How to get started with a retirement account

How to get started with a retirement account

IRA, ROTH, 401K Planning for retirement can be a bit overwhelming if you don’t know where to start. There are 401(k)’s, 403(b)’s, IRA’s, Roth IRA’s, 457’s and more but where do we start. If you work for a private company, then you may have a 401(k) option or if you work for a school district then you may have a 403(b) or 457 option. Everyone with earned income can contribute to an IRA or Roth IRA, and that may be the quickest place to start if you are not sure how to begin.

 

It is easier than ever to get started with a retirement savings, here are some ways to start:

401(k):

If your company offers a retirement account then that is the best place to start because a lot of them offer a contribution match to help maximize your money. For example, your employer may offer to match the first 5% at 100 percent meaning that if you put in 5% then they will match your dollar amounts essentially doubling your contribution. There may be additional rules within these plans so be sure to check with your employer to see how everything works.

403(b)& 457:

If you work for a school district or some hospitals then you may have either a 403(b) or 457 option. Most school districts don’t offer matching contributions, but you can put money away pre-tax to save for retirement like how a 401(k) would operate.

IRA:

This would be opened outside of an employer plan and allow you to save money pre-tax like a 401(k) or 403(b). If your taxable income is below a certain level, then your contributions can grow tax deferred. These contributions would be tax deductible for the current year but there are contributions limits for this account depending on your income and age.

Roth IRA:

Like an IRA, the Roth IRA would be opened outside of an employer plan but would be made with after-tax money that would then grow tax-free for retirement. You won’t receive a tax-deduction on the money this year but there are additional benefits to the account like being able to pass the money to your heirs tax free.

The hardest part is knowing how to get started and fortunately Gulf Coast Educators is here to help. We have a financial advisor, Joshua Krakowiak, who can sit down with you and go over your current financial situation and your goals to find the best solution for you and your family. There is no cost or obligation to set up and appointment to see how we can help you make the most of your money.

Click here to get your retirement savings started!

 
Josh KPost Author:
Josh Krakowiak
Financial Advisor
281.925.4158
jkrakowiak.cfsinvest@gcefcu.org

 
 

The opinions expressed on this page are for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author of the article and may not reflect the views of the credit union.

Rollover Your Retirement Savings

Rollover Your Retirement Savings

Retirement Savings Jar
Start fresh with your new job, but don’t let your previous retirement savings gather dust.

When making a career move, don’t forget to take your retirement savings with you. Rollover your retirement savings from your previous employer to a GCEFCU Premium Market IRA and consolidate your savings into one powerful and easily manageable account. Check out all the advantages below.

5 Reasons to Rollover Your Retirement Savings:

1. Consolidate and Simplify

Managing multiple retirement accounts can be a hassle. By consolidating your old retirement account into a new IRA, you simplify your financial life. No more tracking various statements and managing separate accounts. Enjoy the convenience of having your retirement savings in one place, easily accessible and organized.

2. Maximize Your Potential Returns

With a Premium Market IRA, you have the opportunity to earn a higher dividend. The PMIRA monthly dividend fluctuates according to the market rate. Plus, your money is completely safe, secure, and insured – you won’t lose any money.

3. Take Control of Your Future

By transferring your retirement funds to a new PMIRA, you gain full control over your financial future. Say goodbye to limitations imposed by your previous employer’s retirement plan and embrace the freedom to make contributions as often as you’d like from the convenience of your GCEFCU mobile app.

4. Benefit from Tax Advantages

Rolling over your retirement account to a new PIRA can provide potential tax benefits. Depending on the type of IRA you choose, traditional or roth, you may enjoy tax-deferred growth or even tax-free withdrawals in retirement. Let your money work harder for you while minimizing your tax obligations.

5. No Fees, Bigger Returns

Unlike traditional 401(k) or 403(b) plans, our Premium Market IRA comes with no administrative fees. This means more of your hard-earned money stays invested, allowing you to enjoy potentially higher returns. Let your retirement savings work harder for you!

