West Shore Bank Investment Services

The time between diapers to diploma flies so quickly. That's why it's never too early to start planning for college. Where to start? How about with Cetera Investment Services located at West Shore Bank? Browse our services, then email or call 231-845-3500 to arrange a complimentary consultation. 

COVERDELL ESA 

Formerly called Education IRAs, Coverdell Education Savings Accounts (Coverdell ESA) now boast a less confusing name and more generous contribution limits. The annual limit is $2,000 per child, making Coverdells an attractive option for many families.

A Coverdell ESA is a trust or custodial account set up in the United States solely for paying qualified education expenses for the designated beneficiary of the account.  There are certain requirements to set up a Coverdell ESA:

• When you establish the account, the designated beneficiary must be under the age of 18 or be a special needs beneficiary.
• You must make the designation of the account as a Coverdell ESA when you create it.
• The document creating and governing the account must be in writing and it must meet certain requirements.

You may be able to contribute to a Coverdell ESA to finance the beneficiary's qualified education expenses.  In general, the designated beneficiary of a Coverdell ESA can receive tax-free distributions to pay qualified education expenses.  The distributions are tax-free to the extent the amount of the distributions doesn't excel the beneficiary's qualified education expenses.  If a distribution exceeds the beneficiary's qualified education expenses, a portion of the earnings is taxable to the beneficiary.  Amounts remaining in the account must be distributed when the designated beneficiary reaches age 30, unless the beneficiary is a special needs beneficiary.  Certain transfers to members of the beneficiary's family are permitted.

One point that is often overlooked: Though usually intended for college, Coverdell ESAs can be used for just about any education expense, including private elementary and secondary schools.

UGMA ACCOUNTS 

The Uniform Gift to Minors Act is the federal law that allows children to own stocks, bonds, mutual funds and other securities. An UGMA account must be registered in the name of a child, but an adult serves as custodian and is responsible for managing the assets within it.

There is no limit on the amount that can be invested in an UGMA account. Contributions aren’t deductible and parents/custodians should work with an appropriate tax advisor to consider all tax implications. 

A potential drawback is that you lose control of UGMA assets when your child turns 18 or 21, depending on the state. At that age, your son or daughter can legally use the money however they want. An advantage is that UGMA funds can be used for any expense that benefits your child, not just education.

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs.  529 plans, legally known as "qualified tuition plans," are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code. Before investing in a 529 plan, investors should carefully consider whether the investor's or beneficiary's home state offers any state tax or other benefits available only from that state's 529 plan.

Protecting yourself and your family from the unexpected is vitally important. At West Shore Investment Services, we’re here to help you feel prepared no matter what life brings your way by offering Life and Long-Term Care Insurance. For more information on our insurance plans, email or call 231-845-3500.

LONG-TERM CARE INSURANCE

What if you were faced with the unexpected financial expenses of a long-term illness?  How long could you afford these additional expenses? 

Long-term care is an important issue we could all potentially face.  Depending solely on the government to pay these expenses — whether through Medicare of Medicaid - is not a feasible option.  Medicare provides limited coverage for long-term care and Medicaid generally applies only to those with very few assets. 

At West Shore Investment Services, provided by Cetera Investment Services, our mission is to help the financial well-being of our customers.  We have found that the right long-term care policy can help:

• Protect your retirement assets for their intended purpose
• Reduce the burden of care that often falls on family members
• Ensure you have control of where you receive care, at home or in a living facility 

For more information regarding Long Term Care Insurance, email or call 231-845-3500.

LIFE INSURANCE

Life Insurance can serve a number of purposes and is well suited to help meet the needs of many circumstances. A life insurance policy provides reassurance that your financial responsibilities, such as the cost of raising children, paying for your home, or taking care of debt, will be met.

West Shore Investment Services offers Term Life Insurance to help you protect your family, with policy options for every situation.  For answers to your questions on term life insurance, email or call 231-845-3500.

Note: Click here for information on the SECURE Act, effective January 1, 2020. 

