Products and Services - Citibank (2024)

• Traditional brokerage accounts

  Whether you are a self-directed investor and choose to buy and sell securities online, or you prefer to get the advice of a financial advisor, a traditional brokerage account can hold your portfolio and provide the flexibility to retain as much control of your investments as you like.

• Managed accounts

  A managed account is a portfolio of investment products, such as individual securities, cash instruments, mutual funds, exchange-traded funds and possibly alternative investments, professionally managed and tailored to your specific financial goals. You can let a Financial Advisor make selections for you, make your own selections through a Financial Advisor, or a combination.

• Individual Retirement Accounts (IRAs)

  As the name suggests, an Individual Retirement Account (IRA) can help you save and invest for retirement. Depending on which type you select, traditional or Roth, you'll receive certain tax and savings advantages—powerful tools to help you with your retirement goals. A Traditional IRA account enables you to fund the account with earned income generally before taxes are taken, and earnings will then grow on a tax-deferred basis. On the other hand, contributions to a Roth IRA are made with after-tax earned income, but grow tax-free. Both types of IRA accounts may be either managed or traditional, including annuities (but not all products are available in retirement accounts).

• Retirement Plans for Your Business

  Business owners may wish to help set up retirement plans for themselves and their employees. 401(k) plans, SEP & SIMPLE IRAs, Profit Sharing plans & Pension accounts are either managed or traditional, including annuities (but not all products are available in retirement accounts).

• Stocks (Equities)

  A stock is a type of security that provides a share of ownership in a company. Stocks include U.S. domestic, international and emerging markets. The two main types of stock are:

  • Common stock: Typically enables the owner to receive any dividends and vote at shareholders' meetings.
  • Preferred stock: The owner usually does not have voting rights, but has a higher claim on assets and earnings than common stockholders.
  • Stocks can provide growth and/or income and over the long term may outperform other asset classes, such as bonds
• Mutual Funds

  A mutual fund is a pooled investment vehicle designed to invest money from many individuals in securities such as stocks, bonds, money market instruments and similar assets. The investments are determined by professional money managers who adhere to the fund's objectives stated in its prospectus. The performance of these underlying investments, minus fund fees and expenses, determine the fund's investment return.

• Bonds (Fixed Income)

  Sometimes referred to as a fixed-income security, a bond is a debt investment where you lend money for a set period of time at a specified interest rate to an entity, such as a government or corporation. The bond typically provides regular income, based on the interest rate. The bond's yield is the interest rate divided by the bond's price. Bond prices and yields move in the opposite direction, which means if you sell a bond before it matures, you may receive more or less than your original investment.

• Options

  A stock option is a contract sold by one party (option writer) to another party (option holder), allowing the holder the right, but not obligation, to buy or sell a stock at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date). Call options allow the holder to buy at a certain price, and put options allow the holder to sell at a certain price.

• Life Insurance

  There's an old saying. You don't get life insurance for yourself. You get it for the people you love. The right life insurance not only offers financial security for your loved ones, but it also helps protect their future, your wealth, your business, and your legacy. In short, it can protect everything you've worked for your entire life. It is a key part of any financial plan.

  From the time we're young, we're told that working hard and saving money is the way to get ahead. While that's an excellent strategy for building wealth, it's not as simple as it sounds. Even though we don't know what's going to happen next week, next month or next year, we can help prepare for it with a risk management strategy that creates a foundation that offers you the confidence and control to focus on your life instead of your money.

  With proper planning, such a foundation would:

  • Quickly provide financial benefits
  • Be shielded from creditors
  • Allow for multiyear planning
  • Offer income tax-free death benefits

  So, what risk management strategy offers all this? Life insurance.

  As a Citi client, you have access to a robust offering of insurance types, which Citi has curated by engaging top-rated carriers to ensure a wide range of financial needs can be met across nearly every phase of life. One of our experienced Citi Personal Wealth Management Wealth Advisors and insurance specialists can help you select the appropriate coverage to address your unique needs.

