Building a sound financial portfolio requires careful consideration of many different issues, including risk tolerance, current and future lifestyle needs, fees and potential penalties. Please be sure to consult with a qualified Sussex Bank representative for additional details about each service.
A mutual fund is a diverse pool of investments made up of different stocks, bonds and other financial products, shares of which are purchased by investors. The mutual fund is actively managed by a professional who makes decisions on the securities that comprise the fund.
An annuity is an insurance product in which earnings are tax-deferred until you begin withdrawing the money. In some cases, the principal invested in an annuity is tax-deductible (such as an IRA annuity). Two types are available: fixed and variable. A fixed annuity provides a set rate of return, backed by an insurance company. A variable annuity is invested in stocks, bonds and other investment products, and the return is based on the performance of those products. Depending on the circumstances, early withdrawal penalties may apply.
A broad selection of programs employers may wish to offer employees as a part of a benefits package. Examples include Simple IRAs and Self-Employed Pension Plans.
An IRA is a retirement savings plan that allows individuals to make tax-deductible contributions each year. Taxes on contributions and earnings are deferred until the money is withdrawn. Withdrawals prior to age 59 1/2 may be subject to a substantial early withdrawal penalty and applicable taxes.
Unlike a traditional IRA, contributions to a Roth IRA are not tax-deductible, because principal and interest earnings are tax-free at the time withdrawals occur. Certain conditions apply to withdrawals, which if not met, may result in substantial penalties.
These two products are increasingly popular with individuals who wish to set money aside for college expenses. Each offers a number of advantages and restrictions, which can be explained by your Trust & Investment Division representative.
Term Life Insurance is a policy in which coverage is offered for a specific period of time. At the conclusion of the contract, the policyholder is no longer covered, and holds no equity in the policy. Whole Life Insurance offers protection in which a cash value accrues, allowing the policyholder the flexibility of borrowing against the account if need be.
Long-Term Care Insurance is protection against the costs of services necessary to assist someone who experiences reduced physical and/or intellectual functioning. These services may be provided to the individual at home, in the community or at a residential facility.
Typically utilized by individuals who conduct their own financial research and make their own investment decisions. Discount Brokerage allows the individual to invest in the stock market without being subject to the commissions of a full-service broker.
A 401(k) is a retirement plan that is available to employees of some private corporations. The employee chooses an amount to be deducted from his/her paycheck to be placed into a managed investment account. The employee directs the investment selection on the basis of risk tolerance. Employers may offer to match up to 50% of the employee contribution. Contributions reduce the employee's taxable income, with taxes deferred until the money is withdrawn.
A 403(b) is available to employees of some non-profit organizations. The employee chooses an amount to be deducted from his/her paycheck to be placed into a managed investment account. The employee directs the investment selection on the basis of risk tolerance. Employers may offer to match up to 50% of the employee contribution. Contributions reduce the employee's taxable income, with taxes deferred until the money is withdrawn.
Whatever your financial goals might be, we want to help you get there. Contact us today for a free, no obligation consultation.
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