independence, and help your spouse and children with your personal long-term care needs.

What is the best age to start planning?

There is no magic age that is best for planning for long-term care. What we can tell you is the time to plan may be now, while your health may not be a barrier to obtain coverage. As you age the likelihood of you getting a medical condition that would make you uninsurable can increase.

Can I be turned down for coverage?

Companies selling Long-term Care Insurance will look at your current health and history before issuing a policy. Most companies ask simple questions about your health while others conduct more extensive underwriting, including examining your current medical records and asking for a statement about your health from your doctor. Having certain conditions that are likely to require a nursing home stay in the future may prevent you from obtaining Long-term Care Insurance. You must answer all the questions truthfully. If an insurance company later learns that you did not fully disclose your health status on your application, it may rescind your policy.

What kind of long-term care policies are available?

Long-term care insurance policies offer a variety of different benefits and coverage. Variables include benefit periods, elimination periods, maximum benefit payouts, and inflation protection. Choosing the right combination of benefits that suit your individual needs is an important part of the insurance buying process. We recommend seeking assistance from an experienced insurance professional.

How much coverage will I have?

The amount of coverage provided by your long-term care policy is expressed in terms of lifetime maximum benefit and is as daily or monthly benefit limits. The amount of coverage you get may also vary depending on the type of services you receive. Most plans have a lifetime maximum benefit they will payout over the length of the policy duration. This benefit is defined either by a period of years or as a total dollar amount. A few plans offer unlimited lifetime benefits.

*This material contains only general descriptions and is not a solicitation to sell any insurance product or security. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. 

Annuity Strategies

Annuities are contracts with an insurance company that strive to protect you against the risk of outliving your assets. Annuities provide future income in return for your contributions. 

You make payments and accrue interest and income over time. A “deferred annuity” allows you to accumulate funds tax-deferred and then establish a payout stream at a later date. An “immediate annuity” can provide a payout beginning immediately after an initial premium payment. Annuities offer an array of choices both during the deferral and payout periods to suit your needs and investment style.

Fixed

Designed for more conservative investors close to retirement.

Fixed annuities allow you to protect assets from market volatility. These contracts with an insurance company often pay you an agreed-upon percent for a guaranteed number of years.

• Withdrawals may be subject to surrender charges during the early years of the contract, and funds withdrawn from any annuity prior to age 59½ may be subject to a 10% IRS penalty.
• Your earnings compound on a tax-deferred basis.
• Fixed annuities are not NCUA insured. They are guaranteed by the company that issues them, which is why it is important to understand the ratings of the issuing company.

There are tax deferral advantages, a death benefit, the potential for lifetime income and the extra safety and security of guarantees from the insurance company to also consider. A Financial Advisor located at Marine Federal Credit Union can help you determine if a fixed annuity is right for you.

*Fixed annuities are long-term investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. 

Variable

For investors who can handle the ups and downs of the market.

Investors with longer time horizons and the ability to withstand market fluctuations often choose variable annuities. The annuity has two phases: an accumulation phase (where you make periodic payments) and a payout phase (where you get a guaranteed minimum payment).

• During the accumulation phase, you make purchase payments and allocate the money among investment options offered as you see fit. The variable annuity has “subaccounts” which let you move money around to different money managers with different investing objectives and instruments. There are typically no extra fees for these moves.
• Your money grows tax-deferred until you take a distribution. All the funds, including those that would be used to pay taxes, are allowed to remain in the account to grow.

Income payments can vary depending on the performance of the subaccounts.

*Variable annuities are long term, tax-deferred investment vehicles designed for retirement purposes and contain both an investment and insurance component. They have fees and charges, including mortality and expense risk charges, administrative fees, and contract fees.   They are sold only by prospectus. Guarantees are based on the claims paying ability of the issuer. Withdrawals made prior to age 59 ½ are subject to 10% IRS penalty tax and surrender charges may apply. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. The investment returns and principal value of the available sub-account portfolios will fluctuate so that the value of an investor’s unit, when redeemed, may be worth more or less than their original value. 

Indexed

Stable - even if the market isn’t.

Index annuities can give you a chance for returns based on market increases with stability and principal guarantees more traditionally associated with fixed annuities. The interest you earn follows an index: Most use the S&P 500, Dow, or an international index. When the index gains, you do. But when that index loses, your annuity stays steady at zero.

• Similar to fixed annuities, you receive a minimum income guarantee and no market exposure to downsides.
• All the gains you make – any gains from previous years – can be locked in and never go down.
• While you’re protected from losses, some annuities may put an upper limit, or cap, on the index-linked gain you can make.
• While the floor for most market investors can be anywhere, including a very negative outcome for their money, yours can be zero.

