In general, the bond market is volatile and bond prices rise when interest rates fall and vice versa. Longer term securities are more prone to price fluctuation than shorter term securities. Any fixed income security sold or redeemed prior to maturity may be subject to substantial gain or loss. Dependable income is subject to the credit risk of the issuer of the bond. If an issuer defaults no future income payments will be made.
Bonds are subject to interest rate risk, credit and default risk of the issuer. Bond prices generally fall when interest rates rise.
When investing in mutual funds or exchange-traded and index funds, please consider the investment objectives, risks, charges, and expenses associated with the funds before investing. You may obtain a fund’s prospectus by contacting your investment professional. The prospectus contains information, which should be carefully read before investing.
Investors should understand the potential tax liabilities surrounding a municipal bond purchase. Certain municipal bonds are federally taxed if the holder is subject to alternative minimum tax. Capital gains, if any, are federally taxable. The investor should note that the income from tax-free municipal bond funds may be subject to state and local taxation and the Alternative Minimum Tax (AMT).
Brokered CDs are issued by a bank and are FDIC-insured up to applicable limits. FDIC insurance does not protect against losses due to selling the CD prior to maturity. SIPC coverage does not apply to the CD itself. If you sell your CD before maturity, you may receive less than your original investment. Brokered CDs may have additional features not found with bank CDs, which can include call features, which means the issuer can redeem it before maturity. and step up/step down interest rates, where the interest will increase or decrease after a specific holding period. Fees or commissions may apply.
