Model Portfolios and Investment Advisory Programs
- Carefully consider the investment objectives, risk factors, charges and expenses of funds within any model portfolio before investing.
- Most investment advisory programs are fee-based. The fees are paid by the client. There may be other costs associated with these programs. You should consult the firm’s Form ADV Part 2A Disclosure Brochures and Form CRS. For programs that involve mutual funds and/or exchanges traded funds (ETFs), a client should consider a fund’s investment objective, risks, charges and expenses carefully before investing. Prospectuses for mutual funds and ETFs in a program are available from your Financial Advisor.
- A client should read the prospectus/es carefully before investing. Investment return and principal value will fluctuate, and a client’s shares when redeemed, may be worth more or less than their original cost.
Variable Products
- Variable Universal Life insurance is life insurance that offers protection and an opportunity to build cash values. Mortality and expense fees, and subaccount expenses. Optional rider expenses may also be incurred if a rider is selected. Surrender charges may be incurred if the policy is surrendered during the surrender-charge period as defined in the policy. It is possible that coverage will terminate when either no premiums are paid following the initial premium, or subsequent premiums are insufficient to continue coverage.
- A Variable Annuity is a long-term investment issued by an insurance company that can assist a person in growing the money placed in the annuity, take income in retirement and pass on accumulation. A Variable Annuity generally offers tax-deferred growth. Withdrawals may be taken from a Variable Annuity. If a Variable Annuity is in a retirement plan that already offers tax deferral (such as an IRA), the annuity does not provide any additional tax deferral. Withdrawals made prior to age 59 ½ may incur an IRS early withdrawal penalty. A Variable Annuity will have a Mortality and Expense (M&E) fee, which helps cover the guarantees in the product. A client will also pay underlying fund expenses, and in some cases an annual contract charge. Surrender charges may be incurred on withdrawals made during the surrender charge period.
- The underlying funds available in Variable Universal Life and Variable Annuity products are not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund.
- All guarantees, including optional benefits, in Variable Products (Variable Universal Life and Variable Annuities) are subject to the claims paying ability and financial strength of the issuing insurance company. Each issuing insurance company is solely responsible for its own financial condition and contractual obligations. The Variable Product prospectus and contract contain information about the underling contract/policy’s features, risks, charges, expenses, limitations, termination provisions, and terms for keeping the contract/policy in force.
REITs
- Real Estate Investment Trusts (REITs) – There are three main types of REITs: Equity (generally own and operate income-producing real estate; Mortgages (mREITs) (provide financing to real estate owners and operators, either directly through real estate loans such as some form of a mortgage or indirectly through investments in mortgage-backed securities); and Hybrid which use investment strategies of both equity REITs and mortgage REITs. REITs are classified as either publicly traded, public non-traded, or private. Publicly traded REITs are bought and sold by investors on national securities exchanges and are regulated by the SEC. Public non-traded REITs are also regulated by the SEC but are not traded on a national exchange. Private REITs are neither regulated by the SEC nor traded on national exchanges and are primarily sold to institutional or accredited investors. All REITs have fees, expenses and risks, and come with the risk that your investment could lose some or all of its value. Publicly traded REITs tend to be more liquid but also subject to more volatility than non-public REITs. Changes to interest rates, property values and the economy may also impact the returns of REITs.
BDCs
- Business Development Companies (BDCs) are a special type of investment that combines attributes of publicly traded companies and closed-end investment vehicles. They give investors exposure to private equity or venture capital-like investments. They typically have the potential for high yields but tend to carry more risk. BDCs are considered specialty finance companies and primarily make investments in the debt and/or equity of small to mid-size companies predominantly in the U.S.