Full Service Brokerage Financial Planning Mutual Funds Discount Brokerage Online Trading Cash Management Sweep Accounts Money Market Funds Investment Management Financial Planning Tax Efficient Investing Traditional IRAs 401(K) Qualified Plans Non-Qualified Plans 529 College Plans Insurance Products Life Insurance Long Term Care Disability Insurance Fixed Annuities Variable Annuities Deferred Annuities Immediate Annuities

Ray Lutke   Investment Representative, Certified Senior Advisor (CSA) ray.lutke@cw-advisors.com Other Unit Investment Trusts (UITs) Custodial Account Fiduciary Trust & Estate Services (services to be offered through a preferred service provider)

Full Service Brokerage

is the process of evaluating the investing and financing options available to help a firm or individual achieve their financial goals. This 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.

are investments operated by investment companies.  Open-ended mutual funds continually offer new shares and stand ready to redeem existing shares from owners who wish to sell.  Individual mutual funds vary substantially in terms of the types of investments, their sales charges and their management fees. Mutual funds are considered long term investments. Consult the prospectus regarding the possibility of a contingent deferred sales charge.

Discount Brokerage

On-Line Trading – Capitol Wealth Advisors is excited to welcome a new online discount brokerage tool, myWEALTH, to our customers. Create your own myWEALTH account with the help of one of our Brokerage Contact People, 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 one of our Brokerage Contact People for more information regarding this new service.

To access the myWEALTH login screen CLICK HERE

Cash Management

1. 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 about applying for PrimeSweep.
   

To access the PrimeSweep Account Viewing Application login screen CLICK HERE

PrimeSweep is offered by PrimeVest Financial Services, Inc. a registered broker/dealer member NASD/SIPC, and not affiliated with Capitol Bancorp Limited or its related companies.  Securities products offered by PrimeVest are not FDIC insured, may go down in value, not bank guaranteed, not a deposit and are not insured by any federal government agency.

2. Money Market Funds – mutual fund that sells shares of ownership and uses the proceeds to purchase short-term, high-quality securities.

Investment Management

1. 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.
2. Traditional IRAs – a custodial account in which individuals may set aside earned income in a tax-deferred retirement plan.
3. 401Ks – a retirement plan that permits an employee to set aside apportion of salary in a tax-deferred investment account selected by the employer.
4. 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.
5. Nonqualified Plans – A retirement plan that does not meet the IRS requirements for favorable tax treatment.
6. 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 Products

1. 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.
2. 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.
3. Disability Insurance – An insurance policy that replaces a portion of an individual's income in the event they are unable to work.
4. 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.
5. Variable Annuities - an annuity with payments to the annuitant that vary depending upon the investment success of a separate investment account underlying the annuity.
6. 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).
7. 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

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.