*Fixed Indexed Annuities (FIA) are not suitable for all investors. FIAs permit investors to participate in only a stated percentage of an increase in an index (participation rate) and may impose a maximum annual account value percentage increase. FIAs typically do not allow for participation in dividends accumulated on the securities represented by the index. Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Withdrawals prior to 59 ½ may result in an IRS penalty, and surrender charges may apply. Guarantees are based on the claims-paying ability of the issuing insurance company.

*The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. 

*The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors. 

*International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. 

Single Premium

One lump sum can provide you steady income for life.

Purchasing a payout annuity – sometimes called an immediate annuity – is like buying a regular check for yourself. Payments start right away, usually within 30 days of your purchase, and can last as long as you live. There are a variety of payout options. You may choose the security of a guaranteed monthly income or the potential for income to grow based on the variable investment returns of the market.

• You purchase a payout annuity with a single payment, which means you decide upfront what you have to spend and what you need in return. You typically can’t add money to the annuity later on.
• You can often choose to be paid monthly, quarterly, semi-annually, or annually – whatever works best for you.
• You may have options to guarantee income for a set period of time or for as long as you live. Your payout can be a fixed amount or adjusted for inflation. And there are ways to guarantee an income for you or both you and your spouse. You’ll even have choices to make sure that no matter how long you live, you or your beneficiaries will receive your principal back.
• For payout annuities that aren’t part of a retirement plan like an IRA, each payment you receive will be part return of principal and part earnings. You’ll pay taxes when you receive the payment but only on the earnings portion. That helps keep taxes down.

Keep your investment objectives in focus to help you plan for the future you want. Marine Federal Financial Group will help guide you to keep you on track to pursue financial success.

IRA Options

Traditional

Potentially reduce the taxes you owe today and grow your money tax-deferred.

Meet the eligibility requirements and you can deduct contributions to a traditional IRA from your federal taxable income, as well as from your taxable income in most states. This up-front tax break reduces the current income taxes you owe. Also, money in a traditional IRA accumulates tax-deferred. You’ll eventually have to pay taxes, but not until you make a withdrawal.

• You can contribute to your IRA any time during the year or by the due date for filing your tax return – always April 15 – extensions do not apply.
• If you make early withdrawals before age 59 1/2, you’ll owe a 10% tax penalty on the taxable portion of the distributions. You’ll also owe income tax on your earnings and on any deductible contributions you made.
• There are exceptions to the early withdrawal penalties: if you meet the IRS definition of “disabled,” have high unreimbursed medical expenses, or need to pay certain qualified educational expenses.
• By April 1 of the year following the year in which you reach age 73, you must either withdraw your entire balance or start taking required minimum distributions each year.

*Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal.  Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

Roth

Earnings grow tax-deferred, withdraw at retirement tax-free.

Roth IRA earnings grow tax-deferred, and for qualified distributions, your earnings can also be withdrawn tax-free. But there are rules, and they can be complex:

• Roth IRA contribution limits vary by tax year, income level and tax filing status (single, married filing jointly), so you may want to work closely with an advisor.
• You can contribute to your IRA any time during the year or by the due date for filing your tax return – always April 15 – extensions do not apply.
• If you need to dip into your nest egg early, Roth rules differ and can be complex. Unlike a traditional IRA, you can withdraw up to the total amount of your annual contributions at any time, for any reason, with no federal taxes or penalties due.
• Another advantage Roth IRAs have over traditional IRAs is there are no required minimum distributions during an owner’s lifetime. Minimum distribution rules, however, do apply after the death of the owner.

*A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.

Inherited

One lump sum can provide you with a steady income for life.

Your IRA assets pass to your beneficiaries, the individuals you’ve named to receive them. When they do, they receive an “Inherited IRA.” While your name will remain on the account, the tax code allows certain types of beneficiaries to take distributions from an inherited IRA over their own lifetime.

• Rules for inherited IRAs vary depending on the type of beneficiary you name.
• Spouse beneficiaries have options for an inherited IRA that isn’t available to other types of beneficiaries.
• Rules for stretching distributions from an inherited IRA also depend on whether the original IRA owner dies before or after their beginning date for required minimum distributions.

*“Stretch IRA” is a marketing term implying the ability of a beneficiary of a Decedent’s IRA to withdraw the least amount of money at the latest allowable time in order to maintain the inherited IRA assets for the longest time period possible. Beneficiary distribution options depend on a number of factors such as the type and age of the beneficiary, the relationship of the beneficiary to the decedent and the age of the decedent at death and may result in the inability to “stretch” a decedent’s IRA. Illustration values will greatly depend on the assumptions used which may not be predictable such as future tax laws, IRS rules, inflation and constant rates of return. Costs including custodial fees may be incurred on a specified frequency while the account remains open.

Mutual Funds

Money Market

Mutual funds invest in money market instruments, like commercial paper and Treasury bills and seek to provide stability of principal and a steady stream of interest income – while keeping your money liquid and always available to you.

