Continental Investors Services, Inc.

CONNECT

Address:

1330 Broadway St.
Longview, WA 98632

Phone:

360-423-5110

Fax/Other:

360-423-6311

Products & Services

INVESTMENT SERVICES

Continental Investors Services, Inc. maintains a strong municipal and corporate bond trading department.  Excellent long-term relationships with major bond houses throughout the country provide our experienced bond traders with a broad base of buying sources. 

MUNICIPAL BONDS

Municipal bond expertise and trading capabilities are provided for the large and small investor throughout the United States.  Service to the private investor is provided in the general market.  Tax Exempt Revenue and General Obligations Bonds are offered as well as portfolio evaluation, tax swap and safekeeping services.  

 Emma Web Site Link

CORPORATE BONDS

We offer Corporate Bonds specializing in First Mortgage Electric Utilities.

EQUITIES

New York Stock Exchange and over-the-counter transactions are executed through a close relationship with our member firm Hilltop Securities, Inc.  Hilltop seats on several equities exchanges.  We also offer liquidation services for restricted stock issued under Rule 144 of the SEC.

Best Execution Policy:

All orders are routed through our clearing firm, Hilltop Securities, Inc.  Our clearing firm has stated that they review the NASDAQ report card for Best Executions on a Quarterly basis.  Order routing is determined by the routing committee at Hilltop Securities, Inc.  

See link below for Best Execution (order routing)

Hilltop Securities, Inc.

After you are at the above site, go to the links listed as follows:

-Institutional services

-Agency trading

-Rule 606

Reports are posted quarterly

MUTUAL FUNDS

What is a mutual fund? 

A diversified, professionally managed portfolio of securities that pools the assets of individuals and organizations to invest toward a common objective such as current income or long-term growth. Technically, a mutual fund is a regulated investment company registered under the Investment Company Act of 1940.

How do I get started?  

Although it is possible to invest directly with a mutual fund company, it is a good idea to consult with an investment professional to help match your financial needs with the appropriate investment vehicle.  An investment consultant can provide many additional services that you may otherwise not receive investing on your own.  You may contact a representative of Continental Investors Services, Inc. at (800) 525-0181 or at one of our branch offices.

What mutual funds does Continental Investors Services, Inc. offer?  

Continental Investors offers a diversified, professionally managed portfolio of securities that pools the assets of individuals and organizations to invest toward a common objective such as current income or long-term growth.  With over 5000 different mutual funds available to investors, Continental Investors Services, Inc. has dealer agreements with most of the major mutual fund families.

The above information is not a solicitation or offer to purchase mutual funds.  Mutual funds are offered by prospectus only.  For more information on fund charges you may obtain a prospectus from Continental Investors Services, Inc...  Read the prospectus carefully before investing any money.  Mutual fund values may increase or decrease depending on market conditions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Management Account   

 

 

 

 

 

 

 

 

 

 

 

 

 

One account that combines checking, investments and credit to give you the earning power you need and the convenience and control you want.  The Vision Account was designed for busy investors like you.  Vision is a single, convenient account providing the important financial services you need.

 

 

 

 

 

RETIREMENT

 

 

 

 

Who is a retirement plan beneficiary? 

 

 

 

 

When a retirement account is opened, the plan participant must name someone other than themselves as a beneficiary. When a participant dies, the beneficiary is then entitled to receive the funds in the retirement account.

 

 

 

 

 

 

 

  • The method of calculating the required minimum distribution will be determined by the age of the retirement plan participant at their death. If the participant had reached the age that distributions were required by law (generally 70 ½ years of age), the distribution rules are more stringent than if the owner had died at an earlier age.

     
  • Whether or not the beneficiary is the surviving spouse of the original participant. If the beneficiary of the retirement plan account is the surviving spouse, they have more distribution options than a nonspouse beneficiary.



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What are the distribution requirements if the participant was not 70 ½ years old at their death? 

 

 

 

 

 

Retirement plan beneficiaries in this category can choose to receive the funds under either the 5 year rule or the life expectancy rule. The 5 year rule states that the entire balance of the retirement account must be distributed no later than December 31st of the year of the fifth anniversary of the original owner's death. The life expectancy rule allows the beneficiary to file an election to have the retirement account distributed over their own single life expectancy. This option usually results in a much longer schedule of payments. Both options allow the beneficiary to accelerate the payments at any time.

