Investment FAQs

What kinds of investments can I make using the LPL service?
I’ve never worked with a professional broker before. How does the process work?
I’m changing jobs. Can you provide help with my 401K rollover?
When is the best time for me to invest? When the share price is high? When the share price is low? Does it make a difference?
How often should I review my investment portfolio?
Is there a difference between the products and services offered through LPL and other brokerage firms?
When should I start investing?
Should I get a fixed or variable annuity?
Why is it important to diversify my investments?
How does my risk tolerance affect my investment decisions?
What are the benefits of retirement savings vehicles, like 401(k) plans and IRAs?

Q: What kinds of investments can I make using the LPL service?
A: LPL Financial Services allows you to invest in a wide range of non-deposit investment products. Annuities, mutual funds, individual stocks, and bonds are all available through our Investment Consultant.

Q: I’ve never worked with a professional broker before. How does the process work?
A: At your first meeting, a LPL Consultant will review your financial situation and your investment goals, as well as your tolerance for investment risk, and your time horizon for meeting those goals. At your next meeting, a personalized plan will be presented for your review. If you approve of the investment plan, your assets will be transferred into the investments that have been selected. You will receive regular investment statements and updates on your account.

Q: I’m changing jobs. Can you provide help with my 401K rollover?
A: Yes. Changing jobs is an important time to review your 401K, transfer it properly, and make sure you do not lose the tax-deferred status of your retirement funds. Our LPL Consultant can help you find the right program for your rollover funds.

Q: When is the best time for me to invest? When the share price is high? When the share price is low? Does it make a difference?
A: While traditional market wisdom says, "Buy low, sell high," that’s easier said than done. Because people tend to be optimistic in good times and pessimistic in bad times, many do just the opposite. The best time to invest depends more on your goals and financial situation than on market conditions.

Q: How often should I review my investment portfolio?
A: Assuming your portfolio is following a well-defined strategy that is appropriate for your personal situation, you should review it at a minimum of once a year. But if you are not yet following a specific investment strategy that is attuned to your goals, concerns, time frame, risk tolerance and financial situation, you should act immediately. Contact a LPL Consultant to schedule a consultation.

Q: Is there a difference between the products and services offered through LPL and other brokerage firms?
A: There is no significant difference in the products LPL offers, but we like to believe there is a difference in the service offered. LPL Consultants can advise you on all aspects of investing and help put you in a program right for you.

Q: When should I start investing?
A: Investing is a life-long process. The earlier you start, the more time your investments will have to grow, enabling you to meet your financial goals quicker.

Q: Should I get a fixed or variable annuity?
A: Annuities are a long-term investment. A fixed annuity provides slower growth, but has a fixed rate of return. A variable annuity may have more potential for growth and gives you more control over what is done with your money, but the element of risk can be greater.

Q. Why is it important to diversify my investments?
A. Diversifying means not putting all of your eggs in one basket. Money market vehicles, global investments, stocks and bonds respond differently to changing investment environments. By spreading your money among several investment categories, with different objectives, growth patterns and time frames, you may protect your money against temporary downturns in any one market. In addition, you may help balance the risks and rewards of your investments. Diversification cannot guarantee a profit or protect against loss.

Q. How does my risk tolerance affect my investment decisions?
A. As you diversify, keep in mind that different types of investments have different risk and return potential. In general, bonds, stocks, and mutual funds (that invest in stocks and/or bonds) offer greater return potential, but have greater risk to capital than other investments, such as Treasury bills, which offer principal and interest that is guaranteed by the U.S. government, or mutual fund money market instruments, which seek stable share prices and have fluctuating yields. Some people are more comfortable taking certain risks and others are not. It’s important that you are comfortable with your investments.

Q. What are the benefits of retirement savings vehicles, like 401(k) plans and IRAs?
A. The advantages of IRAs, 401(k) plans, and other retirement saving vehicles are their tax deferred earnings growth. With an IRA, you do not pay taxes on your earnings so long as your money stays in the IRA. Your money compounds faster because of this. In addition, IRA contributions (up to a certain level and with some restrictions) are tax deductible. 401(k) plans offer special tax advantages. You decide how much you want to contribute (within certain limits) and have that amount taken out of your paycheck before taxes are taken out, thus reducing your current taxable income. Some employers provide matching contributions, meaning for every dollar the employee contributes, the employer promises to match it, up to a certain dollar amount or percentage amount. Like an IRA, you do not pay taxes on your earnings until you withdraw the money, and like IRAs, there are penalties for early withdrawals. In some hardship cases, you may "borrow" money from your 401(k) plan.

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For more information about our Investment Services or LPL Investment Consultants, complete the information form or call 1-800-940-4903 to speak with a LPL Consultant.

Financial Advisors of LPL Financial are Registered Representatives with, and Securities, Advisory Services and Insurance Products are offered through LPL Financial and its affiliates, Member FINRA/SIPC. LPL Financial is not a registered broker/dealer. Investments are: Not FDIC insured, may lose value, are not bank guaranteed, and are not obligations of LPL Financial. LPL Branch Office located at 1311 Carolina Ave, Washington, North Carolina 27889. Investment Advisory Services offered through LPL Financial, a SEC Registered Investment Advisor

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This site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial U.S. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.