 

Get Started Today

Open your Premium Market IRA online by clicking the button below, or stop by one of our branches. Contact us today to learn more about the benefits of rolling over your retirement account to a new IRA. Your future self will thank you!
 

Get Started

 

Post Author: Caylee Smith

The opinions expressed on this page are for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author of the article and may not reflect the views of the credit union.

Youth Financial Literacy Resources

Financial Literacy Resources for Educators

April is financial literacy month! We understand educating children on finance is crucial so Children with Piggy Bankthey can learn how to manage their money properly. We put together a few resources that you can use in the classroom or at home, for your students or children. These resources will allow them to practice their money management skills and much more, no matter what grade level they are in.

 
 

Lesson Plans

Lesson Plans:

Pre-K – Grade 2: These activities for the very young include simple but important lessons like recognizing different coins and understanding what they’re worth

Grades 3 – 6: As children get older, they can start to learn about more complex financial topics like saving money, comparison shopping and managing their allowance.

Grades 7-8: Junior high school students can prepare for the real world with these activities. Lessons include making financial decisions and credit card basics.

Grades 9-12: High schoolers learn about relevant financial skills like managing salary, buying a car and avoiding debt.

College: After learning financial basics, college students build on their skills with lessons like managing credit cards, living on their own and budgeting for school.

Special Needs: These important financial lessons are for special needs students. Educators can customize lesson plans to best fit their students’ needs and learning styles

Free Worksheets

Free Worksheets:

Spending Tracker: This printable sheet will help your child keep track of their spending.

Savings Tracker: This printable sheet will help your child start their savings goals.

Coins for Money – Download this free worksheet for your students to learn how to recognize and count money $1 and under.

Money Booklets – Download these free printout booklets to introduce and review coins with your students.

The Piggy Bank Primer: Saving and Budgeting – For grades 3-5, through a story and activities, the student book introduces students to economic concepts such as saving, spending, budgeting, wants, goods, services, and opportunity cost. A Teacher Guide is also available.

Writing Checks – Use these check print outs to teach your students how to write a check.

Balancing a Checkbook – Many high school students will soon start working their first jobs, so it is important for them to learn the difference between gross and net pay. They are learning to drive and preparing for college as they move closer to independence. It is a good time for them to practice budgeting successfully with take-home pay through classroom activities that can be reinforced at home.

Making a Budget – Information provided on topics such as: What is a budget? Why do I want a budget? How do I start a budget? How do I make a budget? How do I use a budget?

How to Read a Credit Report – Teach your students what a credit score is and how they can make sure that theirs is a good one.

Games

Games:

Bank It! – Use this game to teach your students how to add and how probability works.

Peter Pig’s Money Counter – In this interactive game, kids practice identifying, counting and saving money while learning fun facts about U.S. currency.

World of Cents – Match coins to earn money, then decide how to spend it building a magical world

Hit the Road – A financial adventure game

Financial Football – Give your brain a Financial Football workout — play the NFL-themed video game developed by Visa.

Financial Soccer – Put your financial skills to the test with Visa’s World Cup-themed Financial Soccer, a multiple choice question video game. Are you ready to play?

Understanding Your Mortgage Credit Score

Understanding Your Mortgage Credit Score

It’s always good to have an idea of where your credit score is before making any large purchase that requires a loan. You may notice that the score you see on credit monitoring platforms, such as Credit Karma or SavvyMoney, do not match up with the score your lender pulled during your pre-approval process. The most common questions we get during the credit section of your mortgage application is, “Why is my score lower than what I see?” and “What credit scores do you use for a mortgage?” To answer this, you first have to understand the differences between your mortgage credit score and your consumer credit score.
 

“Why is my score lower than what I see?”

Consumer Credit Score
When you, as an individual, go to check your credit score you will usually start with a free online service. Most of these services will only pull from one of the three major credit reporting bureaus (Equifax, TransUnion, Experian). This score is known as a VantageScore, or what we call an educational score. With this, you are getting more generalized information because it is free and typically only one bureau at a time. Since it is only one bureau, your results may be distorted as not every creditor reports to all 3 bureaus. These are great sources to monitor your credit activity and accounts.