 

 

 

 

IRA ROLLOVER & TRANSFER

 

 

 

 

What is a rollover IRA? 

 

 

 

 

A rollover IRA is an individual retirement account that is created when a distribution from another retirement plan is deposited into an IRA.

 

 

 

 

What are the benefits of a rollover IRA?

 

 

 

 

Normally, a distribution from a retirement plan is taxable when it is received. But if that distribution is deposited into a rollover IRA, the funds are not taxable until they are withdrawn from the IRA. In addition, the income earned by the investments in the IRA accumulates on a tax-deferred basis.

 

 

 

 

Which types of funds are eligible for rollovers?

 

 

 

 

There are two types of funds which are eligible for rollover treatment. A rollover from one IRA to another IRA. If an individual receives funds from an IRA, they may redeposit any or all of the distribution into another IRA within a 60 day period. These types of rollovers are not allowed more than once in any 12 month period. A rollover from a qualified employer plan to an IRA. If an individual receives an eligible rollover distribution from a qualified retirement plan, they can roll any or all of that amount into an IRA within a 60 day period. This option is available whether the individual receives the funds directly and then makes a deposit into their IRA or whether the funds are directly transferred from the qualified plan to the IRA. However, while the total amount of the retirement plan distribution may be eligible for rollover, if the individual receives the funds directly from the qualified plan the administrator of that plan may be required to withhold 20% of the funds for income taxes.

 

 

 

 

When do I have to establish my rollover IRA? 

 

 

 

 

Unless you have chosen a direct rollover, you have 60 days from the day you received the funds to roll the amounts over and avoid current taxation. Consequently, your rollover IRA account needs to be set up no later than the end of that 60 day time period.

 

 

 

 

Can IRA funds be rolled into a qualified retirement plan? 

 

 

 

 

As a general rule, as long as rollover IRA assets have not been commingled with regular assets, a rollover IRA can later be transferred into an employer sponsored retirement plan. Since a non-rollover IRA cannot be rolled into a qualified plan, it may be important to keep the two types of assets separate. Please contact your tax advisor for recommendations on your specific situation.

 

 

 

 

What is the difference between an IRA rollover and an IRA transfer? 

 

 

 

 

A transfer of an IRA is the direct transfer of your IRA assets from one IRA to another. An important distinction between a transfer and a rollover is whether the participant actually receives the funds. In a rollover IRA the participant actually receives the funds and then redeposit them into the rollover IRA. In a transfer, the assets are directly transferred from one financial institution to another. An individual is limited to one rollover per year, but direct transfers are not subject to any annual limitations.

 

 

 

 

ROTH IRA

 

 

 

 

What is a Roth IRA?

 

 

 

 

A Roth IRA is a new type of individual Retirement Account created by recent federal legislation.   Contributions to a Roth IRA are not tax deductible, but qualifying distributions will be exempt from federal taxation.

 

 

 

 

Who is eligible for a Roth IRA?

 

 

 

 

In order to be eligible to open a Roth IRA, your income has to be below certain thresholds.  A single taxpayer is fully eligible for a Roth IRA if either adjusted gross income is under $95,000.   Married couples with adjusted gross incomes under $150,000 are also fully eligible for a Roth IRA.  Single taxpayers with adjusted gross income greater than $110,000 and married taxpayers with incomes in excess of $160,000 are not eligible to open a Roth IRA.

 

 

 

 

What is the difference between a Roth IRA and a traditional IRA?

 

 

 

 

Depending on your income and whether you participate in your employer's retirement plan, contributions to a traditional IRA can be tax deductible.  In a traditional IRA, contributions grow tax deferred until they are distributed.  With a Roth IRA, contributions are never tax deductible, but as long as the distributions meet certain requirements, the distributions from a Roth IRA will not be taxed.  Consequently, while the accumulated income in a traditional IRA is deferred from taxation until distribution, this income may never be taxed in a Roth IRA.

 

 

 

 

What criteria must be met for a Roth IRA distribution to be exempt from tax?

 

 

 

 

The first criteria is that the funds must be held at least five years before any distributions are made.  Once that requirement is satisfied, the distribution must be made for purposes of a first home purchase, retirement, death or disability.  If an individual is 59 1/2, a distribution is considered a retirement distribution.

 

 

 

 

What happens if I take money out of a Roth IRA before I meet the criteria?

 

 

 

 

If a distribution is made from a Roth IRA before it meets the criteria outlined above, the income in the account will be subject to regular income tax.  In addition, the distribution may be subject to some type of penalty tax.

