In May, many households will receive a payment from the federal government as a
result of the Economic Stimulus Act of 2008. The legislation was designed to
disburse over $152 billion to consumers with hopes that it would be spent1.
The act is expected to provide a temporary source of support for businesses
that have experienced a slowdown in revenues.
Although the federal government hopes that recipients will spend the money, you
are encouraged to explore the saving and investing options available through
your local credit union branch. Since the source of the payments is a tax
system into which you have most likely paid, the payment may best be considered
a return of your money which could be used to improve your financial condition.
One way to improve your current financial condition is to strengthen your
future financial condition. A $600 investment at 4% will be worth $888 after
10 years. A $1,200 investment at 4% will be worth $1,776 after 10 years2.
You could choose to use half of the stimulus payment to pay down debt and save the
other half for your retirement or other future goals. If you have already set
aside sufficient funds for your retirement, you might choose to invest the
payment for your child's or grandchild's education.
Please contact your local branch if you would like to discuss your savings
options.
Investment Advisory Services offered through Credit Union Investment Services.
Securities products offered through XCU Capital Corporation, Inc. Member FINRA/SIPC.
Securities products are not NCUA insured, are not obligations of any credit union,
and may lose value including the principal amount invested.
Other Related Links:
April 2008
- In light of recent market fluctuations, some investors may be questioning their decision to invest in
securities such as stocks or mutual funds that invest in stocks.
January 2008 -
Check out our LifeStrategy, Target Retirement mutual funds as well as Vanguard’s Long-Term Tax-Exempt Fund
and see how they can help you.
December 2007 -
SECU and CUIS offer several IRA options for you to select the type that best fits your situation. These IRA options
include a traditional IRA, a Roth IRA and a SEP IRA.
November 2007 -
Credit Union Investment Services are now available at SECU. This new subsidiary will recommend suitable
investment options for you. Start achieving your long term financial goals today!
October 2007 - Current or
former state employees who are going to change employment or retire need to consider their
retirement assets. Are you Bailey-Vested? Are you a Vested Member of the State Retirement System?
September 2007 - Last
month’s investing Basics article detailed the "when" of investing for retirement. In this issue, the
focus will be "where" to invest for your retirement.
1 Office of the Press Secretary: February 13, 2008 press release. 2 This illustration is hypothetical. Actual investment results may vary.
