... losing ground and members.
✅ According to the Federal Reserve [May, 2024]: "... 60 percent of adults had a tax-preferred retirement account, such as a 401(k) plan through an employer, individual retirement account (IRA), or Roth IRA." Balances exceed $12 trillion or so! Folks who can, are saving more due to worries over inflation, the stability of the economy, and the solvency of Social Security.
While it is easy to argue about the competitiveness of SECU savings products; the downward trend in SECU IRAs should be the "canary in the coal mine warning" for the SECU Board.
With other SECU member savings products - shares, money market, CDs - the argument can be made that member funds are simply moving among categories, rather than leaving the credit union. No net loss - and actually a slight gain over the last 4 years.
No such luck with IRA balances which peaked at $4+ billion, just prior to the advent of the "New/New" in 2021. When IRA balances decline, it means the funds have left SECU... and most likely will never return.
Dropping $700+ million in member deposits - and member support - hurts the reputation and long range prospects of SECU. Why? IRAs generally represent long term commitments by members to the credit union. The accounts stay throughout a lifetime and consistently grow year after year.
😎 Seeing the IRA funds leave SECU is terrible, losing the support of over 11,000+ member account-holders is unconscionble.
Yearend # of Accts. Total Balances
2020 139,107 $4,067,561,000
2021 136,572 ⬇ $3,964,212,000 ⬇
2022 134,426 ⬇ $3,805,529,000 ⬇
2023 130,302 ⬇ $3,400,062,000 ⬇
2024 127,891 ⬇ $3,315,135,000 ⬇
😎 Is frittering away SECU's limited resources on an SECU "REWARDS" card - which no member really needs - more important than better helping SECU members save for a secure retirement?
Why don't you ask us to "raise our hands" on that!
Is it possible that some of these IRA accounts moved to IRA investment accounts?
ReplyDelete11:36am Sure, but they still left SECU.... take a look to see how much moved to an SECU brokerage account,.... how much didn't.
DeleteBe sure to report back....let us know your findings.
@1:05... you're the one making the unsubstantiated claim, so why don't you look it up and bring the facts. Besides, if they went to IRA investment accounts, they would still be in SECU assets under management, just not on the balance.
Delete1:22pm Sorry, they are substantiated claims. SECU does prepare monthly financial statements for its investment subsidiary... why don't you ask for a copy?
DeleteBe sure to let us know what you find.
Congratulations to all branch staff for getting even higher workload starting tomorrow. Yay!
ReplyDeleteWhat higher workload?
Delete"...losing the support of over 11,000+ member account-holders is unconscionble."
ReplyDeleteThat's about an 8% drop ... these folks will never come back ...
It's hard to build something but only takes a NY minute to tear it down ...
These rewards cards are such a joke.
ReplyDeleteRewards cards. The new/new's best idea. God help us.
ReplyDeleteCorrection: it’s the members’ idea. Not new/new, whoever that is.
DeleteRight, right... just can't find where the membership made that "informed decision"... and can't explain any sound financial, member benefit reason to do "REWARDS" either.
DeleteWhich has become a pretty good definition of the "new/new" if you're not sure "whoever that is".
Looking forward to seeing the excellent statistics from the Rewards Cards success. When will those be published to the membership?
Delete10:49am Members want rewards and we force them to go somewhere else. No other reason is needed.
DeleteMembers will get better rates than elsewhere and rewards for their usage, while the coop derives income from interchange. Why is this a hard concept for you?
You get to apply altruistic criteria for RBL, but for rewards there has to be a sound financial benefit?
See https://projects.propublica.org/nonprofits/organizations/560475645
ReplyDeleteForm 990, schedule L. SPLIT DOLLAR LIFE INSURANCE.
Loan from Gym?