Corner Bank

Financial Options

Understanding  Risk and Picking your Deal.

Risk is the possibility for loss on an investment while return is the profit or loss made on an investment.

Low- Little to non risk because the government insures the principal and they pay a guaranteed rate of interest.

  • Treasury bonds
  • CD's
  • Saving Accounts

High-The riskier the investment, the higher the potential return. But the company you invested in might go bankrupt and if that was to happen there is no financial back up for it.

  • Corporate bonds
  • Junk bonds
  • Stocks

What kind of risk are you willing to take? What returns are you searching for?

Different Options

Keep in mind that you are more than welcome to diversify your investments, this will reduce the non-systematic risk!

401(k) Plans- low risk

  • Offered to employees of public or private for-profit corporations.
  • Money is deducted from your paycheck before taxes are withdrawn, this lowers your taxable income which lowers your taxes!

Bonds- Low Risk

  • A "debt" security, the issuer owes the holders a debt and depending on the terms of the bond, is obligated to pay them with interest.
  • This means that your gain is on the interest the issuer pays.
  • Long-term bonds- High interest rate risk, low investment rate risk.
  • Short-term bonds- low interest rate risk, high reinvestment rate risk.

Certificates of Deposit ( CDs)-low risk

A form of time deposits offered primarily by banks, savings, loans and credit unions. Low risk

Corporate Bonds- High Risk

Issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, M&A, or to expand business. The term is usually applied to longer-term debt instruments, with maturity of at least one year.

Municipal Bonds- low

A security issued by or on behalf of a local authority.

Money Market Mutual Funds- Low Risk (varies depending on situation)

is an open-ended mutual fund that invests in short-term debt securities such as US Treasury bills and commercial paper.

Junk Bonds- High Risk

considered a high risk bond but has the potential for high yields. Junk Bonds share similar risks with stocks

Government Savings Bond-low risk

  • save in a reliable, low-risk, government-backed product
  • supplement your retirement income

Treasury Notes and Bonds

The interest is the difference between the purchase price and the price paid either at maturity (face value) or the price of the bill if sold prior to maturity. Treasury notes and bonds, on the other hand, are securities that have a stated interest rate that is paid semi-annually until maturity.

Treasury Bills

A short-dated government security, yielding no interest but issued at a discount on its redemption price.

Equities- high risk

the value of the shares issued by a company, this carry no fixed interest.

Deals

Low Risk Deal

This is for the people that rather start out by playing it safe. This means little to non diversification and a lower return

Within this deal and if you meet each of the item's requirements you could have

  • Saving Accounts
  • Treasury bonds
  • Bonds
  • CDs

Medium Risk Deal

This deal allows for some risk taking and diversification. The idea is to mix and match options, so you as a customer have the opportunity to expand economically.

High Risk Deal

This is for the people that have a "gut feeling" and want to follow it. Keep in mind that the higher the risk the higher the possible loss.

  • Corporate Bonds
  • Equities
  • Junk Bonds

Contact Information
Jeovanna Sanchez
P-555-5555-5555
Lake Mary, FL

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