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Investing in your Future

Wealth Accumulation

Help secure a more comfortable future with solid planning today. Protecting your wealth and assets involves taking advantage of a diverse array of financial solutions tailored to your long-term needs. You may be budgeting for the mortgage on a new home or learning to manage newfound wealth. Now it's time to look toward the future to help protect your assets. As you think about ways to minimize your taxes, fund your retirement, and protect loved ones, you can work with our Financial Services Representatives to make the process easier.


Annuities

People are living longer and that means more time and savings will be spent in retirement. If you need a tax-deferred investment to provide a guaranteed1stream of income for life or a specified number of years, it might be worth considering an annuity. An annuity is a contract between an insurance company and an annuity owner. In exchange for a purchase payment, or series of payments, the insurance company guarantees1 to pay a stream of income in the future.

There are two types of annuities — Immediate and Deferred.

Immediate Annuities

An immediate annuity is usually purchased with a single premium and begins a stream of income within the first 12 months from the date of issue. You decide when payments will begin within that period and how long to receive income. There are two types of immediate annuities: fixed and variable.

  • Immediate Fixed Annuity
    An immediate fixed annuity provides a guaranteed and predictable stream of income during the payout period. 
  • Immediate Fixed and Variable Annuity
    An immediate fixed and variable annuity provides a guaranteed stream of income. The variable income payments fluctuate based on the performance of the variable investment choices selected. A fixed account is also usually offered as an investment choice within this type of contract.

Deferred Annuities

A deferred annuity is specifically designed to help accumulate assets for retirement. It also offers the ability to turn those assets into a guaranteed stream of income at some point in the future. You decide when payments begin and how long to receive income. There are basically two types of deferred annuities: fixed and variable.

  • Deferred Fixed Annuity
    A deferred fixed annuity earns interest during the contract’s accumulation period. The interest rates are set by the issuing company and are guaranteed not to be lower than the minimum guaranteed interest rate shown in the contract. A contract’s accumulated assets can be converted into a guaranteed stream of income for the future.
  • Deferred Variable Annuity
    A deferred variable annuity offers variable investment choices (and usually a fixed account) in which the contract owner can invest. During the accumulation period, the investment return and value of the annuity will fluctuate in accordance with the investments selected. A contract’s accumulated assets can be converted into a guaranteed stream of income for the future.

1 Guarantees are based on the claims-paying ability of the issuing company and do not apply to the investment performance or safety of the amounts held in the variable investment options.

Annuities are not appropriate for everyone. There are fees and charges associated with owning an annuity.

Annuities do not provide any additional tax advantage when used to fund a qualified plan. Investors should consider buying an annuity to fund a qualified plan for the annuity’s additional features, such as lifetime income payments and death benefit protection.

Variable annuities are sold by prospectus. Before purchasing a variable annuity contract, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and its underlying investment choices. For this and other information, obtain the product prospectus and underlying investment choices prospectus from your registered representative. The prospectuses should be carefully considered before investing or sending money.

If taken prior to age 59 ½, a 10% federal income tax penalty may apply. This information is not written or intended as specific tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. MassMutual, its employees, and representatives are not authorized to give legal or tax advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

Principal Underwriters: MML Distributors, LLC (MMLD) and MML Investors Services LLC (MMLISI) Members FINRA (www.finra.org) and SiPC (www.sipc.org). MMLD and MMLISI are subsidiaries of Massachusetts Mutual Life Insurance Company (MassMutual), 1295 State Street, Springfield, MA 01111-0001.

Insurance products issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111 and its subsidiary CM Life Insurance Company, Enfield, CT 06082.


Mutual Funds

Whether you favor an aggressive approach or a conservative one, we offer a breadth of mutual funds designed to match your investment goals.

What are Mutual Funds?

Mutual funds are professionally managed portfolios of stocks, bonds or other securities that pool the money of a group of investors who have common financial goals. The value of mutual fund shares will fluctuate so that when redeemed they may be worth more or less than their original cost.

Who needs Mutual Funds?

Mutual funds may be an appropriate option for investors at various income levels, and may help to reduce the worry of day-to-day issues such as what individual securities to buy and sell, or when to buy and sell them. They offer a level of diversity that can be hard to match as an individual investor. The increased diversification may reduce volatility.

Investing in a Mutual Fund

The types of securities a mutual fund can buy are spelled out in a detailed investment document called a prospectus. A single fund may own dozens or even hundreds of different securities. The prospectus also describes fund objectives and discloses the fund’s risks, charges, and expenses. You should read a fund’s prospectus and, if available, a summary prospectus carefully before investing.

Mutual funds are subject to market risk and volatility. Shares may lose or gain value. Diversification does not assure a profit or protect against loss.

Shares of mutual funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.


Before investing in any mutual fund, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and, if available, summary prospectuses contain this and other information about the funds. To obtain a prospectus, ask your financial services representative. Read prospectuses and, if available, summary prospectuses carefully before investing.


