URW Community Federal Credit Union

  Which IRA is Best for Me?                 Before we begin, you may be wondering what an IRA is. IRA stands for Individual Retirement Account. These accounts provide a way for individuals to save for retirement while receiving tax breaks for doing so. While there are several different types of IRAs. The two most popular are the Traditional IRA and the Roth IRA.               The Traditional IRA has rules set up like a 401K. Traditional IRAs are tax deductible, meaning that if someone were to put $6,000 into their Traditional IRA, then they can deduct that $6,000 from their taxable income at the end of the year. When you begin to withdraw from your Traditional IRA at retirement, you will pay income taxes on the withdrawals. The majority of people who have these will be in a lower tax bracket when they retire. This benefits them, as they will have to pay less tax on their money. Since the Traditional IRA is built for retirement, they have rules enforced to prevent you from wit

The Three Basics of Investing By Zach Potojecki In today’s world there is a wide range of investment vehicles where an individual can place their money. There are stocks, bonds, Certificate Deposits (CDs), and many more. With different financial institutions on every other corner, how do you know which is the best option for you? In this article I will be breaking down the three most popular investment vehicles in hopes that you find what works best for you as you venture into the world of investing. Let’s start with the basics of stocks. When you purchase a share of stock, you are actually purchasing a small percent of that company. If the company does well, then the shares of that stock will increase in value. However, if the company is performing poorly, then the price of the stock may decrease. Stocks typically have higher upside potential when compared to bonds or CDs in the long run. When I mention “long run,” I’m talking about 5-10 years or more. With this

  What Makes Up My Credit Score? By Zachary M. Potojecki               First, there is a slight correction I must make to the title before we move forward. Whether you rejoice or regret discovering this three-digit number that defines your financial well-being, we often refer to it incorrectly. It should say, “What Makes Up My FICO?”               At URW, we use the Fair Isaac Corporation, or FICO for short, which is the industry-standard for measuring creditworthiness of a consumer, ranging from 300 to 850. The vast majority of lenders use FICO as their standard for credit approvals. There are three different FICO versions, which are TransUnion, Experian, and Equifax. At URW we use TransUnion.               You’ve probably seen a commercial for Credit Karma, Nerd Wallet, and Quizzle. These apps are intriguing, as they offer free “credit” checks at the touch of a button. While they do offer a good insight on what your credit score may be based

                              Why Are Credit Cards So Beneficial?                               By Zachary M. Potojecki               Have you ever asked someone about credit cards, and they immediately tell you that they are evil? If the answer is yes, then the odds are they never had anyone take the time to explain how credit cards work and how they can be so beneficial to you. Credit cards do have their pros and cons just as most things in life.               Let’s talk about your credit first. Are you the kind of person that has excellent pay history, but your score is stuck in the low to mid 600's range? If this is you, then odds are you may not have a credit card. Your credit report is made up of two very large components. The first is “on time payments,” which makes up 35% of your credit report, and an additional 30% is your “revolving credit.” Just these two factors make up 65% of your credit report!               Revolving credit is how much you