DANK OF 'MERICA

1-800-FREEDOM

LOCATED IN THE FREEST PLACE ON EARTH

WHICH IS 'MERICA

We feature investment strategies that are available for purchase. There are a variety of diversification options below. They each range from low to high risk investments.

  • o 401(k) plans - Considered to be a relatively safe, low risk investment. It is the 'gold standard of retirement plans'. However, money that is invested in a 401(k) plan is often restricted with early withdrawal penalties.
  • o Bonds - The most relevant known risk in the bond market is the interest rate risk, which is what happens when bond prices decline as interest rates rise. Buying bonds means that the owner of the bond has committed to receiving a fixed rate of return for a fixed period.
  • o Certificates of Deposit (CDs)   - a certificate issued by a bank to a person depositing money for a specified length of time this is a low risk form of investment
  • o Corporate bonds - This is a debt security issued by a corporation and is sold to investors; the backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. Low risk
  • o Municipal bonds - this bond is a security issued by or on behalf of a local authority. These have call provisions, entitling their issuers to redeem them at a specified price on a date prior to maturity
  • o Money market mutual funds - an open-ended mutual fund that invests in short-term debt securities such as the US Treasury bills and commercial paper. These are typically low-risk, low-return investments
  • o Junk bonds - characterized as a high-risk investment, they are typically issued by a company which is working to raise capital in order to quickly finance a takeover
  • o Government savings bonds - a US government savings bond offers a fixed rate of interest over a fixed period of time These bonds are attractive to many people because they are not subject to state or local income taxes. Considered to be a very safe nearly risk free investment because they are backed by the full faith and credit of the federal government
  • o Treasury notes and bonds - A marketable, fixed-interest type of US bond with a maturity of more than 10 years. They make interest payments semi-annually and the income that holders receive are only taxed at the federal level. Considered to be virtually risk-free
  • o Treasury bills - a short-dated government security, yielding no interest but issued at a discount on its redemption price. Maturity of less than one year. This is a low-risk investment with low return
  • o Equities - The value of the shares issued by a company; stocks and shares that carry no fixed interest. Equity risk is the financial risk involved in holding equity in a particular investment, referring to equity in companies through the purchase of stocks. The level of risk varies where funds are invested.

JON K REDINGER