MoneyWisdom Spring 2018

MoneyWisdom TIPS, NEWS, AND HAPPENINGS FROM HANSCOM FCU | SPRING 2018

WHAT A GOOD

CAR LOAN

Can Do for You page 4

PREPARED FOR AN EMERGENCY? Start Your Emergency Fund page 3 1

Spring 2018

Chairman’s Corner

Reward Yourself Through Service to Others

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olunteer work is an important part of my life. I’ve been serving on the Board of Hanscom Federal Credit Union since

1978, serving as Chairman since 1993. I’ve met countless people, worked on numerous committees and participated in hundreds of community events. The memories are rich, and the service has been rewarding. I share this with you today with the hope that you will consider volunteering with me and our other volunteers for our not-for-profit financial cooperative credit union – and begin enjoying the rewards that come with volunteer service.

The work we do helps our 81,000 members.

We join together to help our credit union make decisions that benefit us all. We also serve our community under the credit union motto of ‘people helping people,’ giving our time to veterans, children, the homeless, and others through community service. (See some of our recent work on page 7.)

Hanscom FCU Joins the Race to Save Lives Hanscom FCU bo ard member John Delcore joins Chairman Pa ul Marotta at a rec ent Hanscom AFB even t.

• To promote a socially worthwhile cause • To have a sense of purpose • To help others succeed financially • To give back to the community • To support a not-for-profit alternative to for-profit banking

The racers on Team Hanscom FCU have been warming up for this year’s Boston Marathon, joining the race to save lives. The team is part of our annual fundraising effort to support Boston Children’s Hospital.

Hanscom FCU joins dozens of other credit unions as part of the Credit Unions Kids @ Heart team. Last year, Team Hanscom FCU raised over $46,000, and we hope to break that record this year. All donations go directly to

To be part of this meaningful work, consider

lifesaving medical research for pediatric brain

volunteering with our Member Advisory

cancer, Struge-Weber syndrome, Moyamoya

Group. This is a group of dedicated volunteers

disease and Cerebral Palsy. Nothing is

who share their leadership, knowledge, ideas

deducted for administrative expenses.

and vision to benefit their fellow credit union members. They meet quarterly to provide

For each child seeking treatment at Boston

insight and feedback on issues concerning

Children’s Hospital, there is a family of reasons

Hanscom Federal Credit Union and the credit

to race. You can be a hero by making a

union movement. Membership in this group

donation at any Hanscom FCU branch or

is often considered the first step in the credit

visit www.hfcu.org/marathon.

union volunteer journey.

Contact us at 800-656-4328, ext. 2203 or email Cara Powers us at cpowers@hfcu.org to start your volunteer journey with Hanscom Federal Credit Union.

Why do we do it? I asked many of my fellow credit union volunteers and some of the answers include:

I hope you will experience the joys of volunteering that I have been privileged to enjoy, and I look forward to volunteering along

• To meet interesting people • To better understand the financial system • To guide the success of the credit union • To stay mentally and physically fit

side of you in the near future.

Paul Marotta Chairman of the Board

Statistics

Our Mission

Board of Directors

To provide superior financial

Paul J. Marotta, Chairman

Raymond A. Kahre

Members . ............................................... 81,017

service responsive to our

Mark D. Walsh, Vice Chairman

Hugh W. McNeil

Assets........................................ $1,271,900,000

members’ needs.

John A. Delcore, Secretary

David M. Pronchick

Deposits.................................... $1,122,200,000

Ray T. Phillips, Treasurer

Lawrence S. Rzepecki

Loans.......................................... $1,133,700,000

Teresa S. Conrad

Reserves....................................... $131,600,000 December 31, 2017

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Spring 2018

BeSAVVY

5 Easy Ways to Cut Monthly Expenses

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ver notice how your monthly expenses always seem to equal

deductible. Also be sure to examine your policy for “extras” you may

whatever salary you’re making, even after you get raises? The

not need.

phenomenon is called “lifestyle creep” and it can keep you from

reaching all kinds of financial goals, from paying down debt, to saving

Examine Your Auto-Payments

for retirement. You can fend off the creep by cutting back on your

If auto-pay causes you to keep paying for items or services you don’t

monthly expenses. Here are five ways to do that right now.

really need or use, it’s no bargain. A few common culprits include unused gym memberships, subscriptions to magazines that aren’t read,

Make a Budget

and cable or satellite TV plans that include loads of premium channels

Know exactly where your money is going by making a budget. Start with major categories, like rent or mortgage, utilities, transportation,

that are rarely watched.

meals, clothing, and entertainment. Then break it down even further

Cut the Cord

to ferret out items that are ripe for reducing.

