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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.

The following investment programs and services are available through representatives of Linsco/Private Ledger in Southern California or the Baltimore area.   

Traditional and Roth IRA Accounts
LPL representatives offer a wide variety of investment options through "self-directed" IRAs. Typical investment opportunities for these accounts include stocks, bonds, mutual funds, and annuities.

Coverdell Education Savings Accounts 
& 529 Plans
The right time is now to start saving for a child's education expense. LPL representatives can help you identify the investment tools and tax incentives to make certain the youngsters in your life will have the best education opportunities.  

IRA Rollovers
A transfer process known as an IRA rollover allows you to move funds and/or investments from a "qualified" plan (one in which the money has been allowed to grow on a tax-deferred basis) directly to an IRA--without incurring penalties, taxes, or withholding. The process also allows you to "control" these assets (generally with a choice of investment options ) and pick the time and amount of any distributions--allowing you to control the tax consequences as well.

401(k) Programs
LPL representatives work regularly with Northrop Grumman employees as they retire or transition away from the company. In doing so, they have become exceptionally knowledgeable in savings and investment plan programs, as well as some of the most attractive ways to access accumulated funds. Because the needs of each employee are unique, we encourage you to contact LPL to arrange a meeting to discuss your particular situation.

Living Trusts
What if you died today? Who would receive your assets? When would they receive them? Would probate be a big hassle? Who would pay your estate taxes? When? With what? Although the death of a family member is always painful, transferring assets to a loved one does not have to be. Living Trusts have proven to be a popular, cost-effective option for many.

Mutual Funds
Mutual funds are simply large, diversified portfolios of investments which are professionally managed and focused on the accomplishment of a single financial goal, such as income or growth. Mutual funds allow investors to pool their assets and take advantage of greater diversification than can generally be achieved by any individual investor. Experts generally agree that diversification and professional management can be beneficial to mutual fund investors.

Annuities: Fixed and Variable
Annuities are contracts created and sold through life insurance companies. There are two main types. "Fixed annuities" provide a specified rate of return for a specified period of time. However, because of the diversity of their portfolios, "variable annuities" generally offer the potential for greater growth--but without the "guarantee" of a specified return. The key advantage of both is tax-deferral. As long as the money remains in the annuity, it will grow free from current taxes. Income tax is only due as the funds are disbursed.  Surrender penalties may apply when principal is withdrawn.  Withdrawals prior to age 59 1/2 may be subject to IRS penalty.  All guarantees are based on the claims-paying ability of the issuer. 

Pension Plans
When faced with choices regarding pension pay-outs, many individuals make poor decisions. Understanding the differences in the choices offered, the funding methods used to provide a future income stream, and alternatives that should be considered, require both time and expertise. Depending on an individual's age and health, more attractive alternatives may be available. Discussing your personal situation with a knowledgeable professional can be highly advantageous--but only before any pension decisions are made! Contact an LPL representative to discuss your personal situation.

Tax-Free Investments
Because of changes in the tax laws, the lone remaining "tax-free" investment available to most individuals today is the "Municipal Bond." Municipal bonds are debt obligations offered by city, county and state governments to raise money for projects dedicated to the common good, such as bridges, roads, and hospitals. These bonds are available individually or may be purchased as part of a larger portfolio, such as a mutual fund. The interest paid annually is generally exempt from federal tax, and in some cases, state and local taxes as well.  However, please note that bond earnings may be subject to alternative minimum tax.

Stocks
Stocks are considered "equity" investments and represent ownership. When you purchase a stock, you become a part owner of that company. For that reason, you are entitled to participate in the dividends the company pays, as well as any appreciation. Because stocks offer such up-side potential, they also have down-side risk, that is, they can decrease in value. As a result, many individuals elect to distribute their risk and purchase stocks as part of a well-diversified, professionally managed portfolio, also known as a mutual fund. Because of short-term volatility, most investors consider stocks to be "long-term" investments which should be held 5 to 7 years or longer.  Stocks are more volatile than bonds.

Bonds
Bonds are simply "debt" instruments or IOUs.  When you purchase a bond, you are lending money for a specified amount of time at a predetermined rate of interest.  Of course, the credit worthiness of the issuer will vary.  Bonds are offered by the federal government (Treasury securities), state governments (municipal bonds), and individual corporations (corporate bonds).  U.S. government securities are guaranteed as to the timely payment of principal and interest.  Municipal and corporate bonds are not subject to that guarantee.