Michael A. Milazzo, CLU, ChFC

Registered Principal

The Meridian Financial Company

90 Lawrence Avenue, Suite 4, Smithtown, NY 11787

Phone:  631-979-4223

Fax: 631-656-8199 

Email: meridian@ae.cadaretgrant.com

Website: www.merfinco.com

July/August 2018

Knowledge is Power

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When buying bank CDs, insurance or mutual funds, bumps in the road are less likely to derail an educated investor than one without information. If you’re serious about your investments, even if you only own a 401(k), understand everything you can about them, including:

Performance in good times and bad
If you are a relatively new investor, you might not understand the concept of stock prices falling. But a look at history will show you that equities have down periods — with some lasting for years. That’s why most investments include the disclaimer “past performance cannot predict future results.” Plus, investments perform differently in varied circumstances. Look to see how your equity investments perform when the market is both strong and weak.

Performance over various timeframes
Another way to examine an investment’s past performance is to explore returns over one, three, five and 10 years. The shorter the timeframe, the less true the performance may be. Check out the year before steep market declines and you might find investments that performed extremely well when the going was good but tanked during bad times and never fully recovered. Time is the great indicator.

If you own shares of mutual funds,* you should be aware of their expense ratios. All mutual funds have so-called 12b-1 expenses, which are used to pay administrative, management and marketing fees. Common sense says the higher the fees, the more they will affect performance.

Also check to make sure your funds stay true to their stated philosophy. Monitor management changes to see if they affect performance. And work with a registered investment representative who understands your investment objectives.

* You should consider the fund’s investment objectives, charges, expenses and risks carefully before you invest. The fund’s prospectus, which can be obtained from your financial representative, contains this and other information about the fund. Read the prospectus carefully before you invest or send money. Shares, when redeemed, may be worth more or less than their original cost.


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Michael A. Milazzo is a Registered Representative of and offers securities through Cadaret, Grant & Co, Inc, a member of FINRA and SIPC. The Meridian Financial Company and Cadaret, Grant are separate entities. I am registered to sell Securities in the following States: NY, PA, NC, FL, CO, ID.
The Meridian Financial Company and LTM Client Marketing, Inc. 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.