If you’ve already ditched your land line, good for you! If not, doing so is one of the quickest and most pain-free ways to trim your expenses.

Lower Your Mortgage Payment If you haven’t examined your mortgage since you bought your

© BALANCE

home years ago, it’s quite possible that you could save a lot of money – both now and over the life the loan – if you refinance at a lower interest rate.

Get an Insurance Checkup It pays to shop around periodically to make sure you’re getting the best deal. If you have a decent emergency fund on hand in case of an accident, one way to lower your premiums is to increase your

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Reasons to Start an Emergency Fund

A number of unexpected expenses could cause you unnecessary financial strain if you don’t

1. Job loss. If you ever found yourself unemployed, would you have enough savings to live on while you find a new job? Aim to save enough to cover your living expenses for at least six months.

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2. Health or dental expenses.

Your health insurance may not cover everything, and deductibles and copayments can add up quickly.

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save for that rainy – or stormy – day. With our CU Thrive savings plan, you can automate

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have emergency savings. Here are five great reasons to start an emergency fund today.

Opening a savings account is a great way to

3. Car clunks out. Accidents happen. Maintenance is needed. You want to be prepared.

4. Pet health emergency. Sure, you may be able to afford Fido’s annual checkup and vaccinations, but pet surgery can cost hundreds to thousands of dollars.

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5. Major mechanical meltdown.

A busted water heater or failing furnace can cost thousands to replace. Plan accordingly.

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your savings and earn a competitive interest rate. You can begin with as little as $5 or as much as $500 per month, which will automatically transfer from your Hanscom FCU checking account. Learn more at www.hfcu.org/thrive.

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Be READY

With CU Thrive, you can automate your savings! Learn

more at www.hfcu.org/thrive.

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5

Reasons to Choose Your Credit Union for a Car Loan

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car loan is helpful. But a good car loan can make a dramatic difference in your life. It can save you money, reduce worries, and minimize hassles.

And at Hanscom Federal Credit Union, we specialize in good car loans.

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Cruise through the approval process. Many financial institutions look no further than your credit report when considering your loan application, and they may deny your request if you have less-than-great credit.

But credit unions can take the time to consider the full context of past financial behaviors, which can give you a leg up in the approval process.

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Pay less. Credit unions are not-for-profit financial institutions, which means all profits are returned to members by way of lower fees and loan rates. Rates at credit unions tend to be lower than at banks, and a lower rate can save you hundreds – even thousands – of dollars in interest payments over the life of the loan.

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Enjoy a member-centered approach. Member service representatives keep a strong focus on providing unbiased financial education, such as tips for determining an affordable loan amount based on your situation.

Benefit from unique resources. Credit unions maintain partnerships with services that aim to help members make wise financial decisions. For example, Hanscom Federal Credit Union partners with AutoSmart, a website that provides research on the auto market.

Members can use the website to search, shop, and finance a vehicle, taking the stress out of car buying.

Visit hfcu.cudlautosmart.com.

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Apply with ease. We make it simple to apply for a car loan. Do it on your mobile device or computer, over the phone or in a branch. Call 800-656-4328 or visit www.hfcu.org/carloan.

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Spring 2018

BeDRIVEN

This Is Better Than a Lease

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easing a car can be an attractive option. It affords you the opportunity to make lower payments on a better make and model car than you might otherwise be able to afford.

The down side, however, is that leases have rules, lots of them. From insurance requirements to prepayment penalties, there are costs to leasing that buyers don’t have.

Better Than a Lease Loan Benefits

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Can You Refinance a Car Loan?

Yes! And it can save you a lot of money each month – and over the life of your loan. Drive home the savings by refinancing your car loan with Hanscom Federal Credit Union!

