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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:
- Money Market Funds
- Fixed Income or Bond Funds
- Equity or Growth Funds
- Balanced funds
- Specialized Mutual Funds
If you are looking for a versatile investment that offers opportunities for everyone, consider mutual funds; the choice of many investors.
Mutual Funds are sold by prospectus. Investors should carefully consider the funds 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.
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Fixed Annuities
Fixed annuities are tax-sheltered investments sponsored by insurance companies. Earnings aren’t taxed until you make withdrawals. Unlike 401(k)s and IRAs, 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.*
* Withdrawals prior to age 59 1/2 may be subject to a 10% IRS penalty.
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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.
Compared with stocks, bonds are less likely to lose money over short time periods, but also less likely to gain as much over long periods. The tendency for rates to move in the opposite direction of the stock market means they provide important ballast in times of market volatility.
PrimeVest Financial Services offers you access to U.S. Treasuries, corporate bonds, municipal bonds and government-agency issues.
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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 profit through “capital appreciation” — growth in the price of the company’s stock. Stocks are inappropriate for short-term investors because of their potential for unexpected price swings.
PrimeVest Financial Services offers you access to both stock mutual funds and individual stocks.
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IRAs
Mutual funds, bonds and stocks all can be held within an Individual Retirement Account. If you or your spouse have earned income, you’re eligible to contribute up to $5,000 per year to an IRA. If you’re at least 50 years old, you can even put away an extra $1000 annually.
There are two primary types of IRAs. With a traditional IRA, contributions are deductible (assuming you aren’t covered by a company retirement plan or your income falls under certain limits), and earnings grow tax deferred until you take distributions in retirement. With a Roth IRA, contributions aren’t deductible, but your earnings grow tax free — instead of just delaying taxes, you avoid them altogether (provided distributions are taken when you’re over age 59 1/2, the account is at least five years old, and your income falls under certain limits.)*
Your investment professional can analyze your situation and help you decide which IRA is best. We also offer SEP-IRAs for sole proprietors and SIMPLE IRAs for small businesses (typically 10 or fewer employees).
Though investment products are available at West Shore Bank offices, they are not deposits or obligations of West Shore Bank. Consequently, they are not guaranteed by any bank and are not insured by the FDIC. Please remember that all investment products involve risk, including the possible loss of principal.
* Penalties may apply for early withdrawal. 10% IRS penalty may also apply to withdrawal prior to age 59 1/2.
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