Offset the rising costs of employee benefits with an Employee Benefit Pre-Funding Account (EBPA) Employee benefits have been increasing faster than the yield on a standard bond portfolio. To help your credit union offset this rising cost, the NCUA allows federal and most state chartered credit unions to direct a portion of their excess liquidity into investments to cover benefit expenses. That’s where McQueen Financial Advisors comes in!

McQueen Financial Advisors (MFA) is a proven Alternative portfolio manager with a strong track record of delivering EBPA results. By creating a custom portfolio that may contain fixed income bonds not found in your standard portfolio, stocks, ETFs, preferred stocks, or other asset classes, MFA can help provide you with a custom-tailored EBPA portfolio management solution to fit your financial institution’s unique needs. As your EBPA investment portfolio manager, MFA will seek to achieve the best return based on your objectives and risk position.

HOW AN EBPA WORKS

• • Invest up to 25% of Net Worth
• • Newly Permissible Investments
• • Greater Yield
• • Potential Capital
• • Non-Correlated Assets to Loan Portfolio

Goal: Increase earnings compared with traditional investments to offset benefit expenses.

Example:
NW = $40MM
25% of $40MM = $10MM
If we earn 6.50% $10MM * 6.50% = $650,000

You now have $650,000 in earnings to apply to your benefit costs.

WHAT WE DO WITH THE EARNINGS

• • All earnings go to cover expenses

Comparison:

• • EBPA $10MM earning 6.50% = $650,000
• • Standard $10MM earning 3.50% = $350,000

In the end, you have at least $300,000 more in earnings to cover expenses you will pay either way.

ADDITONAL BENEFITS

As a client of MFA, you'll also enjoy:

• • Support with investment goal setting and timeline development
• • Ongoing communication and education that you can present to your board members
• • Monthly performance and investment value reporting
• • Assistance with regulation research, policy creating, and more