• You’ll hear the term "rate" used, but money market mutual funds don't pay interest. They pay dividends to shareholders. These dividends are often expressed as a rate of return.
• When you’re invested in a money market mutual fund, the fund tries to maintain a per-share value of $1, and your return fluctuates with the net asset value of the fund’s holdings. It is important to note, that although a Money Market Fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in a Money Market Mutual Fund.
• The dividends you receive from money market mutual funds are taxed as ordinary income unless you’re invested in a tax-exempt fund.

*An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.  Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. 

Stock Funds

These mutual funds invest in a portfolio of individual stocks and seek primarily to increase the value of an investment through appreciation. While you’ll have many choices among a variety of mutual funds, there are a few things you can count on:

• Some invest in well-established companies that pay dividends. Others seek bigger payoffs by investing in growth-oriented upstarts. Others focus on firms they consider “undervalued.”
• Funds also offer you choices based on market capitalization (large, mid, small), geography (domestic, international, global), and different business sectors. The funds spell out their approach in their prospectuses.
• In general, funds that focus on growth by investing in young, emerging firms will mean more risk for you.
• Your profits on stock funds are taxable unless they’re in certain tax qualified retirement accounts or education accounts. (Whatever you do with stock funds, make sure to consult your accountant or tax planner.)

As you evaluate stock funds, you’ll hear about “loads.” These are sales commissions investors pay, sometimes paid when buying (a front-end loaded) and sometimes paid when selling (a back-end or deferred load).

*Investing in mutual funds involves risk, including possible loss of principal. Fund value will fluctuate with market conditions and it may not achieve its investment objective.

Bond Fund

Bond funds are designed to produce regular income for shareholders by investing primarily in corporate or government bonds. Like any mutual fund investment, you’ll match the funds’ objectives and style with yours. Some strive to produce steady returns with less volatility. Some offer the possibility of higher yields. You can also choose funds that consider your tax status.

• Every bond fund will explain things like its objective, the types of investments it makes, when it pays dividends and capital gains, how long it’s been around, the expenses it comes with, and other key facts.
• One of the main things investors look for in a bond is its tax status and tax-free income. There’s no federal tax on municipal bond distributions, and no state or local tax if you live in the municipality that issues your “muni.”
• You’ll want to compare any prospective bond fund's performance to its peers. Actively managed bond funds – with higher operating expenses and charges of 1% or more billed to you – strive to outperform peers.

As you evaluate bond funds, you’ll hear about “loads.” These are sales commissions investors pay, sometimes paid when buying (a front-end load) and sometimes paid when selling (a back-end or deferred load).

*Investing in mutual funds involves risk, including possible loss of principal. Fund value will fluctuate with market conditions and it may not achieve its investment objective.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. 

Exchange Traded

With Exchange Traded Funds, or ETFs, you can invest in large and small cap ETFs, a U.S. stock ETF, or an international stock ETF. They’re passively rather than actively managed, so they often have lower fees than mutual funds.

• Most ETFs track an index, such as the Dow Jones Industrial Average or the S&P 500. Managers usually do very little trading of securities within the ETF, which is what’s meant by the term “passively managed.”
• They’re bought and sold through a brokerage house, by phone or online, just like stocks. Prices can change fast, just like stocks. Trade orders can be executed during the day (in contrast to mutual funds, where the actual trade happens once per day after the markets close).
• You’ll pay small trading fees with ETFs
• You’ll pay taxes on the gains you may make from ETFs, but investors have more control over the timing of capital gains and when taxes are incurred.

The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.

The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

All indices are unmanaged and may not be invested into directly.

*ETFs trade like stocks, are subject to investment risk, fluctuate in market value, and may trade at prices above or below the ETF's net asset value (NAV). Upon redemption, the value of fund shares may be worth more or less than their original cost. ETFs carry additional risks such as not being diversified, possible trading halts, and index tracking errors.

Managed Accounts

Managed accounts are portfolios designed for individuals to match their specific financial needs with portfolio objectives, and managed by professional investment managers. Often, these accounts offer an avenue for individuals to access investment managers that are generally available only to institutional-level investors.

Managed account portfolios come in many different structures. Some are for conservative investors, some for more assertive investors, and some for those in between. Some portfolios focus on tax managed investing and others on growth investing with less regard for tax consequences. Some portfolios are more focused on generating income and others on growth.

Portfolio holdings can consist of institutional class mutual funds, exchange traded funds or even individual securities.

Managed accounts typically assess quarterly fees to pay for the professional management of the funds.

*There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Annuity Solutions

Annuities are contracts with an insurance company that strive to protect you against the risk of outliving your assets. Annuities provide future income in return for your contributions. 

