121 Financial Credit Union

When Should I Begin Saving for Retirement?

Saving for your retirement may leave you with numerous questions: when should you start saving, and how much will you need? Your retirement savings plan will depend on the lifestyle you want to live in your elder years.

The simplest rule for retirement saving is to start as early as possible. The later you start saving, the less time you will have to save. Factors such as inflation should also be considered when you build your retirement fund. You can learn more about saving for a comfortable retirement lifestyle by watching video clip.

Are you ready to get the most from your savings? Contact 121 Financial Credit Union of Jacksonville by calling (904) 638-8026 today. We have the answers you need to start down the path toward successful retirement savings. Check out our website for more information about our credit union’s financial services.

Savings Accounts: What Is a Money Market Account?

A money market account is a high-yield savings account that is ideal for those who do not withdraw money on a regular basis. You can enjoy competitive interest rates for increased savings while still retaining access to your funds. If you think a money market account could be right for you, consult your financial advisor at 121 Financial Credit Union to learn more.

Money Market Account Basics

Money market accounts are a way to make your savings grow faster than using a traditional savings account. Your money market account is used by the credit union as loans or other investment funding, then paid back to you with interest. Because you are limited in the amount of withdrawals or transfers you can make, your credit union has greater access to your funds and thus rewards you with higher interest. Interest on your account is compounded daily and paid out monthly. Compounded interest means that you earn further interest on interest that has already been paid. Money market accounts are FDIC-insured, so even if your credit union goes out of business your money will still be available.

121 Financial Credit Union’s Money Market Account

At 121 Financial Credit Union, we offer our basic Money Market account with a minimum balance of $2,500. There are no associated monthly fees and you can make an unlimited amount of new deposits into your account at any time. Additionally, you are allowed to make six transfers or withdrawals per statement cycle so you’ll always have access to your savings. If you are interested in investing $50,000 or more, consider our Premier Money Market account. You’ll enjoy higher interest rates with the same deposit and withdrawal benefits as our regular Money Market account.

121 Financial Credit Union is here to help you make the most out of your investments. We offer a variety of savings accounts and plans, including term share certificates, IRAs, and money market accounts. Click on our website or call (904) 638-8026 to find out more about your financial options today!

121 Financial Video Submission Contest

You want to be in commercials? We're looking for our next testimonials and you could be the one! If you're a member of 121 Financial and you've experienced the one to one difference, tell us about it with your own video. It can be as fancy as you can, or as simple as you want. We'll pick the top five videos and put them on our YouTube channel and then we'll let the world vote for the best.

The winner will receive an iPad (or prize of equivalent value)

Rules:

Contest Dates: May 15 - June 15, 2013

1. The video should focus on what you like about 121 FCU.

2. Links to videos must be emailed to marketing@121fcu.org no later than June 15, 2013 and include name and contact information of the 121 FCU member appearing in the video. DO NOT INCLUDE YOUR ACCOUNT NUMBER IN AN EMAIL.

4. The marketing department will load qualifying videos to our 121 FCU YouTube channel.

5. Multiple people may be used in the video, but at least one must be a 121 FCU member in good standing.

6. You may submit more than one video.

7. Include your family, pets, financial faux pas, or moments of monetary brilliance, think mascots, community celebrities or timeless legends, drive up, walk in, …   be creative – have fun !  

7. Inappropriate content as determined by the judging team will disqualify a video.

8. By submitting the video you and everyone in the video are agreeing to allow 121 FCU the right to use the video content in any form of advertising media without compensation.

9. Submissions from at least 10 different sources will be required in order to meet the minimum requirement to hold the contest and award the iPad.

10. Winner will be selected by a combination of "likes" on You Tube and committee.  The decision of the committee is final.

           11. Winner will be announced by July 1, 2013.

WHY IT IS WISE TO DIVERSIFY

A varied portfolio is a hallmark of a savvy investor.

Presented by Randy Nakamura,

You may be amused by the efforts of some of your friends and neighbors as they try to “chase the return” in the stock market. We all seem to know a day trader or two: someone constantly hunting for the next hot stock, endlessly refreshing browser windows for breaking news and tips from assorted gurus.

Is that the path to making money in stocks? Some people have made money that way, but others do not. Many people eventually tire of the stress involved, and come to regret the emotional decisions that a) invite financial losses, b) stifle the potential for long-term gains.

We all want a terrific ROI, but risk management matters just as much in investing, perhaps more. That is why diversification is so important. There are two great reasons to invest across a range of asset classes, even when some are clearly outperforming others.

#1: You have the potential to capture gains in different market climates. If you allocate your invested assets across the breadth of asset classes, you will at least have some percentage of your portfolio assigned to the market's best-performing sectors on any given trading day. If your portfolio is too heavily weighted in one asset class, or in one stock, its return is riding too heavily on its performance.  

So is diversification just a synonym for playing not to lose? No. It isn’t about timidity, but wisdom. While thoughtful diversification doesn’t let you “put it all on black” when shares in a particular sector or asset class soar, it guards against the associated risk of doing so. This leads directly to reason number two...

#2: You are in a position to suffer less financial pain if stocks tank. If you have a lot of money in growth stocks and aggressive growth funds (and some people do), what happens to your portfolio in a correction or a bear market? You’ve got a bunch of losers on your hands. Tax loss harvesting can ease the pain only so much.

Diversification gives your portfolio a kind of “buffer” against market volatility and drawdowns. Without it, your exposure to risk is magnified.

What impact can diversification have on your return? Let’s refer to the infamous “lost decade” for stocks, or more specifically, the performance of the S&P 500 during the 2000s. As a USA Today article notes, the S&P’s annual return was averaging only +1.4% between January 1, 2001 and Nov. 30, 2011. Yet an investor with a diversified portfolio featuring a 40% weighting in bonds would have realized a +5.7% average annual return during that stretch.1

If a 5.7% annual gain doesn’t sound that hot, consider the alternatives. As T. Rowe Price vice president Stuart Ritter noted in the USA TODAY piece, an investor who bought the hottest stocks of 2007 would have lost more than 60% on his or her investment in the 2008 market crash. Investments that were merely indexed to the S&P 500 sank 37% in the same time frame.1

Asset management styles can also influence portfolio performance. Passive asset management and active (or tactical) asset management both have their virtues. In the wake of the stock market collapse of late 2008, many investors lost faith in passive asset management, but it still has fans. Other investors see merit in a style that is more responsive to shifting conditions on Wall Street, one that fine-tunes asset allocations in light of current valuation and economic factors with an eye toward exploiting the parts of market that are really performing well. The downside to active portfolio management is the cost; it can prove more expensive for the investor than traditional portfolio management.

Believe the cliché: don’t put all your eggs in one basket. Wall Street is hardly uneventful and the behavior of the market sometimes leaves even seasoned analysts scratching their heads. We can’t predict how the market will perform; we can diversify to address the challenges presented by its ups and downs.

Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC , a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free 800-369-2862. Non-deposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members.

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. Marketing Library.Net Inc. is not affiliated with any broker or brokerage firm that may be providing this information to you. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is not a solicitation or a recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

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Citations.

1 – usatoday30.usatoday.com/money/perfi/retirement/story/2011-12-08/investment-diversification/51749298/1 [12/8/11]

Coming Soon - Visa Pre-Paid Cards

Visa Pre-Paid Gift Cards and Reloadable Cards

This summer, 121 Financial Credit Union will be rolling-out a new pre-paid gift card and adding two re-loadable card programs.  These programs will be designed to meet your various needs whether it is a one-time graduation gift, or access to a card through four years of college.  Stay tuned for more information on these new options from 121 Financial over the next few months.