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

Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement

CDs and Investment

Can heirs cash an old trust?

Dear Dr. Don, The youngest of 6 children, I am 48 years old. My father joined the Navy at 22. In Italy, he met his bride and my mother, and returned to the U.S. to raise our family. In 1959, he bought a trust certificate... Read more

advertisement

Blog

Stephen Pounds

Brexit may hurt US exports, help interest rates

Voters in the United Kingdom have approved a referendum to leave the 28-nation European Union in a move that is sure to disrupt markets today and possibly longer.  ... Read more


Connect with us