INSURANCE PORTFOLIO

STOCKS

• A stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
• 7% interest rate on stocks
• While stocks have historically performed well over the long term, there's no guarantee you'll make money on a stock at any given point in time. ... You may lose money – Stock prices can change often and for many reasons.

BONDS

• A bond is a debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.
• rate of 5%. If interest rates go up, new bond issues might have coupon rates of 6%.
• Interest rates and bond prices carry an inverse relationship; as interest rates fall, the price of bonds trading in the marketplace generally rises.
• Another danger that bond investors face is reinvestment risk, which is the risk of having to reinvest proceeds at a lower rate than the funds were previously earning.

MONEY MARKET ACCOUNTS

• A money market account is an interest-bearing account that typically pays a higher interest rate than a savings account, and which provides the account holder with limited check-writing ability.
• average rates of 0.08% and 0.26%, respectively.
• When investors are earning 2% or 3% in a money market account, even small annual fees can eat up a substantial chunk of the profit. This may make it even more difficult for money market investors to keep pace with inflation. Read more: The Pros And Cons Of Money Market Funds | Investopedia http://www.investopedia.com/articles/mutualfund/08/money-market.asp#ixzz4Ob... Follow us: Investopedia on Facebook

SAVINGS ACCOUNT

• a bank account that earns interest
• Low Interest, Poor Return. ... In fact, one great disadvantage to savings accounts is that they offer low interest rates, which means a poor return for you. In fact, the returns may be so low that you risk inflation eating away at the value of your deposit.

WHY IS DIVERSITY SO IMPORTANT

• In business, cultural diversity within an organization is considered beneficial to the retention of staff as well as their productivity. It is also likely to increase an organization's flexibility and responsiveness to the diversity of its clients, customers and partners in an increasingly globalized world.

WHY SI IT IMPORTANT TO CHANGE YOUR INVESTMENT PLANS

• Your investment lineup should allow you to feel comfortable through all market cycles – bear markets, bull markets and everything in between. To get there, you need to diversify your portfolio across a few asset classes. The most widely recognized investments in both equities and fixed income are (from most aggressive to least aggressive) international, small-cap, mid-cap and large-cap stocks, bonds and short-term fixed income investments.