Fixed Income Investments

Fixed income investments, more commonly referred to as bonds, are IOUs issued by businesses and public entities to investors who provide the funds needed to finance major expenditures to keep their organizations operating effectively. Under a bond agreement, an investor agrees to loan an amount of money, typically referred to as the principal, to a borrower. The borrower, in turn, agrees to pay the investor interest on the principal and to return the principal at an agreed upon future maturity, an agreed upon date in the future.

Flexible Premium Annuity

An annuity that accepts a series of deposits (premiums) that do not generally have to be made in accordance with a fixed schedule. Most insurance companies set minimum premium amounts: usually one minimum for the first payment and another, lower, minimum for subsequent payments.

Futures

A futures contract obligates a person to buy a specified security (a stock or bond) or commodity (such as soy beans or gold) at a specified price on a specified date in the future. The buyer of a futures contract does so to lock in a price and protect against—or take advantage of—fluctuations in underlying market prices.