Common Stocks are not guaranteed by the federal government. You may lose money on your investment(s). Selling stocks prior to 12 months will result in an ordinary gain or loss. Selling stocks held for more than 12 months are treated as long term capital gains and losses. Dividends may or may not have tax prefered advantages depending on the total amount of dividends you receive in a year.
Bonds other than U.S. Government bonds are not guaranteed by the federal government. You may lose money on your investment(s). Bonds purchased at an original discount may be subject to taxes as ordinary income, rather than capital gains treatment. Interest is generally treated as ordinary income, and tax free treatment of interest may vary depending on your state of residence. In addition to credit risks associated with each issuer, the value of your investments may fluctuate with changes in interest rates. In general, increases in the average level of interest rates will decrease the value of a bond.
Unit investment trusts ("UITs") are not guaranteed by the federal government. You may lose money on your investment(s). UITs may be subject to taxes as ordinary income and/or capital gains treatment on distributions of principal. In addition to credit risks associated with each issuer, the value of your investments may fluctuate with changes in interest rates and changes in the value of the underlying UIT collateral.
Mutual Funds are not guaranteed by the federal government. You may lose money on your investment(s). Depending on share class, you may have rights of accumulation,you may incur deferred sales charges, and you may be subject to ongoing management fees. You may be taxed subject to the Alternative Minimum Tax on gains and loses distributed to you and shown on statement 1099. You may be taxed on interest, dividends and/or capital gains distributed by each fund, whether or not these distributions were paid to you or reinvested in your account. Mutual funds held in retirement accounts are not subject to taxation until you take a distribution. Distributions taken prior to age 59-1/2 are subject to 10% income tax penalties.
Variable Annuities are not guaranteed by the federal government. They are subject to certain guarantees issued by each annuity company. These guarantees are only as strong as the creditworthiness of the issuing company. You may lose money on your investment(s). Although variable annuities are tax deferred investments, you will incur a tax liability at the time of (each) disposition and that distribution will usually be treated as ordinary income. Distributions taken prior to age 59-1/2 are subject to a 10% income tax penalty.
Fixed Annuities are not guaranteed by the federal government. They are subject to certain guarantees issued by each annuity company. These guarantees are only as strong as the creditworthiness of the issuing company. You may lose money on your investment(s). Although fixed annuities accrue income tax-deferred, you may incur a tax liability at the time of (each) disposition. Distributions taken prior to age 59-1/2 are subject to 10% income tax penalties. In general, fixed annuity payments will not increase to compensate for increases in inflation.
Life Annuities are not guaranteed by the federal government. They are subject to certain guarantees issued by each annuity company. These guarantees are only as strong as the creditworthiness of the issuing company. You may lose money on your investment(s). Although fixed annuities accrue income tax-deferred, you may incur a tax liability at the time of (each) disposition. Unless subject to period certain features, at the time of your death the company will keep any remaining balance, and your heirs will not receive any payments. In general, fixed annuity payments will not increase to compensate for increases in inflation.
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