You make payments and accrue interest and income over time. A “deferred annuity” allows you to accumulate funds tax-deferred and then establish a payout stream at a later date. An “immediate annuity” can provide a payout beginning immediately after an initial premium payment. Annuities offer an array of choices both during the deferral and payout periods to suit your needs and investment style.

Fixed

Fixed annuities allow you to protect assets from market volatility. These contracts with an insurance company often pay you an agreed-upon percent for a guaranteed number of years.

• Withdrawals may be subject to surrender charges during the early years of the contract, and funds withdrawn from any annuity prior to age 59½ may be subject to a 10% IRS penalty.
• Your earnings compound on a tax-deferred basis.
• Fixed annuities are not NCUA insured. They are guaranteed by the company that issues them, which is why it is important to understand the ratings of the issuing company.

There are tax deferral advantages, a death benefit, the potential for lifetime income and the extra safety and security of guarantees from the insurance company to also consider. A Financial Advisor located at Marine Federal Credit Union can help you determine if a fixed annuity is right for you.

*Fixed annuities are long-term investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply.

Variable

Investors with longer time horizons and the ability to withstand market fluctuations often choose variable annuities. The annuity has two phases: an accumulation phase (where you make periodic payments) and a payout phase (where you get a guaranteed minimum payment).

• During the accumulation phase, you make purchase payments and allocate the money among investment options offered as you see fit. The variable annuity has “subaccounts” which let you move money around to different money managers with different investing objectives and instruments. There are typically no extra fees for these moves.
• Your money grows tax-deferred until you take a distribution. All the funds, including those that would be used to pay taxes, are allowed to remain in the account to grow.

Income payments can vary depending on the performance of the subaccounts.

*Variable annuities are long term, tax-deferred investment vehicles designed for retirement purposes and contain both an investment and insurance component. They have fees and charges, including mortality and expense risk charges, administrative fees, and contract fees.   They are sold only by prospectus. Guarantees are based on the claims paying ability of the issuer. Withdrawals made prior to age 59 ½ are subject to 10% IRS penalty tax and surrender charges may apply. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. The investment returns and principal value of the available sub-account portfolios will fluctuate so that the value of an investor’s unit, when redeemed, may be worth more or less than their original value. 

Indexed

Index annuities can give you a chance for returns based on market increases with stability and principal guarantees more traditionally associated with fixed annuities. The interest you earn follows an index: Most use the S&P 500, Dow, or an international index. When the index gains, you do. But when that index loses, your annuity stays steady at zero.

• Similar to fixed annuities, you receive a minimum income guarantee and no market exposure to downsides.
• All the gains you make – any gains from previous years – can be locked in and never go down.
• While you’re protected from losses, some annuities may put an upper limit, or cap, on the index-linked gain you can make.
• While the floor for most market investors can be anywhere, including a very negative outcome for their money, yours can be zero.

*Fixed Indexed Annuities (FIA) are not suitable for all investors. FIAs permit investors to participate in only a stated percentage of an increase in an index (participation rate) and may impose a maximum annual account value percentage increase. FIAs typically do not allow for participation in dividends accumulated on the securities represented by the index. Annuities are long-term, tax-deferred investment vehicles designed for retirement purposes. Withdrawals prior to 59 ½ may result in an IRS penalty, and surrender charges may apply. Guarantees are based on the claims-paying ability of the issuing insurance company.

*The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. 

*The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors. 

*International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.

Single Premium

Purchasing a payout annuity – sometimes called an immediate annuity – is like buying a regular check for yourself. Payments start right away, usually within 30 days of your purchase and can last as long as you live. There are a variety of payout options. You may choose the security of a guaranteed monthly income or the potential for income to grow based on the variable investment returns of the market.

• You purchase a payout annuity with a single payment, which means you decide up front what you have to spend and what you need in return. You typically can’t add money to the annuity later on.
• You can often choose to be paid monthly, quarterly, semi-annually or annually – whatever works best for you.
• You may have options to guarantee income for a set period of time or for as long as you live. Your payout can be a fixed amount or adjusted for inflation. And there are ways to guarantee an income for you or both you and a spouse. You’ll even have choices to make sure that no matter how long you live, you or your beneficiaries will receive your principal back.
• For payout annuities that aren’t part of a retirement plan like an IRA, each payment you receive will be part return of principal and part earnings. You’ll pay taxes when you receive the payment but only on the earnings portion. That helps keep taxes down.

Stocks and Bonds

Stocks and bonds can range from conservative to ultra aggressive.

When you invest in individual stocks, you become a part owner of the business, with all the ups and downs. You can vote at shareholder meetings and receive profits allocated to owners. You may get very high returns, but you may also lose money.

Bonds, on the other hand, are an agreement to loan money to a company or government in return for regular payments. But with either, you’re counting on that one entity, and that can be risky.

*Stock investing includes risks, including fluctuating prices and loss of principal​

*Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.