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THOUSANDS OF WAYS TO CUSTOMIZE YOUR FINANCIAL FUTURE, THERE IS ONE THAT IS JUST RIGHT FOR YOU MORE Fhm FP1 FP2 FP3 Ihm Finance 101 -How Does It Work? Rule of 72 The rule of 72 is an easy way to see how money can grow. The math is actually pretty simple. Divide the number 72 by the interest rate of your chosen account type and see how long it takes for your money to double. If your interest rate is 3%, then 72/3=24. Twenty for years for your money to double. 12 years at 6% and so on. Financial accounts come in all shapes and sizes. there an infinite number of variables in accounts, rates, tax advantages, with different fees, rules and outcomes. We offer about as many as there are. The best thing we can do together is take a thorough accounting of your life, hopes, dreams and possibilities. Take into a ccount your tolerance for things like risk, time and personality. Add a dash of hope, do a complete analysis and generate a full report Why would be different than others? I Don't like the regular way, so I look at it in a way that others would never imagine. Want to be regular go see the other guy... Want to be different? Act Different! ETF'S and Mutual Funds ETFs are traded on stock exchanges, just like individual stocks, and their prices fluctuate throughout the trading day based on supply and demand. Mutual funds , are priced at end of the trading day and bought or sold at the net asset value. (NAV) ETFs can be bought and sold throughout the trading day at market prices, allowing investors to take advantage of intraday price movements or implement specific trading strategies (such as short selling or options trading). Mutual funds, on the other hand, are only bought or sold at the end of the trading day at the NAV price. ETFs typically have lower expense ratios than mutual funds, as they often track a passive index and have lower management fees. Mutual funds may have higher expense ratios due to active management and the associated research and trading costs. Mutual funds usually have a minimum initial investment requirement, while ETFs do not typically have such requirements. This makes ETFs more accessible to investors with smaller amounts of capital. ETFs are generally more tax-efficient compared to mutual funds. Due to the structure of ETFs, investors can typically avoid capital gain distributions until they sell their shares. Mutual funds, however, may distribute taxable capital gains to investors annually, even if an individual investor did not sell their shares. Annuities: Fixed Annuities: Fixed annuities guarantee a fixed rate of return over a specific period. They provide a steady stream of income with principal protection, making them a conservative choice for individuals seeking stability. Variable Annuities: Variable annuities allow individuals to invest in various investment options, such as stocks, bonds, and mutual funds. The return on investment and payout amount can fluctuate based on the performance of the chosen investments. Variable annuities offer the potential for higher returns but also come with more investment risk. Fixed Index Annuities: Fixed index annuities combine features of fixed and variable annuities. They offer a fixed interest rate along with the opportunity to earn additional returns based on the performance of an underlying market index, such as the S&P 500. Immediate Annuities: Immediate annuities provide regular income payments that start immediately after purchasing the annuity. They are commonly used to convert a lump sum of money into a guaranteed income stream. Deferred Annuities: These delay the commencement of income payments until a later date. During the accumulation phase, the annuity grows tax-deferred, allowing for potential compound growth over time. Deferred annuities are often used for retirement savings and can be converted into an immediate annuity when income is desired. Lifetime Annuities: Lifetime annuities guarantee income for the remainder of an individual's life, regardless of how long they live. These can be fixed, variable, or fixed-indexed annuities. Lifetime annuities provide a source of income that cannot be outlived and help mitigate longevity risk. Indexes: Index Funds: Index funds are mutual funds or ETFs that aim to replicate the performance of a specific index, such as the S&P 500 or the FTSE 100. These funds invest in the securities that make up the index in the same proportion, providing investors with broad market exposure. Index-linked Bonds: Also known as structured notes or index-linked notes, these bonds provide a return based on the performance of a specified index. The interest payments or principal repayment may be linked to the index's performance, offering investors the potential for higher returns. Exchange-Traded Notes (ETNs): ETNs are unsecured debt instruments issued by financial institutions and traded on exchanges. ETNs provide returns linked to the performance of an underlying index. Investors receive the return of the index, minus any fees or costs, upon maturity. Index Certificates: Index certificates are structured products that track the performance of an index. They are issued by financial institutions and offer investors a return based on the index's performance. The issuer assumes the risk associated with the investment. Index-linked Swaps: These are derivative contracts where two parties agree to exchange the returns of an index for a fixed or floating rate of interest. The payments are based on the difference between the index's actual returns and a predetermined fixed rate. Equities: Equities, also known as stocks or shares, represent ownership interests in a company or corporation. When investors purchase equities, they become shareholders and have a claim on the company's assets and earnings. Equities