2014 - Page 8 of 13 - The Art of Thinking SMART

What Is A Variable Annuity?

July 2, 2014
David S. Chang

A variable annuity is an investment product with insurance features. It allows you to select from a menu of investment choices, typically mutual funds, within the variable annuity and, at a later date—such as retirement—allows you to receive a stream of payments over time. The value of your variable annuity will depend on how your […]

July 2, 2014
David S. Chang

Variable annuities have become a part of the retirement and investment plans of many Americans. Before you buy a variable annuity, you should know some of the basics – and be prepared to ask your insurance agent, broker, financial planner, or other financial professional lots of questions about whether a variable annuity is right for […]

July 2, 2014
David S. Chang

Savings bonds are debt securities issued by the U.S. Department of the Treasury to help pay for the U.S. government’s borrowing needs. U.S. savings bonds are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government. Starting January 1, 2012, you can no longer buy […]

July 2, 2014
David S. Chang

Two of the chief reasons why people invest internationally are: Diversification. International investing may help U.S. investors to spread their investment risk to companies and markets that are outside of – and different than – the U.S. economy Growth. International investing takes advantage of the potential for faster growth in markets outside the U.S., particularly in emerging […]

July 2, 2014
David S. Chang

Hedge funds pool money from investors and invest in securities or other types of investments with the goal of getting positive returns. Hedge funds are not regulated as heavily as mutual funds and generally have more leeway than mutual funds to pursue investments and strategies that may increase the risk of investment losses. Hedge funds are limited […]

July 2, 2014
David S. Chang

Commodities, or commodity futures contracts, are an agreement to buy or sell a specific quantity of a commodity at a specified price on a particular date in the future. Metals, grains, and other food, as well as financial instruments, including U.S. and foreign currencies, are traded in the futures market. With limited exceptions, trading in […]

July 2, 2014
David S. Chang

An annuity is a contract between you and an insurance company that requires the insurer to make payments to you, either immediately or in the future. You buy an annuity by making either a single payment or a series of payments. Similarly, your payout may come either as one lump-sum payment or as a series […]

July 2, 2014
David S. Chang

Municipal bonds (or “munis” for short) are debt securities issued by states, cities, counties and other governmental entities to fund day-to-day obligations and to finance capital projects such as building schools, highways or sewer systems. By purchasing municipal bonds, you are in effect lending money to the bond issuer in exchange for a promise of […]

What Are Certificates of Deposit (CDs)?

July 2, 2014
David S. Chang

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 […]

What Are Bonds?

July 2, 2014
David S. Chang

A bond is a debt security, similar to an IOU. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When you buy a bond, you are lending to the issuer, which may be a government, municipality, or corporation. In return, the issuer promises to pay […]