Broker Check

Funding Vehicles

The appropriate funding vehicle should be selected based on the credit union's investment policy, risk tolerance, historical investment model return, and overall asset management capabilities. North Star Strategic Wealth Partners is there to assist you in selecting a portfolio that best suits the credit union's and it's employees' needs. 

Listed below are the possible funding options to consider: 

  • Managed Portfolios 

Managed accounts are used to generate income and keep pace with a changing interest rate environment. The private money manager ensures that these assets are fully liquid and the money invested goes directly into an account set up for the credit union. This is often a mix of bonds and equities that can be mutual funds or actual bond/equities. Normally, these are available-for-sale assets, which help to protect the Credit Union's income statement and important ratios. 

  • Life Insurance Products

There are various types of life insurance that can be used for funding. The policies are owned by the credit union and placed on the employees with earnings going to the credit union. Most life insurance proceeds are principal protected, as guarantees are based on the claims paying ability of the issuing company. 

  • Annuities - Variable and Fixed Indexed

Annuity funding strategies are similar to life insurance funding strategies in that the earnings from the policies  will go to the credit union. With fixed indexed annuities the principal is protected. Fixed and variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 1/2 are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.  

  • Retail Investments

"Retail products" can include many different types of investments that are typically made available to the public. Institutional investors traditionally have access to a wider array of investment options.