Getting started with an investment program is like planning a vacation. Grab your suntan lotion and hit the beach—or dust off your ice axe and head for Mt. Everest? It’s a matter of figuring out your objectives and how much risk you’re willing to take.
STOCKS (EQUITY SECURITIES)
When you invest in a company’s stock—also called equity security— you’re buying part ownership in the company. The value of your stock will fluctuate.
- Stocks held for a long term—say 10 years— historically have provided significantly higher returns than either bonds (fixed-income securities) or cash equivalents.
- Stocks held for a short term have more risk.
Always remember that past performance is no guarantee of future results.
BONDS (FIXED-INCOME SECURITIES)
Bonds—also called fixed-income securities—are certificates of debt issued by corporations and governmental entities when they borrow money. Some examples are: government bonds, municipal bonds and corporate bonds.
Bond values fluctuate as a result of interest rate changes. When rates drop, bond prices tend to climb. When rates rise, bond prices often fall.
Corporate bonds are considered higher yielding because of their increased credit risk. Other bonds generally carry less risk and offer lower returns than stocks.
Cash equivalents are short-term investments that are easily converted to cash. They include money market investments, bank certificates of deposit (CDs) and U.S. Treasury bills (T-bills).
An objective of cash equivalents is to protect your investment—their values don’t fluctuate as much as stocks or bonds. On the other hand, cash equivalents generally have lower rates of return than stocks or bonds. For that reason, they’re often used for emergency funds or to park money for the short term.
Talk to an advisor
about how Symetra annuities can fit into your retirement planning.
Securities are subject to market risks, including the potential loss of principal invested.
An investment in a money market is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the money market seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market.
Annuities are issued by Symetra Life Insurance Company, 777 108th Avenue NE, Suite 1200, Bellevue, WA 98004 and are not available in all U. S. states or any U.S. territory.