Mortgage Credit Score
A mortgage lender will pull a FICO score, also known as a Mortgage Credit Score. This type of report is very detailed and includes credit history from all three bureaus together.
Your FICO credit score comes from a paid monitoring source and includes all three bureaus. Fannie Mae requires the following verions of the classic FICO score:

  • Equifax Beacon® 5.0
  • Experian®/Fair Isaac Risk Model V2SM
  • TransUnion FICO® Risk Score, Classic 04

 

“What credit scores do you use for a mortgage?”

Credit Scores When a mortgage lender pulls your mortgage credit score, we are pulling multiple variations of your score. At GCEFCU we pull what is called a “Tri-Merge.” This report pulls your credit history from all three major bureaus and merges them into a single report. This will allow us to make sure we get a full and accurate view of your credit history.
Mortgage lenders use a tougher credit scoring model to ensure our borrowers can pay back a large debt, such as a mortgage, comfortably. This type of report will give us a score from each bureau. How do we know which of those three score we use? We follow the standards set by Fannie Mae to make this determination.

  • If all three scores are different, we will use the middle score.
  • If two of the scores are the same, we will use that score even if the third score is higher or lower.
  • If there are two borrowers who are applying for a mortgage, we will follow the same two rules above for each borrower and then use the lower of those two middle scores.

 

Improving Your Mortgage Credit Score

Your credit score can affect more than the interest rate on your loan. It can also determine what type of loan program you may qualify for and the amount you will need for a down payment. If your mortgage score is not where you need it to be we can work with you and help you determine the best way to improve your score. Here are a few steps you can start taking now to improve your score, just remember credit repair can take some time. Once you begin the process, you may see a hit to your score before you begin to see the positive effects.

  • Pay down your debt. There are a few strategies out there that will help you pay off debt in the most efficient ways. Some of those methods include the Debt Avalanche or the Debt Snowball Methods. Paying off high interest cards while leaving them open can increase your score.
  • Make your payments on time. Your payment history plays a huge role in your credit score and in your eligibility for a loan. Keep current on your payments. Previous late payments will have less of an impact on your score as time passes.
  • Do not take on any new debt. Every time you open a new line of credit or take out a new loan, your score is going to take a hit. If buying a home is a priority, try to hold off on buying a new car, opening credit cards, or taking out any personal loans.
  • Pay your charge offs. Paying off charged off accounts can make a big impact on your credit. Even if you are mad at AT&T and don’t want to give them the satisfaction, you are only hurting yourself.

 

We are here to help!

Your credit report is an important part of your financial life. It determines your ability to obtain credit, the rate you’ll pay, and how much you will pay over the term of your obligation/loan. In addition to the free credit monitoring services, once per year you can also obtain a free copy of your credit report from each of the three bureaus at AnnualCreditReport.com. Understanding your credit profile can help you better plan out your next steps to meet your financial goals. If you have questions, your loan officer will be happy to review your credit with you.
 
Bre RifePost Author:
Bre Rife
Real Estate Loan Officer
NMLS# 1149285
832.327.8159
brife@gcefcu.org
 
 

The opinions expressed on this page are for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author of the article and may not reflect the views of the credit union.

Realtor Drawing

Your Money Is Insured

YOUR MONEY IS INSURED

Learn How Your Money Is Protected

Top 100 credit unions imageWith the recent headlines of several bank failures, you may be wondering how safe your own money is. Luckily you are in good hands at GCEFCU, so there is no need to start hiding cash under your mattress.

You’re in Good Hands
Gulf Coast Educators FCU is ranked in the Top 200 Healthiest Credit Unions by DepositAccounts.com and in the Top 100 Best Performing Credit Unions by S&P Global Market Intelligence. Here, we take extra caution when it comes to ensuring your finances are safe and secure. We value your trust in us and don’t take this responsibility lightly.

 

Your Money is Insured, Just in Case

The “FCU” in Gulf Coast Educators FCU stands for “Federal Credit Union.” All federal credit unions are insured by the National Credit Union Administration (NCUA). Deposits are insured up to at least $250,000 per individual depositor, per ownership account type, per NCUA insured credit union.

