MoneyWisdom Hanscom FCU Summer 2016

MoneyWisdom Summer 2016

PLATINUM MASTERCARD® BRINGS New Benefits, Security to Credit Cards 2

SAVE FOR RETIREMENT While Paying for College 3 The Top 5 Questions We Get on

BUYING COMMERCIAL PROPERTY

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A CO MPL I ME NTA RY SUB SCRIP TION FROM HAN SCOM FCU

INCREASED SECURITY AND REWARDS Come with Your Hanscom FCU MasterCard® Platinum Credit Card Hanscom FCU’s Platinum Credit Card now carries the MasterCard brand. Your new card has updated chip technology to increase security, and you now have access to MasterCard benefits such as Fuel Rewards®, the Priceless® Cities program and MasterCard ID Theft ProtectionTM. Microchip technology makes it difficult to copy your card for fraudulent use, and is quickly becoming a standard for debit and credit cards. To use a chip card, simply insert it into an enabled chip card reader at check-out and follow the prompts. Where a merchant has not enabled their chip card readers, you can swipe your card through the magnetic stripe reader.

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You can also add your Platinum MasterCard to your Apple Pay® Wallet. Use your iPhone® or Apple Watch® to make payments at participating retailers.

The features you appreciate about our card, like great rates, no-fee cash advances and no-fee balance transfers, are not changing.

We still offer the same rate for purchases, advances and balance transfers. Plus, enrolled credit cards still earn MemberPoints.

Link your card with MasterCard Fuel Rewards and get cents-per-gallon discounts on fuel

For more information or to apply for a Hanscom FCU Platinum MasterCard, visit us at www.hfcu.org/creditcard.

metallic ink Metallic white or silver card with silver card name. or foil stamp logo, line graphics and

at participating Shell stations. Whenever you shop, dine or make day-to-day purchases at any merchant or restaurant participating in the Fuel Rewards program, you earn discounts on your gas purchases.

Check out the MasterCard Priceless® 7 program and treat yourself or a loved one to exclusive shopping, dining, entertainment, sports and travel experiences. They’re available in Boston, New York and seven other North American cities, and many more around the world.

We Want to CU

Your Platinum MasterCard can help detect and resolve identity theft with ID Theft Protection. At no extra cost, you have access to internet monitoring services, emergency wallet replacement and expert resolution services to guide you through the process of restoring your good name.

SAVE

We kicked off 2016 with #CUSave2016, a year-long money-saving initiative filled with ideas and tips to save money. Get tips on saving in every part of life. Small daily changes add up to big savings!

Find a new tip every day on Facebook, Twitter and Instagram! See the entire collection at www.cusave.org.

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Summer 2016

logo and Metallic white or silver card with printed graphics and silver metallic ink or foil stamp line card name.

If you currently have a Hanscom FCU credit card, your new card replaces your Visa® Credit Card. When you receive it, activate it right away. Visa cards will be deactivated on Aug. 15, 2016.

MONEY SAVING TIPS

Saving for retirement early can help you earn more with years of compound interest.

Paying Student Loans and SAVING How You Can Tackle Both

Student loan debt is the enemy of many millennials, but it’s becoming a problem for some older Americans, too. According to the Federal Reserve Bank of New York, nearly 17% of student loan debt is currently held by borrowers age 50 and older. For many of these borrowers, this student loan debt is money borrowed for their children’s or grandchildren’s educations.

No matter your age, it can be hard to know which to prioritize – paying off student debt or saving for retirement. Although it’s tempting to throw money at debt first and put off saving, building your retirement funds early can help you earn more with years of compound interest – in other words, it’s important to start or continue saving now.

Here are a few ways to save for retirement even while paying off student loans.

Rein in spending – Evaluate your current spending and identify areas to cut back. Food and entertainment costs can often be reduced with minimal impact. Funnel your savings toward retirement and loans.

FOR RETIREMENT

Automate it – Make the process easier with “auto-pilot.” Employer-sponsored retirement plans automatically deduct money for your retirement savings, so you save without having to think about it. If your employer provides matching contributions, contribute enough to earn the full match. You can also automate loan payments. Some lenders lower your interest rate when you do!

Take advantage of tax breaks – When you make contributions to tax-deferred retirement savings accounts, such as a 401(k) or a traditional IRA, you can lower your taxable income.* Plus, your retirement savings can grow faster with tax-deferred compounding.

With a lower taxable income, you’ll have less money going to taxes. Put that extra cash toward paying your debt. You’ll enjoy additional tax benefits when you claim a student loan interest deduction of up to $2,500 on your tax return, if you’re eligible.

Allocate extra funds – Put any money outside your regular paychecks – a tax refund,

bonus or other windfall – directly toward student loans or retirement savings.

