Investments

JCB Wealth Management was established to provide our clients with personalized service and attention to their unique needs. As a fiduciary, we make a firm commitment that in all circumstances, your best interest comes first. We’re here to listen and create comprehensive financial plans designed for you based upon your individual goals and taking into consideration all aspects of your life, including the particular tax and accounting issues that might affect your plan. Communication -- clear information and honest answers to your questions – is one of our strengths. It forms the foundation for long-lasting relationships and meaningful results.

Investments: Defined

Several different types of assets exist, but they all involve the expenditure of money to purchase an asset or financial product with the intention of gaining a profit, potentially increasing the amount of money that you have. Each asset class has a different level of risk associated with it. The risk of investing is mitigated through creating a diversified portfolio that is in line with your tolerance for risk.

• Cash
  In the simplest terms, when you keep money in a savings account, that is an investment. Generally the lowest level of risk, it earns a specified amount of interest, and you know that you’ll get back your capital. On the other hand, the interest earned on a savings account or even in a certificate of deposit, is unlikely to keep pace with inflation.
• Bonds
  Bonds are typically issued by corporations of government entities; when you purchase a bond, you are in effect loaning money to the borrower—the entity issuing the bond. Bonds offer fixed rates of interest on these loans, generally determined by interest rates set by the Federal Reserve.
• Mutual Funds
  Mutual funds operate by pooling the resources of many investors to purchase a collection of securities. These funds may include stocks, bonds, and other securities and they could be held passively or actively managed. In some cases they may be composed of investments that are similar to economic indexes like the S&P 500 or the DOW Industrial Index.
• Exchange Traded Funds
  These funds were introduced in the 1990s. They are similar to mutual funds, but trade on a stock exchange throughout the day, meaning that their value fluctuates through the day. ETFs can be composed of a wide variety of stocks.
• Stocks
  A share of stock is an investment in the success of a company. Earnings come to the investor through an increase in the value of the share price and through dividends paid.
• Alternative Investments
  A wide variety of alternative investments are available as well, typically associated with more experienced investors. Among these are real estate, commodities, and hedge funds or private equity funds.

Investment Advisory Services

The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) oversee the activities of those in financial advisory services including licensing and providing basic protection for investors. Their sites provide a wealth of definitions and explanations that can be helpful to investors.
An investment advisor is someone who is paid to provide advice about securities; this is a legal term, and these registered individuals are obligated to follow specific standards. Investment advisors can provide advice that is tailored to your specific situation, and they often can manage investment portfolios as well as offer financial planning services. If they are properly licensed, they also could provide brokerage services, that is, buying or selling stocks or bonds and other services.

How to Start Investing

Before you begin, give some careful thought and identify your goals. Consider your tolerance for risk—how much can you tolerate losing in a downturn in exchange for possible gains? These are questions that your advisor will explore with you as you begin.

You will need to think about the timing of your goal—a new home within a year or two; a college education for children who are now still toddlers; or your retirement in 30 years. Keep in mind tax implications of particular investments and the costs that are associated with different types of investments.

Understanding the basic definitions of investment types gives you a place to begin. If you’re just starting out, begin with simple investments and expand from there over time. Magazines, books, newsletters and blogs can provide additional support and fundamental information but rely on the sound recommendations of a financial advisor who takes the time to get to know you and your goals. JCB Wealth Management will be happy to help you get started planning for your future.

Investors should consider the investment objectives, risks and charges and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds. Contact John Barrett or Kyle Skyba at Kyle.skyba@ceterafs.com or (406) 755-8868 to obtain a prospectus, which should be read carefully before investing or sending money.

Additonal Information:

https://www.finra.org/investors/learn-to-invest/choosing-investment-professional/investment-advisers
https://www.finra.org/investors/learn-to-invest/choosing-investment-professional/registered-financial-professionals