Looking Forward to a Prosperous 2023
Posted on November 23rd, 2022
Who feels sick looking at their 401(k)? In October, the New York Post claimed that 401(k) plans have suffered $2.1 trillion in losses this year – the result of seven straight months of 8-plus% inflation.
According to the Heritage Foundation, a research and educational institute, the average 401(k) plan had over $135,000 at the start of this year. As of October, those assets have shrunk on average to about $101,000. Down 25% or about $34,000 in less than one year!
However, I think one of the best investments you can make is in your local cooperative. Last year, the cooperative returned more than $7.25 million in capital credits – bringing the total to $131.9 million since the process started in the 1940s.
Capital credits, or the refund of margins, makes us different from investor-owned or municipal utilities. It’s a unique and important benefit to you as a member of First Electric.
Your board of directors reviews the cooperative’s financial position to determine the amount of capital credits to refund. It’s based upon the revenue collected but not needed to cover the cost of providing service. Ultimately, that is assigned back to you – our member.
Current, new and previous members are potentially eligible for a refund depending on the amount of electricity that you used during the year. Everyone’s refund varies because the calculation we use depends on the electricity you used during the year or years being refunded .
You’ve got some extra jingle coming this holiday season. Refunds will be distributed in December. It will be issued as a credit on your account or check – depending on the amount.
We want to thank you – our members – for your investment in the cooperative! We sincerely thank you for your membership and look forward to a prosperous 2023.
Sincerely,
Rick Love