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Personal Insurance
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College Savings
Programs
Mutual Funds
American Insurance Services Agency offers a wide selection of safe
income producing vehicles to choose from for building additional money for
retirement or savings for education needs.
Learn about IRA's, Mutual Funds, and Education Saving Programs below.
Inquire about receiving a professional Financial Needs Analysis from one
of our experienced Financial Services specialists.
New Jersey Financial Planning Services Information
Click on a link below to learn more about one of
the Financial Planning Services we offer.
The assets contributed to an Education Savings Program
accumulate earnings on a tax-deferred basis, and
distributions used for qualified education expenses
incurred at elementary, secondary, and post secondary
educational institutions are tax and penalty free.
Contributor's are not required to make deposits to the
account every year.
To be eligible to contribute to an Education Savings
Program, the contributor's modified adjusted gross
income as figured on their income tax return must not
be more than $110,000 for single filers and $220,000
for married individuals filing joint returns.
Click on the link below to fill out a contact form to
receive more information about Education Savings
Programs. Or speak with our Financial Services
specialist at 732-680-4444 to discuss the features.
A mutual fund consists of a collection of stocks and/or bonds. A mutual
fund brings together a group of people and invests their money in stocks,
bonds, and other securities. Each investor owns shares which represent
a portion of the holdings of the mutual fund.
By owning shares in a mutual fund instead of owning individual stocks or
bonds, your risk is spread out. You're able to take part in a diversified
investment consisting of a large number of assets so that a loss in any
particular investment is minimized by gains in others. Large mutual funds
typically own hundreds of different stocks in many different industries. It
wouldn't be possible for an average investor to build this kind of a
diversified portfolio.
Income is earned from dividends on stocks and interest on bonds. A fund
pays out nearly all income it receives over the year to fund owners in the
form of a distribution.
If the fund sells securities that have increased in price, the fund has a
capital gain. Most funds also pass on these gains to investors in a
distribution.
If fund holdings increase in price but are not sold by the fund manager, the
fund's shares increase in price. You can then sell your mutual fund shares
for a profit.
Funds will also usually give you a choice whether to receive a check for
distributions or to reinvest the earnings and get more shares.
You can make money from a mutual fund in three ways:
Income Funds
Income funds are a popular choice for the conservative investor and for
retirees. This type of mutual fund invests primarily in government and
corporate debt. While fund holdings may appreciate in value, the primary
objective of these funds is to provide a steady cashflow to investors.
Bond Funds
Bond funds are likely to pay higher returns than certificates of deposit (CD's)
and money market investments, but can be quite risky. For example, a bond
fund focused on high-yield junk bonds is much riskier than a fund that invests
in government securities. Most bond funds are subject to interest rate risk,
which means that if rates go up, the value of the fund goes down.
Equity Funds
Mutual funds that invest in stocks represent the largest category of mutual
funds. The investment objective for equity funds is long-term capital growth
with some income.
Money Market Funds
The money market mutual fund consists of short-term debt instruments,
mostly treasury bill (T-bills). You won't get great returns, but you won't
have to worry about losing your principal. A typical return is twice the
amount you would earn in a regular checking/savings account and a little
less than the average certificate of deposit (CD).
Types of mutual funds include the following:
Balanced Funds
The strategy of balanced funds is to invest in a combination of fixed-income
and equities to create a "balanced" mixture of safety, income, and capital
appreciation. A typical balanced fund might have a weighting of 60% equity
and 40% fixed-income.
Asset Allocation Fund
Objectives are similar to those of a balanced fund, but asset allocation funds
typically do not have to hold a specified percentage of any asset class. The
portfolio manager is therefore given freedom to switch the ratio of asset
classes as the economy moves through the business cycle.
Click on the link below to fill out a contact form to receive more
information about Mutual Funds. Or speak with our Financial Services
specialist at 732-680-4444 to discuss the features.
Any individual who has taxable compensation during the year and will not
reach age 70 ½ by the end of the year may establish and fund a
Traditional IRA.
Traditional IRAs must be established with institutions that have received
IRS approval, such as most banks, brokerages, and savings institutions.

Making contributions is flexible, so individuals can choose when they
want to fund a Traditional IRA. Also, contributions to a Traditional IRA
may be tax deductible, and the earnings grow on a tax-deferred basis.
Assets in the Traditional IRA are not taxed until they are withdrawn so
the owner can defer paying taxes until retirement, when he or she is most
likely in a lower tax bracket.

The tax and penalty treatment applicable to distributions from a
Traditional IRA is determined by the IRA owner's age at the time of
withdrawal and tax-deductibility treatment of the assets when they were
contributed.
Traditional IRA
A Roth IRA accrues earnings on a tax-free basis and qualified distributions
are tax-free and contributions are never tax deductible. Making
contributions is flexible, so individuals can choose when they want to fund a
Roth IRA.

Any individual who pays income tax may establish and fund a Roth IRA.
Qualified distributions from Roth IRAs are tax and penalty free, but non-
qualified distributions may be subjected to tax and early-distribution penalty.
Roth IRA
Click on the link below to fill out a contact form to receive more
information about Traditional and Roth IRA's. Or contact our Financial
Services specialist at 732-680-4444 to discuss the features.
"Your Local New Jersey Financial Services Specialist!"
We provide experienced financial planning services advice for mutual funds, education savings
programs, and IRA accounts to residents of the following New Jersey counties and cities: Union
County, Essex County, Bergen County, Passaic County, Sussex County, Morris County, Warren
County, Hunterdon County, Somerset County, Middlesex County, Monmouth County, Mercer
County, Burlington County, Clark, Newark, Jersey City, Elizabeth, Rahway, Colonia, Iselin, Avenel,
Woodbridge, Port Reading, Carteret, Perth Amboy, Fords, South Amboy, Metuchen, Plainfield,
Dunellen, South Plainfield, Green Brook, Fanwood, North Plainfield, Cranford, Scotch Plains,
Westfield, Union, Millburn, Springfield, Mountainside, Gillette, Warren, Watchung, Stirling,
Millington, Middlesex, Martinsville, Piscataway, Edison, New Brunswick, Highland Park, North
Brunswick, Sayreville, East Brunswick, Somerset, Milltown, South River, Bound Brook, Somerville,
Bridgewater, Bayonne, Linden, Roselle, Hoboken, Union City, Weehawken, West New York,
Guttenberg, Cliffside Park, Edgewater, North Bergen, Secaucus, Fairview, Ridgefield, Fort Lee, Leonia,
Palisades Park, Englewood Cliffs, Englewood, Bergenfield, Teaneck, Paramus, Bogota, Ridgefield Park,
Little Ferry, Hackensack, Maywood, Teterboro, South Hackensack, Rochelle Park, Moonache, Lodi,
Hasbrouck Heights, Saddle Brook, Garfield, Elmwood Park, Woodridge, Carlstadt, East Rutherford,
Lyndhurst, Rutherford, Wallington, Passaic, Clifton, Paterson, Totowa, West Paterson, Little Falls,
Great Notch, North Caldwell, Cedar Grove, Verona, Montclair, Bloomfield, West Orange, Glen Ridge,
Belleville, Nutley, Kingsland, North Arlington, Kearney, Harrison, East Orange, East Newark, Orange,
Irvington, South Orange, Hillside, Townley, Livingston, Wayne, Trenton, Camden, Atlantic City,
Princeton, Vineland, Willingboro, and Toms River, NJ.
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American Insurance
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1129 Raritan Road
Clark, New Jersey 07066
(732) 680-4444
Fax: (732) 680-4067