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Investing and retiring

Investing and retiring frequently asked questions

Investment and certain insurance products, including annuities, are offered by HSBC Securities (USA) Inc. (HSI), member NYSE/FINRA/SIPC. In California, HSI conducts insurance business as HSBC Securities Insurance Services. License #: OE67746. HSI is an affiliate of HSBC Bank USA, N.A. Whole life, universal life, term life, and other types of insurance are provided by unaffiliated third parties and offered through HSBC Insurance Agency (USA) Inc., a wholly owned subsidiary of HSBC Bank USA, National Association. Products and services may vary by state and are not available in all states. California license #: OD36843.

Investments, Annuity and Insurance Products:

ARE NOT A BANK DEPOSIT OR OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES

ARE NOT FDIC INSURED

ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
ARE NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES
MAY LOSE VALUE

All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor.

Research backgrounds of brokers, brokerage firms and investment advisors for free by visiting FINRA's BrokerCheck website

United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their U.S. and non-U.S. accounts including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts ("FBAR")). U.S. persons should consult a tax adviser for more information.

1 Financial professional refers to Financial Consultants (FCs), Investment Counselors (ICs), and High Net Worth Relationship Managers (HNWRMs). FCs, ICs, and HNWRMs focus on a full suite of High Net Worth, Jade, Premier and Advance products and services. Both offer bank products through HSBC Bank (USA) N.A., investments and certain insurance products, including annuities, are offered through HSBC Securities (USA) Inc. and traditional insurance products are offered through HSBC Insurance Agency (USA) Inc.

2 Asset allocation is a method of diversification that positions assets among major investment categories. This tool may be used in an effort to manage risk and enhance returns. However, it does not guarantee a profit or protect against a loss. It also cannot eliminate the risk of fluctuating prices and uncertain returns.

3 Fixed income products are subject generally to interest rate, credit, liquidity and market risks, to varying degrees.

4 Investments in variable products will fluctuate and values upon redemption may be less than the original amount invested. Variable annuities are designed to be long-term investments and frequently involve substantial charges such as administrative fees, annual contract fees, mortality & risk expense charges and surrender charges. All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. When investing in tax-deferred annuities additional risks apply and such products may not be suitable for or in the best interest of all investors. Early withdrawals may impact annuity cash values and death benefits. Early surrender charges may also apply. An additional 10% IRS penalty may apply to withdrawals prior to age 59 ½. If you are investing in a variable annuity through a tax-advantaged retirement plan such as an IRA, you will receive no additional tax advantage from a variable annuity. Under these circumstances, you should only consider buying a variable annuity if it makes sense because of the annuity's other features, such as lifetime income payments and death benefit protection. Features that provide lifetime income are optional and can be purchased at an additional cost. For more complete information, contact your Financial Professional to obtain a current prospectus. Please read the prospectus carefully before investing or sending money.

Managed Accounts

HSBC Securities (USA) Inc. is the sponsor of the HSBC Spectrum program. HSBC Securities (USA) Inc. is a registered investment adviser that serves as the Investment Adviser for the HSBC Spectrum program. HSBC Global Asset Management (USA) Inc. provides administrative and other services to HSBC Securities (USA) Inc. in relation to the Spectrum Program. HSBC Global Asset Management (USA) Inc. and certain other sub-advisers receive a fee for their mutual fund investment services separate from the investment management fee charged for the Spectrum program. HSBC Global Asset Management (USA) Inc. also serves as the adviser and administrator of the HSBC Funds, which may be among the underlying investments in the Spectrum program. Certain HSBC Funds also have sub-advisers, not always affiliated with HSBC Global Asset Management (USA) Inc., that receive fees for providing various services to the funds. Mutual funds outside of the HSBC Fund family are also offered as options in the Spectrum program and may be advised by investment managers affiliated or unaffiliated with HSBC Securities (USA) Inc., who also receive a fee for their investment services. Foreside Distribution Services, L.P., member FINRA, is the distributor of the HSBC Funds and is not affiliated with the Adviser. HSBC Securities (USA) Inc., member NYSE, FINRA and SIPC is a sub-distributor of the HSBC Funds.

529 Plans

Tax treatment of 529 Plans varies from state to state and can be a major factor in deciding which plan to select. Broker-sold plans often contain sales loads and higher fees and expenses than direct-sold plans.  If your state offers a 529 plan you may want to consider what, if any, potential state income tax or other benefits it offers, before investing.  State tax or other benefits should be one of many factors to be considered prior to making an investment decision.  The prospectus, which contains this and other information, can be obtained by calling your HSBC Securities (USA) Inc. Financial Advisor.  Read it carefully before you invest.  For tax advice, consult your tax professional.

Structured Products:

Structured Certificates of Deposit are provided by Registered Representatives of HSBC Securities (USA) Inc., member NYSE/FINRA/SIPC.  Structured CD Products are:  Bank deposits; obligations of the issuing bank; FDIC insured within applicable limits; not a liquid investment; and are designed to be held to maturity.  Structured CDs are subject to investment risk and any early repayment could result in a loss of principal investment.

Structured Notes are provided by Registered Representatives of HSBC Securities (USA) Inc., member NYSE/FINRA/SIPC, a registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary of HSBC Holdings plc. Investing in Structured Notes may result in a loss.  The return on the notes is linked to the performance of the underlying asset, which may be negative, and involves risks specific to the relevant underlying asset.  Structured notes are not a liquid investment and are designed to be held to maturity.

Registered Notes may be suitable for or in the best interest of investors who are willing to forego dividends or other distributions paid to holders of stocks comprising the relevant Reference Asset, or the Reference Asset itself, as applicable, do not seek current income from their investment, do not seek an investment for which there is an active secondary market, are willing to hold the securities to maturity and are comfortable with the creditworthiness of HSBC, as issuer of the securities.

Fixed Annuity:

Fixed annuities are designed to be long-term investments.  All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. When investing in tax-deferred annuities additional risks apply and such products may not be suitable for or in the best interest of all investors. Early withdrawals may impact annuity cash values and death benefits. Early surrender charges may also apply. An additional 10% IRS penalty may apply to withdrawals prior to age 59 ½. If you are investing in a fixed annuity through a tax-advantaged retirement plan such as an IRA, you will receive no additional tax advantage from a fixed annuity. Under these circumstances, you should only consider buying a fixed annuity if it makes sense because of the annuity's other features, such as lifetime income payments and death benefit protection.  Guarantees of a fixed rate of return are based on the claims paying ability of the issuing insurer.

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