Member Investment Services Articles

What Your Spouse Must Know about Investing
Could your partner handle these four issues without you?

Within every household, most couples divide and conquer. Maybe you do the laundry and your spouse always handles the trash. Or perhaps he's in control of all things yard-related, but you always do the grocery shopping.

The key risk you run in single-handedly managing your family's financial affairs, however, is that you could leave your spouse out of the loop. If something were to happen to you, would he or she know how to manage the family nest egg?

1. Whom to Contact
   Your first step in leaving your spouse well prepared is to draw up a list of your important financial contacts: financial planners, insurance agents, accountants, and attorneys. Include their names, phone numbers, and eMail addresses, and also provide a brief overview of why they've helped you with.
2. Where to Find Everything 
   After that, your next step is to delineate what assets you have and where to find them. Even if you're not an investment junkie, you could be holding a number of different accounts scattered across several different financial-service providers.
3. How You're Doing
   Even if you don't inform your spouse of every investment decision you make, you should take time periodically to give him, or her, the big-picture view of where your finances stand. How much do you have overall, and how much of that is liquid (that is, in cash or in securities that you could easily convert to cash)?
4. Which Assets to Tap First
   Some of your assets can be tapped at any time, while others may carry penalties and tax costs if your spouse withdraws the money prematurely. It is vital to highlight which account should be accessed first to best protect the assets.

Even if you do not have a spouse, your loved ones can equally benefit from this type of information in case something unexpected happens to you. Please contact Member Investment Services at 540.946.3200 x3338 if you have any questions about your unique financial situation.

 Fixed Annuities can be Used for Retirement Savings

In today's low-interest rate environment, many investors realize that certificate/CD rates are less competitive than a year ago and are seeking alternatives. One of the more popular alternatives is the fixed annuity. A fixed annuity is considered a retirement savings vehicle by the U.S. Government. Therefore, any savings placed into a fixed annuity will have tax-deferred growth for the duration of the contract. However, if you cash out of a fixed annuity and are younger than 59 1/2 years old, the IRS will penalize you by taking 10% of interest gains.

By law, fixed annuities are only offered by insurance companies; as a heavily regulated industry, these companies have strict reserve requirements to ensure the ability to pay the company's liabilities.

Fixed annuities are very similar to Certificates/CDs in that the majority of these contracts have a multiple-year, guaranteed rate of return along with a maturity date. This presents the opportunity for an investor to lock-in a more competitive interest rate for multiple years and defer the tax on the interest until the earnings are removed from the annuity.

Fixed annuities are not appropriate for everyone and seeking the custom-tailored advice of a financial advisor is recommended. DCCU's Member Investment Services offers financial planning and investment advice free of charge to all members. Please call MIS at 540.946.3200 x3338 to schedule an appointment with Ryan Miracle or Ben Irick to review your specific situation and find out whether a fixed annuity is suitable for you.

Securities and insurance products offered through LPL Financial and its Affiliates. 
Member FINRA/SIPC. Not NCUA Insured. No Credit Union Guarantee. May Lose Value.