investing

5 financial terms not to take for granted

Flexible
Flexible © DNF Style/Shutterstock.com

Gymnasts and acrobats are definitely flexible, but flexible investment products may not bend as easily as investors may think. Evaluating the true flexibility of dates, dollars, rates and fees is an important part of agreeing to the terms of any contract. Hebeler has read his fair share of agreements purported to be flexible and asks, "Flexible for whom? It's usually a one-way street for the company offering the product, where they have all the flexibility to make changes while the investor does not."

"Flexibility usually comes with a cost," says retirement coach Christine Moriarty. The cost can affect overall investment performance or penalize investors who have income or emergency funding needs that don't coincide with the contract terms, anniversary dates or exceed annual withdrawal limits.

"Make sure the contract really meets your needs," says Moriarty, "that you aren't being told only what you want to hear and you're not being sold the product of the month."

advertisement

          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

How should my teen invest $150K?

Dear Dr. Don, My son will turn 18 years old in December. He has $150,000 from a settlement now sitting in the bank. What is the best plan to pursue for investing this money? Is investing in precious metals a good way to... Read more

advertisement

Blog

Dr Don Taylor

The Fed’s stock valuation issue

The Fed's Monetary Policy Report on stretched valuations in certain sectors moves markets.  ... Read more

Partner Center
advertisement

Connect with us