Investment Experts in Phoenix, AriZona

Investment Classes

Mutual Funds

These funds are professionally managed bundles of stocks, bonds and sometimes other asset classes professionally directed by fund managers. They offer an opportunity for thousands of investors to pool money to build a diversified or sector-specific portfolio.

Exchange-Traded Funds (ETFs)

Like mutual funds, ETFs are diversified investment vehicles that hold a basket of securities, bonds and other investments. However, they trade on stock exchanges like individual stocks (you don’t have to wait until market close to buy or sell shares of an ETF), offering more flexibility. They also don’t feature the same level of hands-on management as mutual funds, which can result in lower fees.

Bonds (Treasury, Municipal or Corporate)

Fixed-income investments like government, municipal or corporate bonds can provide regular income and help diversify your portfolio. Certain types of bonds are considered some of the safest investment options, which is why they’re particularly popular among retirees who desire a low-risk and consistent stream of supplemental income. Some common examples include:

• T-Bonds (U.S. Treasury Bonds)
• T-Notes (U.S. Treasury Notes)
• Municipal Bonds issued by local government, cities or states to finance the construction of infrastructure, hospital, schools, etc.
• Corporate Bonds may include investment-grade (lower risk) or high-yield/junk bonds (higher risk of default but higher yields)
• Asset-Backed Securities (ABS) or Mortgage-Backed Securities (MBS) are backed by assets like bundles of mortgages, with interest and principal payments generating consistent cash flow for holders
  

Stocks/Equities

Purchasing stocks in a brokerage account or a self-directed retirement savings account offers the potential for dramatic asset growth but also carries significant risk. Every day the market is full of both winners and losers. The investors experiencing rapid growth today might see their portfolio shrink tomorrow. Working with an investment manager can help ensure your strategy is optimized for your risk tolerance and your asset growth goals as dictated by your retirement plans and desires.

Annuities

In simple terms, these insurance products provide a guaranteed income stream during retirement. However, there are several different types of annuities, each of which is tailored to serve a specific investment purpose. For example, some are specifically calibrated to offer an income stream today but will provide no money to your spouse after your passing, while others might provide modest income but a large payout to your beneficiaries after your passing. Annuities are an important part of many retirement savers’ plans, but it’s important to purposefully establish the right mix of annuities to meet your investment goals.  

Real Estate

Holding real estate is often a key component of a well-diversified retirement portfolio that reduces risk, supplies consistent supplemental income and acts as a tax-advantaged asset that can be passed on to beneficiaries. Owning real property often offers fantastic appreciation potential and a valuable hedge against inflation while also funding your lifestyle in retirement. There is a truly diverse array of potential real estate investment options, but wise purchases and effective management of those investments is often key to profitability.

Real Estate Investment Trusts (REITs)

REITs offer a convenient and accessible way for retirees and investors of all types to invest in a diversified portfolio of properties. REIT investors enjoy some of the same benefits as people who own real estate, including potential income and capital appreciation. REITs also don’t have some of the management, upkeep or purchase and sale headaches that come with owning real property.

Target-Date Funds

These are mutual funds or ETFs designed to automatically adjust their asset allocation based on your target retirement date, gradually becoming more conservative as you approach retirement. Target-date funds can be particularly beneficial to people who don’t want to actively manage or dwell on their retirement investments or portfolio. Whether target-date funds are right for you depends on a variety of factors, including how personally involved you wish to be in your retirement savings and your level of investment experience and knowledge.

Socially Responsible Investing (SRI) or Environmental, Social and Governance (ESG) Investing

These investment strategies consider ethical, social and environmental factors when selecting investments, allowing you to align your portfolio with your values. There are a variety of potential investments that fall into the SRI or ESG category, including mutual funds, ETFs, green bonds, social impact bonds, individual equities of renewal energy or environmentally oriented companies and ESG-themed indexes.

These types of investments are quite personal in nature. Some investors don’t necessarily share the values, goals or priorities of the companies held in those funds. Others might be willing to sacrifice investing in certain sectors because they don’t align with their personal beliefs or worldview.

Investing in causes and funds you believe in doesn’t necessarily require you to sacrifice asset appreciation. You can potentially see retirement savings growth while pursuing an investment portfolio that aligns with your personal beliefs and priorities, especially with the help of experienced investment managers in Phoenix.