Sovereign Bank | Financial Answer Center

Financial Answer Center > Financial Library > At Home

Learning About Investing

Introduction

A quick overview of some investment issues.

Liquidity Needs

A certain portion of your investments needs to be available to meet short-term cash flow problems or emergencies.

Goals & Time Horizon

Your choice of investments will be determined by your ultimate goals and your time frame for reaching them.

Risk / Reward

Higher potential returns generally come with increased risk. Find your comfort zone.

Stocks and Bonds

Explore the basics of equity (stock) and debt (bond) instruments.

	The Financial Markets
	Individual Stocks
	Bonds
	Zero Coupon Bonds
	GICs

Understanding Mutual Funds

For the average investor, mutual funds can provide good returns with reduced risk.

	Introduction to Mutual Funds
	Money Market Mutual Funds
	Bond Mutual Funds
	Stock (Equity) Mutual Funds
	Hybrid Mutual Funds
	Retirement Plans and Mutual Funds
	Mutual Fund Management & Costs

Annuities

An annuity may be a good way for you to grow your funds on a tax-deferred basis.

	How Annuities Work
	Types Of Annuities
	Individual Retirement Annuities
	Understanding The Fees
	How Do I Select An Annuity?

Variable Annuities

Variable Annuities bring together many of the features of mutual funds and life insurance.

	Introduction to Annuities
	Variable Annuities
	Do Your Homework First
	Getting Started
	Additional Features And Options
	Dollar Cost Averaging
	Transferring Money Between Portfolios
	A Note About Taxes
	Are Variable Annuities For You?
	Summary

IRAs & Roth IRA

For most investors, the place to start is the IRA. It is one of the most powerful investment vehicles available to individuals today. Find out how it fits in your investment portfolio.

	Traditional IRAs & Roth IRA
	Tax Deductible?
	Rollovers and Other Issues

Other Investments

Explore other investment options.

	Real Estate - R.E.I.T.s
	Real Estate - Limited Partnerships
	Life Insurance
	Primary Residence
	Rental Property

Asset Allocation

Don't put all your eggs in one basket!

	Introduction to Asset Allocation
	Fund Overlap
	Age and Diversification

Dollar Cost Averaging

Minimize your risk of market fluctuations with this investment method.

Portfolio Management

Once invested, your funds need to be managed.

	Reallocating Your Investments
	Market Timing
	Watching the Market
	Sources of Information

Taxes

Planning for and deferring taxes will make a large difference in your total investment returns. Look at these tax advantaged products.

	Tax-Deferred and Tax-Free Investments
	Savings Bonds
	Coverdell Education Savings Accounts
	Annuities
	Cash-Value Life Insurance
	Roth IRAs
	Capital Gains
	Mutual Funds
	Deductible Investment Expenses

Putting It All Together

Some final thoughts on your investment plan.

Investment Glossary

A list of many investment terms or phrases with an explanation.

Securities are offered through LPL Financial Corporation, member FINRA/SIPC. Insurance is offered through LPL Financial or its affiliates. LPL Financial is not affiliated with Sovereign Bank.

NOT FDIC INSURED | MAY LOSE VALUE
NO BANK GUARANTEE | NOT A DEPOSIT
NOT INSURED BY ANY FEDERAL GOVERNMENT ENTITY

This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. registered representatives. LPL Financial’s 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.

		Find an ATM/Branch
	Personal \| Business \| Corporate \| Government \| About Sovereign	Find an ATM/Branch