provide potential for capital appreciation as the company's value and profitability increase. Shareholders may also receive dividends as a portion of the company's profits. However, equities also carry risks, as their value can fluctuate based on market conditions and the company's performance. Participation Rates: Participation rates in funds refer to the portion of an investor's capital (typically a fixed amount or percentage) that is invested in the underlying assets or securities of the fund. It represents the degree to which an investor's funds participate in the performance of the fund's holdings. A higher participation rate indicates a greater allocation of the investor's capital towards the assets, resulting in a stronger correlation between the investor's returns and the fund's performance. Conversely, a lower participation rate implies a lesser proportion of the investor's funds linked to the assets, potentially reducing the impact of the fund's performance on the investor's returns. It is important for investors to understand the participation rate when considering investment options, as it can affect the potential risk and reward profile of their investment. Spreads: Spreads in financial accounts refer to the difference between the bid price (the price at which someone is willing to buy a financial instrument) and the ask price (the price at which someone is willing to sell a financial instrument). This difference represents the costs that traders or investors incur when buying or selling securities. For example, in stock trading, the spread is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept. The spread can vary based on factors such as market liquidity, trading volume, and volatility. In bonds and other fixed-income securities, the spread refers to the additional yield or interest rate offered by a particular bond over a benchmark, such as government bonds. This spread compensates investors for the additional risk associated with the issuer. Spreads play a crucial role in financial markets as they determine the transaction costs and profitability of trading. Narrow spreads are typically preferred as they imply tighter markets and lower costs. However, spreads can widen during periods of market volatility or when trading in less liquid assets. Options: Options in finance are derivative contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price (strike price) within a specific time period. The underlying asset can be stocks, bonds, commodities, or other financial instruments. There are two types of options: Call Options: Call options give the holder the right to buy the underlying asset at the strike price before or on the expiration date. Put Options: Put options give the holder the right to sell the underlying asset at the strike price before or on the expiration date. Options provide flexibility to investors and traders, offering various strategies to profit from market movements. They can be used for speculative purposes, hedging against potential losses, or generating income through option writing (selling options). Keep in Mind: It's important to note that each type of life financial accounts has its own features, benefits, and costs. Choosing the right type of financial instrument depends on your specific needs, financial goals, and circumstances. It is recommended to consult with a licensed finance professional to determine the most suitable account for your situation. Our Core Belief Money comes a result of doing the right thing...
The rule of 72 is an easy way to see how money can grow. The math is actually pretty simple. Divide the number 72 by the interest rate of your chosen account type and see how long it takes for your money to double. If your interest rate is 3%, then 72/3=24. Twenty for years for your money to double. 12 years at 6% and so on.
Financial accounts come in all shapes and sizes. there an infinite number of variables in accounts, rates, tax advantages, with different fees, rules and outcomes. We offer about as many as there are. The best thing we can do together is take a thorough accounting of your life, hopes, dreams and possibilities. Take into a ccount your tolerance for things like risk, time and personality. Add a dash of hope, do a complete analysis and generate a full report Why would be different than others? I Don't like the regular way, so I look at it in a way that others would never imagine. Want to be regular go see the other guy... Want to be different? Act Different!
ETFs are traded on stock exchanges, just like individual stocks, and their prices fluctuate throughout the trading day based on supply and demand. Mutual funds , are priced at end of the trading day and bought or sold at the net asset value. (NAV) ETFs can be bought and sold throughout the trading day at market prices, allowing investors to take advantage of intraday price movements or implement specific trading strategies (such as short selling or options trading). Mutual funds, on the other hand, are only bought or sold at the end of the trading day at the NAV price. ETFs typically have lower expense ratios than mutual funds, as they often track a passive index and have lower management fees. Mutual funds may have higher expense ratios due to active management and the associated research and trading costs. Mutual funds usually have a minimum initial investment requirement, while ETFs do not typically have such requirements. This makes ETFs more accessible to investors with smaller amounts of capital.
ETFs are generally more tax-efficient compared to mutual funds. Due to the structure of ETFs, investors can typically avoid capital gain distributions until they sell their shares. Mutual funds, however, may distribute taxable capital gains to investors annually, even if an individual investor did not sell their shares.
