McQueen Financial Advisors provides credit unions with Benefit Pre-Funding Portfolio management and creation solutions. As a SEC registered investment advisory firm, we provide you and your management team with a custom-tailored benefit pre-funding solution to fit your financial institution’s unique needs.
We are not a broker. We do not earn commission. As your portfolio manager, we will achieve the best return for your unique situation.
How does McQueen Financial work for you?
McQueen Financial Advisors will provide you with a simple solution to funding a retirement benefit or any other type of benefit. Our process is simple, and it is not overly complex or a regulatory issue. We help you achieve your goals in three simple steps:
We determine your needs. We do this through an interview and documentation process. A simple example for this presentation is as follows: A key executive is retiring in 10 years and you want to provide a $100,000 retirement benefit.
We develop a funding schedule to determine the funding necessary. To fund this simple example, we need to accrue a liability on the balance sheet for $10,000 a year for 10 years. At the end of 10 years, the Credit Union provides a check for the $100,000 reducing the liability to zero.
We determine the asset required to fund the liability, without hurting the income to the Credit Union. This is done by our proprietary investment models earning a yield greater than your current investment portfolio. Remember, supplemental portfolios are able to hold investments that are not approved in your standard investment portfolio. These investment products have different risk and return characteristics.
In this simple example, we need to earn $10,000 more a year without reducing your earnings. Therefore, if we invest $500,000 at a net return of 4.00%, we will generate $20,000 a year in income. Then, we put $10,000 (or 2.00% yield) towards normal earnings (roughly the same yield as your investment portfolio today) and we place $10,000 towards the benefit accrual.
The result is that the Credit Union earns the same return and we generate an additional $10,000 to fund the desired benefit. In the end, you have the benefit funded by an investment portfolio that is separate from the liability.
We are on your side. No more dealing with brokers and no more guessing. Simply sound investment advice from a long-term partner.