Whether you are a self-directed investor and choose to buy and sell securities online, or you prefer to get the advice of a financial advisor, a traditional brokerage account can hold your portfolio and provide the flexibility to retain as much control of your investments as you like.
A managed account is a portfolio of investment products, such as individual securities, cash instruments, mutual funds, exchange-traded funds and possibly alternative investments, professionally managed and tailored to your specific financial goals. You can let a Financial Advisor make selections for you, make your own selections through a Financial Advisor, or a combination.
As the name suggests, an Individual Retirement Account (IRA) can help you save and invest for retirement. Depending on which type you select, traditional or Roth, you'll receive certain tax and savings advantages—powerful tools to help you with your retirement goals. A Traditional IRA account enables you to fund the account with earned income generally before taxes are taken, and earnings will then grow on a tax-deferred basis. On the other hand, contributions to a Roth IRA are made with after-tax earned income, but grow tax-free. Both types of IRA accounts may be either managed or traditional, including annuities (but not all products are available in retirement accounts).
Business owners may wish to help set up retirement plans for themselves and their employees. 401(k) plans, SEP & SIMPLE IRAs, Profit Sharing plans & Pension accounts are either managed or traditional, including annuities (but not all products are available in retirement accounts).
A stock is a type of security that provides a share of ownership in a company. Stocks include
A mutual fund is a pooled investment vehicle designed to invest money from many individuals in securities such as stocks, bonds, money market instruments and similar assets. The investments are determined by professional money managers who adhere to the fund's objectives stated in its prospectus. The performance of these underlying investments, minus fund fees and expenses, determine the fund's investment return.
Sometimes referred to as a fixed-income security, a bond is a debt investment where you lend money for a set period of time at a specified interest rate to an entity, such as a government or corporation. The bond typically provides regular income, based on the interest rate. The bond's yield is the interest rate divided by the bond's price. Bond prices and yields move in the opposite direction, which means if you sell a bond before it matures, you may receive more or less than your original investment.
A stock option is a contract sold by one party (option writer) to another party (option holder), allowing the holder the right, but not obligation, to buy or sell a stock at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date). Call options allow the holder to buy at a certain price, and put options allow the holder to sell at a certain price.
There's an old saying.
You don't get life insurance for yourself. You get it for the people you love. The right life insurance not only offers financial security for your loved ones, but it also helps protect their future, your wealth, your business, and your legacy. In short, it can protect everything you've worked for your entire life. It is a key part of any financial plan.
From the time we're young, we're told that working hard and saving money is the way to get ahead. While that's an excellent strategy for building wealth, it's not as simple as it sounds. Even though we don't know what's going to happen next week, next month or next year, we can help prepare for it with a risk management strategy that creates a foundation that offers you the confidence and control to focus on your life instead of your money.
With proper planning, such a foundation would:
So, what risk management strategy offers all this? Life insurance.
As a Citi client, you have access to a robust offering of insurance types, which Citi has curated by engaging top-rated carriers to ensure a wide range of financial needs can be met across nearly every phase of life. One of our experienced Citi Personal Wealth Management Wealth Advisors and insurance specialists can help you select the appropriate coverage to address your unique needs.
One of the most critical aspects of life insurance is choosing the right type and amount of coverage. This will help ensure that the policy provides sufficient benefits to supplement your assets to meet your unique financial needs now and in the future.
Life insurance is designed to provide your beneficiaries (such as children, spouse or other dependents) with financial security when you are no longer there, such as using the insurance proceeds from the death benefit to help pay off any debt, maintain your family's style of living, ensure your children's education, and support your family's retirement and estate planning.
The insurance proceeds from the death benefit:
The two general types of life insurance are term and permanent, which differ in key ways.
Term insurance provides a payment to the insured's beneficiaries when the insured dies. The insured chooses how long they want to maintain the coverage, typically between 10 – 35 years. Deciding what duration of term insurance to buy can be a big decision for you and your family. Premiums paid for term insurance cover only the cost of insurance. They do not generate cash value.
Permanent life insurance is coverage that can last for the lifetime of the insured if the premiums are paid. The three major types are Whole Life, Universal Life and Variable Universal Life.
Variable Universal Life
|Death Benefit||Has feature||Has feature||Has feature|
|Builds Cash Value|
|Builds Cash Value||Has feature||Has feature||Has feature|
|Guaranteed Cash Value|
|Guaranteed Cash Value||Has feature||—Does not have feature||—Does not have feature|
|Growth Tied to Interest Rates|
|Growth Tied to Interest Rates||—Does not have feature||Has feature||—Does not have feature|
|Guaranteed Minimum Rate|
|Guaranteed Minimum Rate||Has feature||Has feature||—Does not have feature|
|Flexible Premiums||—Does not have feature||Has feature||Has feature|
|Growth Tied to Investments|
|Growth Tied to Investments||—Does not have feature||—Does not have feature||Has feature|
|Offers a Range of Investments|
|Offers a Range of Investments||—Does not have feature||—Does not have feature||Has feature|
|Considered a Security|
|Considered a Security||—Does not have feature||—Does not have feature||Has feature|
TermA specific number of years
PermanentCash Value and protection
PermanentYes, if there is Cash Value
PermanentFederal income–tax–free death benefit, which may be subject to estate taxes
Tax-advantaged growth and opportunities
TermFederal income–tax–free death benefit, which may be subject to estate taxes
PermanentCoverage designed to last a lifetime Potential to build Cash Value
TermLower cost of death benefit protection
PermanentHigher annual premiums vs. term life
Loans and withdrawals may reduce death benefit
TermPremium and death benefit ends when term ends, but the policy may have the option to be converted to permanent insurance.
