MoneyWisdom Hanscom FCU Spring 2017

MoneyWisdom Spring 2017

We're Growing!

NEW BRANCH, MOBILE OPTIONS Tap. Pay. Done.

EASY AND SECURE PAYMENTS

2

3

Start Now, Keep it Simple

4 RULES FOR INVESTING

6

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

CHAIRMAN’S CORNER Paul J. Marotta, Chairman

The Best of Both Worlds I am excited to announce our newest branch location at the Treble Cove Plaza in Billerica, Massachusetts. The branch is now open six days a week, with ATM access anytime for deposits, cash, and transactions.

This new space combines personal service and smart technology. Our knowledgeable staff guides you through applications and provides thoughtful service. An interactive area shows how to turn your mobile device into a mini branch.

Our newest branch in Billerica, MA opened in the Treble Cove Plaza this winter. Patty, branch manager, Elizabeth, assistant branch manager, and member service reps Cindy and Jyoti are here to help you with your finances.

Attend a financial seminar in our conference room and learn about home ownership, investing, and identity theft prevention. See www.hfcu.org/events for a complete list and to reserve your spot.

new space at mitre I’m also happy to introduce our new location at MITRE Corporation in McLean, Virginia. The branch features a street-level entrance and a beautiful interior.

You’ll find our seasoned staff there to help with your financial needs.

We’ve also invested in some nifty new electronic tools.

The latest addition to our digital service is mobile wallet services. Load your Hanscom FCU ATM & Check Card and MasterCard Credit Card into Apple Pay®, Samsung Pay™, or Android Pay™. It’s simple, secure, and free.

Our mobile apps let you pay bills, send money to individuals, and check your balances right from your phone. Find out more at www.hfcu.org/mobilepay.

I often hear from members who are excited to use these online options. From others, I hear how much they have been helped by our staff in branches and on the phone.

I am proud that Hanscom FCU offers members the best of both worlds.

Join us at the Annual Meeting

DINING, DANCING AND DEMOCRACY You’re invited to the Annual Meeting on Saturday, May 6 at Moseley’s on the Charles in Dedham, Massachusetts. Doors open at 5:30 p.m. The meeting begins at 6:30, followed by door prizes, dinner and entertainment.

This is a great opportunity to hear from your board of directors and get information directly from Hanscom FCU’s leadership. It’s a chance to see old friends and make new ones. Combined with dinner and entertainment, it adds up to a great night out.

Tickets for dinner are $12 per person and must be purchased in advance.

To get your tickets, order online at www.hfcu.org/meeting, call 800-656-4328, or stop by any branch. See you there!

2

Spring 2017

DIGITAL WALLETS Tap. Pay. Done.

HANSCOM FCU Cards Go Digital You can now pay faster at thousands of retailers using your Hanscom FCU ATM & Check Card or your Hanscom FCU MasterCard Credit Card from your mobile phone. Whether you use Apple Pay®, Samsung Pay™, or Android Pay™, we've got you covered.

If you’ve never tried a digital wallet, don’t worry. It’s easy to use and secure. There are no fees, and tracking your transactions across all your cards will help you stay on budget.

Take a video tour of our mobile app at www.hfcu.org/ mobilepay.

get started Use the preloaded app on your phone, or download it from iTunes® or on Google Play*. To use any of the apps, you will need to set up a lock screen in your phone's settings. Open the app and add your card by scanning or entering the information. Follow the prompts to confirm and verify your card.

If the response on your phone tells you to contact your financial institution, call us at 781-698-2030 to complete authentication. Once we have validated your identity, we’ll activate your card for digital payments.

easy Now you’re ready to pull out your phone when it’s time to pay. Depending on the type of phone you have, you may be directed to tap, hold the phone near the terminal, or use your fingerprint to confirm.

If you ever wish to remove your card, you can open the app and follow the instructions to delete it from your wallet.

secure The app doesn’t use your actual card number. Instead, it creates a tokenized account number. The tokenized number is transmitted with a one-time use cryptogram so your private information stays safe and secure.

Can I still use my card and online account?

Yes. You can still swipe or insert your card at payment terminals and use it for online and telephone purchases.

Your transactions will appear as they usually do on your monthly statement and your online account.

Read our blog for more information on paying with your phone: bit.ly/gohfcu_mobile. * Google Play and the Google Play logo are trademarks of Google Inc.

3

Are You in CREDIT

CARD CRISIS?

Do you get a cold, clammy feeling when you think of your credit card bills? You’re not alone. The average American household with credit card debt owes $16,061*. Heightened anxiety is only one sign that you may have bitten off a bigger bite of plastic than you can chew.