For help determining the best savings and payment plan for you, request a free consultation with an investment professional at Hanscom Financial Services. For details visit www.hanscomfinancialservices.org or call 781-698-2236. * Taxes will be due at ordinary income tax rates upon withdrawal from a traditional individual retirement account (IRA) or employer-sponsored retirement plan. Premature withdrawals (generally, those made before age 59½) may be subject to a 10 percent tax penalty, too (does not apply to 457 plans).

Investment products: • Not federally insured • Not a deposit of this institution • May lose value

Meet the Hanscom Financial Services Team: Joe Delano, Beth Nocito, Linda Crowley and David Thibeault.

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9 WAYS TO SAVE on a Cruise You’ve decided to take a cruise. Get ready for beautiful views, stewards to clean your room and those famous buffets. But first, read these money-saving tips. After all, even when you’ve paid ahead for your meals, accommodations and entertainment, there are lots of ways to spend more than you planned.

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Choose beverages carefully. Most cruise lines charge for soda and bottled water.

Find out which beverages are included in your fare, such as iced tea and lemonade. Bring an empty water bottle with you to refill on board.

If you are a big soda drinker or you like specialty coffee drinks, consider buying an unlimited pass so you don’t pay the by-thedrink price. If your trip is port-heavy, though, consider how much time you will actually spend on the ship first.

Smart Moves for the Summer Season Whether your plans include cruising the ocean or cruising down to the local pool, here are two suggestions to manage your finances while enjoying the season.

make room in your budget Get some relief by skipping a loan payment. You can skip a month on a qualified loan for just $25. This is especially useful if your income normally goes down in the summer or your expenses go up. It doesn't affect your credit score. See details at www.hfcu.org/skip.

open a cu thrive savings account Plan ahead for next year by putting aside $5 to $500 a month at an outstanding rate. Your funds will build throughout the year so you can hit the beach or the barbecue and keep your budget intact.

Visit www.hfcu.org/thrive to check out today’s rate and get started.

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Keep your fitness routine for free with complimentary classes held on deck, rather than fee-based options in the gym. You can also use the running track, or even bring your laptop with some exercise routines already downloaded to use in your room.

Plan to attend the captain’s party, repeater parties, art auctions or other events for complimentary drinks and snacks. You will be marketed to at these events, but you’re not obligated to buy.

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Get your nails done before your cruise. Spa treatments are more expensive on a ship.

Look for discounts on port days if you must have that herbal wrap or massage.

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Go for the unbranded ice cream. Soft serve machines and poolside shops typically offer complimentary treats, often made right on the ship. Save the Ben & Jerry’s® for your next TV marathon at home.

Do your research on port excursions. Often you can purchase a tour directly from an operator or explore on your own. Pay attention to the sail time. Unlike a ship-sponsored excursion, they won’t hold the boat if you are late.

Stay out of the casino. Along with premium beverages and excursions, casinos are big money generators for cruise operators. There are plenty of complimentary entertainment options on board.

Shop with a budget. When you are in the fun, relaxed atmosphere of a cruise, it’s easy to overdo the souvenirs. It’s fine to bring something back to remember your trip, but stick to a preset limit and consider whether you will really wear or display the item once you’re home.

Get help with your spending plan with our free build-a-budget eguide. Get yours now at go.hfcu.org/build-a-budget-ebook.

MONEY SAVING TIPS

5 TOP QUESTIONS in Commercial Lending Investing in rental or commercial real estate is a common approach for those planning an alternative income stream, especially during retirement. Phil Purcell, Hanscom FCU VP of Commercial Lending, works with members daily to determine appropriate investments and help them prepare their finances.

Here, Phil answers the top five questions he gets about investment properties and commercial lending.

What are your rates?

It depends. Rates are influenced by the amount you want to borrow, the type of loan you qualify for, the collateral you are using and your credit history. Commercial lending is very different from getting a mortgage for your own home. You should always talk to your lender about your plans at the beginning, so you can work out any issues and ensure a satisfactory outcome.

Do you make Small Business Administration loans?

Yes, we participate in SBA financing programs.

For many members, the flexibility of an SBA loan is a good fit, but it may not be for every situation. You need a lender that will partner with you to be sure you meet eligibility requirements and get the most favorable terms.

Do I need a down payment on an investment property?

With a commercial loan for investment purposes, investors typically will be required to put a down payment of 20 to 25%. In some cases, other collateral can be used in place of cash – an unencumbered investment you already own, for example. These techniques

are more complicated than a typical purchase.

Work with a professional in this case.

Can I use a rental property to produce income in retirement?

Yes. You can structure your loan on a rental property to be paid off around the time you plan to retire. That way, instead of paying debt service, you would be earning those monies as income. The building’s fair market value appreciation functions as a nest egg for future expenses or investment. Plus, you may realize some tax advantages through mortgage interest and depreciation.

