http://www.cefa.com/_/docs/content/Learn/ResearchArticles/RaymondJames071706.pdf?time=20080223104406
The above links to a great introduction to closed end funds as listed on the closed-end fund association's website.
For a financial planner in Minnesota click on www.joeswanson.com
Great financial calculators at www.principal.com
Saturday, February 23, 2008
Wednesday, February 20, 2008
Financial Planning MN Minnesota
Test Your mutual Fund Mastery
Almost one out of two U.S. households owns at least one mutual fund. That's a long way from the 6% who owned mutual funds in 1980. How much do you know about this nearly ubiquitous investment vehicle?
1. Which of the following assets are commonly found in mutual funds?
Stocks
Bonds
Short–term debt instruments
All of the above
2. The majority of assets in mutual funds are invested in:
Short–term debt
Corporate bonds
Stocks
3. A majority of mutual fund owners say their primary financial goal for their fund investments is saving for:
Retirement
A rainy day
A down payment on a house
4. Mutual funds offer guaranteed returns.
True
False
5. Mutual funds are sold only by prospectus. What is a prospectus?
A salesperson
A document with information about the fund
A stockbroker
Source: Investment Company Institute, 2007
Answers
d. All of the above.
c. Stocks.
a. Retirement.
False. The value of mutual funds will fluctuate with market conditions. Shares, when sold, may be worth more or less than their original cost.
b. A document with information about the fund. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.
Financial Planning Minnesota
Almost one out of two U.S. households owns at least one mutual fund. That's a long way from the 6% who owned mutual funds in 1980. How much do you know about this nearly ubiquitous investment vehicle?
1. Which of the following assets are commonly found in mutual funds?
Stocks
Bonds
Short–term debt instruments
All of the above
2. The majority of assets in mutual funds are invested in:
Short–term debt
Corporate bonds
Stocks
3. A majority of mutual fund owners say their primary financial goal for their fund investments is saving for:
Retirement
A rainy day
A down payment on a house
4. Mutual funds offer guaranteed returns.
True
False
5. Mutual funds are sold only by prospectus. What is a prospectus?
A salesperson
A document with information about the fund
A stockbroker
Source: Investment Company Institute, 2007
Answers
d. All of the above.
c. Stocks.
a. Retirement.
False. The value of mutual funds will fluctuate with market conditions. Shares, when sold, may be worth more or less than their original cost.
b. A document with information about the fund. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.
Financial Planning Minnesota
Sunday, February 17, 2008
Friday, February 15, 2008
Minnesota financial planner
A Grand New Contribution
If you were waiting for the day when you could sock away some serious dough in your individual retirement account, the time has arrived. Beginning in 2008, workers can contribute up to $5,000 per year to an IRA, and those aged 50 and older can contribute up to $6,000.
Although these new limits are the only recent development for the IRA, what’s most appealing about the IRA has passed the test of time: It still offers a tremendous opportunity for workers of all ages to use the power of tax deferral in pursuit of their long–term savings goals.
Too Low for Too Long
For years, people have complained that the IRA contribution limits are too low. The IRA was created in 1974 with a $1,500 limit that was raised to $2,000 in 1982. In 2001, lawmakers answered the contribution limit complaints with a series of scheduled incremental increases that culminated in 2008. In 2009 and beyond, the IRA contribution limit will be indexed to inflation.
Over a 30–year period, a worker who contributed $5,000 per year to an IRA earning a hypothetical 8% annual return could accumulate an additional $340,000, compared with a worker who contributed just $2,000 per year. This hypothetical example is used for illustrative purposes only. It does not represent any specific investment. Actual results will vary.
Even if you participate in an employer–sponsored retirement plan, you may still be eligible to contribute to a deductible IRA (see table). If you have assets in a former employer’s plan, rolling them into an IRA may give you more options and greater control over your money.
Contributions to a traditional IRA are tax deductible (subject to certain income limits), and any earnings in the account are not subject to income tax until withdrawn. IRA withdrawals (also called distributions) are subject to ordinary income tax. Distributions taken prior to age 59½ are subject to an additional 10% federal income tax penalty, except in cases of death, disability, or a first–time home purchase (up to a $10,000 lifetime maximum).
Forty-seven million U.S. households own at least one IRA.1 Does it make sense for you to take advantage of this year’s higher contribution limits? Call us to learn more.
1) Investment Company Institute, 2006
Fee-Based financial planning
More information at www.joeswanson.com
If you were waiting for the day when you could sock away some serious dough in your individual retirement account, the time has arrived. Beginning in 2008, workers can contribute up to $5,000 per year to an IRA, and those aged 50 and older can contribute up to $6,000.
Although these new limits are the only recent development for the IRA, what’s most appealing about the IRA has passed the test of time: It still offers a tremendous opportunity for workers of all ages to use the power of tax deferral in pursuit of their long–term savings goals.
Too Low for Too Long
For years, people have complained that the IRA contribution limits are too low. The IRA was created in 1974 with a $1,500 limit that was raised to $2,000 in 1982. In 2001, lawmakers answered the contribution limit complaints with a series of scheduled incremental increases that culminated in 2008. In 2009 and beyond, the IRA contribution limit will be indexed to inflation.
Over a 30–year period, a worker who contributed $5,000 per year to an IRA earning a hypothetical 8% annual return could accumulate an additional $340,000, compared with a worker who contributed just $2,000 per year. This hypothetical example is used for illustrative purposes only. It does not represent any specific investment. Actual results will vary.
Even if you participate in an employer–sponsored retirement plan, you may still be eligible to contribute to a deductible IRA (see table). If you have assets in a former employer’s plan, rolling them into an IRA may give you more options and greater control over your money.
Contributions to a traditional IRA are tax deductible (subject to certain income limits), and any earnings in the account are not subject to income tax until withdrawn. IRA withdrawals (also called distributions) are subject to ordinary income tax. Distributions taken prior to age 59½ are subject to an additional 10% federal income tax penalty, except in cases of death, disability, or a first–time home purchase (up to a $10,000 lifetime maximum).
Forty-seven million U.S. households own at least one IRA.1 Does it make sense for you to take advantage of this year’s higher contribution limits? Call us to learn more.
1) Investment Company Institute, 2006
Fee-Based financial planning
More information at www.joeswanson.com
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