As you consider opening an investment account with UMDF, these are some resources you may find useful. (If you want to consider your local foundation, but aren't sure where to start, click here to find your local UM Foundation.)
Who can invest in UMDF?
An individual, church, organization, board or agency.
What investments are possible?
1,2,3,4, and 5 Year Notes; Individual Retirement Account (IRA); Flexible Demand investments.
What are the terms of the 1,2,3,4 and 5 Year Notes?
1,2,3,4 and 5 Year notes are payable upon their maturity date; withdrawal prior to their maturity date carries a penalty.
What are the terms of the Flexible Demand investment?
Fexible Demand Notes are payable on demand; amounts may be added or withdrawn not more than 2 times monthly in increments of $100.
Does UMDF offer Individual Retirement Accounts (IRAs)?
Yes! An IRA is a savings account that offers tax advantages, making it an ideal way to save for your retirement. Unlike 401(k)s, IRAs are accounts that you open on your own. They can be opened at your bank, at a brokerage house, and at UMDF.
How secure is my investment?
Invested funds are loaned to local United Methodist churches, districts, city societies, district unions, mission institutions or conference church extension agencies. Those loans are secured by first mortgages on property purchased or buildings constructed with the loan funds. Strict guidelines are observed to make sure that congregations can sustain such loan payments. UMDF is also required to maintain a reserve of 5% of the principal balance of UMDF’s outstanding investment obligations.
Notes of UMDF are not insured by the Federal Deposit Insurance Corporation (FDIC), or Securities Investor Protective Corporation (SIPC), or any other state or federally regulated institution.
You should also be aware that UMDF’s Notes are unsecured and that UMDF may call any of its Notes at any time upon three months prior written notice.
How are the interest rates established?
Interest rates are determined periodically by UMDF’s Board of Directors, taking into consideration the average rate of interest return from UMDF’s first-mortgage loans and current interest rates paid on similar types of investments. For current rates call 1-800-862-8633.
How are withdrawals handled?
The investor contacts the UMDF office in writing to request a withdrawal.
What are some of the options for use of the interest on my investment?
Interest income is paid directly to investors unless a different arrangement is requested. For example, interest may be reinvested in your account. If you specify in writing that you would rather have your interest income paid to your local church as part of your annual contribution or designated to the mission project of your choice, The Fund will process these payments according to your instructions.
If a husband and wife invest jointly, what happens if either dies?
Ownership passes automatically to the living spouse.
I would like to set up an account for a minor. Is this possible?
Yes, a custodial account can be established under the Uniform Gift to Minors Act. For additional information on such accounts please contact the UMDF office.