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Contact Investment Professional
Securities
offered through
Linsco/Private Ledger
Member NASD/SIPC
Mutual funds, annuities and other investments
available through Linsco/Private
Ledger are not deposits in Northrop Grumman FCU, are not insured by the NCUSIF, nor
are they obligations of, or guaranteed by Northrop Grumman FCU. Such investments may
fluctuate in value and are subject to investment risks, including loss of some or
all of the principal.
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Section contents:
The secret to success in long-term investing is time, not timing. To the extent possible put time on your side and let it work for you. Along the way, be watchful of the problems that plague most investors: taxes and inflation.
How to accumulate wealth is not a mystery. It simply takes time and patience. Because most of us do not have thousands of dollars to invest when we begin,
these six steps are suggested:
- Think long term.
- Start immediately.
- Invest systematically/regularly.
- Diversify your holdings.
- Take advantage of tax reduction strategies.
- Stay the course.
From a tax perspective, we suggest you look at potential investment opportunities
from three different points of view: taxable, tax-deferred, and tax-free.
Taxable
Direct ownership of any number of assets, including
stocks, corporate bonds, and mutual funds. Mutual funds are simply professional
management portfolios which may invest in either stocks, bonds, or a combination
of the two.
Tax-Deferred
Investment accounts which have been specifically
designed to attract long-term investment dollars by offering the inducement
for tax-deferral. By postponing the taxes imposed on your earnings, your
money can grow faster. Examples include IRA accounts, 401(k)s, and annuities
(insurance company sponsored investment alternatives).
Tax-Free
Practically speaking, the only "tax-free"
investment alternative still available today is the municipal bond. Municipal
bonds are debt obligations issued by cities, counties, and state governments
for the common good--to finance such projects as schools, hospitals, bridges,
and roads. However, please note that these earnings may be subject to other
taxes such as alternative minimum tax.
We encourage you to talk with an informed professional before embarking
on any investment course. You are invited to talk to an LPL investment
representative (without cost or obligation) in Southern California or
the Baltimore area.
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