Financial Investment Products and Services
Financial investment strategies from David Lerner Associates are based on real value and frequently pay dividends or interest. We take pride that our investment counselors strive to meet with prospective clients before they invest. We feel it is critical we get to know the investors' needs, objectives and risk tolerance.
Financial Investment Products Overview
Real Estate Investment Trusts (REITs)
A real estate investment trust, or REIT, is a company that owns, and in most cases, operates income-producing real estate. Some REITs finance real estate. To be a REIT, a company must distribute at least 90% of its taxable income to shareholders annually in the form of dividends.
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learn about investing in REITs.
Tax-Free Municipal Bonds
Municipal bonds are securities issued by state and local governments, their agencies and authorities, often to finance public improvement projects, i.e., bridges, schools, sewage treatment plants, new roads and hospitals.
Interest income earned on these bonds is usually free of federal income tax, and under certain circumstances, free of state and local income taxes.
Our research shows that from 1940 through 2006, over 99% of all municipal bonds issued in the United States have paid interest and principal as promised.
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learn about investing in tax-free municipal bonds.
Stripped Municipal Bonds
Stripped municipal securities are created when you take an interest-bearing security and “strip” the coupons off, thereby creating “straight zero coupon” and “zero coupon convertible” municipal securities.
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stripped municipal bonds.
Zero Coupon Bonds
Zero coupon bonds were introduced to the fixed-income market in 1982. While most municipal bonds provide semiannual interest payments, zero coupon bonds, as their name suggests, have no coupon or periodic interest payments. Instead, the investor receives one payment — at maturity — that is equal to the principal invested plus the interest earned, compounded semiannually at a stated yield.
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zero coupon bonds.
CMOs
Collateralized mortgage obligations (CMOs) — also known as real estate mortgage investment conduits (REMICs) — are one of the most innovative investment vehicles available today, typically offering monthly payments of interest, relative safety and notable yield advantages over other government and fixed-income securities of comparable credit quality.
The total volume of outstanding securities was nearly $1.0 trillion as of June 30, 2004. A wide variety of CMO securities with different cash flow and expected maturity characteristics have been designed to meet specific investment objectives. While CMOs offer advantages to investors, they also carry certain risks.
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investing in CMOs.
Mutual Funds
In short, mutual funds are companies that raise money from investors and use it to purchase various investment vehicles. Typically the mutual fund’s management would purchase bonds, stocks or financial derivatives. Funds tend to buy shares in one particular class of assets dependent upon the objectives of the fund. For instance, a fund that seeks to provide income and growth might invest in stocks with a history of paying dividends and growth potential. Mutual funds usually offer the investor diversification, money management and liquidity.
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learn about in investing in mutual funds.
Annuities
Annuities are contracts between individuals and insurance companies that allow for regular income to the “annuitant” who has a paid a sum of money to the insurance company. Annuity payments may be immediate or deferred.
Monies paid to the insurance company by the plan owner grow tax-deferred until they are withdrawn.
Click here to learn about investing in immediate, deferred, fixed and variable annuities.
Retirement Plans
The Accumulation Years
IRAs - This includes a broad spectrum of retirement plans including traditional IRAs, Rollover IRAs, ROTH IRAs and several group plans. Which plan is best for you?
View a selection of different retirement plans for individuals and groups.
The Pre-Retirement Years
As we enter our fifties and sixties, it is necessary to set some time aside to review our current plans and additional needs for retirement income planning. Such issues as plan diversification, plan allocation and income capability should now be addressed.
Click here for retirement income calculators.
The Retirement Years
Is the current retirement plan meeting your goals?
Are you getting the most from your retirement plan?
Contact us for a review of your retirement plan
Life Insurance
Benefits and Uses of Life Insurance
Provides funds so a family can remain living in “their own world” if a breadwinner dies.
Mortgage protection - The death benefit can provide funds to eliminate a mortgage.
Protection against other outstanding debts.
Allows, in certain cases, for pensioners to maximize their payout options.
College funding - No current taxes on gains, tax free loans and withdrawals. Funding is completed on death.
Can be used to pay estate taxes.
Can be used to personally guarantee business loans.
Buy/Sell agreements - Provides protection to business partners.
Key person coverage - Provides protection to businesses in the event of the death of a key employee.
How Much Life Insurance Do I Need?
The Consumer Federation of America (CFA, 1997) recommends six to eight times your income for a married couple with children. While rules of thumb may be helpful, they do not take into consideration each individual’s personal situation.
Learn more about life insurance.
The best way to find out about what we do is to make an appointment with one of our investment counselors.
Click here for reservations to an upcoming investment seminar in your area.