For more information about commercial lending and investment property financing, contact Phil at 781-698-2186.

Can I take cash out of an investment property?

Yes, if you have sufficient equity in your investment property. Typically the maximum loan-to-value allowed is 80%. Refinancing an investment property can yield cash out for a down payment on a new property.

To protect your investment, be sure you have thoroughly researched your purchase. You will need an estimate of renovation expenses, potential income and other information to share with your lender.

GET FISCALLY FIT with Lunch & Learn Seminars Do you know we offer free lunchtime seminars at partner companies and in branch locations? We even provide lunch.

These 45-minute programs cover specific financial topics such as understanding your credit score, becoming a first-time homeowner, estate planning and understanding Social Security benefits.

All you need to do is schedule an event and provide the location. We do everything else. This is a great way to offer useful education without adding an expense or using up staff time.

For information about our upcoming offerings, contact Partner Relations AVP Maria Porto at 781-698-2093. To see what seminars are coming up in our branches, visit www.hfcu.org/locations and click on a branch link.

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GETTING DIVORCED? Don’t Overlook Retirement Benefits The issues that couples deal with in a divorce are often emotionally charged. While couples argue about the immediate issues – the house, child support, debts, etc. – they may overlook or underestimate the importance of retirement benefits. It’s important to know your rights to retirement benefits because these benefits are not automatically split in a divorce.

Whether you and your spouse are in agreement about the terms of the divorce or not, it may be a good idea to hire an attorney to protect your interests.

when retirement benefits are marital property Divorce laws vary by state, but in most states the retirement benefits earned by either spouse during the marriage are considered “marital property” or “community property,” which means they can be divided in a divorce. The law generally applies to pension plans and employer-sponsored retirement plans such as 401(k)s and 403(b)s.

To have retirement benefits split in a divorce, you must request a court order before the divorce is final. Otherwise it’s nearly impossible to go back

and claim rights to these benefits. An attorney can help track down information about the accounts and file a court order, which is called a qualified domestic relations order (QDRO). A QDRO must be signed by a judge and sent to the plan administrator for approval. You may be able to negotiate who (you or your spouse) pays the lawyer fees for drafting the QDRO and plan administrator fees for processing it.

avoid common mistakes Don’t let these common mistakes sabotage your opportunity to claim the benefits you deserve:

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Don’t give up if your spouse refuses to share details about retirement accounts and how much they are worth. Better idea: Gather as much information as you can about the benefits earned by you and your spouse, and ask your attorney for help navigating the details. If a spouse worked different jobs, there may be multiple retirement accounts.

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Don’t waive your rights to your spouse’s retirement benefits in exchange for the house (or other assets) without thinking it through. A home can be expensive to keep

Using Home Equity to PAY

know your options

Looking for ways to pay for your children’s college? Thanks to lower interest rates and potential tax advantages, a 3 in 1 Advantage Plan can be an economical and convenient choice.

The 3 in 1 Advantage Plan offers flexibility. It’s an equity line of credit, with options for fixed loans and a credit card in one handy package.

You can have up to three fixed rate advances at a time, so big bills like tuition and fees can be covered in a lump sum.

Since the loan is secured by your home, the interest is tax-deductible for most people.* Tax-deductibility can effectively make your borrowing costs even lower.

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Don’t stash a lump sum payout from an ex-spouse’s retirement plan in a taxable account. Better idea: Roll the amount into your own employer-sponsored retirement plan or an individual retirement account (IRA). The balance may continue to grow tax-deferred until you reach retirement.*

moving on Visit our blog at go.hfcu.org/blog for more resources on divorce and your finances. See how to rebuild credit, update documents and build a budget after divorce. * Taxes will be due at ordinary income tax rates upon withdrawal from a traditional individual retirement account (IRA) or employer-sponsored retirement plan. Premature withdrawals (generally, those made before age 59½) may be subject to a 10% tax penalty, too (does not apply to 457 plans).

Investment products: • Not federally insured • Not a deposit of this institution • May lose value

FOR SCHOOL

put your equity to work

The 3 in 1 Advantage Plan uses your home as collateral. Depending on your home’s value, your equity in the home and your credit score, you could have a lot of borrowing power.

up, and you could lose money on the resale if you decide to move. Better idea: Downsize to a smaller home and ask for your share of the retirement benefits, which may provide a muchneeded financial cushion later in life.

Use the line of credit as often as you like, up to your limit. This is great for expenses when you're not sure how much you need.

The line of credit ensures you don’t over borrow, and that you'll still have funds for unexpected expenses. Secondly, your equity becomes available again as soon as you pay down your balance.

