Investments are the natural progression for financial independence. You can think of it like building a pyramid. You start with earning money. Then you go to where you are saving money. You should start early and set aside a percentage of your monthly pay into basic and insured savings. Financial analysts recommend that you should have at least 6 and maybe up to 12 months worth of monthly expenses saved in such an account. From there, you want to progress to more aggressive savings then branch out into putting regular contributions into market equity and debt instruments.
At First Pioneers Federal Credit Union, we offer various investment alternatives. We have CD’s and IRA’s. We have links to Members Financial Network and to SEG’s who can provide avenues for the members to purchase equities and debt instruments (meaning stocks, bonds, mutual funds and even futures, commodities and leveraged instruments). And you don’t have to worry, there are people there who will explain all of this to you and give you advice as to what is appropriate for you. Speaking of advice, you can get one-on-one advice from the staff at the Credit Union.
A certificate of deposit is a certificate where the Credit Union agrees to pay a rate of interest for a specific period of time. Because the commitment is extended and you do not have ready access to your money, CD’s generally pay a higher rate of interest than regular savings accounts. Generally, the longer the term of the certificate, the higher the interest paid. (Your money really is available to you , but if you “break” the CD before the term expires, there is generally an interest penalty.)
First Pioneers Federal Credit Union has CD’s for 6, 12, 24, 36, 48 and 60 month periods. We also have IRA CD’s for 24, 36, 48 and 60 months.
At First Pioneers Federal Credit Union, it is our aim in setting the CD rates to be competitive with the local banks and savings and loans. While we won’t necessarily be the best rate for each time class, we do strive to be rate leaders, depending on the needs of the Credit Union.
IRAs (Individual Retirement Accounts) are one of the most flexible financial instruments and one of the best deals that have ever been devised for the American taxpayer. Collectively, they are known as tax deferred accounts because the tax on them is deferred. The rules for IRA’s are really complex. (The rules were designed by politicians and are monitored by the Internal Revenue Service). Between our IRA staff specialist and the CUNA Mutual Insurance group that we have retained to run the program, we can answer any questions that you might have. Just call them at the Credit Union and they will help you set it up.