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Craig Lundquist, MBA, ChFC®, CRPC®
VP of Wealth Management
651-773-2757
Kristin Becker
Senior Administrative Assistant
651-773-2821
Ideal Wealth Advisors
Located at Ideal Credit Union
8499 Tamarack Road
Woodbury, MN 55125
CRPC conferred by College for Financial Planning
July/August 2022
UITs: A Good Fit for Your 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.
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Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Ideal Credit Union and Ideal Wealth Advisors are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Ideal Wealth Advisors, and may also be employees of Ideal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Ideal Credit Union or Ideal Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:
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