https://completemarkets.com/company/CompleteMarkets/Articles/content-package/IMMS-Library/TabCategory/article-post/1664/MUTUAL-FUNDS-MODULE-V-I/
... funds can also be used in conjunction with other mutual funds that we will discuss later. Money can be profitably stored in a money-market fund while the investor considers other investment opportunities. In times of economic uncertainty or to take advantage of high interest rates, investors can use the money-market fund as a place to put their nest egg until other investment vehicles become more attractive. Money-market fund managers invest in Treasury or other government securities, short-term bank deposits, or commercial paper. Investors might get a better rate of return at a bank or savings and loan by buying a certificate of deposit, but they would not be able to withdraw their money at any time, as they can with money-market funds. Money-market funds let investors get the certificate of deposit rates they want without losing immediate access to their ... financial planning in order to best serve their clients. Agents would also be well-advised to check their Errors & Omissions coverage before embarking on any such venture. THE PRODUCT Just as there are a multitude of investment opportunities, so are there a wide variety of mutual funds. While a particular organization may offer dozens of mutual funds, there are basically four different types: money-market funds, stock funds, bond funds, and specialty funds. These categories offer investment opportunities designed to meet the goals of virtually every investor, from the most aggressive to the most conservative. When looking at these types of mutual funds, it is important to recognize that many are difficult to classify. There is no sharp delineation between some types of funds. Within the category of stock mutual funds, there are additional distinctions ...
https://completemarkets.com/Article/article-post/2437/%E2%80%98Stop-The-World-I-Want-To-Get-Off-%E2%80%99/
...ife Insurance Selling magazine. Because of his love for the theatre, he identi... the saga of how the Life insurance industry has changed since the 1980s — and...
https://completemarkets.com/Article/article-post/1664/MUTUAL-FUNDS-MODULE-V-I/
...al fund encompasses much more than just one type of investment. A mutual fund...' or 'no-load.' The low-load fund will usually have a sales charge of 2% to 4%...
https://completemarkets.com/Article/article-post/2566/Overcoming-Short-Term-Thinking-Developing-a-Pipeline-Mentality/
...change, the reconfiguration of the business landscape, and globalization, U.S....and you'll enjoy a steady flow of new business.
https://completemarkets.com/company/CompleteMarkets/Articles/content-package/IMMS-Library/TabCategory/article-post/1655/Single-Premium-Whole-Life-Insurance-Module-V-C/
... of money saved. If the prospects don't have the lump sum, there's no use explaining the benefits of the policy to them. But again, be sure they realize that this sum may be generated by cashing in their present Life policies. Standard-vehicle investors: Over $1 trillion is invested right now in standard vehicles such as Certificates of Deposit, passbook savings accounts, money market accounts, and treasury bills. About 75% of your clients and prospects have one of these investments. Municipal bond holders: A substantial number of your clients and prospects invest in municipal bonds-the municipal bond market amounted to $97 billion in 1986. What are the drawbacks? The rate of return is locked in for five to 30 years. The bond may decline in market value and the interest must be reinvested ... company have the ability to raise additional capital to fund growth or meet contingencies? Accurate Matching of Assets and Liabilities: The investments made by the carriers you choose should correspond to the length of time the average client invests in the product. Investments in common stock or other non-fixed income investments is a major mismatching (in most cases) of Single-Premium Whole Life liability with the assets backing it. Longer-term bonds have substantial interest rate risk. A rising interest rate environment is especially dangerous to long-duration bond portfolios because depressed bond values make the bonds very illiquid just at the time when cash outflows may be highest. Investment Guidelines: It's up to you to judge the viability of a company's investment philosophy as defined in its investment guidelines. Consider risk in the light of available margins to meet contingencies. Forward ...
https://completemarkets.com/Article/article-post/1655/Single-Premium-Whole-Life-Insurance-Module-V-C/
...-deferred interest for investors, plus Life insurance. In some cases, interest...-Premium Whole Life policy with the bonus then, although there is tax on the bonus, the cash value of the policy will g...
https://completemarkets.com/company/CompleteMarkets/Articles/content-package/IMMS-Library/TabCategory/article-post/2437/%E2%80%98Stop-The-World-I-Want-To-Get-Off-%E2%80%99/
... existing portfolio with lower average earnings from investments made in calmer times. The difference can be dramatic. Imagine having $10 million of premium income to invest with two possibilities: a new portfolio of policies and no existing investment pool backing those new policies, and an existing block of business with an average return of bonds (some dating back to the 1940s) of 6% . With U.S. Treasury Bonds yielding 14% in the early 80s, that $10 million would generate a pure 14% return each year for the next 30 years. True, the older portfolio of bonds would have an incremental increase in yield due to the new $10 million receiving new money' returns, but the portfolio rate couldn't jump immediately to the 14% level. In this environment, Universal Life ... portfolio consisting of mostly new money' would perform better than money simply blended into an existing portfolio with lower average earnings from investments made in calmer times. The difference can be dramatic. Imagine having $10 million of premium income to invest with two possibilities: a new portfolio of policies and no existing investment pool backing those new policies, and an existing block of business with an average return of bonds (some dating back to the 1940s) of 6% . With U.S. Treasury Bonds yielding 14% in the early 80s, that $10 million would generate a pure 14% return each year for the next 30 years. True, the older portfolio of bonds would have an incremental increase in yield due to the new $10 million receiving new money' returns, but the portfolio ...