Investment Planning

A tax-advantaged savings account designed to be used for your (the beneficiary’s) education expenses. A 529 plan is flexible: funds can be used for a variety of educational expenses including both college and K–12 tuition, apprenticeship costs, and student loan repayments.

Through our insurance-licensed associates, we can assist you in the customized selection of fixed and variable annuities best suited for your individual needs. We can discuss in detail the types and benefits of annuities and how they may fit into your portfolio. Stifel has relationships with numerous quality insurance companies.

A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years, and in exchange, the issuing bank pays interest. When you cash in or redeem your CD, you receive the money you originally invested plus any interest.

An equity is an ownership share in a corporation. Each share of stock is a proportional stake in the corporation’s assets and profits. Purchasing a stock should be thought of as owning a proportional share of the successes and failures of that business.

As a shareholder, you have the right to vote on members of the board of directors and on other important matters before the company. If the company distributes profits to shareholders, typically in the form of a dividend, you’ll likely receive a proportionate share.

As a shareholder, you can benefit from the success of the company (through dividends and the increase of value of your stock) while maintaining limited liability. For example, if the company files for bankruptcy, the worst thing that can happen is your stock becomes worthless. The creditors cannot come after your personal assets.

Changes in market conditions or a company’s financial condition may impact a company’s ability to continue to pay dividends, and companies may also choose to discontinue dividend payments.

An option is the right to buy (call) or sell (put) a specific underlying, at a specific price (strike price) within a specific time frame (expiration) when you are long the option. When a client is short an option, they have an obligation, when assigned, to buy (put) or sell (call) the specific underlying.

The underlying for an equity option is a stock or ETF where the contract deliverable is typically 100 shares. For index options, the underlying is the index itself where the contract deliverable is cash multiplied by 100.

Option trading involves a number of inherent risks and is not suitable for everyone. Investors considering options should consult with a tax advisor. Supporting documentation for any strategies discussed will be supplied upon request. Be sure to read the Option Clearing Corp.’s Option Disclosure Document (ODD) carefully before investing. It can be accessed at http://www.theocc.com/about/publications/character-risks.jsp. A copy can also be obtained by writing to Stifel at 501 North Broadway, St. Louis, Missouri 63102 or by calling (314) 342-2000.

Generally used for long-range planning goals, the Traditional IRA allows you to invest up to $6,000 of your earned income per year ($7,000 if you are age 50 or older) in a tax-deferred account. Depending on your income, tax-filing status, and other factors, contributions may be tax-deductible. When you take your distribution, the income is treated as ordinary income and is subject to tax. At age 72, Required Minimum Distributions (RMDs) must be taken over the life expectancy of the owner. Withdrawals prior to age 59½ may be subject to taxes and a 10% penalty.

A Roth IRA is similar to a Traditional IRA in its annual contribution limit of $6,000 ($7,000 if you are age 50 or older). The difference is that you fund the Roth IRA with after-tax dollars dollars. In order for a distribution from a Roth IRA to be a tax-free “qualified distribution,” certain requirements must be met. A “qualified distribution” is one that is taken at least five years after the first contribution, conversion, or rollover into the Roth IRA and has a qualifying event, such as attainment of age 59½, first time home purchase, death, or disability. However, when one of these conditions is not met, the tax filer must apply certain “distribution ordering rules” in order to determine the tax consequences of that particular distribution.

A Simplified Employee Pension (SEP) IRA is an employer-sponsored retirement plan specifically designed for self-employed individuals and small businesses. Compared to conventional qualified retirement plans, SEP IRAs are low-cost, carry a relatively low administrative burden, and have higher contribution limits than standard IRAs. At age 72, Required Minimum Distributions (RMDs) must be taken over the life expectancy of the owner. Withdrawals prior to age 59½ may be subject to taxes and a 10% penalty.

We offer a comprehensive suite of cash management services to integrate your day-to-day liquidity needs with your long-term ambitions. While great for the occasional payment, these solutions are also an attractive alternative to a traditional bank.

GNMAs are mortgage-backed securities issued by the Government National Mortgage Association (Ginnie Mae) and are guaranteed by the federal government. Approved private lenders originate eligible loans, pool them into securities and issue mortgage-backed securities guaranteed by Ginnie Mae.

These securities have been around since 1970. Ginnie Mae guarantees these securities to help first-time homemakers, low-income borrowers and other underserved groups secure low-interest mortgages. As an investor in a GNMA security, you won’t know who the underlying issuer of the mortgage is, only that the security is guaranteed by Ginnie Mae—so it’s backed by the full faith and credit of the U.S. government.

Mutual funds and exchange-traded funds (ETFs) are similar in that they consist of a mix of many different assets and are a common option for diversifying an investment portfolio. Mutual funds are usually actively managed to buy or sell assets within the fund in an attempt to beat the market and help you, as the investor, profit. ETFs are mostly passively managed, as they typically track a specific market index; they can be bought and sold like stocks. While diversification does not ensure a profit and may not protect against loss, it can play a key role in establishing a sound investment strategy and reducing risk.

Mutual funds and exchange traded funds (ETFs) are offered by prospectus only. Investors should consider a fund’s investment objective, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other important information, is available from your Financial Advisor and should be read carefully before investing. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. ETFs trade like a stock and may trade for less than their net asset value. There will be brokerage commissions associated with buying and selling exchange traded funds unless trading occurs in a fee-based account.

Term and whole life insurance products are the most common types of investment-driven policies—both have specific benefits: Term life insurance covers you for a fixed period of time, like 10, 20, or 30 years. It’s less expensive because it’s temporary and has no cash value; in most cases, your family won’t receive a payout because you’ll live to the end of the term. Whole life insurance premiums are much higher because the coverage lasts for a lifetime, and the policy has cash value, with a guaranteed rate of investment return on a portion of the money that you pay. It also provides a cash-value account that you can tap for funds later in life.

Like bonds, preferred stocks (or preferred shares) are a form of fixed-income security. They entitle you as the investor to dividend payments on a set schedule and are designed to generate income, not growth. Unlike common stockholders, preferred stockholders are afforded limited rights, which usually does not include voting.