  Types of Life Insurance

  One of the most critical aspects of life insurance is choosing the right type and amount of coverage. This will help ensure that the policy provides sufficient benefits to supplement your assets to meet your unique financial needs now and in the future.

  Life insurance is designed to provide your beneficiaries (such as children, spouse or other dependents) with financial security when you are no longer there, such as using the insurance proceeds from the death benefit to help pay off any debt, maintain your family's style of living, ensure your children's education, and support your family's retirement and estate planning.

  The insurance proceeds from the death benefit:

  • Typically transfer free of federal income taxes and go directly to the beneficiaries, bypassing probate court
  • May pass to the next generation free of federal and state estate taxes, with proper financial planning and advice from a qualified tax professional and estate planning attorney

  The two general types of life insurance are term and permanent, which differ in key ways.

  • Term Insurance

    Term insurance provides a payment to the insured's beneficiaries when the insured dies. The insured chooses how long they want to maintain the coverage, typically between 10 – 35 years. Deciding what duration of term insurance to buy can be a big decision for you and your family. Premiums paid for term insurance cover only the cost of insurance. They do not generate cash value.

  • Permanent Insurance

    Permanent life insurance is coverage that can last for the lifetime of the insured if the premiums are paid. The three major types are Whole Life, Universal Life and Variable Universal Life.

    • Whole Life insurance provides coverage for the insured's entire lifetime and builds cash value at a guaranteed rate, with possible additional dividends.
    • Universal Life insurance also builds cash value based on an interest rate and offers a death benefit.
    • Variable Universal Life insurance builds cash value based on market performance and has a separate death benefit. Keep in mind that a portfolio based on market performance is subject to market fluctuation and other investment risks.

  Three major types of permanent life insurance

  	Whole Life	Universal Life	Variable Universal Life
  Death Benefit
  Death Benefit	Whole Life Has feature	Universal Life Has feature	Variable Universal Life Has feature
  Builds Cash Value
  Builds Cash Value	Whole Life Has feature	Universal Life Has feature	Variable Universal Life Has feature
  Guaranteed Cash Value
  Guaranteed Cash Value	Whole Life Has feature	Universal Life —Does not have feature	Variable Universal Life —Does not have feature
  Growth Tied to Interest Rates
  Growth Tied to Interest Rates	Whole Life —Does not have feature	Universal Life Has feature	Variable Universal Life —Does not have feature
  Guaranteed Minimum Rate
  Guaranteed Minimum Rate	Whole Life Has feature	Universal Life Has feature	Variable Universal Life —Does not have feature
  Flexible Premiums
  Flexible Premiums	Whole Life —Does not have feature	Universal Life Has feature	Variable Universal Life Has feature
  Growth Tied to Investments
  Growth Tied to Investments	Whole Life —Does not have feature	Universal Life —Does not have feature	Variable Universal Life Has feature
  Offers a Range of Investments
  Offers a Range of Investments	Whole Life —Does not have feature	Universal Life —Does not have feature	Variable Universal Life Has feature
  Considered a Security
  Considered a Security	Whole Life —Does not have feature	Universal Life —Does not have feature	Variable Universal Life Has feature

  Key Differences Between Permanent and Term Life Insurance:

  Feature	Permanent	Term
  Coverage Duration
  Coverage Duration	Permanent Life	Term A specific number of years
  Cash Value
  Cash Value	Permanent Yes	Term No
  Key Benefits:
  Key Benefits:	Permanent Cash Value and protection	Term Protection only
  Loans Available*
  Loans Available*	Permanent Yes, if there is Cash Value	Term No
  Tax Benefits
  Tax Benefits	Permanent Federal income–tax–free death benefit, which may be subject to estate taxes Tax-advantaged growth and opportunities Tax-favored withdrawals	Term Federal income–tax–free death benefit, which may be subject to estate taxes
  Major Advantages
  Major Advantages	Permanent Coverage designed to last a lifetime Potential to build Cash Value	Term Lower cost of death benefit protection
  Other Considerations
  Other Considerations	Permanent Higher annual premiums vs. term life Loans and withdrawals may reduce death benefit	Term Premium and death benefit ends when term ends, but the policy may have the option to be converted to permanent insurance.

