Investments

Neither asset allocation nor diversification guarantee against loss. They are methods used to manage risk.

 Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59 ½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax-qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but tax and penalties may apply to non-qualified distributions. Please consult a tax advisor for specific information. There are charges and expenses associated with annuities, such as deferred sales charges for early withdrawals.

A 529 Plan is a tax-advantaged investment program designed to help pay for qualified education costs. Participation in a 529 Plan does not guarantee that the contributions and investment returns will be adequate to cover higher education expenses. Contributors to the plan assume all investment risk, including the potential for loss of principal and any penalties for non-educational withdrawals.

Your state of residence may offer state tax advantages to residents who participate in the in-state plan. You may miss out on certain state tax advantages, should you choose another state’s 529 Plan. Any state-based benefits should be one of many appropriately weighted factors to be considered in making an investment decision. You should consult your financial, tax, or other advisor to learn more about how state-based benefits (including any limitations) would 66 Real Life Financial Planning apply to your specific circumstances. You may also wish to contact your home state’s 529 Plan program administrator to learn more about the benefits that might be available to you by investing in the in-state plan.

ETFs entail the same risks as direct stock ownership and ETFs structured as “fund of funds” will entail the same risks associated with the underlying funds.