Personal investment account opportunity

nonretirement accounts

We are now scheduling appointments for those interested in personal investment accounts (also referred to as a nonretirement investment account or retail account).

These accounts present investment opportunities outside our 403(b) and IRA programs. We received a high level of interest from those who responded to our survey in 2017 and will be rolling out the program later this year.

In case you missed earlier communications, here are the basics.

What is a personal (nonretirement) investment account?

It’s a way to invest your money outside of a retirement account without using a cash account such as savings, checking, or certificates of deposit. It can be registered in just your name or opened jointly with anyone.

Where would I get the money to invest in the account?

If you have a windfall of cash, an inheritance, proceeds from the sale of a property, required minimum distributions, or extra income you won’t need (for example, perhaps you don't need to use the cash within the next five years or longer), a personal investment account might be for you. You may also use current holdings in a brokerage account depending on capital gains consequences.

How could this benefit me and my family?

There are three tax benefits to these types of investments. 

  1. Pay income taxes at the lower capital gains rate rather than ordinary income tax on interest income.
  2. Pay as you go on the earnings of your investments.
  3. For your heirs, there will be a “step-up in basis” to your date of death, which is the readjustment of the total value for tax purposes upon inheritance. The result is that your beneficiaries’ capital gains taxes are minimized.

What are my investment choices?

WEA Financial Advisors, Inc., will manage allocation models suitable to your tolerance for risk. The five models range from conservative to aggressive and use our current list of vetted mutual funds. We will NOT charge any additional fees for managing your account.

Why should I choose Member Benefits?

You already know us. Plus, the personal investment account will have a low maintenance fee of 0.35% annually on the balance of your account. There will be no other fees like broker’s commissions, management fees, or confusing annuity riders—just the one fee. (Mutual fund operating expenses will still apply.)

How do I open an account?

First, you will need to sign up for a free consultation. Don’t worry, this does NOT count toward the free one-hour consultation that Wisconsin public school employees can schedule with us each year.

To make your appointment, or to learn more about this new savings opportunity, contact us at 1-800-279-4030 or retirement@weabenefits.com.

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