Investing
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| There are many investment instruments Frank
McKinley can help you understand. From finding the best mutual
funds for an IRA or setting up a 529 plan for a child’s education,
to corporate and municipal bonds, individual stocks and more.
Frank McKinley can help you select the best mix for your
individual needs. |
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The Best Mutual Funds Provide a Good Foundation
The best mutual funds tend to subject you to less risk
than individual stocks and may constitute a significant portion of
your portfolio. Selecting the
best mutual funds isn’t always obvious
or easy. Frank McKinley can discuss your risk tolerance, time horizon
and the purpose of any single investment, or your financial plan as a whole to
help you decide on the best mutual funds for you.
529 Plans for College Savings
Saving for specific life events such as a child’s
education can be done over the long-term through sensible investing.
College funding has been enhanced by
529 plans available with many of
the best mutual funds. They offer tax deferred growth and if used for
higher education, tax exempt withdrawal.
If the anticipated cost of college rises as expected,
you will have to invest constantly from your child’s birth in the best
529 plan for you. Even when utilizing the best mutual funds the
assistance of a financial consultant will increase your likelihood of
success substantially by helping choose the best 529 plan for your
needs.
Individual stocks and bonds offer another method of
investing for the future. Though potentially riskier, they can offer
higher reward potential. Stocks and bonds cannot be used for 529
plans however. So it is essential you and your financial consultant
select the best mutual funds to create the best 529 plan for you and
your children, or grandchildren.
Most people don’t know it but 529
plans offer some attractive
estate planning
benefits allowing grandparents to reduce the size of their estates
while retaining control over the assets. This balance of
risk and reward, called ‘risk tolerance’ and an accurate determination
of your time horizon for a specific goal is difficult for many people
to determine. Frank McKinley can help you categorize your money in a diversified portfolio of
positions that suit you best: mutual funds, stocks, bonds and so
forth.
Stocks and Bonds
Individual stocks offer the best historical growth
rates, but
can be volatile in the short term. So, many clients prefer to help
insulate a stock portfolio with bonds, either corporate or municipal,
depending mainly on tax sensitivity. Since bonds pay a set rate of
interest and return your principal at the end of the term they are
preferred by conservative investors. However, they may not offer the
growth needed to keep up with inflation during
retirement.
Real Estate Investment Trusts: REITs
Real
Estate Investment Trusts are probably the easiest and safest way
for the average investor to diversify a portfolio with income
producing properties. They require no involvement with tenants or the
acquisition process of the properties. They tend to be stable and
fairly conservative like bonds, yet offer upside potential after their
initial offering phase is completed. They can ‘go public’ resulting in
a higher risk / higher reward investment vehicle.
See our in depth
discussion of REITs here.
Contact Frank McKinley today and put him to work for you.
