Tax-favored investing involves both tax-exempt investments and tax-deferred investments. Municipal bonds are free of federal income tax and may be free of state and local income taxes for investors who live in the area where the bond was issued.
Tax-deferred investments, on which taxes are postponed until you withdraw your money, include qualified retirement plans, such as traditional IRAs and employer-sponsored plans, as well as insurance products like annuities and sometimes life insurance. Money held in money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Money market funds are investment funds that seek to preserve the value of your investment at $1.00 a share. (Mutual funds are sold only by prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional.)
Annuities have contract limitations, fees, and charges, including account and administrative fees, underlying investment management fees, mortality and expense fees, and charges for optional benefits. Most annuities have surrender fees that are usually highest if you take out the money in the initial years of the annuity contract.
Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications.
You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
For more information on this subject contact Steve Lloyd, Office Manager, UCCU 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.
With the New Year in full swing, many people are trying to make and keep important money saving goals. As a parent it’s easy to remember to make goals for the family as a
whole, but sometimes we may forget to help our children with their money. That’s why at UCCU we have our BeMoneySmart program.
No matter how old, or young your children are, it’s never to late (or early) to start helping your child prepare for the future. With UCCU’s BeMoneySmart Roadmap you can easily find which aspects of the program will work best for you and your child.
If you have a small child aged 0-5 years, setting up a BeMoneySmart Youth Savers Account is a great way to grow your child’s money long-term. But, if you have a pre-teen, or teen in the house, setting up a debit account monitored by you may be the best way to help your child manage their money and stick to a budget.
No matter what phase of life your children are in, the BeMoneySmart program can help take the guesswork out of planning for your child’s future. Visit BeMoneySmart.org or any of our 18 conveniently located branches for more details.
If you’re like many Americans, you’ve been setting aside money for your retirement. Now that you’re nearing retirement age, it may soon be time to start drawing money from your qualified retirement plans. Withdrawing money from a retirement plan is called “taking a distribution,” and there are a variety of ways to do it. We’re going to review several approaches.
UCCU Financial Group provides a wide range of services, with the primary commitment of helping our clients pursue their unique financial objectives. Our firm wants to help you develop a financial strategy tailored to your goals, values, and risk tolerance.
Some retirees may have several sources of income. Among them are retirement plans, such as traditional IRAs and Roth IRAs, as well as 401(k) and 403(b) plans. Of course, you may receive Social Security benefits and some people also have other investments and savings that they intend to use during retirement. If you’re nearing the age when you may consider drawing money from your qualified retirement plans, you face a number of important distributions decisions.
Remember, withdrawals from traditional IRAs, 401(k)s, and other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 70½, you must begin taking required minimum distributions.
To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawal also can be taken under certain other circumstances, such as after the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.
Keep in mind that the information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult a professional for specific information regarding your individual situation.
Learn more at: www.ucinvestmentservices.com
Or, contact Steve Lloyd at (801) 223-7502 or by email: Steve Lloyd firstname.lastname@example.org to set an appointment with one of our financial professionals.
Curtis Willardson, CFP, CLU, Daniel O Palmer, Stephen Martin CFP, CLU, ChFC and Travis Morgan are registered representatives offering securities and and advisory services offered through Cetera Advisor Networks LLC, member FINRA/SIPC. David Palmer is a registered representative offering securities through Cetera Advisor Networks LLC, member FINRA/SIPC. Cetera is under separate ownership from any other named entity. Registered address: 188 W River Park Drive, Provo, UT 84604.
Not NCUA/NCUSIF Insured – No Credit Union Guarantee – Not A Deposit – May Lose Value
Not Insured By Any Federal Government Agency.
As the holidays approach and our lives become busy it’s important to enjoy this special time of year. UCCU wishes you the best and we hope you have a safe and delightful holiday season.
