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Brokerage, Investment Management & Insurance

Full Service Brokerage

• Financial Planning
• Mutual Funds
• Stocks
• Bonds

Discount Brokerage

• Online Trading

Cash Management

• Sweep Accounts
• Money Market Funds

Investment Management

• Financial Planning
• Fee Based Advisory Program
• Tax Efficient Investing
• Portfolio Management (Active & Passive)
• Wrap Accounts
• Traditional IRAs
• 401(K)
• Qualified Plans
• Non-Qualified Plans
• 529 College Plans

Trust & Estate Services- services to be offered through a preferred service provider

Full Service Brokerage

• Financial Planning is the process of evaluating the investing and financing options available to a firm or individual. This includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm or individual in the form of a financial plan and then comparing future performance against that plan.
• Mutual Funds are investment companies that continually offer new shares and stand ready to redeem existing shares from the owners. Individual mutual funds vary substantially in terms of the types of investments, their sales charges and their management fees.
• Stocks are ownership shares or ownership shared in a corporation. Two types of stocks are:
  • Listed - a security traded on any of the national or regional securities exchanges. Listed securities are generally more liquid than securities that trade only in the over-the-counter market.
  • OTC - over-the-counter market; widespread aggregation of dealers who make markets in many different securities. Unlike an exchange on which trading takes place at one physical location, OTC trading occurs through telephone or computer negotiations between buyers and sellers. Virtually all government and municipal bonds and most corporate bonds are traded in the OTC market.
• Bonds are long-term promissory notes. Bonds vary widely in maturity, security and type of issuer.
  • Corporate - relating to a bond issued by a corporation as opposed to a bond issued by the U.S. Treasury or a municipality.
  • Municipal - the debt issue of a city, county, state, or other political entity. Interest paid by most municipal bonds is exempt from federal income taxes and often from state and local taxes as well.
  • Mortgage Backed Securities/CMOs - security collateralized with mortgage loans and issued by the Federal Home Loan Mortgage Corporation.
  • Government/Agency - all bonds issued by the U.S. Treasury or other agencies of the U.S. government.

Discount Brokerage

On-Line Trading - We are excited to welcome a new online discount brokerage tool, myWEALTH, to Portage Commerce Bank customers. Create your own myWEALTH account with the help of our Investment Representative, and once activated, you can maintain access to your account around the clock seven days a week from anywhere you have internet access. As a myWEALTH investor you can easily trade in stocks, options and mutual funds. You will also enjoy access to quotes, news information, graphs and research. As a client you can also choose from a variety of accounts, including margin and option accounts for the more sophisticated investor. With equity trades starting at the value price of $19.95 per trade, myWEALTH is the only online brokerage service you'll need. Please speak with our Investment Representative for more information regarding this new service.

To access the myWEALTH login screen CLICK HERE

Cash Management

• Sweep Accounts - A PrimeSweep account provides you with the capability to automatically transfer a portion of your checking account funds into a money market fund. The funds transferred to a PrimeSweep account have the potential to earn attractive daily dividends. When the balance in your checking account exceeds a predetermined amount (target balance) set by you and a PrimeSweep Representative, the excess money sweeps to a dividend earning money market fund of your choice. Likewise, if the balance in your checking account falls below the target balance, cash sweeps from the money market fund into your checking account. For your convenience, daily sweep transactions and the money market fund balance can be viewed online whenever you like. PrimeSweep offers another added value to opening an account by enabling you to write checks based upon your combined money market fund and checking account target balance. If this sounds like an intriguing option for you or your business, ask a PrimeSweep Representative at Portage Commerce Bank about applying for PrimeSweep.

• Money Market Funds are mutual funds that sell shares of ownership and use the proceeds to purchase short-term, high-quality securities.

Investment Management

• Financial Planning - The process of evaluating the investing and financing options available to help a firm or individual achieve their financial goals. It includes attempting to make optimal decisions, projecting the consequences of these decisions in the form of a financial plan, and then comparing future performance against that plan.
• Fee Based Advisory Program - Managed accounts provide a consultative process that includes setting specific objectives, developing a personal investment policy, selecting money managers and ongoing professional management.
• Tax Efficient Investing - utilizes investments with lower tax consequences than other similar investments. Investors in high tax brackets benefit from investments with tax advantaged returns because the net return (after taxes are considered) is greater than they would achieve with fully taxable investments.
• Active Portfolio Management - Management of investment portfolio that involves active trading securities in an attempt to produce above-average returns on a risk-adjusted basis.
• Passive Portfolio Management - method of managing an investment portfolio that seeks to select properly diversified securities that will remain relatively unchanged over long periods of time.
• Wrap Accounts - an investment account in which all of the account's assets are entrusted to a professional money manager. All expenses related to this account are wrapped into a single annual fee.
• Traditional IRAs - a custodial account in which individuals may set aside earned income in a tax-deferred retirement plan.
• 401Ks - a retirement plan that permits an employee to set aside apportion of salary in a tax-deferred investment account selected by the employer.
• Qualified Plans - an employer-sponsored tax-deferred employee benefit plan. Contributions by an employer and employee accumulate without being taxed until payouts are made at the employee's retirement or termination.
• Nonqualified Plans - A retirement plan that does not meet the IRS requirements for favorable tax treatment.
• 529 College Plans - A plan that allows for the prepayment of qualified higher education expenses at eligible educational institutions. Also known as a "qualified tuition program".