  To learn more, have a Wealth Advisor contact you, Or call 1-877-357-3399 / TTY: 711.

  * Distributions are taken through loans and withdrawals, which reduce a policy's cash surrender value and death benefit and may cause the policy to lapse. Loans are generally income tax-free. Withdrawals and surrenders are tax-free up to the cost basis, provided the policy is not a modified endowment contract (MEC). You should consult your tax advisor before taking a loan or withdrawal from a life insurance policy.

• Long–term Care Insurance

  You may find it challenging to think about long-term care insurance. A health event that could happen in the future is usually not top of mind.

  Long–term care insurance is designed to help cover expenses related to prolonged physical illness, a disability, or a cognitive impairment such as Alzheimer's disease. Long–term care services may include help with activities of daily living such as bathing, getting dressed, and eating.

  Although typically associated with Nursing Home care, long-term care insurance may also cover health care, respite care, hospice care, adult day care, or care in an assisted living facility.

  Long–term care insurance is not designed to cover medical, surgical, or prescription drug expenses typically covered by health insurance. Funds to cover long–term care expenses may also be provided through riders on life insurance policies that accelerate the policy's death benefit in the event of chronic illness.

  To learn more, have a Wealth Advisor contact you, Or call 1-877-357-3399 / TTY: 711.

• Annuities

  Designed for retirement purposes or other long—term goals, an annuity can provide you with the ability to accumulate assets on a tax—deferred basis. Annuities can also provide lifetime income, unlimited contributions (depending upon product and carrier restrictions), and a variety of investment options.

  These products serve as a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you starting immediately or sometime in the future. You can purchase an annuity contract by making either a single purchase payment or a series of purchase payments.

  Annuities are most common for retirees looking for a stable income stream, pre-retirees looking to grow their principal, and people looking to grow their nest egg or leave behind a legacy to their beneficiaries.

  Depending on how you decide to structure your annuity, you can have the opportunity to receive set "fixed" payments, or the payments can fluctuate with the market in a variable contract.

  Two main types of annuities:

  • Fixed Annuity
    • Most basic type of annuity
    • Provides a fixed rate of interest
    • You receive the guaranteed rate of return
    • Payouts can last a certain number of years
  
  
  • Variable Annuity
    • Typically includes allocation of investment to sub-accounts
    • Payments you receive fluctuate with the performance of the underlying investments
    • Can purchase with one lump sum or a series of payments
    • Can receive deferred or immediate income payments

  The chart below is a high overview of each.

  	Variable	Fixed Annuity
  Use
  Use	Variable Long-term investment goals	Fixed Annuity Building wealth
  Principal features
  Principal features	Variable Market exposure; investment risk; tax deferral	Fixed Annuity Fixed interest rate; tax deferral

  See Also

  Top CD rates today: Top rates remain competitive — June 6, 2024

  Your annuity payments can either start right away with an immediate income annuity, or at some point in the future with a deferred annuity.

  	Immediate	Deferred
  Funding
  Funding	Immediate Accumulation phase is short, as you have to fund it all at once with a single lump-sum. There is no accumulation phase	Deferred You can fund it with a lump-sum, but are also able to fund it over time with a series of payments known as a flexible-premium deferred annuity
  Payouts
  Payouts	Immediate Payouts begin within the first 12 months of the contract taking effect	Deferred Payouts begin at least 13 months after the contract begins and can be delayed for up to 40 years (depending upon age, product and/or carrier restrictions)
  Withdrawals
  Withdrawals	Immediate Usually doesn't allow partial withdrawals before payouts begin or provide cash surrender benefits	Deferred In some cases, you can withdraw money before payouts start, but it can result in financial penalties and lower future returns
  Returns
  Returns	Immediate Historically provide lower total returns since it has less time to accumulate earnings	Deferred Tends to provide higher returns, since it has more time to build up earnings

