Stock consists of the shares of which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares
Bond is a type of security under which the issuer owes the holder a debt, and is obliged – depending on the terms – to repay the principal of the bond at the maturity date as well as interest over a specified amount of time.
Mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities.
An exchange-traded fund is a type of investment fund and exchange-traded product, i.e. they are traded on stock exchanges
In fee-based investment accounts, advisors and the investment or mutual fund dealers they work for will typically charge an account fee for advice, access and service directly to the investor. This fee is usually disclosed and arranged up front, and is often based on the assets in your account.
Fixed annuities are insurance products which protect against loss and generally offer fixed rates of return. The rates are typically based on the current interest rate environment.
Variable annuities are insurance products which variable rate of return changes with the stock, bond and money market funds that you choose as investment options.
Indexed annuities have characteristics of both fixed and variable annuities. Indexed annuities offer a minimum guaranteed interest rate combined with an interest rate linked to a market index, hence the name.
An annuity is a contract between you and an insurance company for a specified amount of time in which the company promises to make periodic payments to you, starting immediately or at some future time. You buy an annuity either with a single payment or a series of payments called premiums.
Some annuity contracts provide a way to save for retirement. Others can turn your savings into a stream of retirement income. Some other annuity contracts can also do both. If you use an annuity as a savings vehicle and the insurance company delays your pay-out to the future, you have a deferred annuity. If you use the annuity to create a source of retirement income and your payments start right away, you have an immediate annuity.
With fee-based asset management, clients pay for financial advice based on the value of their investments – not on the number of transactions that occur. Some investors may prefer this type of account because of the ability to minimize conflicts of interest and removes the possible perception that advice is in some way influenced by the commission made on the transaction. In many ways, fee-based asset management aligns the investor’s and adviser's goals; if the investor's assets grow, adviser compensation increases, and, if assets decline, the adviser’s revenue is reduced.
What Are The Benefits Of A Fee-Based Managed Account?