Tom Meaglia photo

Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

July/August 2022

UITs: A Good Fit for Your Portfolio?

Financial Freedom, a stock analyst holding a pen pointing at a tablet Analyze the stock market to make a profit for your own portfolio.

Investors who are looking to add diversification* to a portfolio may want to consider a unit investment trust (UIT).** UITs are fixed portfolios of stocks, bonds or other securities professionally chosen to meet a specific investment objective, such as growth, income, or capital appreciation.


Different Strokes
UITs are constructed to fit a variety of investment objectives.
  • Equity UITs hold domestic and/or international stocks. They may mirror a market index, invest in specific market sectors, or follow a particular investing strategy.

  • Corporate bond UITs hold bonds issued by corporations.

  • International bond UITs hold debt issues of foreign companies and governments.

  • Municipal bond UITs hold bonds issued by states or municipalities.

  • U.S. government securities UITs hold government securities, such as U.S. Treasury bonds and notes.

  • Mortgage-backed securities UITs hold mortgages backed by government-sponsored enterprises, such as Ginnie Mae and Freddie Mac.


Once selected, investments in a UIT generally don’t change. Your goals and risk tolerance will help determine the type of UIT that works best in your portfolio.

What’s in It for Me?
Because of their diversified portfolios, UITs can help reduce investment risk at an affordable price. Keep in mind, though, that a UIT has charges and fees (outlined in the trust’s prospectus) that can affect returns, so it’s important to compare options before you invest. Your financial professional can help.


Cashing In
UITs are dissolved on a date that’s established when the trust is created. Duration can be from one or two years to several years. Once the UIT is terminated, securities are sold, and any proceeds are distributed to investors.

*Diversification cannot eliminate the risk of investment losses. Past performance won’t guarantee future results. An investment in stocks or mutual funds can result in a loss of principal.

**Investors should consider the investment objectives, risks, charges, and expenses of the fund before investing. Contact the issuing firm to obtain a prospectus which should be read carefully before investing. or sending money. Because fund values fluctuate, redeemed shares may be worth more or less than their original value. Past performance won’t guarantee future results. An investment in UITs may result in the loss of principal.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.