When you retire, will you have enough money waiting for you? There’s only one way to know: Plan. Smart planning can design a roadmap to guide your saving and help make sure you will have the money you need for the type of retirement you want. Identify your opportunities with help from West Shore Investment Services. Browse our services to find out how we can show you the best way for you to plan your retirement income. Email or call 231-845-3500 to arrange a complimentary consultation. We will spend the time with you to understand your goals and your comfort level with the various investment products available to you. Together, you’ll build a plan that works for you. Even if you’re nearing retirement and wondering if your savings will last, we can help you develop a plan for that too.

ASSET ALLOCATION¹

This strategy aims to reduce the risk of investing by spreading out your assets among stocks, bonds, and cash. This is crucial because of the tendency of some investments to gain or lose value in the short term. West Shore Investment Services can help you allocate your assets appropriately by taking into account several factors, including your age, goals and risk tolerance. As your circumstances change over the years, we’ll recommend adjusting your allocation when necessary so your portfolio strikes the right balance between risk and reward. 

¹Asset allocation will not guarantee a profit or protect you from loss; however, it may provide a hedge against risk and create opportunities in both bull and bear markets.

PORTFOLIO MANAGEMENT

Developing and maintaining a successful financial portfolio can be a daunting task, particularly as your wealth increases. Rely on the Financial Advisors located at West Shore Investment Services to manage your portfolio, saving you time and helping you get the most from investing. 

We’ll consider the big picture – your goals, your need for income, the impact of inflation, tax ramifications² - in short, everything that could have a bearing on the makeup of your portfolio. Then we’ll recommend strategies designed to help keep your investment program on the right track.

And if all you want is a second opinion, that’s fine, too. We’re happy to take a look at your portfolio without charge or obligation. 

²For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera, nor any of its representatives, may give legal or tax advice. 

TRADITIONAL IRAS 

With a traditional IRA, contributions you make are deductible (as long as you’re not covered by a company retirement plan or your income falls under certain limits) and earnings grow tax deferred until you take distributions in retirement. If you or your spouse have earned income, you’re eligible to contribute up to $6,000 a year to an IRA. If you’re 50 or older, you can even put away an extra $1,000 annually. 

West Shore Investment Services professionals can analyze your situation and help you decide if a traditional IRA is best or if another type better suits your needs. If you’re leaving your job, we can also help you transfer the money you’ve accumulated in your company retirement plan into a rollover IRA or consider the appropriate options for your situation.

ROTH IRAS

With a Roth IRA, contribution amounts are the same as those of the traditional IRAs. While contributions aren’t deductible, you can avoid taxes on your earnings, instead of just delaying them (as long as contributions are taken when you’re over age 59 ½, the account is at least 5 years old, and your income falls under certain limits).³

Roth IRAs are also worth considering to pay for college expenses. If you withdraw any earnings prior to reaching age 59 ½ or have held the account for at least five years, you will be taxed. However, you may withdraw your principal — up to $6,000 a year — without tax or penalty. Only after your principal has been exhausted will future withdrawals of earnings be taxed.

³Penalties may apply for early withdrawal. 10% IRS penalty may also apply to withdrawal prior to age 59 ½.

401(K) PLANS

401(k) plans are generally used by larger companies with 25 or more employees. Employees make pre-tax contributions to self-directed accounts each payroll period, and employers have the option of matching a portion.

Tax Advantages 

Employee contributions are made with pre-tax money, reducing the amount of tax due from each paycheck. In addition, all employer contributions and earnings have the potential to grow tax-deferred until withdrawal. 

Whether you’re looking to acquire wealth or just keep what you’ve already got, Financial Advisors at West Shore Investment Services can help. Browse our wealth management services. Then call 231-845-3500 or (888) 295-4373 to arrange a complimentary consultation. 

MUTUAL FUNDS

Whether you’re a small or large investor, prefer conservative or aggressive investments, mutual funds work to give you an opportunity for capital appreciation or competitive yields, liquidity and relative safety. That is because mutual funds (companies that pool the assets of many shareholders) provide diversification with the added benefit of professional management.

