Securities offered through LPL Financial, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.
The professionals at LPL Financial located at Northrop Grumman Federal Credit Union may only discuss and/or transact securities business with residents of the following states: AL, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, KS, KY, MD, MI, MO, MS, MT, NC, NM, NV, NY, OK, OR, SC, TX, UT, VA, WA, and WI.
The professionals at Blue Heron Financial Group may only discuss and/or transact securities business with residents of the following states: AL, AR, AZ, CA, CO, DC, DE, FL, GA, IL, IN, KY, MA, MD, MI, NC, NH, NJ, NV, NY, OH, PA, RI, SC, TN, TX, VA, VT, WA, and WI.
Membership in Northrop Grumman Federal Credit Union means co-ownership in one of the strongest credit unions in the country.
The secret to 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:
- 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. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
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. Investing in mutual funds involves risk, including possible loss of principal.
Investment accounts which have been specifically designed to attract long-term investment dollars by offering the inducement for tax-deferral. By postponing the taxes, you are able to keep more of your earnings invested in pursuit of your financial goals. Examples include IRA accounts, 401(k)s, and annuities (insurance company sponsored investment alternatives). Withdrawals from tax-deferred accounts are generally subject to limitations and restrictions.
Practically speaking, the only federally "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 state, local or 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.