Investment Vehicle Characteristics

About 15% of the Series 66. Same products as Series 7, judged from the adviser's chair.

Cash and equivalents

Money-market funds, T-bills, and bank deposits are for safety and liquidity, not growth. They can lose purchasing power to inflation.

Fixed income

Duration estimates how much a bond's price moves when rates move 1%. Longer duration = more rate risk. Credit spreads widen when the market fears default. Municipals may be tax-free; always compare taxable-equivalent yield.

Equities

Common stock for growth. Preferred for income with less upside. ADRs are foreign shares wrapped for U.S. trading. Valuation shortcuts: P/E, dividend yield, book value. None of them is a crystal ball.

Pooled vehicles

Mutual funds, ETFs, UITs, closed-end funds. Watch expense ratios, style drift, and whether the fund is open-end (NAV) or exchange-traded.

Derivatives and alternatives

Options, futures, limited partnerships, hedge-fund strategies, and commodities. They can hedge or speculate. Most retail clients do not need leveraged or illiquid alternatives as a core holding.

Insurance wrappers

Variable annuities and variable life sit at the intersection of securities and insurance. Surrender charges, mortality fees, and tax deferral are the three facts to say out loud before anyone signs.