Fixed Annuities: Fixed annuities guarantee a fixed rate of return over a specific period. They provide a steady stream of income with principal protection, making them a conservative choice for individuals seeking stability. Variable Annuities: Variable annuities allow individuals to invest in various investment options, such as stocks, bonds, and mutual funds. The return on investment and payout amount can fluctuate based on the performance of the chosen investments. Variable annuities offer the potential for higher returns but also come with more investment risk. Fixed Index Annuities: Fixed index annuities combine features of fixed and variable annuities. They offer a fixed interest rate along with the opportunity to earn additional returns based on the performance of an underlying market index, such as the S&P 500. Immediate Annuities: Immediate annuities provide regular income payments that start immediately after purchasing the annuity. They are commonly used to convert a lump sum of money into a guaranteed income stream.
Deferred Annuities: These delay the commencement of income payments until a later date. During the accumulation phase, the annuity grows tax-deferred, allowing for potential compound growth over time. Deferred annuities are often used for retirement savings and can be converted into an immediate annuity when income is desired. Lifetime Annuities: Lifetime annuities guarantee income for the remainder of an individual's life, regardless of how long they live. These can be fixed, variable, or fixed-indexed annuities. Lifetime annuities provide a source of income that cannot be outlived and help mitigate longevity risk.
Index Funds: Index funds are mutual funds or ETFs that aim to replicate the performance of a specific index, such as the S&P 500 or the FTSE 100. These funds invest in the securities that make up the index in the same proportion, providing investors with broad market exposure. Index-linked Bonds: Also known as structured notes or index-linked notes, these bonds provide a return based on the performance of a specified index. The interest payments or principal repayment may be linked to the index's performance, offering investors the potential for higher returns. Exchange-Traded Notes (ETNs): ETNs are unsecured debt instruments issued by financial institutions and traded on exchanges. ETNs provide returns linked to the performance of an underlying index. Investors receive the return of the index, minus any fees or costs, upon maturity. Index Certificates: Index certificates are structured products that track the performance of an index. They are issued by financial institutions and offer investors a return based on the index's performance. The issuer assumes the risk associated with the investment.
Index-linked Swaps: These are derivative contracts where two parties agree to exchange the returns of an index for a fixed or floating rate of interest. The payments are based on the difference between the index's actual returns and a predetermined fixed rate.
Equities, also known as stocks or shares, represent ownership interests in a company or corporation. When investors purchase equities, they become shareholders and have a claim on the company's assets and earnings. Equities provide potential for capital appreciation as the company's value and profitability increase. Shareholders may also receive dividends as a portion of the company's profits. However, equities also carry risks, as their value can fluctuate based on market conditions and the company's performance.
Participation rates in funds refer to the portion of an investor's capital (typically a fixed amount or percentage) that is invested in the underlying assets or securities of the fund. It represents the degree to which an investor's funds participate in the performance of the fund's holdings. A higher participation rate indicates a greater allocation of the investor's capital towards the assets, resulting in a stronger correlation between the investor's returns and the fund's performance. Conversely, a lower participation rate implies a lesser proportion of the investor's funds linked to the assets, potentially reducing the impact of the fund's performance on the investor's returns. It is important for investors to understand the participation rate when considering investment options, as it can affect the potential risk and reward profile of their investment.
Spreads in financial accounts refer to the difference between the bid price (the price at which someone is willing to buy a financial instrument) and the ask price (the price at which someone is willing to sell a financial instrument). This difference represents the costs that traders or investors incur when buying or selling securities. For example, in stock trading, the spread is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept. The spread can vary based on factors such as market liquidity, trading volume, and volatility. In bonds and other fixed-income securities, the spread refers to the additional yield or interest rate offered by a particular bond over a benchmark, such as government bonds. This spread compensates investors for the additional risk associated with the issuer. Spreads play a crucial role in financial markets as they determine the transaction costs and profitability of trading. Narrow spreads are typically preferred as they imply tighter markets and lower costs. However, spreads can widen during periods of market volatility or when trading in less liquid assets.
Options in finance are derivative contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price (strike price) within a specific time period. The underlying asset can be stocks, bonds, commodities, or other financial instruments. There are two types of options: Call Options: Call options give the holder the right to buy the underlying asset at the strike price before or on the expiration date. Put Options: Put options give the holder the right to sell the underlying asset at the strike price before or on the expiration date. Options provide flexibility to investors and traders, offering various strategies to profit from market movements. They can be used for speculative purposes, hedging against potential losses, or generating income through option writing (selling options).
It's important to note that each type of life financial accounts has its own features, benefits, and costs. Choosing the right type of financial instrument depends on your specific needs, financial goals, and circumstances. It is recommended to consult with a licensed finance professional to determine the most suitable account for your situation.
Money comes a result of doing the right thing...