UCCU Prepares to Offer Apple Pay
Many members have been interested in knowing if the credit union is onboard to offer Apple Pay – and the answer is yes. UCCU is in queue to provide Apple Pay as soon as Apple expands its service. So far we do not have timeline from Apple, but we will provide more information as we receive it.
Some things to know about Apple Pay – so far the list of businesses that can and are willing to receive Apple Pay is very limited. These businesses must have near field communication (NFC) technology to accept this form of payment. The reality is that many businesses currently do not have this technology, and some of the business that do have refused to offer Apple Pay at this time – such as Wal-mart, Rite Aid, CVS, and others.
UCCU believes that payments using a smartphone versus a traditional plastic debit or credit card is likely the future. The credit union will strive to adopt technology, including Apple Pay, as long as your information is protected. Our goal is to provide you with the most convenient way of making purchases and helping you stay protected along the way.
For more information on how Apple Pay works, click here.
Smart Decision Magazine
The credit union recently published the Smart Decision Magazine Fall edition. The magazine is filled with information to help you and your family be inspired to make smart decisions – both financial and life decisions. One of the great articles in this magazine is about how we can all help to stand up against bullying. This article written by Greg Hudnall, Executive Director of HOPE4UTAH. The article is informative and provides his expert advice to stop bullying in our schools and community. Click here to view a digital version of the magazine.
Do you know your Medicare options?
The answer is – probably not. That’s why the UCCU Financial Group is offering free Medicare information events held at the UCCU Center on November 12th or December 2nd. The UCCU Financial Group lead by Senior Benefits has teamed up with United Health Care, Select Health, Coventry Health Care, and Regence Health Care to help inform our community about their options during the open enrollment period from now until December 7. Arrive early as seating is limited and get all of your Medicare questions answered by this team of professionals.
For more information, click here.
Thank you for your membership at Utah Community Credit Union. We work hard to be your trusted financial partner for products and services and hope you take advantage of everything we offer.
CEO / President
Utah Community Credit Union
Everyone loves a winner. If an investment is successful, most people naturally want to stick with it. But is that the best approach? It may sound counter intuitive, but it may be possible to have too much of a good thing. Over time, the performance of different investments can shift a portfolio’s intent – and its risk profile. It’s a phenomenon sometimes referred to as “risk creep,” and it happens when a portfolio has its risk profile shift over time.
When deciding how to allocate investments, many start by taking into account their time horizon, risk tolerance, and specific goals. Next, individual investments are selected that pursue the overall objective. If all the investments selected had the same return, that balance – that allocation – would remain steady for a period of time. But if the investments had varying returns, the portfolio over time may bear little resemblance to its original allocation.
How Rebalancing Works
Rebalancing is the process of restoring a portfolio to its original risk profile. There are two ways to rebalance a portfolio. The first is to use new money. When adding money to a portfolio, allocate these new funds to those assets or asset classes that have fallen. For example, if bonds have fallen from 40% of a portfolio to 30%, consider purchasing enough bonds to return them to their original 40% allocation. Diversification is an investment principle designed to manage risk. However, diversification does not guarantee against a loss.
The second is to sell enough of the “winners” to buy more under-performing assets. Ironically, this type of rebalancing actually forces you to buy low and sell high. Periodically rebalancing your portfolio to match your desired risk tolerance is a sound practice regardless of the market conditions. One approach is to set a specific time each year to schedule an appointment to review your portfolio and determine if adjustments are appropriate.
Learn more at: www.ucinvestmentservices.com/newsletters.cfm
Or, contact Steve Lloyd at (801) 223-7502 to set an appointment with one of our financial professionals.
Curtis Willardson, CFP, CLU, Daniel O Palmer, and Stephen Martin CFP, CLU, ChFC are registered representatives offering securities and and advisory services offered through Cetera Advisor Networks LLC, member FINRA/SIPC. David Palmer is a registered representative offering securities through Cetera Advisor Networks LLC, member FINRA/SIPC. Cetera is under separate ownership from any other named entity. Registered address: 188 W River Park Drive, Provo, UT 84604.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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