Tax-favored investing involves both tax-exempt investments and tax-deferred investments. Municipal bonds are free of federal income tax and may be free of state and local income taxes for investors who live in the area where the bond was issued.
Tax-deferred investments, on which taxes are postponed until you withdraw your money, include qualified retirement plans, such as traditional IRAs and employer-sponsored plans, as well as insurance products like annuities and sometimes life insurance. Money held in money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Money market funds are investment funds that seek to preserve the value of your investment at $1.00 a share. (Mutual funds are sold only by prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional.)
Annuities have contract limitations, fees, and charges, including account and administrative fees, underlying investment management fees, mortality and expense fees, and charges for optional benefits. Most annuities have surrender fees that are usually highest if you take out the money in the initial years of the annuity contract.
Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications.
You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
For more information on this subject contact Steve Lloyd, Office Manager, UCCU Financial Group, at 801-223-7502.
Securities and advisory services offered through Cetera Advisor Networks LLC, member FINRA/SIPC. Cetera is under separate ownership from any other named entity.