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Wealth Management Products and Services

Here at Magnolia Wealth Strategies, we are happy to help you with all of your financial needs. However, we also understand how important it is for you to always have control. That is why we offer hands-on solutions like our e-Money Wealth Management Solution. This personal portal gives you a hands on tool to track and manage your finances right from home. It’s the perfect complement to our personal service! Please click on the link below to view a demo of our Wealth Management Solution.

Part of planning for your future involves making educated decisions about managing your wealth and savings. Our Financial Services Representatives have the knowledge to guide you through the increasingly complex roadmap of investments that are available to you in today’s growing financial market.

An investment is an up-front commitment of capital to purchase financial products with the intention of generating future profit based on interest or appreciation of the capital invested. Most investments also contain the risk that investors may lose part or all of their investment. Investors should be aware of the risk/return potential of any investment products they consider for purchase, as typically the greater the return potential of a given investment, the greater the risk potential. Investors should also consider their own comfort with risk, the length of time they have to invest, the fees charged by the investments they are considering, and their ultimate goal for the investment when making investment decisions.

Investing in the FInancial Markets

Financial Markets

The financial market offers a wide variety of different investment products for investors to purchase—from relatively straightforward investment types (securities) like stocks, bonds and short-term/cash-equivalent investments to portfolios that combine these investment types within various products, such as mutual funds, annuities and variable life insurance policies.

Investors may choose different investment products to meet a variety of needs, including retirement and estate planning, education financing and for funding purchases of all sizes. Financial Services Representatives can help select appropriate investment products based on an investor’s goal for the investment, individual profile (comfort with risk, length of time to invest) and a product’s fees and tax considerations (many investment products have built-in tax advantages).

Your Financial Services Representative can help you develop a plan for your investments that takes these key factors into consideration.

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There are three basic types of investments (called asset classes):

  • Stocks are instruments of equity and represent shares of ownership in a company. They rise and fall with investor perception of the company’s potential or other stock market factors, such as the outlook for the company’s industry, the political climate or the strength of the economy.
  • Bonds are instruments of debt that represent loans issued by the government or a company. Investors who purchase bonds receive from the issuer a stated rate of interest and the promise of repayment of the principal amount when the bond reaches its stated maturity date. Interest-rate movements up or down typically have the greatest impact on bond prices.
  • Short-term/cash-equivalents are low- or no-risk investments that generally have lower expected yields than stocks, bonds and other investments – cash-equivalents may not yield enough to keep up with the rate of inflation. Cash-equivalent investments include the following:
    • Certificate of Deposit (CD)s represent fixed, interest-bearing time-deposits with a bank or other FDIC-insured institution.
    • Money Market Accounts represent portfolio-based investments that derive their value and generate interest by purchasing a variety of short-term debt instruments, including Treasury bills, CDs, bankers acceptances and commercial paper.

Investing is also about taking steps to protect your financial future. Investors should develop a plan that addresses specific short- and long-term goals and that can be maintained and adjusted, as appropriate.

On the road to financial independence, you don’t have to go it alone and risk making the wrong projections. If you don’t have expertise in financial products and planning, a Financial Services Representative can help you make educated decisions and develop a plan.

Annuities

Annuities

People are living longer and that means more time and savings will be spent in retirement. If you need a tax-deferred investment to provide a guaranteed1 stream of income for life or a specified number of years, it might be worth considering an annuity. An annuity is a contract between an insurance company and an annuity owner. In exchange for a purchase payment, or series of payments, the insurance company guarantees1 to pay a stream of income in the future.

There are two types of annuities—Immediate and Deferred.

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Immediate Annuities

An immediate annuity is usually purchased with a single premium and begins a stream of income within the first 12 months from the date of issue. You decide when payments will begin within that period and how long to receive income.

  • Immediate Fixed Annuity
    An immediate fixed annuity provides a guaranteed and predictable stream of income during the payout period.

Deferred Annuities

A deferred annuity is specifically designed to help accumulate assets for retirement. It also offers the ability to turn those assets into a guaranteed stream of income at some point in the future. You decide when payments begin and how long to receive income.

  • Deferred Fixed Annuity
    A deferred fixed annuity earns interest during the contract’s accumulation period. The interest rates are set by the issuing company and are guaranteed not to be lower than the minimum guaranteed interest rate shown in the contract. A contract’s accumulated assets can be converted into a guaranteed stream of income for the future.

1 Guarantees are based on the claims-paying ability of the issuing company and do not apply to the investment performance or safety of the amounts held in the variable investment options.

Annuities are not appropriate for everyone. There are fees and charges associated with owning an annuity.

Annuities do not provide any additional tax advantage when used to fund a qualified plan. Investors should consider buying an annuity to fund a qualified plan for the annuity’s additional features, such as lifetime income payments and death benefit protection.

If taken prior to age 59 1/2, a 10% federal income tax penalty may apply. This information is not written or intended as specific tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. MassMutual, its employees, and representatives are not authorized to give legal or tax advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

Principal Underwriters: MML Distributors, LLC (MMLD) and MML Investors Services LLC (MMLISI) Members FINRA (www.finra.org) and SiPC (www.sipc.org) MMLD and MMLISI are subsidiaries of Massachusetts Mutual Life Insurance Company (MassMutual), 1295 State Street, Springfield, MA 01111-0001.