Trust Services

A trust is a fiduciary arrangement through which the trustee manages assets for the benefit of third parties. A trust is commonly used to transfer wealth to heirs or to favored charitable organizations. Insurance products, such as life insurance policies, annuity contracts and disability policies, may be used to fund trusts in appropriate circumstances.

Trusts are very flexible and may be drafted to meet the specific intent of the individuals creating the trust and customized to meet the specific needs of trust beneficiaries. You can use trusts as a key element in a comprehensive estate and wealth transfer plan, or to otherwise direct how your legacy will be managed and distributed after your death.

Advanced estate planning and trust services require specific knowledge typically not provided by many financial advisors. Using trust services means collaborating with a third party that has your best interests in mind while the trust is set up through an attorney. Trust services include:

  • Investment management & prudent diversification of account assets;
  • Periodic statements, annual tax reporting and investment reporting; cash management, safe custody and prompt distribution of assets;
  • Processing of capital changes such as stock dividends, splits, exchanges and tenders;
  • Bill paying, automated deposits and disbursements (ACH and wire);
  • Income collection and allocation

Traditionally, advisors had to refer clients to other providers. The person appointed as your trustee should have the knowledge and capability necessary to administer sometimes complex arrangements and to meet the fiduciary duties and responsibilities that are imposed under trust law. If properly drafted by an attorney and administered by the trustee, a trust can ensure that trust assets are managed and distributed after your death as you had desired.


Individual Retirement Account

Retirement may seem far away, but it's never too early to determine how much you'll need and to begin the process of saving. Making smart financial decisions now can help impact how you live in retirement. We can assist you along the way with our Individual Retirement Account (IRA) program—it's designed to help you reach your retirement goals.

An IRA is a tax-deferred personal savings account that allows you to save for retirement without a company-sponsored plan. Throughout your lifetime, you can make tax-deductible "contributions" to your IRA, which you can then invest in basic securities such as stocks and bonds. For 2017, the annual amount you can contribute to an IRA is the lesser of 100% of earned compensation or $5,500. If you are age 50 or older (as of December 31 of the tax year to which the contribution relates), you are eligible to contribute an annual "catch-up" contribution each year of up to $1,000.

With a traditional IRA—the most common type of IRA—income taxes are deferred until you withdraw them, so you don't pay annual federal (and, in many cases, state) income taxes on your earnings. At age 59 ½, you can make taxable withdrawals from the account called distributions for your retirement. If you choose to take distributions before you turn 59 ½ years old, the government imposes a premature distribution penalty of 10% on your withdrawal. Additionally, when you turn 70 ½ years old, you are required to take distributions by April 1 of the calendar year.

Roth IRA Account

Unlike the traditional IRA, contributions to the Roth IRA are considered "after-tax" and therefore not deductible, but you can take distributions from the Roth IRA tax-free. The maximum annual contribution to the Roth IRA for 2017 is $5,500, with an additional $1,000 "catch up" contribution allowed each year for individuals age 50 and older (as of December 31 of the tax year to which the contribution relates). The Roth IRA became an option after the Taxpayer Relief Act of 1997, and allows for investors filing single on their taxes with an adjusted gross income in 2017 of less than $132,000 or married couples filing jointly with a combined adjusted gross income of less than $194,000 annually, to make limited, annual contributions toward retirement. There is no mandatory age at which you are required to take distributions from the Roth IRA, and there is no premature distribution penalty for amounts you withdraw from the principal.

Coverdell Education Savings Account (ESA)

The Coverdell Education Savings Account or Education IRA is a trust created exclusively for the purpose of paying qualified education expenses. You can contribute up to $2,000 per year to the account and those contributions will grow tax-free until distributed. In addition, the beneficiary will not owe tax on the distributions if they are less than a beneficiary's qualified education expenses at an eligible institution.

Savings Incentive Match Plan for Employees (SIMPLE)

In this written salary reduction arrangement, eligible employees contribute to an IRA in their name. Your employer is required to make annual contributions for each eligible participant. This type of arrangement is available to self-employed individuals or owners of companies that have 100 or fewer employees and no qualified retirement plan. Employees are eligible for a SIMPLE-IRA if they earn at least $5,000 annually. SIMPLE-IRAs may be funded by annuities.

For 2017, the maximum employee contribution limit is the lesser of 100% of compensation or $12,000. SIMPLE IRA owners age 50 or older (as of December 31 of the tax year to which the contribution relates) may be eligible to make an annual "catch-up" contribution each year of $2,500. The money contributed to a SIMPLE IRA will accumulate tax deferred until money is withdrawn. Withdrawals are subject to ordinary income tax and, if taken before age 59 ½, a 10% federal income tax penalty may apply and this penalty is increased to 25% for distributions taken within the first two years of participation in the plan.

 

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