Apply online Find great low rates Refinance to lower payments or shorten

What if you could get that low payment without a lease? With a Better Than a Lease

loan terms

loan from Hanscom Federal Credit Union, you can. Rather than leasing a vehicle

No application fee or title transfer fee

owned by someone else, you buy the car and it’s titled in your name.

Visit us online at www.hfcu.org/refinance, call

Monthly payments are typically 30% lower than a conventional loan

800-656-4328, or stop in at one of our locations

with the same term. That’s because, like a lease, you only pay for the value of the

today to learn more.

car you use.

Unlike most leases, there’s no security deposit with a Better Than a Lease loan.

You don’t need a down payment. And Better Than a Lease is for used cars up to 5 years old, too!

Mileage allowances are flexible, and per mile charges for going over your miles are modest. There’s no fee for normal wear and tear, and we guarantee to take back the vehicle at the stated value.

Because you own the vehicle, you have the flexibility to sell, trade, or refinance any time during your loan term. There are no prepayment penalties.

At the end of your loan term, you have four choices: 1 R eturn the vehicle and walk away. The balance will be paid off less any fees for excess mileage or damage.

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Your Perfect Car Is Just a Click Away

Use Hanscom Federal Credit Union's online carbuying resource, and browse thousands of new, used, and certified pre-owned vehicles from different dealers.

Powerful research tools Compare and research the car, RV, or motorcycle that’s right for you.

Choose from multiple dealers online Browse a large selection of inventory right from

2 K eep the car and refinance. Hanscom FCU rates are the same for new or used.

your desktop, laptop, or mobile device.

3 Trade the car in to a dealer and realize any equity you have built up.

Our online resource can provide you with an

Check the value of your trade-in estimate for your current car’s trade-in value before

4 S ell the car privately and pay off the balance. With a well-maintained vehicle and a popular make and model, you could make a profit.

you go to the dealership.

Get pre-approved financing

If you are looking for a lower monthly payment, and the flexibility to trade in your car

For low rates and payments, get pre-approved

if you don’t want it any longer, the Better Than a Lease product might be perfect for

for a car loan from Hanscom FCU. Visit

you! Learn more at www.hfcu.org/lease.

hfcu.cudlautosmart.com today.

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BeMOVED

House Shopping: Evaluating a Home’s Flaws

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ave you ever watched a popular home buying show? Often you see home buyers searching for their ideal home turn down places with only minor flaws. They get caught up in the look

What Shouldn’t Be Overlooked?

You might be able to save by overlooking cosmetics, but there are some issues you shouldn’t look past. If the floor plan isn’t what you’re looking

of bad flooring or a dated bathroom. But are those problems serious

for, you may want to move on to another home. You can open up a

enough to reject a home? Probably not.

space by widening doorways and taking out non-load bearing walls,

When looking at a new home, don’t focus on everything being exactly how you want it. You may be able to get a better price on a home that only needs cosmetic repairs like new flooring, paint, light fixtures, cabinets, or countertops. Observe the quality of the home instead. Consider how solid the doors are, look for a level floor, and keep an eye out for any water damage or suspicious cracking in the stucco or foundation.

but if the kitchen isn’t where you want it to be, there isn’t much you can do. Other red flags you should watch for if you don’t have money for major repairs include: An aging roof Numerous electrical wiring upgrades A history of flooding

Galvanized pipes Water heating or air conditioning issues Termite damage

If you’re able to look past cosmetic problems, you may be able to find a great home in the perfect location for less than you bargained for. Then, with the savings, you may be able to give your home the exact look you’ve always wanted.

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Expenses to Include in Your Homebuying Budget

First-time homebuyers are sometimes caught off guard by overlooked expenses, which can create an uncomfortable financial pinch. Be sure

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you consider these one-time and ongoing expenses:

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Home inspection. For a few hundred dollars, an inspection can uncover potential trouble such as structural problems or asbestos.

Home maintenance. Experts recommend setting aside 1 to 3%* of the home’s purchase price for annual maintenance. For example, you may need to buy lawn care equipment or replace the roof, furnace, or water heater.

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Taxes and insurance. Property taxes and homeowners insurance aren’t always included in mortgage payment calculators.

Extra cash at closing. Your lender should give you a detailed estimate of closing costs. But beyond those, you may have to pay additional expenses, such as a prorated portion of property taxes or homeowners association fees that the seller has already paid.

