If you are saving for long-term goals such as retirement or education and want to broaden
your investment options, ask one of our Investment Representatives about investing in
mutual funds. As a credit union member, you have access to low-cost, diversified stock and
bond funds that can help you achieve your long-term financial goals through a consistent and
regular investment plan.
Our Investment Representatives will talk with you about your goals and take into consideration
your complete financial picture. After discussing potential risks and returns of stock market
investing, we will help you choose the mutual fund best suited to your circumstances. We encourage
you to contact your Investment Representative at least yearly, and whenever your goals or financial
circumstances change.
What is a Mutual Fund?
A mutual fund pools money from many investors and uses the money to purchase securities such as
stocks and bonds. One mutual fund can invest in hundreds of securities. Therefore, individual
investors are able to achieve instant diversification which helps reduce overall risk of loss.1
Mutual fund investing provides the potential for returns that can outpace inflation over time.
Therefore, if your money will be invested for a period of at least five years, then mutual funds
may be a good choice for you.
What Types of Accounts are Available?
Both tax-advantaged and taxable accounts are available as possible vehicles for your investment.
The tax-advantaged accounts offered include Traditional and Roth Individual Retirement Accounts (IRAs),
as well as Simplified Employee Pension IRAs. Our representatives will be able to assist you in
understanding the characteristics of each of these accounts and discuss which vehicle may be
most suitable for you.
What are the Costs?
Credit Union Investment Services (CUIS) charges an annual asset-based fee of 0.25%, collected
quarterly in advance directly from your account. This is a service and maintenance fee that
helps cover the costs of our program. Other fees from the clearing firm (Pershing, LLC) may
also apply. Our representatives will present all potential costs to you upfront so you can be
confident that you are choosing a solid, low-cost program.
How Do I Get Started?
Ask to speak with a CUIS Investment Representative today if you:
Are a resident of North Carolina
Wish to invest at least $1,000 in securities
Wish to invest the funds for at least 5 years
Have an e-mail address
Are willing to accept electronic delivery of
account documents (statements, confirmations, etc.)
Can I Consolidate My Investments?
If you are interested in consolidating your existing investments into a CUIS account,
simply bring your statements when you meet with an Investment Representative. With
assistance from CUIS’s Portfolio Review Committee, your representative will review
your holdings to help you determine the best course of action. Based on your preference
and other considerations such as potential tax liability, you may be able to transfer
your existing investments in-kind or liquidate them and use the proceeds to purchase
mutual funds offered through CUIS.
About Credit Union Investment Services...
Credit Union Investment Services (CUIS) is a wholly-owned subsidiary of
State Employees’ Credit Union (SECU) and is an Investment Advisor registered with the
State of North Carolina. Through CUIS, the memberships of SECU, the Local Government
Federal Credit Union, and the North Carolina Press Association Federal Credit Union can
take advantage of low-cost, well-diversified investments. All CUIS representatives are
also full-time employees of SECU who receive no commissions for their services. Therefore,
members can feel confident in knowing their representatives will provide unbiased advice
and make suitable recommendations.
What if I'm Not Ready?
Consider the Bridge Account, an insured savings account designed to participate in market
returns. Learn more about market investing without the associated risks while you are
accumulating the required minimum investment. See a financial services officer for details.
Securities...
Are not NCUA insured.
Are not obligations of, or guaranteed by, a credit union or its affiliates.
May lose value including the principal amount invested.
Investment advisory services offered through Credit Union Investment Services.
Securities offered through SECU Brokerage Services. Member FINRA
/SIPC