A credit card that accesses your equity comes in handy for purchases such as books or travel expenses. This ensures a portion of your line is always ready for emergencies or items you want to pay off quickly.

compare fees and rates A 3 in 1 Advantage loan is economical, too.

There are no application fees, no annual fees and no closing costs, as long as the line remains open for 24 months or more. Compared with student loan fees, you could save big.

If you’ve done your homework and you’re ready to get started, check out details and our online application at www.hfcu.org/equity. * Check with your tax advisor regarding tax deductibility in your situation.

PEOPLE HELPING PEOPLE

Hanscom FCU IN

THE NEWS

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200+ students get real at cu 4 reality

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$10,500 in scholarships awarded at annual meeting

Hanscom FCU doubled the size of this year’s CU 4 Reality event for high school students. Members of the AFJROTC programs in Lowell, Bedford and Billerica were joined by students from Lincoln-Sudbury and ConcordCarlisle High Schools. Participants built a budget based on their chosen professions, allocating resources toward their needs and wants.

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Five credit union members received Condon scholarships and two students from local Air Force Junior ROTC units each received $1,500 to help pay for school. Pictured at the annual meeting are (l to r) Condon Scholarship Committee Chairman Ray Phillips; Zachary Somers, Bedford, Mass.; John Connolly, Boston, Mass.; Rachel Bianculli, Charlton, Mass.; and Chairman of the Board Paul Marotta. Gwen Gardner, Bedford, Mass.; Eleanor Silver, Lexington, Mass.; Caroline Reidy, Brentwood, Tenn.; and Shayla Moya, Lowell, Mass. were unable to attend the event.

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affn grant doubles value for pea

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what took you so long?

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miss massachusetts titleholder talks membership at annual meeting

Members of the Patriot Enlisted Association located at Hanscom AFB accepted a $1,500 matching grant from Hanscom FCU. The grant sponsored by the Armed Forces Financial Network (AFFN), doubled the value of Hanscom FCU’s Board Memorial award. This is the 12th straight year the AFFN’s Matching Grant Program has helped Hanscom FCU recognize volunteer groups serving our membership base.

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Andy Martin, Jr. congratulated Ray Phillips as he finished his 17th Boston Marathon and his 100th marathon overall. Ray, fellow runner Mike Rzeszutek and his patient partner Timmy Stevens rallied Team Hanscom to raise $50,000 toward pediatric brain research. Many thanks to all of you who supported the team with a donation.

Meagan Fuller, Miss Massachusetts 2015, addressed members at the 62nd annual meeting. A member of Hanscom FCU since her teens, Fuller thanked Hanscom FCU members and leadership for their support. She noted that Hanscom FCU played a role during her trip to the Miss America competition, alerting her to fraudulent activity on her account and handling the issue without missing a beat.

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our mission To provide superior financial service responsive to our members’ needs.

contact us Headquarters: 1610 Eglin Street, Hanscom AFB, MA 01731

1610 Eglin Street Hanscom AFB, MA 01731

800-656-4328 www.hfcu.org Download our free app for iPhone®, AndroidTM and Kindle Fire.

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): 701-461-0621 (call collect)

board of directors Paul J. Marotta, Chairman Mark D. Walsh, Vice Chairman John A. Delcore, Secretary Alan M. Hart, Treasurer Teresa S. Conrad Hugh W. McNeil Ray T. Phillips Frederick C. Ryan Lawrence S. Rzepecki

statistics Members . ...............................................66,747 Assets........................................ $1,132,300,000 Loans.......................................... $998,500,000 Deposits...................................... $953,800,000

Go green. Log in to Online Access HD to sign up for online statements.

Learn more at www.hfcu.org/statements.

No problems at all. They did all the leg work and all I had to do was sign the final documents.

Lowered my rate and started saving immediately. Wish I had gone to them earlier. Thank you Hanscom!

Marcus

I am very happy that I chose Hanscom FCU for my condo refinance and home equity. I especially thank Lucy. Her responsiveness, knowledge and efficiency made the process so easy and quick.

Chenghuan

Recommend Us TO

A FRIEND OR FAMILY MEMBER

You could earn $30 for you and a friend when you refer someone.

Visit www.hfcu.org/refer-a-friend.html for details.

Reserves.......................................$112,500,000 April 30, 2016

Federally insured

by NCUA. 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. ©2016 Hanscom Federal Credit Union.

We are so pleased with our new car loan from Hanscom Federal Credit Union. We nearly cut our rate in half.

Also, Sue was extremely helpful and everything was done on the phone and through email. I would recommend the service to anyone! Thank you.

Craig

Professional, courteous service. Everyone was very helpful and the loan was secured in a very short period of time. Explanations were accurate. It was a no hassle loan!

Sharon