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 Frequently Asked Questions...
How is my investment helping churches and Converge/BGC ministries? Your investment, pooled together with 1800 other investors, allows the BGC Cornerstone Fund to have funds available to offer competitively priced loans to our Converge/BGC churches, districts, and affiliated ministries throughout the U.S. and Virgin Islands. What types of investments are available from the BGC Cornerstone Fund? The Fund offers fixed rate certificates of varying terms, six months – five years, paying varying rates of interest depending on the term selected. Are investments with the BGC Cornerstone Fund insured? The Fund’s certificates are not insured by the F.D.I.C., S.I.P.C., any state bank insurance fund, or any other governmental agency. How is my interest calculated? For term certificates, interest is accrued on the basis of the actual number of days in a year and can be paid monthly, quarterly, semi-annually, annually, or re-invested semi-annually on June 30th and December 31st. What is the difference between the stated interest rate and the APY? The stated interest rate refers to the percentage of return that you will receive on your investment. How are interest rates on Cornerstone Fund certificates determined? The Fund’s management reviews the rates on a weekly basis. The Fund’s management determines the rates based on comparison to Treasuries, Agencies, and other like-term certificate offerings as quoted on the Bank Rate Monitor (www.bankrate.com). Is the Cornerstone Fund growing? The BGC Cornerstone Fund incorporated in 1989 as an Illinois not-for-profit organization, taking over the operations of the Revolving Building Trust. The Fund and its predecessor have been in existence for over 50 years. The Revolving Building Trust started with approximately $88,000 in assets in 1954. The Fund has grown steadily over the years to over $117.1 million in total assets as of 6/17/08. How can I become an investor with the BGC Cornerstone Fund? See our Steps to Investing page under the type of investment you are considering. Click the appropriate link: Is the Cornerstone Fund registered to sell investments in my state? The Fund is registered to sell securities in 40 states. Unfortunately we are not registered to sell securities to residents of the following states or districts:
Alabama How do Traditional and Roth IRAs differ? With a Traditional IRA, the contributions you make are typically deductible for the year the investment is made and taxable when the funds are withdrawn from the IRA. How do I open an account for a minor? A minor is unable to be a sole owner of a BGC Cornerstone Fund certificate. The correct way to open an account for a minor would be to open a Joint Account with an adult. At the top of the application under Type of Ownership; please check “Joint”. What happens when my certificate matures? Approximately 30 days prior to the maturity of your certificate, you will receive a Maturity Notice in the mail. This will be accompanied by a Response Form listing your options for the certificate at maturity. If you do not wish to make any changes to the certificate (i.e., term, amount), there is no need to do anything as the certificate will automatically rollover. If you are making any changes, check the appropriate option on the Response Form and return to our office. What are the penalties associated with redeeming my certificates before maturity? Upon early liquidation of a term certificate, a penalty is assessed equal to three months of interest earned on the redeemed fixed rate certificate. Can I have co-owners on my certificate? Yes. The suggested format would be “joint tenants with right of survivorship but not as tenants in common.” All statements and 1099INT information will be issued to one primary person. What happens if I lose my certificate? The Fund will re-issue the certificate once we have received a signed “Lost Certificate Affidavit” provided to you by the Fund. Please call us, 1-800-323-4215, to receive the necessary paperwork. What would happen to my investment if I should pass away? The proceeds would be paid to the co-owners or beneficiary pursuant to a “Payable on Death” or similar agreement. If there were no record of desired co-owners or beneficiary, the proceeds would go to your estate. The Fund would need to have a copy of your death certificate on file, and other appropriate documentation, before we can process the redemption. Can my investment be managed by someone other than myself? Yes. You will need to provide the Fund with some documentation, such as a Power of Attorney, trust document naming a trustee, etc… Can I add to my investment certificate? You can add to a demand certificate either through mailing a subsequent investment to the Fund’s mailing address or by direct investment. Direct investments can be made on the 1st and/or 15th of the month and will require an authorization document along with a voided check or deposit slip to initially set up this type of transaction. Can my interest be mailed directly to my bank? Yes. The Fund will need a deposit slip with your bank account information to set this up for you. |
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