GROWTH STOCKS
These are generally expanding companies that have exhibited faster than average gains in earnings, which are expected to continue showing high levels of profit and growth. Companies with growth stocks typically pay few or no dividends to investors, because the company retains most of its earnings to finance the expansion of the company. Although growth stocks appear attractive because of potential earnings growth, investors need to be aware that growth stocks are risky because the companies are newer and do not have long performance histories. Some investors can tolerate the risk that accompanies growth stocks for the potential higher gains, while other investors cannot. Examples of growth stocks include many technology companies.
VALUE STOCKS
Shares in companies with value stocks tend to be inexpensive based on various measures of their intrinsic or private market value, such as current earnings or total assets. The market is not willing to pay more for them because they are from companies that are out of favor for some reason. Value stocks are considered undervalued by value investors and are poised for turnaround, leading to rising earnings and higher stock prices.
VARIABLE ANNUITY FEATURES
Variable annuities are designed to both accumulate capital over a period of time, and to distribute capital over a period of time or, an individual's lifetime. During the accumulation period, variable annuities provide the investor with tax-deferred accumulation combined with the growth potential of the underlying investment options. During the distribution period, variable annuities can provide the investor with a guaranteed regular income for a period of time, for life, or for a combination of the two. Annuities are the only investment vehicle that can offer both tax-deferred accumulation and a guaranteed income, which your customer cannot outlive. These features and benefits make annuities ideal for long term accumulation planning, such as for retirement.
Ohio National's variable annuity portfolio consists of the Top and ON-Core series. There are no front-end sales charges deducted from any of Ohio National's variable annuity contracts, meaning that 100 percent of the premium is invested in one or more of the investment options selected by the owner including; equity, growth, growth & income, small cap, international and social awareness to name a few.
For more information on Ohio National's variable annuities, or annuities in general, refer to ON-Trac II Annuities (Unit XI). All of Ohio National's variable annuities are offered by Registered Representatives of the Ohio National Equity Sales Company (ONESCO) and must be accompanied by a current prospectus.
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