REVIEW - Unit 6 - Other Investment Types

529s are for

saving for education

LGIPs are for

government entities to “park” their money short term

How are ABLE accounts taxed

growth is tax deferred, withdrawals are tax free

How are taxes paid in a partnership?

individually based on proportional ownership - not as a collective

another term for an LP

DPP, direct participation program

who has higher priority at dissolution - GP or LP?

LP

industries LPs are common in

energy, real estate. industries that experience losses early on

Gains/losses for LPs are considered….

Passive

How can LPs use depreciation/losses?

to lower their taxable income

REITs

manage a portfolio of real estate, taxed as a conduit

ETFs invest in…

a specific group of stocks to mimic an index

unlike mutual funds, ETFs trade…

in the secondary market and investors can take advantage of intraday price changes

ETFs can be purchased on _______

margin - borrowed money. And can be shorted

ETFs are _______ than mutual funds, but….

cheaper, each trade has a commission fee

ETNs are

unsecured debt from a financial institution that pays cash based on the performance of an underlying fund at maturity