Trust / Investments


Investment Account Access

Investment Management Philosophy
We believe that the best way to acquire long-term growth of capital is to invest in a portfolio of top quality stocks and bonds over a long period of time. Our client's portfolios are built using proven quality, large cap stocks, and high quality corporate and government bonds.  When accounts warrant the use of mutual funds, we purchase only no-load funds that meet the same investment parameters as our individual security selections.
We believe in a blended approach of growth and value investing. In building our clients' portfolios, we subscribe to the proven philosophy that long-term conservative investing will produce total returns that are far superior to short term or market timing methods of investing. Our philosophy is to completely avoid hot stocks and risky bonds and to never focus solely on yield. Our belief is that the time proven method of studying investment fundamentals is directly proportional to the long-term returns on our investments.  By analyzing the general level of interest rates, dividends, debt, price to earnings and price to book values, we can scrutinize stocks and bonds to the fullest extent before including them in our clients' portfolios.
Security Federal Savings Bank offers Asset Management Services that are designed to meet the individual needs of our customers.

Managed Agency Investment Account

The Trust/Investment Management Group offers a Managed Agency Account in which clients' funds are invested in either a mutual fund asset allocation model or through individualized portfolio management.
The Trust/Investment Management Group acts as an investment agent for this account and collects all dividends and interest payments, principle at maturity, and also provides a monthly report detailing all transactions in the account.  An account executive works with our clients to determine their investment philosophy, investment objectives, and risk tolerances. Upon completion of this process, the client provides us with written investment parameters. Investment options are then developed which meet the client's investment suitability qualifications and the account is actively managed within these guidelines.
At no time does the Trust/Investment Management Group act as fiduciary under the Managed Agency Account.
Managed IRA Accounts
The Trust/Investment Management Group offers a Managed IRA Account for clients who want their retirement funds actively managed through a mutual fund asset allocation model or through individualized portfolio management.
In this account, the Trust/Investment Management Group acts as Trustee. The Managed IRA Account is managed under the same investment philosophy as the Managed Agency Account. All investments made will be permissible under the Internal Revenue Service suitability guidelines.
Trust Accounts
In addition to Managed Agency and Managed IRA accounts it is often appropriate for a Trust to be designed to manage a client's assets.  Given the flexibility and widespread customization in the drafting of trusts, it's fair to say that few are exactly alike. A trust is most often categorized by its functions and characteristics, as evidenced by the following examples:
  Bypass Trust  
  To be certain that all available spousal tax credits are used to protect family assets, a bypass trust can provide income to a surviving spouse, while avoiding estate taxes on the bypass trust at the survivor's death.
   
  Charitable Remainder Trust  
  With this popular form of trust, the trustee pays income each year from the trust to an income beneficiary, and at the beneficiary's death the remaining trust assets pass to the designated charity. In addition, the grantor can receive an income tax deduction for the gift to the charity.
Whether it is a Managed Agency Account, a Managed IRA Account, or a Trust Account, the asset management professionals at Security Federal Savings Bank have the legal, accounting, and investment management resources to meet your needs.

The above mentioned investment products (except Security Federal Savings Bank deposits) are:

  • Not a deposit
  • Not FDIC Insured
  • Not insured by any Federal Government Agency

  • Not guaranteed by the Bank
  • May go down in value (only if there is an investment component)
 

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