There are many different tips out there for choosing an investment strategy, including looking at common myths, assessing the different risks, and knowing the right time to invest.
But there’s one tip that stands head and shoulders above the rest: Ask questions.
When it comes to your finances, the absolute, number one, best and smartest thing you can do is ask questions. No matter how big or how small the question is, it could be the key to understanding where your money is going, how successful you will be, and ultimately make or break your financial security.
When you ask questions of your broker, financial planner, or Fixed Income Fund manager, it’s OK to demand answers. After all, it’s your money they’re dealing with, and you shouldn’t be overwhelmed by things that you don’t understand.
In fact, that’s one of the biggest complaints we hear from investors all the time; not understanding what the product is, the fees and costs associated with it, and how it works can greatly impact and even hinder your wealth and savings.
For a simple, easy-to-understand solution to fixed annuities, head over to Tactical Wealth to learn about the Fixed Income Fund. Otherwise, sit tight and take a look at some of the common questions you should be asking about your investment options.
What Are My Options?
There are no shortage of options out there when it comes to making an investment. Depending on your age, financial situation, and comfort level, you can range anywhere from high-risk, high-reward investments to safe, low return products. Among your options are:
- Fixed Annuities: These are typically vehicles for retirement savings, which pay out a fixed sum to you yearly for a set period of time. Typically, retirees will invest in a fixed annuity in order to receive reliable monthly (or yearly) payments throughout their retirement. With fixed annuities, your account earns money on a minimum interest rate, but that rate is locked in and will never change, ensuring you have a guaranteed payment you can count on each time.
- Indexed Annuities: These annuities are essentially loans to an insurance company. Here, you make a lump sum payment, or investment, to the company in exchange for payments at a later time. These payments are tied to the market index, which means your rates of return are subject to fluctuation.
- Variable Annuities: Similar to indexed annuities, your investment value is subject to fluctuating rates depending on the different investment options you choose. You can receive your payments immediately or at a set point in the future, though it must be agreed upon by the insurance company.
- Mutual Funds: Much like they sound, these type of investments take a pool of funds from investors and put that money towards buying stocks, bonds, and other securities. You may find index funds, stock funds, and more, each of which has a different strategy, risk, rate, and fee.
Fixed Income Fund Answer: Another investment option you have is the Fixed Income Fund. Our innovative tactical strategy is the superior answer to fixed annuities, variable annuities, bonds, and other securities. Rather than providing a lump sum to an insurance company and banking on their health and strategy, with the Fixed Income Fund you pool your money with other investors in order to receive a stable, consistent income on a monthly basis. Our rates are always higher, because we stay out of the index market by purchasing mortgage and trust deed loans in historically stable markets. Learn more about how the Fixed income Fund works by contacting Tactical Wealth today.
Is This Investment Right For Me?
Before you commit to an investment, it’s important to know what type of situation you’re getting into. Be sure to evaluate your current finances to make sure you can afford such an investment, make sure it will be a worthwhile venture, and evaluate your overall financial goals, both in the short term and in the long term.
Fixed Income Fund Answer: If you are a motivated, accredited investor without the need for immediate liquidity, then the Fixed Income Fund just might be right for you. With our stable income fund, you get a diversified portfolio that allows for higher rates of return than other investments, while also getting the value of investing in real estate directly without having to deal with the headaches and fees that brings.
How Do Interest Rates Affect My Investment?
Of course, the interest rates are a big selling point for many investments. When you look at products like CDs, they may be attractive because your money is compounding for a set period of time without any risk. However, with the extremely low interest rates they have, it may not generate that much of a return, making it somewhat of a waste of time.
For the most part, interest rates are determined by the market and the federal government. And the different rates offered by the different investment options out there can make or break your financial security. Don’t hesitate to ask what effect the rates will have on your money, and demand an answer while taking into account things like inflation and volatility.
Fixed Income Fund Answer: The Fixed Income Fund offers rates of return that are significantly higher than those offered by bonds, fixed annuities, and other financial securities. See how our fixed rates compare and understand that once you make your investment, your interest rate will be locked in through maturity. With a 10-year note, you can experience rates as high as 4.75 percent, almost two times higher than a fixed annuity of the same duration. The only way interest rates will affect your investment in the Fixed Income Fund will be by earning you more money in the long term.
What Fees Will I Pay?
The unfortunate part about making an investment is that your returns can be eaten away in no time. That’s because, with many products and many companies, the management and transaction fees are often unwieldy and sometimes even hard to understand. The higher your investment, the more fees you will have to pay, making it difficult to even see a feasible return. With fixed annuities, you can expect to pay broker fees and annual management fees that will take a huge bite into your returns. Take a good look at your contract before committing and understand that this is all part of the traditional investment game.
Fixed Income Fund Answer: The Fixed Income Fund doesn’t play the traditional investment game, however. With our fund, you will never be subjected to transaction fees, management fees, or investor fees. We ensure that all of our investors see every last bit of their returns, because our strategy only allows us to target holdings with a greater value than we pay out.
Can I Invest My IRA?
Sometimes it can be hard to come up with a large enough sum to invest. Or, maybe you just want to leverage your retirement savings to earn even more money. It’s fair to ask whether or not you can use your IRA, 401K, or other retirement account in order to invest and compound your wealth.
Fixed Income Fund Answer: With the Fixed Income fund, you are allowed to invest your IRA, 401K, or other qualified account to make your principal investment. And again, there are no management or transaction fees you will have to pay when you do this.
Can My Interest Compound?
With some products, the answer is yes. With others, you have to take your returns as they come. But, letting your interest compound can be an effective tactic in order to compound your wealth and significantly increase your returns. If you don’t have a specific need for your returns immediately, then explore this option.
Fixed Income Fund Answer: With the Fixed Income Fund, you are allowed to let your earnings compound month over month, which will increase your return substantially.
What Happens To My Money If I Pass Away?
Will your assets be frozen and inaccessible? How will your family or beneficiaries receive your payments? When it comes to investing, you should always ask these important questions. The last thing you want is for your money to be gone forever in the event of your death.
Fixed Income Fund Answer: Rest assured, an investment in our fund will still benefit your family or other loved ones in the event of you passing away. Your beneficiaries will continue to receive the remaining interest payments until maturity, as well as a final principal payment at maturity.
How Secure Is My Investment?
This is a big one. Especially if you aren’t looking for a high risk investment, you want to know that your money is secure and in good hands at all times. Make sure you understand the market risks, as well as choosing a fund manager who is trustworthy, accessible, and reliable.
Fixed Income Fund Answer: At Tactical Wealth, we employ a number of risk mitigation practices to ensure that your money is safe. After all, the safety and security of your investment is our top priority. From an established contingency reserve to strategic tactical holdings, we offer one of the most reliable, secure investment options available. Contact Tactical Wealth today to get started and ask any other questions you may have. We are here to help you.