 

 

 

 

How much can I contribute to a Roth IRA?

 

 

 

 

Contributions to either the Roth or a traditional IRA are limited to $2,000 per year.  This is the maximum amount an individual can contribute to any combination of IRA accounts.  You are not allowed to contribute $2,000 to each type of account.  You must have at least $2,000 in earned income to be eligible to contribute to either the Roth or a traditional IRA.   A spouse who does not work can also contribute $2,000 to either type of IRA.

 

 

 

 

Can I convert my current IRA into a Roth IRA?

 

 

 

 

If your income is below $100,000 without regard to your IRA conversion distribution, you can convert your traditional IRA into a Roth IRA.  However you must pay tax on the balance of any deductible contributions and all of the accumulated income.  If you converted in 1998, you have the option of spreading the tax liability for the conversion over a four year period.  After 1998, you must pay all of the tax in the year of the conversion.

 

 

 

 

How do I open a Roth IRA?

 

 

 

 

Discuss with your tax advisor if the Roth IRA meets your individual retirement needs.  Then contact your account representative to receive the necessary forms to open your new Roth IRA.

 

 

 

 

"The time to start saving for retirement is now!"

 

 

 

 

This page is intended only to answer general questions about Roth IRAs.  Retirement law is a complex technical area.  We strongly urge you to contact your personal tax advisor for more information.

 

 

 

 

MONEY PURCHASE PLANS

 

 

 

 

What are the tax consequences of a rollover? 

 

 

 

 

As long as the rollover requirements are met, the amount rolled over is exempt from current taxation. When money is withdrawn from a rollover IRA, the participation is normally taxed on the distribution and could be subject to the premature distribution tax if they are not yet 59 ½.

 

 

 

 

Is there any difference between distributions from qualified retirement plans and those from IRAs? 

 

 

 

 

Distributions from all types of retirement plans are subject to the requirements previously discussed. But a qualified plan may have additional rules for distributions to beneficiaries. The qualified plan administrator should be contacted for an explanation of the specific guidelines for a particular plan.

 

 

 

 

What if there is more than one beneficiary? 

 

 

 

 

If there is more than one beneficiary, the life expectancy rule must be calculated using the age of the oldest primary beneficiary.

 

 

 

 

How are distributions to a retirement plan beneficiary taxed? 

 

 

 

 

Retirement funds received as a beneficiary are subject to ordinary federal income taxes. However, regardless of the age of the participant at the time of their death, the distributions are not subject to the additional 10% premature distribution penalty. An exception to this exemption would be the case of a spousal rollover. If the spouse takes a distribution after the funds have been rolled over, the standard distribution rules would apply.

 

 

 

 

What additional distribution options are allowed for a surviving spouse?

 

 

 

 

In addition to the distribution methods already discussed, a surviving spouse has two additional options. If they choose the life expectancy method, they have the option of delaying the distributions until the decedent would have reached the mandatory distribution age of 70 ½. Or the surviving spouse can choose to roll the balance of the decedent's retirement account into an IRA in their own name. If the original participant was required to take a annual minimum distribution, the amount required for the year of their death may not be eligible for rollover. Once the rollover option is chosen, the spouse is treated as the original owner of the IRA for income tax purposes.

 

 

 

 

What are the distribution requirements if the participant was 70 ½ years or older at their death? 

 

 

 

 

If the original retirement plan participant had reached the age of required distributions, the law requires the distributions to the beneficiary to be at least as rapid as the deceased participant was receiving their payments. If the owner had chosen to recalculate their life expectancy every year, their life expectancy now goes to zero and the payments are accelerated. If the deceased participant had not been recalculating their life expectancy on an annual basis, the beneficiary will receive their payments on the same schedule as the original owner. Again, both options allow the beneficiary to accelerate the payments at any time.

 

 

 

 

What are my distribution options as a beneficiary? 

 

 

 

 

The options available to you as a beneficiary depend on two things:

 

 

 

 

What is a money purchase plan? 

 

 

 

 

A money purchase plan is a qualified retirement plan that allows employers to make a mandatory tax-deductible contribution on behalf of their employees. The amount of the contribution is usually a fixed percentage of compensation. The contribution is allocated to individual employees based on the ratio of their compensation to the total compensation expense of the employer. Investments in a money purchase plan grow tax-deferred until they are withdrawn by the participant. The income earned on investments will not be taxable until it is withdrawn. Money purchase plans reward long-term service with an employer. Employees must complete a certain amount of service with the employer before they are entitled to their entire plan account balance. If an employee terminates before that time, a portion of their account is normally allocated to the remaining participants.

