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  • By Andrew Komarow
  • Posted July 21, 2022

Financial Products That Aren’t Just for the Wealthy

It may seem like the wealthy only get more so because they have so many more financial products available to them. However, these financial products aren’t just for them, you just need to know how to utilize them. Stocks, trusts, and municipal bonds are among the financial products not just for the wealthy according to our certified financial planner.

Stocks

Stock can be a great way to generate wealth and isn't just for the wealthy. However, stocks aren’t for everyone. They do carry more risk and it is important to do research to understand what you are buying. It is a long-term investment strategy, so you shouldn’t need your funds constantly available and need to understand that the market is volatile short-term. Stocks aren’t just for the wealthy because there are many ways to enter the market. You can start your investing with fractional shares, which can be more affordable. You should start with companies you believe in.

Trusts

Trusts are a legal agreement and are available to anyone. They are typically used by the wealthy because it is a good way to transfer their wealth and assets to their beneficiaries. Living trusts can protect your assets and prevent your heirs from going through probate court. This will not only save time but will also prevent the loss of money for the expenses of going through probate. There are certain things you want to include in a trust, and some you don’t. You don’t need to include your retirement account because you can name a beneficiary for such accounts.

Municipal Bonds

Municipal bonds are issued by state and local governments. The fund from these bonds goes toward the infrastructure and public works of the state or city. These bonds have an advantage because they are tax-exempt at the state and local levels. They may, however, be taxed by the federal government. Municipal bonds get the reputation for being for the wealthy because it does seem that the advantages are greater in higher tax brackets. Additional benefits of municipal bonds, other than tax exemptions include less risk of default, moving independent of equity markets, a favorable balance of supply and demand, and generation of positive returns.

Financial products aren’t just for the wealthy. You can utilize these products to help protect and grow your own wealth. You can seek the help of a professional or do some of your own research to know how to get started. Our financial planners can help you with investment planning services.

Check out this article on how to fill the gaps of your retirement plan!

Contact Tenpath Financial Group for certified financial planning services.


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