  Immediate Income Annuities vs. Deferred Income Fixed Annuities:

  Keep in mind that there are fees and expenses associated with annuities, so be sure to inquire about them. In addition, bear in mind that guarantees, including interest rates and subsequent payouts, are based on the claims—paying ability of the issuing insurance company, among other risks.

  To learn more, have a Wealth Advisor contact you, Or call 1-877-357-3399 / TTY: 711.

• Retirement Savings

  A Citi Personal Wealth Management Financial Advisor can help you plan for your retirement and choose from a wide range of tax-advantaged retirement accounts, including Traditional and Roth IRAs, or can help you as a business owner set up a retirement plan for yourself and your employees.

• Education Savings

  A Citi Personal Wealth Management Financial Advisor can help you with the financing of your child's college education, including projecting total costs and then reviewing what you can afford, how to handle college savings and how else you might pay college costs. Home and major purchase savings — A Citi Personal Wealth Management Financial Advisor can help you build a plan to fund a special purchase, including taking into account such variables as initial vs. long-term costs, funding sources, the timing and tax implications.

• Trusts and Estate Planning

  For clients with complex investment needs and strategies, our Wealth Planning Specialist Team can help develop a plan. This team draws from their many years of experience and advanced education. Wealth Planning Specialist Team members include an estate planning specialist, who can guide you on wealth transfer, gifting, insurance, charitable giving and other related areas, working with your legal and tax advisors.

• Alternative Investments

  The term encompasses a broad category of investment products and strategies that fall outside the traditional purchase and sale of stocks and bonds. Commonly known examples are:

  • Hedge funds: Private pools of capital are invested in a wide variety of strategies.
  • Private equity: Investment managers take an ownership interest in "target" companies and work to increase value by financing change at all stages of development.
  • Real estate: Investments such as managed funds, clubs and direct deals invest directly in real estate, including commercial property and residential housing.
• Structured Products

  Structured products are typically designed to:

  • Take a traditional security, such as a bond, and substitute the usual payment features (e.g., periodic coupons and final principal) with non-traditional payoffs
  • Have a fixed maturity date
  • Offer specific risk-return tradeoffs, such as protection of principal when held to maturity or potential for enhanced returns.
• Securities-Based Lending

  Securities-based lending gives you a convenient and flexible way to borrow against the value of your eligible investments. The two choices for borrowing are:

  • A Portfolio Line of Credit: a loan that can be used for virtually any personal or business purpose other than to purchase securities or repay margin debt.
  • Traditional margin loans: a loan that can be used for any purpose, including the purchase of securities.

INVESTMENT AND INSURANCE PRODUCTS: NOT INSURED BY THE FDIC • NOT INSURED BY THE FEDERAL GOVERNMENT OR ANY OTHER FEDERAL GOVERNMENT AGENCY, BY THE BANK, OR BY ANY AFFILIATE OF THE BANK • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, THE BANK OR AN AFFILIATE OF THE BANK • MAY BE SUBJECT TO INVESTMENT RISK, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL INVESTED

INVESTMENT AND INSURANCE PRODUCTS: NOT FDIC INSURED • NOT A BANK DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NO BANK GUARANTEE • MAY LOSE VALUE

1. This Communication is prepared by Citi Private Bank (CPB), a business of Citigroup, Inc., which provides its clients access to a broad array of products and services available throughout Citigroup, its bank and non-bank affiliates worldwide (collectively, Citi). Not all products and services are provided by all affiliates or are available at all locations. CPB personnel are not research analysts, and the information in this Communication is not intended to constitute research, as that term is defined by applicable regulations.to footnote reference 1