* Distributions are taken through loans and withdrawals, which reduce a policy's cash surrender value and death benefit and may cause the policy to lapse. Loans are generally income tax-free. Withdrawals and surrenders are tax-free up to the cost basis, provided the policy is not a modified endowment contract (MEC). You should consult your tax advisor before taking a loan or withdrawal from a life insurance policy.
You may find it challenging to think about long-term care insurance. A health event that could happen in the future is usually not top of mind.
Long–term care insurance is designed to help cover expenses related to prolonged physical illness, a disability, or a cognitive impairment such as Alzheimer's disease. Long–term care services may include help with activities of daily living such as bathing, getting dressed, and eating.
Although typically associated with Nursing Home care, long-term care insurance may also cover health care, respite care, hospice care, adult day care, or care in an assisted living facility.
Long–term care insurance is not designed to cover medical, surgical, or prescription drug expenses typically covered by health insurance. Funds to cover long–term care expenses may also be provided through riders on life insurance policies that accelerate the policy's death benefit in the event of chronic illness.
Designed for retirement purposes or other long—term goals, an annuity can provide you with the ability to accumulate assets on a tax—deferred basis. Annuities can also provide lifetime income, unlimited contributions (depending upon product and carrier restrictions), and a variety of investment options.
These products serve as a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you starting immediately or sometime in the future. You can purchase an annuity contract by making either a single purchase payment or a series of purchase payments.
Annuities are most common for retirees looking for a stable income stream, pre-retirees looking to grow their principal, and people looking to grow their nest egg or leave behind a legacy to their beneficiaries.
Depending on how you decide to structure your annuity, you can have the opportunity to receive set "fixed" payments, or the payments can fluctuate with the market in a variable contract.
Two main types of annuities:
VariableLong-term investment goals
Fixed AnnuityBuilding wealth
VariableMarket exposure; investment risk; tax deferral
Fixed AnnuityFixed interest rate; tax deferral
ImmediateAccumulation phase is short, as you have to fund it all at once with a single lump-sum. There is no accumulation phase
DeferredYou can fund it with a lump-sum, but are also able to fund it over time with a series of payments known as a flexible-premium deferred annuity
ImmediatePayouts begin within the first 12 months of the contract taking effect
DeferredPayouts begin at least 13 months after the contract begins and can be delayed for up to 40 years (depending upon age, product and/or carrier restrictions)
ImmediateUsually doesn't allow partial withdrawals before payouts begin or provide cash surrender benefits
DeferredIn some cases, you can withdraw money before payouts start, but it can result in financial penalties and lower future returns
ImmediateHistorically provide lower total returns since it has less time to accumulate earnings
DeferredTends to provide higher returns, since it has more time to build up earnings
Immediate Income Annuities vs. Deferred Income Fixed Annuities:
Keep in mind that there are fees and expenses associated with annuities, so be sure to inquire about them. In addition, bear in mind that guarantees, including interest rates and subsequent payouts, are based on the claims—paying ability of the issuing insurance company, among other risks.
A Citi Personal Wealth Management Financial Advisor can help you plan for your retirement and choose from a wide range of tax-advantaged retirement accounts, including Traditional and Roth IRAs, or can help you as a business owner set up a retirement plan for yourself and your employees.
A Citi Personal Wealth Management Financial Advisor can help you with the financing of your child's college education, including projecting total costs and then reviewing what you can afford, how to handle college savings and how else you might pay college costs. Home and major purchase savings — A Citi Personal Wealth Management Financial Advisor can help you build a plan to fund a special purchase, including taking into account such variables as initial vs. long-term costs, funding sources, the timing and tax implications.
For clients with complex investment needs and strategies, our Wealth Planning Specialist Team can help develop a plan. This team draws from their many years of experience and advanced education. Wealth Planning Specialist Team members include an estate planning specialist, who can guide you on wealth transfer, gifting, insurance, charitable giving and other related areas, working with your legal and tax advisors.
The term encompasses a broad category of investment products and strategies that fall outside the traditional purchase and sale of stocks and bonds. Commonly known examples are:
Structured products are typically designed to:
Securities-based lending gives you a convenient and flexible way to borrow against the value of your eligible investments. The two choices for borrowing are:
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If you have a complaint or concern regarding an annuity or insurance policy marketed through Citi, please contact your financial professional or our call center at 1-800-846-5200 (TTY: 711), or you may contact us in writing at Citi Personal Wealth Management, P.O. Box 310, New York, NY 10008-0310. Complaints will be escalated and handled in accordance with our complaint-handling procedures. Alternatively, you may contact the insurance company issuing the annuity or insurance product directly, or contact your state insurance department.
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research,as that term is defined by applicable regulations. to footnote reference 1
The information provided is solely for informational purposes. It is not an offer to buy or sell any of the securities, insurance products, investments, or other products named.
Terms and conditions of accounts, products, programs and services are subject to change.
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Life insurance and long-term care insurance are medically underwritten. You should not cancel your current coverage until your new coverage is in force. A change in policy may be subject to additional insurance and investment-related fees as well as increased risks, and may also require a new medical exam. New surrender charges may be imposed with a new contract or may increase the period of time for which the surrender charges apply. Surrenders may be taxable. You should consult your own tax advisors regarding tax liability on surrenders.
Citigroup Inc. and its affiliates do not provide tax or legal advice.
Citi Personal Wealth Management is a business of Citigroup Inc., which offers investment products through Citigroup Global Markets Inc. (
CGMI), member SIPC. Insurance products offered through Citigroup Life Agency LLC (
CLA). In California, CLA does business as Citigroup Life Insurance Agency, LLC (license number 0G56746). Citibank, N.A., CGMI and CLA are affiliated companies under the common control of Citigroup Inc.
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