Credit Union Investment Advisors Want Me

[Sue J]

Yeah, from what I've heard, participation was somewhat limited; lots of conditions had to be met (existing CDs in place etc) as this was a special promotion thing.

If you got in on it, good for you!

Not something anyone could get in on though. Not sure if a non Vet or non Armed Services person could even join this CU.

I joined PenFed without being a veteran or military. At the time (a few years ago) you could qualify to join if you joined a military support group for a 1 time fee of $15 or $20.

I got in on the 10 year, 5% CDs so it's been worth it to me.

 

[FinanceDude]

The top sellers of the year were rewarded with membership in an "Exclusive Club" and this was celebrated publicly at a dinner for those employees (paid for out of Credit Union funds). Upper management constantly praised those in the lead via broadcast emails to all employees, while supervisors quietly wrote up those not making their monthly quota of successful sales referrals to the various credit union departments.

That still happens...........

FYI - some departments of some Credit Unions are actually representatives of unnamed outside companies (contract type employees) - particularly investment and insurance areas. The Credit Union gets a piece of the action for this service (not exactly what you'd call having "your" best interest at heart).

That explains how Raymond James gets in all the local small banks and CUs..........

Employees were under constant threat of being dismissed if they failed to accomplish their monthly minimum required sales quotas. This type of pressure on employees to sell credit union services is why it has become annoying (at a lot of banks and credit unions) for their members to call or stop by to conduct business.

People with money get hammered when they go inside a bank or credit union lobby.........its like a used car lot on a Satruday afternoon........

Thought I'd share this little tidbit of inside information for the next time you call or stop by your Credit Union or Bank - don't harp at the teller or person on the phone - they're just doing their job (under duress). You could request to speak with a manager and have that person add notes to your account information to stipulate that you not be bothered by employees with any marketing efforts. They don't want to lose your business.

That is probably true for small banks and CUs, big banks like BOA and Chase could care less if you leave, they already have $1trillion+ in asset base..........

 

[FANOFJESUS]

A easy way to solve the problem is buy CD's over the phone it works like a charm.

 

[jazz4cash]

I seriously do not understand all the self-inflicted wedgies people are giving themselves when they hear about somebody offering a product or a service. If you are not interested just say "no".

On most days that end in a "y" I am offered at least one product or service in person, through the mail, on a door hanger, on TV, on the internet, or on the phone. One can say no, throw it in the trash, change channel, get an adblocker, or hang up, then get over it.

And somebody said go talk to them because you might learn something, and that is true.

+1.
No+Thanks.

My CU's investment advisor is salaried anyway. No doubt the CU is looking for more profitable products to sell, but I wonder if they waive the early withdrawal penalty for a CD.

 

[FUEGO]

Their investment advisers may not be that bad at the CU. Our CU, which is huge by CU standards as it has many 10's or 100's of thousands of members and billions in assets, started offering investment advisory services a few years ago. I have seen them advertised in the monthly statement inserts but never been accosted about investing with them.

They charge a very reasonable flat 0.25% fee on assets under management with minimum account balances starting at $250 (just two hundred fifty bucks, not $250k minimum like some money managers). They offer a limited selection of low cost vanguard funds plus some funkier options like equity indexed annuities, and SPIA. For those wanted to color outside their lines, you can also buy anything in a fully self directed account (presumably paying 0.25% a year for a reality check). The advisers are salaried. They may get commissions on EIAs and SPIAs but I bet they disclose the heck out of them (knowing my CU).

For most folks who would be facing the default option of investing with an Ameriprise shark or just leaving it earning 1.5% in 5 year CD's at the credit union, I would wager that paying this 0.25% annual fee to have them tell you to put some or all of your portfolio in Vanguard Target Retirement 20xx based on your retirement date would work to most people's advantage.

And as for them seeing $170k sitting in cash, this is probably an entire life's savings for most CU members. They may know that a lot of people pulled out of the market back in 2008-09-10 and never got back in, or never even considered investments in the first place, and want to make sure they are making the most out of their money. At least that is the case at my very member oriented CU. My CU even advises me against certain products of theirs like their mortgages and HELOCs that carry rates higher than market rates for some reason.