Insurance

• Life Insurance - provides a stated death benefit to the named beneficiary(ies) upon the death of the insured. Life insurance is used for a variety of purposes, some of which include helping a family maintain their standard of living after the loss of a loved one, ready cash to pay estate taxes, estate equalization, fund a buy/sell agreement, pay off debt or to fund trusts established to fulfill the donor's wishes.
  • Estate equalization - involves providing benefits to all heirs in a substantially equal manner. This method is especially important to prevent heirs who do not inherit the family business or family farm from feeling disinherited.
  • Key Man Insurance - an insurance policy on the life of a key employee whose death would cause the employer financial loss, owned by and payable to the employer.
• Long-Term Care - An insurance policy that provides benefits to individuals who are unable to perform some activities of daily living for themselves such as bathing, dressing, transferring, continence, etc. Coverage provides funds to cover costs of in-home care or nursing home care. Newer policies may include a great deal of flexibility concerning care options, including options such as adult day care which allows the caretaker to continue their career and know their loved one is cared for while they are at work.
• Disability Insurance - An insurance policy that replaces a portion of an individual's income in the event they are unable to work.
• Fixed Annuities - a stream of unchanging payments for a specific period or for an individual's lifetime, depending on the terms of the annuity contract.
• Variable Annuities - an annuity with payments to the annuitant that vary depending upon the investment success of a separate investment account underlying the annuity.
• Deferred Annuities - contracts issued by an insurance company that allow accumulation of monies for retirement on a tax-deferred basis. There are tax penalties for withdrawals before age 59.5 with limited exceptions. Deferred annuities may be fixed (insurance company determines rate of return) and variable (value is invested in sub-accounts which are similar to mutual funds). Deferred annuities may also be qualified (contributions are tax deductible [e.g. IRA]) or non-qualified (contributions are made after-tax).
• Immediate Annuities - contracts issued by an insurance company that provide income to the annuitant. Income may be guaranteed for the life of the individual (or beyond). Immediate annuities may be fixed or variable. Fixed annuities have a guaranteed benefit amount. Benefits from a variable annuity can change over time based upon the performance of the underlying sub-accounts. Once elected, these contracts are irrevocable and may not be changed.

Other

• Brokered CDs - a certificate of deposit of a commercial bank or savings and loan that is sold though an intermediary rather than directly by the savings institution itself. There are some unique differences between traditional bank CDs and brokered deposits. CDs purchased directly from the bank may face an interest penalty if redeemed prior to maturity. Brokered CDs cannot be redeemed back to the institution prior to maturity. PrimeVest, though not obligated to do so, may in its sole digression maintain a secondary market, and attempt to sell CDs to other investors. Early redemption or liquidation prior to maturity may be an amount less than the original investment.
• Foreign Issues - by a company incorporated in a foreign country, as opposed to investments in shares of local companies by foreign entities. An important feature of an increasingly globalized economic system. International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates, differences in accounting and taxation policies and political and economical instability can raise or lower returns.
• Precious Metals - an investment in silver, gold, and other precious metals. Due to the volatile nature of the precious metals markets, prices may fluctuate quickly. Investors should carefully consider whether precious metal investment are suitable in light their investment objectives.
• UITs - unit investment trust; an unmanaged portfolio of investments put together by an investment adviser and sold in units to investors by brokers. UITs are not actively managed and do not sell securities in response to ordinary market fluctuations. Instead, securities will not usually be sold until termination, which could mean that the sale price of the trust securities may not be the highest price at which these securities traded during the life of the trust.
• Real Estate Investment Trusts (REITS) - real estate investment trust; a trust that purchases and manages real estate and real estate loans and sells shares. Investors may risk portfolio diversity if investments are focused on one type of development or one geographic area leaving the REIT vulnerable to a downturn in that particular sector or area.
• Options - a contract that permits the owner, depending on the type of option held, to purchase or sell an asset at a fixed price until a specified date. Any change in the variables used in options investing (interest rate, future price, days to expiration, and volatility) will affect the options' price and investment risk.
• Custodial Account - An account which is created for the benefit of a minor, usually at a bank, mutual fund, or brokerage, with an adult as the person who holds and safeguards the assets for them.
• Fiduciary - A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets for the benefit of the other person rather than for his or her own profits.
• Restricted Stock - Insider holdings that are under some other kind of sales restriction. Restricted stock must be traded in compliance with special SEC regulations.

• About Wealth Services
• Professional Profile
• Brokerage, Investment Management & Insurance
• Trust & Estate Services
• Online Trading
• Glossary of Financial Terms