Taxes and Investment Gains Correlation

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Taxes play an important role in your investment strategy, regardless of your tax bracket. That’s why understanding how short and long-term term capital gains impact your investments over time can be critical. Below is a quick explanation on how that works.

Taxes and Investment Gains

Simply put, short-term gains are realized on investments held for under a year, while long-term capital gains are derived from investments held for more than one year. For example, if you purchase 100 shares of stock for $20 per share and sell them six months later for $25 per share, the $500 in profit is considered a short-term capital gain by the IRS and taxed at as ordinary income. Conversely, if you wait more than a year to sell the shares, they will be taxed at the long capital gains rate of 15% to 20%, depending on your tax bracket.

For investors in higher tax brackets, this rate can be substantially lower than the rate applicable to short-term gains.

Depending on your tax bracket, if you held the same shares for a year or more, you could end up making more money if the stock price continues to increase but still pay less at tax time. In addition, only your net investment income is taxable, meaning if you gain $500 from one investment but lose $500 on another in the same tax year, then your net gain is $0 and you are not required to pay any additional taxes.

This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.

If you’d like to learn more about the relationship between investments and taxable gains in your portfolio, contact the UCC Financial Group at (801) 223-7502.

Securities and advisory services offered through Cetera Advisor Networks LLC, member FINRA/SIPC.
Cetera is under separate ownership from any other named entity.

Not NCUA/NCUSIF Insured – No Credit Union Guarantee – Not A Deposit – May Lose Value
Not Insured By Any Federal Government Agency.

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Back to School Tips

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Coming out of summer break has never been easy. This year, as you prepare for back to school, consider a few things to help with the adjustments that come with it.

First, establish a routine. It’s normal for people to develop some bad habits over the summer break. Giving yourself (or your kids) a routine will help them get back in good habits. This is something you usually want to start a few weeks before school, but if you haven’t already established your routine, start now!  It’s better late than never.

Second, plan out meals and snacks. Having three meals a day is very important to most diets. Breakfast will help you start the day, and even help you wake up quicker. Lunch is a good way to give you a break in the middle of the day and can help you refocus. If you eat lunch earlier in the day, planning out an afternoon snack is a good thing. Make sure to keep healthy snacks in the house that aren’t too big or filling to keep your appetite for dinner! Dinner is important but don’t eat too late, or it will be harder to go to bed earlier.

Third, re-energize with naps. Occasionally naps will be needed to help you refocus and re-energize. There is such a thing as napping for too long. There are studies showing the benefits to power naps.

Whether your kids are starting grade school or you’re beginning a new year of college, having routines and schedules can help minimize the amount of stress associated with the start of a new school year. Plan accordingly so you can be ready for whatever the days have in store!

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Annual Chair Report 2016

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UCCU is celebrating its 60th anniversary in 2016. It is an institution built to last and is based on enduring principles of thrift, honesty, conservative and steady growth, managed risk and people helping people.

During 2016 we will be telling the story of the rich heritage of UCCU. In 1956, seven BYU employees started UCCU with only $35 from their own pockets. Resources were scarce back then, but the credit union grew because it was a financial institution that valued people over profits. In his prayer at the dedication of the Stadium Branch in 1977, resident N. Eldon Tanner, a member of the first presidency of the LDS church, said, “We pray that those who are managing this organization may all be blessed with the ability, desire and determination to do what they do in the interests of those whom they serve, and that it may benefit those who contribute, who have their savings here, and who are depending on this organization to help them in time of need; that they may be honest and honorable and upright in every way in their dealings.”

2015 was one of the best years in UCCU’s history. UCCU exceeded the billion dollar mark in total assets—an annual increase of $110 million; and membership increased by 7,000, to 129,000. Loans to members grew over 25% for the year as members took advantage of
a strong economy and record low loan rates.

UCCU is a leader in the county as an issuer of mortgage loans, home equity loans and automobile loans which helps our members buy homes, cars and other necessary items. For the most part our members are using credit wisely and the credit union has programs
to provide members with additional services and tools to help them safely manage their money. UCCU has established mini branches in several area high schools and recently partnered with Utah Valley University to provide financial education and planning for students. UCCU continues to offer our “Be Money Smart” program to provide financial literacy experiences and education to our youngest members.

