Learn About Investments
Find the roadmap that’s right for you.
The investments you make now can create a solid foundation for your financial future. We want to ensure you have the knowledge to make the right choices for your investment goals.
Many people wonder how to invest in a way that will help build long-term wealth. While the right answer may be different for each person, it helps to understand the available options.
What to know about investing in mutual funds
Mutual Funds are a diversified, professionally managed portfolio of securities, typically including stock and/or bonds holdings in dozens or more different companies. Your investment is pooled with those of thousands of other investors. The result is broader diversification than you may achieve on your own. Diversification is important because your money is spread out over many investments, and is not dependent on any single investment. Mutual funds may be a smart way to manage your risk.
Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully 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.
What to know about investing in stocks
Why stocks?
Stocks can be an important part of a well-diversified retirement portfolio. The potential for higher returns comes with some risks, due to the volatility (or rapid price changes) of the stock market. Working with a MidFirst Investment Services Investment Executive can help you determine the right investment plan for you.
What are the benefits?
One important factor to consider with all your investments is that the rate of inflation works against your returns. Inflation fluctuates from one year to the next, but in general, stocks can give you the best potential for outpacing inflation and seeing greater returns. This strategy works best over longer periods of time.
What to know about investing in bonds
Purpose of bonds
When you buy a bond, you're acting as a lender to a company. Your money is loaned out with the promise of receiving interest payments at a certain rate over time. When a bond hits maturity, you receive your principal or original investment amount back. One exception is callable bonds, which may be paid off before the maturity date - meaning you receive your principal back early.
What are the benefits?
Bonds generally offer greater stability than stocks because they do not experience as many value fluctuations. They are also a great way to diversify your retirement investment portfolio and minimize risk. One technique investors use to help maximize returns is called bond laddering, or buying bonds with a range of different maturity dates.
A diversified portfolio does not assure a profit or protect against loss in a declining market.
What to know about investing in annuities
Types of annuities
An annuity is a product offered through an insurance company that pays out income in a series of payments, and can be used as part of a retirement strategy. There are three primary types of annuities: fixed, indexed and variable. A fixed annuity guarantees you payments at a specific interest rate for the time period set in your policy. An indexed annuity provides payments that can change based on the performance of a particular index.
Variable Annuities
A modern investment combining tax-deferral and growth opportunity. Planning for a comfortable retirement means making smart choices today. Variable annuities may allow you to defer taxes, take advantage of timely market opportunities, receive income that you may not outlive and take care of your beneficiaries. Talk to one of our investment advisors today about putting together a plan that's right for your future.
Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully 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.
What are the benefits?
One great benefit is that annuities have the opportunity to provide a structured or consistent source of income during retirement, much like a pension plan. Also with annuities, you defer taxes on the earnings until you make a withdrawal or begin receiving an annuity income. Withdrawals made prior to age 59 ½ may result in a 10% penalty in addition to any ordinary income tax. Annuities should not be purchased as a short-term investment.
Mutual Funds, Stocks, Bonds and Annuities
Your personal MidFirst Investment Services Investment Executive will walk you through the right portfolio allocation based on your specific goals.