Atul Makharia

Fixed Annuity Versus Fixed-Indexed Annuity

Atul Makharia is a senior advisor at Cola Wealth Advisors in Lexington, South Carolina. In this role, Atul Makharia advises his clients on annuities as it relates to retirement planning.

Cola Wealth Advisors offers fixed annuity and fixed-indexed annuity. While the two provide investors with a stream of income during retirement, they differ in the rate of return, the payout at the end of the term, and risk.

Fixed annuities allow investors to save money over time by depositing money into an account that guarantees a certain rate of return regardless of what is going on in the market. For those who choose this type of annuity, they will receive payments until there is nothing left in the fund, and this payment is usually a fixed amount. Finally, these types of funds are viewed as being safer-typically used by the conservative investor-because of these guarantees.

Fixed index annuities differ in that their rate of return is based on a specific stock market index, for example, the S&P 500. Because of this structure, the rate of return will depend on the stock market, which means at the end of the term the investor could end up with more or less in the account.
While the annuity has a minimum interest rate threshold, this variability also affects payments that the person receives over time. As opposed to receiving the same amount every month, a person who has invested in a fixed-index annuity will receive varying payment amounts. Fixed-index annuities are seen as riskier because of these fluctuations.

Securities and advisory services offered through Centaurus Financial, Inc. Member FINRA and SIPC, a Registered Investment Advisor. Centaurus Financial, Inc. and Cola Wealth Advisors are not affiliated companies. Please visit Cola’s website for more information: https://www.colawealthadvisors.com/.

Eastman Earns Top Project of the Year Award for Recycling Innovation

A senior wealth advisor for Cola Wealth Advisors in Lexington, South Carolina, Atul Makharia is a Series 7 and Series 63 certified advisor. As an advisor, Atul Makharia assists his clients with achieving their financial objectives.

One of the companies that Cola Wealth Advisors works with is Eastman Chemical Company, which was recently recognized for its recycling innovation. Since 1920, Eastman Chemical Company has manufactured everyday products while keeping sustainability and innovation in mind.

The Environment and Energy Leader Awards celebrates excellence in sustainability, energy, and world management, and those who are given the award are considered the best of the best in their industry. Eastman Chemical Company received the company the Top Project of the Year Award for its carbon renewal technology (CRT), a project that could potentially contribute to energy management or have environmental benefits.

As one part of two recycling projects, the CRT involves recycling plastics to be used for other materials. These materials are similar to other content on the market, and they do not require consumers to sacrifice quality for sustainability.

The Benefits of Holistic Financial Planning

Atul Makharia is a registered representative working with Centaurus Financial where he offers financial guidance to clients. For over two decades, Atul Makharia has worked with clients to provide a holistic approach to financial planning with long-term strategies focused on prudent wealth management.

Holistic financial planning is a value-added approach that considers many factors beyond just managing a client’s portfolio. In holistic financial planning, an advisor takes a top-down approach to figure out how a client’s needs and goals figure into the complete financial picture.

Rather than limiting his or her activities to simple financial modeling, a holistic financial planner tries to start with understanding a client’s broader goals. In other words, a holistic financial planner doesn’t make assumptions about what a client should want but rather works with the client to figure out how to best meet their needs. It’s in direct opposition to services such as those provided by robo-advisors that only look at ideal outcomes of financial transactions based on economic models.

What Is Value Investing?

The vice president of investments at Mantei & Associates and a registered representative for Centaurus Financial, Atul Makharia has been working in the financial services sector for more than two decades. Holding Series 7 and Series 63 certifications, Atul Makharia is familiar with such things as value investing.

One of the most basic investment strategies, value investing operates on the idea that the stock market functions inefficiently, overvaluing and undervaluing assets. With this guiding concept, value investors seek out bonds, stocks, and other investments that are undervalued in the market and trading for much lower than their intrinsic value. The assumption is that these stocks will rise to their true value in the future, thus generating good returns for stock holders.

According to value investors, there are several things that could lower a stock’s value, such as a report of poor profits or the overreaction of other investors following negative news. These events do not necessarily correlate with long-term company performance, but they can have dramatic effects on stock prices.

To determine a stock’s intrinsic value, investors will often use a valuation method that examines taxes, deprivation, cash flow, and other aspects of a business. The value determined via this method is compared to the current stock price. If investors notice a significant difference between the price and value of a stock, they will often purchase the stock and hold it until the value increases.

Why the Feds Reduce Rates and How it Affects the Economy

As vice president of Mantei & Associates, a branch of Centaurus Financial, Atul Makharia assists his clients with building and managing wealth. Like many registered representatives, Atul Makharia’s job involves staying in tune with the economy, which involves paying close attention to interest rates.

Interest rates are very important in investing because they help analysts in forecasting the overall health of the economy. The Federal Reserve System, also known as the Central Bank or the Feds, has a four-pronged job in supervising the banking system, stabilizing the financial system, providing banking services, and overseeing inflation. As a part of managing inflation, the Feds adjust the federal fund rate or the interest amount that banks charge each other. This rate is important because it influences the prime rate or the rate that banks charge customers.

Interest rates impact the economy in a few ways. When they are high, businesses and banks tend to avoid borrowing, and conversely when they are low, businesses borrow a lot because the loans are cheap. Basically, the Feds use interest rates to control an expanding or contracting economy.

When there is no inflation, the Feds might lower interest rates because this encourages liquidity. This liquidity facilitates business growth and reduces unemployment. The normal growth of a healthy economy is two to three percent of the GDP growth rate and unemployment ranging between 4.7 and 5.8 percent, and when these figures change drastically, the Feds step in.

Alternatively, if the economy expands too quickly, the Feds hike interest rates to curb inflation. High-interest rates curb borrowing because loans become expensive. Businesses are less likely to borrow or raise prices.

Headquartered in Anaheim, California, Centaurus Financial, Inc. is a national independent broker/dealer registered and licensed to offer securities, investment advisory services and insurance products. Centaurus Financial is a member of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Centaurus Financial is also registered as a broker/dealer and a Registered Investment Adviser with the Securities & Exchange Commission (SEC). For more information about Centaurus Financial, please visit www.centaurusfinancial.com.

Investing 401(k) Savings in Exchange-Traded Funds

After graduating from the University of South Carolina, Atul Makharia embarked on his career guiding clients in financial planning and investments. Atul Makharia began as an intern in the financial industry and worked his way up to vice president of investments at Mantei & Associates in Lexington, South Carolina, where he supports clients in financial decisions like 401(k) investing.

Investors who contribute to a 401(k) retirement plan have a wide variety of options when it comes to investing their savings. Mutual funds are the most common options, but exchange-traded funds are also being used as investment vehicles in 401(k) plans. Exchange-traded funds (ETFs) are groups of securities that are tied to a specific index.

While exchange-traded funds seem similar to mutual funds, there are a few differences. For one, exchanges list these types of funds and they are traded throughout the day, just like common stocks. This means they can be purchased and sold quickly and easily.

An exchange-traded fund can include stocks, bonds, commodities, or other investments. This quality makes it an attractive option for diversifying a portfolio. Investors can also choose between different types of exchange-traded funds, including inverse ETFs, as well as those focused on bonds, various industries, commodities, and currencies,.