The excellent financial results for the year have contributed to a strong net worth capital ratio of 10.59%. This ratio is a measure of the capital strength of a credit union and reflects on the credit union’s ability to weather financial storms. UCCU is considered well
capitalized by NCUA, the credit union industry regulator, and by Bauer Financial, an independent entity that rates financial institutions. The conservative company gave us a five star superior rating and listed us on their Recommended Report which means we are considered a “safe, financially sound credit union, operating well above regulatory
capital requirements.”

In anticipation of reaching the next billion dollars, we are in the final stages of completing the 7 story UCCU Financial Center in the heart of the Lehi business district. The Lehi branch will occupy the main level, and we will lease out the upper floors until the space is needed. UCCU is also in the process of upgrading the computer system to support the growth in membership well into the future and provide a base for future technological developments.

UCCU management and employees are professional, experienced and courteous. They train for many hours to provide you with the best financial products and services in the industry. They contribute countless hours in community service providing income tax
preparation and other services that benefit those in need. UCCU continues to shine in the community and was once again voted #1 in the Best of Utah Valley poll.

It is UCCU’s mission and desire to be our members’ first choice for financial services and information. Any input and suggestions are always welcome as we strive to improve and serve our members.

I’m grateful I have had the opportunity to serve this past year as Chair of the Board of Directors and to work with the other members of the Board, the Supervisory Committee, the management team, and our great employees. I believe that this credit union is built on principles that will allow it to outlast the test of time. We have enjoyed membership in an institution that is 60 years old. I believe it will last another 60 years and beyond if we will continue to abide by those inspired dedicatory words, “that those who are managing this organization may all be blessed with the ability, desire and determination to do what they do in the interests of those whom they serve”.

Kim Jackson
Chair 2015-2016
Board of Directors

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Is Now a Good Time to Buy?

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Research is showing that housing prices are still on the rise. Although the local market is considered a “seller’s market”, is it actually a good time to buy? The simple answer is yes!

As your financial partner, we want to always make sure to steer you in the right direction and ensure that we are providing the best rates, service, and advice. If you are curious about your options we have mortgage experts available to help with all of your home buying needs.

The biggest benefit of buying a home in the current market is that interest rates are still low. You can buy a home from us with a 30 year fixed conventional loan, and receive a rate as low as 3.125%*. Before the market crash in 2008, interest rates were sitting around 6.00%. The difference between the two rates is thousands of dollars when paid back over a 30 year period.

However, there is currently no guarantee that the rates will remain low. The government is currently helping influence the lower rate, but there have been rumors for some time now indicating that this “influence” will stop sooner than later and allow the market to adjust accordingly (meaning the rates will rise).

On top of great interest rates for home loans, tax benefits of homeownership are great too! Don’t wait too long to decide to buy. Visit https://uccu.mortgagewebcenter.com/ to be pre-qualified today or call us at 801-223-7640 to speak to a home loan specialist today!

*Please note that the interest rate shown here are available based on a 740+ credit score. The actual interest rate and fees available to you will be based on your credit history and may be different than the rates displayed here.
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Lehi Branch is Moving!

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President's Message August 2016

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I am pleased to report to you that Utah Community Credit Union continues to grow and serve our many members and our community.

The Credit Union is Financially Strong. The financial trends and ratios used to measure the success of a credit union are all very positive for UCCU. UCCU is experiencing growth in membership, loans, deposits, assets, and earnings that are all above national averages. Clean audits and financial exams attest to the financial stability and financial strength of the credit union. We are repeatedly voted as the best credit union in our market.

Members are UCCU’s Greatest Strength. The above-mentioned financial highlights are a reflection of the trust our members place in the credit union. This trust and partnership with our members is even more important than our financial growth and stability. We work hard to earn the privilege of being your financial partner. We work hard to be your “first choice” for financial products, services and information. We work hard to provide all members with valuable tools and services to help them set and reach important family financial goals.

Inspiring Smart Decisions. UCCU feels a great and continued responsibility to our members and to our community to promote wisdom and care in managing finances, and we hope to continue to inspire our members to make smart financial decisions – now and well into the future. I express my deep gratitude to the amazing volunteer Board of Directors and Supervisory Committee, to a very capable and dedicated management team and to the world-class employees at UCCU. I am convinced that there is not a better or more capable group anywhere to serve and represent UCCU to its members and to this community!

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Jeff Sermon
CEO/President
Utah Community Credit Union

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