If you and your family have $250,000 or less in all of your share deposit accounts at the credit union, your money is fully insured. A member can still have more than $250,000 and be fully insured, provided the accounts meet certain requirements and are properly structured.

 

If I have more than $250,000 at GCEFCU, how can I make sure all my money is insured?

You may qualify for more than $250,000 in coverage if you own share accounts in different ownership categories. The four categories are:

  • Single Accounts (owned by one person with no beneficiaries): $250,000 per member-owner
  • Joint Accounts (two or more persons with no beneficiaries): $250,000 per owner
  • Revocable Trust Accounts (owned by one or more person(s) with beneficiaries): Each member-owner is insured up to $250,000 for each eligible beneficiary named.
  • Retirement Accounts (IRAs): $250,000 per member-owner

 

Calculate Your Insurance

If you are unsure if all your funds are fully insured, you can use NCUA’s Share Insurance Estimator. This estimator can be used for personal, business, or government accounts. If you have trouble navigating the Share Insurance Estimator, a video guide is available here.

Share Insurance Estimator

 

How can I get more information?

NCUA created a special site called mycreditunion.gov that provides information about everything credit union and share insurance related. You can also view a list of frequently asked questions by clicking here, and view the video below illustrating NCUA’s share insurance coverage.

The opinions expressed on this page are for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author of the article and may not reflect the views of the credit union.

Credit Scores: The Basics

Credit Scores: The Basics

Who has a credit score?

  • Everyone who has at least one line of credit open under their name.
  • One month after the first line of credit in your name is opened you will get a credit score.

What is a credit score?

Laptop with credit score

A number from 350-800. The number determines how likely you are to pay back the money you might borrow from the bank.

Factors that go into your score:

  • Paying bills on time.
  • Credit usage (10-30% is ideal- if your card has a $10,000 maximum, don’t spend more than $3,000)
  • Amount of credit lines.
  • Age of credit lines and your credit history.

Where can you check your score?

  • Through your bank or credit union.
  • Through the credit bureau directly (annualcreditreport.com).
  • Through a credit score or your credit card website.

When is your credit score used?

When you want to borrow money from the bank for a personal loan, student loan, or a mortgage on your house.

The higher the score, the better.

You are more likely to get approved for a loan if your credit score is high.

Excellent: 750-850
Very Good: 700-749

Why is your credit score important?

Your credit score is an indicator of your financial responsibility. It can tell anyone who is going to lend you money how likely you are to pay back that loan.

One more thing-Soft pulls versus hard pull

Soft: Usually when you personally check your credit score. Will not show up on a credit report.

Hard: Usually when you are opening a new line of credit. will show up on your credit report and may affect score.

Information published by SavvyMoney.

If you would like to learn more about credit and how to keep a healthy score, click here to read more.

Building Credit

Building Credit

A good credit score can open many doors and lead to great opportunities — but building credit can seem like a mystery at times. It’s not as straightforward as building savings, and the dots you have to connect can be tricky. Here’s a closer look.

What Goes Into Your Credit Score

  • 40% is your payment history. (Do you pay bills on time?)
  • 23% is your credit usage or utilization. (How much debt do you have?)
  • 21% is your account age. (A combo of your oldest account, newest account, and their average age. (Longer is better.)
  • 11% is your mix of credit. (Applying for too much credit in a short period of time shows you need money.)

Do’s and Don’ts To Maintain A Good Score:

Credit image
  • DO: Make it a point to pay all your bills on time.
  • DON’T: Miss a credit card payment- it can lower your score by 100 points or more.
  • DO: Keep your credit usage or utilization-(the percentage of credit you have available to you that you’re actually using) low.
  • DO: Check your credit reports from all three bureaus (Equifax, Experian, Transunion) annually at annualcreditreport.com to be sure there are no errors or fraudulent acounts in your name.
  • DON’T: Open credit cards you don’t need (just to get the store discount).

