In the world of investing, Fixed Income Accounts enable you to balance some of the unexpected turns in life with a certain measure of predictability. Fixed income investments can provide you with regular, periodic income at reasonably predictable rates of return. For this reason, they are often added to balance investment portfolios and alleviate risk.
As a source of steady income, fixed income investments will take on a larger role during your retirement years when supplemental income is necessary or desired. Individuals living on a fixed income often worry that inflation will erode their spending power. Knowing you have an additional regular source of income will offset the effects of inflation while giving you greater confidence about your finances.
Types of fixed income investments include:
Tax-Exempt Municipal Bond (also called “munis”)
U.S. Treasury Securities
Treasury Inflation Protected Securities (TIPS)
Ask one of First Hawaiian Bank’s Wealth Advisors how a Fixed Income Account fits into your investment strategy and portfolio. Call us at (808) 525-6280 or stop by any First Hawaiian Bank branch nearest you and ask to speak with a Wealth Advisor. Put the resources of Hawaii’s largest bank to work for you by scheduling your appointment today!
An investment in corporate and/or municipal bonds are subject to a variety of risks including but not limited to credit risk, interest rate risk, and prepayment risk. Because tax-exempt interest generated by municipal bonds is usually more beneficial for investors in higher tax brackets, municipal bonds may not be appropriate for all investors, particularly those in lower tax brackets. In addition, if you are subject to the federal alternative minimum tax (AMT), the interest income generated by certain municipal bonds may be taxable.
Treasuries are debt obligations issued and backed by the full faith and credit of the U.S. government. Treasuries are subject to interest rate risk, call risk, and inflation risk. As Treasuries are backed by the full faith and credit of the federal government, they have low credit or default risk. As a result they generally offer lower yields relative to other bonds.
Brokerage products and services are offered through BancWest Investment Services (“BWIS”), a registered broker/dealer, Member FINRA/SIPC. BancWest Investment Services uses the “doing business as” name First Hawaiian Investment Services (“FHIS”) to provide brokerage and insurance services on the premises of First Hawaiian Bank in Hawaii, Guam, and CNMI. Wealth Advisors of FHIS are registered representatives of BWIS. BWIS is a wholly-owned subsidiary of Bank of the West and is an affiliate of First Hawaiian Bank.