Consider a Personal Investment Account

If you have extra income, required minimum distributions, an inheritance, proceeds from the sale of a property, etc., that you won’t need right away (within the next five years or longer), a personal investment account may be right for you.

There are three tax benefits to these types of investments.

  1. Pay income taxes at the lower capital gains rate on qualified dividends 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.

Our financial planners are a great resource to learn more. Give us a call 1-800-279-4030, Ext. 6730.

Looking to invest outside of a retirement account?

Member Benefits Personal Investment Account (PIA) offers you an option to invest your nonretirement money without using a cash account such as savings, checking, or certificates of deposit.

There are potential tax benefits to this type of investment compared to a savings, checking, or certificate of deposit account. And there is just one low maintenance fee of 0.35% annually on the balance of your account. There are no broker’s commissions, management fees, or confusing annuity riders—just the one fee (mutual fund operating expenses will still apply).

Visit our Personal Investment Account page or call 1-800-279-4030 for more information about this investment opportunity.