$45,000: The amount a good credit score can save you in interest over a lifetime assuming you buy a home, car, have both student loans and credit cards.

 

Millennials and Credit Score

Millennials get a bad rap, but when it comes to credit, their picture is actually more of a mixed bag. According to a recent State of Credit Report, Millennials have increased their credit scores by four points on average over the past year. What else do we know about this generation and their credit?

They Take The Initiative

  • 79% of Millennials have a credit score according to LendEDU.
  • Just 21% have never taken a peek.

Many Could Use A Boost

  • More than half of Millennials have a credit score that is fair or poor.
  • Over 20 million members of this generation have no credit history with any consumer reporting agency.

Some Of Their Knowledge Is A Little Off Base

  • 44% percent of Millennials think they can build their credit by increasing their credit utilization.
  • 36% believe you can build your credit score by maxing out your card and then paying your credit card on time. (Falseee! Maxing out your card is never good. If you’re doing that consistently, ask for an increase in your limit.)
  • And 4.81% of millennials want a low credit score. (Oops! This is not a case where lower is better. In credit scoring, the closer you can get to 850, the better shape you’re in.)

Information published by SavvyMoney.

What is a Romance Scam?

What is a Romance Scam?

Love is in the air….and trying to get into your wallet. Online dating is becoming more dangerous for you and your personal information, below you can read more about the risks of online dating and signs to watch out for when getting to know someone. Cellphone on Dating App

Anyone who has been single in their adult life can tell you is that finding that special person is difficult, even with the convenience of online dating services. If that was not already challenging enough, there is always the looming possibility of a Scammer trying to squeeze you for every penny you have. Romance Scams are thought of only targeting a certain age group but with the rise of dating apps, swiping left or right has never been easier to do while on the go, there is no age group that is specifically targeted. Social media also plays a part in this, it is so easy to create fake profiles that will easily “corroborate” that the individual you have been chatting with is “real”.

Romance scams focus on the manipulation of the targets’ emotions, beginning with building a rapport. The goal is to create a sense of connection between the target and the persona the scammer is portraying to create trust and eventually love. The long game is played here, because if requests are made too soon most of the time the target is going to become suspicious of the encounter. So, they continue to be in constant communication, asking about you, admiring, and the scammer will even “share” common interests with you. This is called Love bombing, it is done from the start and the extreme flattery and attention begins, later used as a way to guilt the potential victim into agreeing to requests like sending them money.

The request is not a “Can you spot me thirty dollars for gas?”, but rather an elaborate story that can range from a family member dying and needing money for funeral expenses. Another is they traveled to a foreign country and are stuck because their personal belongings have been lost/stolen. Each situation is different, but the signs are generally the same, so what do we need to look out for?

Always stick to the website:

Scammers will almost immediately try to coax their victims away from the dating services website they originally began conversation on. Why? For some Online dating services there are automatic warnings that appear when certain messages are sent like phone numbers or a specific question that is asked that can indicate the conversation will be moving to another platform. Its best to stick to conversation on app/website.

Meet in person:

It is advised to meet in public and in person. In this technological era, voice alternators are a thing. Voice messages can easily be made using a completely different voice. Meet the individual in person, and confirm they are not avoiding a person-to-person meeting.

Keep money out of it:

Avoid any conversations having to do about where you bank, and what services you use. No talk of loans, mortgages, vehicles, avoid specific details. If you are asked to open a new account, wire out money for a difficult situation or take out a sort of loan for this “partner” you have met, end that conversation. Guilt tripping will come into play here and that’s understandable, as humans we feel the urge to empathize with another’s feelings, but again this is the manipulation at work.

If you are not sure, that is why you have us, your Credit Union! Trust your gut that tells you something is not right, or if you are not sure, give us a call. Tell us the details and we can confirm for you if something is off.

We guarantee you are not the first person looking for love and finding a pick pocket. Let’s keep love in our hearts and out of our wallets!
Click here to contact us by phone if you have any more questions about a romance scam or other types of scams.

Post Author: Angelica Garcia

The opinions expressed on this page are for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author of the article and may not reflect the views of the credit union.