Insurance products issued by Massachusetts Mutual Life Insurance Company, Springfield, MA 01111 and its subsidiary CM Life Insurance Company, Enfield, CT 06082.

Mutual Funds

Mutual Funds

Whether you favor an aggressive approach or a conservative one, we offer a breadth of mutual funds designed to match your investment goals.

Mutual funds are professionally managed portfolios of stocks, bonds or other securities that pool the money of a group of investors who have common financial goals. The value of mutual fund shares will fluctuate so that when redeemed they may be worth more or less than their original cost.

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Who needs Mutual Funds?

Mutual funds may be an appropriate option for investors at various income levels, and may help to reduce the worry of day-to-day issues such as what individual securities to buy and sell, or when to buy and sell them. They offer a level of diversity that can be hard to match as an individual investor. The increased diversification may reduce volatility.

Investing in a Mutual Fund

The types of securities a mutual fund can buy are spelled out in a detailed investment document called a prospectus. A single fund may own dozens or even hundreds of different securities. The prospectus also describes fund objectives and discloses the fund’s risks, charges, and expenses. You should read a fund’s prospectus and, if available, a summary prospectus carefully before investing.

Mutual Funds are sold by prospectus, which is available from your registered representative. Please carefully consider investment objectives, risks, charges, and expenses before investing. For this and other information about any mutual fund investment please obtain a prospectus and read it carefully before you invest.

IRA

Individual Retirement Accounts (IRAs)

Retirement may seem far away, but it’s never too early to determine how much you’ll need and to begin the process of saving. Making smart financial decisions now can help impact how you live in retirement. We can assist you along the way with our Individual Retirement Account (IRA) program—it’s designed to help you reach your retirement goals.

An IRA is a tax-deferred personal savings account that allows you to save for retirement without a company-sponsored plan. Throughout your lifetime, you can make tax-deductible “contributions” to your IRA, which you can then invest in basic securities such as stocks and bonds.

For 2017, the annual amount you can contribute to an IRA is the lesser of 100% of earned compensation or $5,500. If you are age 50 or older (as of December 31 of the tax year to which the contribution relates), you are eligible to contribute an annual “catch-up” contribution each year of up to $1,000.

With a traditional IRA—the most common type of IRA—income taxes are deferred until you withdraw them, so you don’t pay annual federal (and, in many cases, state) income taxes on your earnings. At age 59 ½, you can make taxable withdrawals from the account called distributions for your retirement. If you choose to take distributions before you turn 59 ½ years old, the government imposes a premature distribution penalty of 10% on your withdrawal. Additionally, when you turn 70 ½ years old, you are required to take distributions by April 1 of the calendar year.

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Roth IRA Account

Unlike the traditional IRA, contributions to the Roth IRA are considered “after-tax” and therefore not deductible, but you can take distributions from the Roth IRA tax-free. The maximum annual contribution to the Roth IRA for 2017 is $5,500, with an additional $1,000 “catch up” contribution allowed each year for individuals age 50 and older (as of December 31 of the tax year to which the contribution relates).

The Roth IRA became an option after the Taxpayer Relief Act of 1997, and allows for investors filing single on their taxes with an adjusted gross income in 2017 of less than $132,000 or married couples filing jointly with a combined adjusted gross income of less than $194,000 annually, to make limited, annual contributions toward retirement. There is no mandatory age at which you are required to take distributions from the Roth IRA, and there is no premature distribution penalty for amounts you withdraw from the principal.

Coverdell Education Savings Account (ESA)

The Coverdell Education Savings Account or Education IRA is a trust created exclusively for the purpose of paying qualified education expenses. You can contribute up to $2,000 per year to the account and those contributions will grow tax-free until distributed. In addition, the beneficiary will not owe tax on the distributions if they are less than a beneficiary’s qualified education expenses at an eligible institution.

Savings Incentive Match Plan for Employees (SIMPLE)

In this written salary reduction arrangement, eligible employees contribute to an IRA in their name. Your employer is required to make annual contributions for each eligible participant. This type of arrangement is available to self-employed individuals or owners of companies that have 100 or fewer employees and no qualified retirement plan. Employees are eligible for a SIMPLE-IRA if they earn at least $5,000 annually. SIMPLE-IRAs may be funded by annuities.

For 2017, the maximum employee contribution limit is the lesser of 100% of compensation or $12,000. SIMPLE IRA owners age 50 or older (as of December 31 of the tax year to which the contribution relates) may be eligible to make an annual “catch-up” contribution each year of $2,500. The money contributed to a SIMPLE IRA will accumulate tax deferred until money is withdrawn. Withdrawals are subject to ordinary income tax and, if taken before age 59 ½, a 10% federal income tax penalty may apply and this penalty is increased to 25% for distributions taken within the first two years of participation in the plan.

Contact one of our Financial Consultants for More Information