Whatever your investment objectives and desired level of risk, there are mutual funds to match. From conservative to aggressive; from immediate income to long-term growth; you choose the fund or funds that best meet your investment needs.

If you are looking for a versatile investment that offers opportunities for everyone, consider mutual funds. The investment return and principal value of mutual fund shares will fluctuate with market conditions.  Shares, when redeemed, may be worth more or less than the original amount invested.

Mutual funds are sold by prospectus. Investors should carefully consider the fund’s investment objectives, risks, charges and expenses before investing. The prospectus contains this and other information about the investment company. A prospectus is available from an Investment Executive. Please read the prospectus carefully before investing.

ANNUITIES

Annuities are tax-sheltered investments sponsored by insurance companies. Earnings aren’t taxed until you make withdrawals. There are no limits on how much you can invest in an annuity, making them appealing to investors who want to maximize their contributions to tax-advantaged accounts. 

Annuities are products of the insurance industry.  Guarantees are subject to the claims-paying ability of the issuing insurance company and surrender charges and fees may apply if money is withdrawn before the end of the contract.  Additionally, if purchase within a qualified plan, an annuity will provide no further tax deferral features.  All withdrawals of tax-deferred earnings are subject to current income tax and, if made prior to age 59 1/2, may also be subject to a 10% federal income tax penalty.

BONDS

When you buy a bond, you’re simply making a loan – either to a company or the government. As with any loan, the borrower pays you interest. Then, when your bond matures, you get back your original investment.

Investors should be aware that bond values may decline, if interest rates rise.  All bonds are subject to availability, prior sale and change in price.  As with any investment, market value will fluctuate during the period held and, if sold prior to maturity, the yield received may be more or less than the yield calculated at time of purchase.

West Shore Investment Services offers you access to US Treasuries, corporate bonds, municipal bonds and government-agency issues.

STOCKS 

Stocks are sometimes called “equities” because they represent a share, or a piece of equity, in a company. In other words, when you buy stock in a company, you’re actually buying a small piece of that company.

As a part owner, you’re entitled to share in any profits the company makes. These profits are distributed in the form of dividends. You also have the potential to profit through “capital appreciation” – growth in the price of the company’s stock. Stocks are not a great option for short-term investors because of their potential for unexpected price swings.

West Shore Investment Services offers you access to both stock mutual funds and individual stocks.  Risks inherent to investments in stocks include the fluctuation of dividends, loss of principal, and potential liquidity of the investment in a falling market.

As its name suggests, the SIMPLE IRA (Savings Incentive Match Plan for Employees) is an uncomplicated, low-cost option especially suitable for small businesses with less than 100 employees.

TAX ADVANTAGES

Contributions are made before taxes, reducing taxable income for employees. Plus, both contributions and earnings grow tax-deferred until withdrawal (presumable in retirement), at which time they are taxed as ordinary income.

Though they’re suitable for small businesses with 10 or fewer employees, in practice, most SEP-IRAs (Simplified Employee Pension) are established by self-employed individuals. The plans require minimal paperwork and are easy to administer.

TAX ADVANTAGES

Employer contributions are made before taxes, and both contributions and earnings grow tax-deferred until they are withdrawn (presumably in retirement), at which time they are taxed as ordinary income.

401(k) plans are generally used by larger companies with 25 or more employees. Employees make pre-tax contributions to self-directed accounts each payroll period, and employers have the option of matching a portion.

TAX ADVANTAGES 

Employee contributions are made with pre-tax money, reducing the amount of tax due from each paycheck. In addition, all employer contributions and earnings grow tax-deferred until withdrawal.

A profit-sharing plan offers business owners a tax-advantaged way of sharing profits among their employees. Employers make discretionary tax-deductible contributions, which are then allocated to the individual accounts of participating employees.

TAX ADVANTAGES 

The employer’s contribution to each employee’s account is not considered taxable income to the employee. Earnings accumulate on a tax-deferred basis.