 

 

 

 

What are the advantages of a money purchase plan? 

 

 

 

 

Money purchase plans allow an employer to contribute more. By agreeing to contribute a fixed percentage of compensation each year, the law allows employers with money purchase plans to contribute and deduct the maximum allowable amount each year.

 

 

 

 

Which employees are eligible to participate in a money purchase plan? 

 

 

 

 

Generally, all employees who are over 21 and have completed at least one year of service are eligible to participate in a money purchase plan. A year of service is generally a year in which an employee works at least 1,000 hours

 

 

 

 

How much can I contribute to a money purchase plan? 

 

 

 

 

The employer can contribute up to 25% of the total payroll compensation in a money purchase plan.

 

 

 

 

When do I have to make my contributions

 

 

 

 

An employer generally has until the filing date of the federal income tax return to deposit their contribution into the plan. However, a money purchase plan must be in place by the end of an employer's taxable year in order for the employer to be eligible to make a contribution.

 

 

 

 

When can the money be withdrawn from a money purchase plan? 

 

 

 

 

Participants can generally withdraw their accounts upon terminating their employment or reaching retirement age. Distributions can either be made in a single sum or in installment payments. Distributions are required for participants who have reached age 70 ½ unless they are still working for the employer.

 

 

 

 

How are distributions from a money purchase plan taxed? 

 

 

 

 

Distributions are normally taxed as ordinary income when they are received. Any distributions received before the participant is 59 ½ may also be subject to a 10% IRS penalty.

 

 

 

 

How do I get started? 

 

 

 

 

Discuss which type of retirement plan choices are best for you with your tax advisor. Then call your account representative to receive the necessary forms to start your new retirement plan.

 

 

 

 

This page is intended only to answer general questions about money purchase plans. Retirement plans are a complex technical area. We strongly urge you to contact your personal tax advisor for answers to more detailed questions.

 

 

 

 

TARGET BENEFIT PLANS

 

 

 

 

What is a target benefit plan?

A target benefit plan is a qualified retirement plan that is designed to pay a target benefit to each participant upon retirement. The amount of the contribution is determined by actuarial assumptions outlined in the plan. The contribution is allocated to individual employees based on their age and the amount of time until they retire.

 

 

 

 

Investments in a target benefit plan grow tax-deferred until they are withdrawn by the participant. The income earned on investments will not be taxable until it is withdrawn. Target benefit plans reward long term service with an employer. Employees must complete a certain amount of service with the employer before they are entitled to their entire plan account balance. If an employee terminates before that time, a portion of their account is normally allocated to the remaining participants.

 

 

 

 

What are the advantages of a target benefit plan?

Target benefit plans allows employers to use age as a factor in allocating contributions. This allows the employer to allocate more of their contribution towards older employees. A target benefit plan does not guarantee a certain retirement benefit. The annual contribution to a target benefit plan is mandatory

 

 

 

 

Which employees are eligible to participate in a target benefit plan?

Generally, all employees who are over 21 and have completed at least one year of service are eligible to participate in a target benefit plan. A year of service is usually a year in which an employee works at least 1,000 hours.

 

 

 

 

How much can I contribute to a target benefit plan?

The employer can contribute up to 25% of total payroll compensation in a target benefit plan.

 

 

 

 

When do I have to make my contributions?

An employer has until the filing date of the federal income tax return to deposit their contribution into the plan. However, a target benefit plan must be in place by the end of an employer's taxable year in order for the employer to be eligible to make a contribution.

 

 

 

 

When can the money be withdrawn from a target benefit plan?

Participants can generally withdraw their accounts upon terminating their employment or reach retirement age. Distributions can either be made in a single sum or in installment payments. Distributions are required for participants who have reached age 70 ½ unless they are still working for the employer.

 

 

 

 

How are distributions from a target benefit plan taxed?

Distributions are normally taxed as ordinary income when they are received. Any distributions received before the participant is 59 ½ may also be subject to a 10% IRS penalty.

 

 

 

 

How do I get started?

Discuss which type of retirement plan choices are best for you with your tax advisor. Then call your account representative to receive the necessary forms to start your new retirement plan.

 

 

 

 

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