Chapter 9

Delivering Diversification with Packaged Securities


Bullet Taking advantage of management investment companies

Bullet Understanding face-amount certificate companies and UITs

Bullet Looking at annuities

Bullet Taking a brief look at life insurance

Diversification is key when you’re helping customers set up a portfolio of securities, and it’s fairly easy when your customer has a good deal of money to invest. But what if an investor has limited resources? Certainly, such investors can’t afford to buy several different securities, and you don’t want to limit your customer to only one (heaven forbid it should go belly up). Packaged securities to the rescue! These securities, such as open-end funds, closed-end funds, face-amount certificate companies, UITs, and annuities, offer variety within one security by investing a customer’s money in a diversified pool of securities … for a cost, of course. A bit of profit-driven teamwork can ensure your customers’ investments are much safer than, say, the blackjack tables in Vegas.

In this chapter, I cover topics relating to investment companies ...

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