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Spring 2018

FIND THE RIGHT MORTGAGE The experienced mortgage specialists at Hanscom Federal Credit Union can help you understand the true costs of

homeownership so you don’t encounter any unpleasant surprises.

We’ll help you find the right mortgage for your circumstances and budget. Contact a mortgage professional at 800-656-4328, 781-698-2043, or visit www.hfcu.org/mortgage.

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The move. Whether you hire professional movers for a few thousand dollars or rent a truck, buy boxes and recruit friends to help, moving costs money.

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Settling in. You may have to pay utility connection fees when you move in, plus utility costs may be higher than you were used to as a renter. Other costs include lock replacements and decorating expenses. * Source: HGTV.

BeINVOLVED

Hanscom FCU in the News 1

Hanscom FCU Supports Leadership Program Hanscom FCU contributed $2,400 to the Airman Leadership

School program on Hanscom Air Force Base. Airmen complete the five-

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week program to attain the rank of staff sergeant, the first step toward a career as a military supervisor. Photo: Hanscom FCU Chairman of the Board Paul Marotta and President/CEO David Sprague present the donation to Airman Leadership students.

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Hanscom FCU Board Awards $1,500 Grant Hanscom FCU honored Fisher House Boston with the Board

Memorial Award, a $1,500 grant awarded annually to a charitable

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organization associated with Hanscom FCU’s membership base. Fisher House Boston provides military families free housing that is close to a loved one during hospitalization. Photo: Hanscom FCU Director Ray Phillips, Chairman Paul Marotta, Fisher House’s Brandon Driscoll, and Hanscom FCU President/CEO David Sprague.

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Employees Raise Over $10,000 for Children in Need

The annual Hanscom FCU Employee Holiday Raffle raised over $10,000 for A Bed for Every Child, an initiative of the Massachusetts Coalition

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for the Homeless. The raffle generated $5,200, an amount matched by Hanscom FCU for a total donation of $10,400. Photo: Hanscom FCU’s Deb Cahoon and Elaine Jones conducted the 2017 employee raffle.

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Volunteers Cook Holiday Meal for Fisher House Boston

Hanscom FCU volunteers prepared dinner for guests at Fisher House Boston. The meal was enjoyed by military families who have loved

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ones receiving care at the West Roxbury VA Medical Center. Photo: Jean Marotta and Susan Phillips are joined by Hanscom FCU Chairman Paul Marotta, Hanscom FCU President/CEO David Sprague and Hanscom FCU Director Ray Phillips.

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Giving Tree Program Provides Needed Winter Clothing

The Hanscom Air Force Base annual Giving Tree outreach program provided new winter clothing for 50 area children. This year’s efforts were coordinated by Mike Rzeszutek, Hanscom FCU Assistant Vice President of Sales and Training. Photo: Hanscom FCU training specialist

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Sandy Imbrogna, Master Sergeant Eleuteria Inman, and Mike Rzeszutek.

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Contact Us Headquarters: 1610 Eglin Street | Hanscom AFB, MA 01731 800-656-4328

1610 Eglin Street

www.hfcu.org

Hanscom AFB, MA 01731

Download our free app for iPhone®, AndroidTM, and Kindle Fire.

Go green. Log in to Online Access HD to sign up for online statements. Learn more at www.hfcu.org/statements.

Routing Number (for direct deposits and withdrawals): 2113-8048-3 NMLS# 410771 To report a lost or stolen ATM & Check Card or Credit Card call: 800-656-4328 Overseas (24 hr): 412-552-2698 (call collect) This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material.

Websites not belonging to Hanscom FCU are provided for information only.

No endorsement is implied. Images may be from one or more of these sources: ©iStock, ©Fotolia, ©Canva. ©2018 Hanscom Federal Credit Union.

Federally insured

by NCUA.

You’re Invited!

The 64th Annual Meeting takes place Saturday, May 5.

The Hanscom FCU Annual Meeting is moving to The Lantana in Randolph, MA, in 2018. Doors open at 5:30 p.m., and the business meeting begins at 6:30 p.m.

Dinner and entertainment will follow the meeting. Tickets are $12 and must be purchased in advance. Order yours at www.hfcu.org/ meeting. Purchase them at a branch or by calling 800-656-4328. See you there!