Best Financial Advisors in Montgomery, AL

Montgomery, AL Financial Advisors FAQs

• What factors should you consider before investing in a particular stock or bond in Montgomery?

  There are a number of factors you will need to consider before investing in stocks and bonds in Montgomery. The first question you need to address is if the investment is too risky and the second is if the business is registered with the SEC. You will then need to know the different fees associated with the investment and if you can sell quickly. It is also prudent to seek guidance from a financial advisor before undertaking a big investment.

• What do you need to know about annuities in Montgomery?

  An annuity is an insurance contract where the insurance company makes investments on the client's behalf. The insurance company utilizes tax-deferred money and once the purchaser reaches the age of 65, the income earned from investments can be received. However, keep in mind that income from this investment can fluctuate depending on market behavior.

• Are there hidden costs in your annuity in Montgomery?

  Yes, there are costs and charges that you should be aware of with your annuity in Montgomery. One type is the front-end load commission which you will pay upon the purchase of an investment, it is also known as a sales charge. There are also penalties such as surrender charges. You will incur surrender charges if you withdraw your investments within the first seven years, it begins with a 7% penalty on year one.

• Do you need to pay taxes on mutual fund investments in Montgomery?

  Yes, you will need to declare income from mutual funds in Montgomery, regardless if it is ordinary dividends or capital gains. Ordinary dividends are net earnings given periodically to investors while capital gains, on the other hand, represent the profits generated from the sale of securities held in a mutual fund's portfolio.

• What is the difference between preferred stock and common stock in Montgomery?

  In Montgomery, the majority of the stocks available are common stocks, hence the name. However, one of the major differences between a common stock and a preferred stock is the voting power shareholders have when it comes to common stocks. Common stock earnings are also based on the financial performance of a company while in preferred stocks, a specific dividend is granted to the shareholders.