Ask yourself the following questions to determine if you’re in over your head.

• Do you avoid creditors by not answering the phone?

• Do you ignore bills by stuffing them into a pile or box unopened?

• Do you pay for other charge cards, food or utilities with cash advances or credit?

• Is more than 20% of your net income committed to revolving debt payments?

• Do you regularly bounce checks?

• Have any creditors closed your accounts?

• Do you skip certain bills every month?

• Do you make only minimum payments on credit cards while continuing to incur charges?

then work on adjusting your expenses and/or increasing your income.

Talk to us about a credit card balance transfer.

Moving debt from a high-rate card to a lower rate will slash your finance charges and help you pay down your debt.

Most importantly, stop adding new charges on your card immediately. Feeling overwhelmed because of credit card debt is natural, but with commitment and a step-by-step approach, you can turn crisis into conquest.

Reduce your debt burden by transferring your balances to a lower-rate Hanscom FCU MasterCard Credit Card. There’s no transfer fee, and your rate is the same as for purchases. Visit www.hfcu.org/ balancetransfer for details.

* Nerdwallet https://www.nerdwallet.com/blog/ average-credit-card-debt-household/ ©Balance

If you said yes to any of these questions, your credit habits may be doing more harm than good. Start breaking the cycle of debt by reviewing your monthly spending plan,

Understand Where You Stand with Credit

GET A FREE Score Review To begin conquering debt, you’ll need to understand what you owe and what you are paying to maintain your debt. The amount you spend on finance charges might surprise you.

This information is available on your statements, as required by law.

But you'll get an even clearer view of your balances and payment history on your credit report. All it takes is a free Credit Score Review from us.

Here’s how it works.

A Credit Score Review is free, and takes about five minutes. We’ll obtain a copy of your credit report and score. This is the same information we use to make a decision about a loan application.

4

Spring 2017

Here are the types of information you’ll see.

• Payment history • Capacity (maxed out credit can hurt your score) • How long you’ve had credit

• The type of credit you have • Accumulation of debt (number of inquiries and opening dates)

The credit summary profile has records from your creditors. It lists details about current loans. You can also see your total credit card balance, the percent of available credit, and your oldest credit line.

Under the profile is a list of score factors. They explain what is affecting your score. Maybe a late payment is dragging you down, or the credit cards are too close to their limits. The majority of the remaining pages list every loan or line of credit you have had in the past seven years.

USING CREDIT WISELY

Feeling Low about Your Credit Score?

TAKE THREE Steps To Improve If your credit score has taken a hit, don’t assume you are doomed to long-term financial suffering. Take steps now to improve your score and regain the advantages of good credit. Here are three things you can do today to get back on track.

1 make on-time payments Take a look at your credit card records. Consecutive late payments will negatively impact your score, so make sure you pay each one on time every month. If you have consecutive late payments, it’s even more important to establish a new habit of on-time payments.

Sign up for Online Bill Payment to get ebills sent right to your account.

You’ll know exactly what you owe, all in one place. Then set your preferences to pay automatically every month. Choose the minimum payment to make sure you don’t get late fees, or a set amount you can afford. Set up email and text alerts when payments are about to go out, so you don’t accidentally overdraw your account.

2 avoid multiple hard inquiries Hard credit inquiries occur when you apply for a credit card or loan (soft inquires, by contrast, happen as a part of background checks or preapprovals, and don’t affect your score). If you apply for several loans or cards at once, it may lead lenders to believe you have just taken on additional debt. They may suspect that you can’t qualify, even if you don't intend to use a new credit card. Not only will you be unable to get the credit you need, your credit score will take a hit.

3

re-evaluate your budget

As an alternative to applying for more credit to get the money you need, take a hard look at your budget instead. Figure out ways to cut back on spending, and see if you can make bigger payments to your cards or loans every month. If the money just isn’t available, can you pick up a part-time job to supplement your income? Larger payments will reduce your debt (and related fees) more quickly, and lower your credit card utilization. As a result, your credit score will improve over time.

Take control of your credit with a solid spending plan. Our Money Management Planner is full of tools to get you there.

Grab your free copy today at https://go.hfcu.org/mmp.

At the end of the report is a list of inquiries. If you’ve applied for a credit card, mortgage, vehicle loan, or any other credit in the past 24 months, there will be a record of the company, the date you applied, and the type of credit.

Request a free credit score review at www.hfcu.org/score.

This information can help you improve your chances of qualifying and getting a good rate on a loan or mortgage. It can also reassure you that your credit is accurate and there are no fraudulent accounts on your report.

We see thousands of credit reports every year. Our staff is skilled in providing information and guidance without judging past credit decisions.

So if you are concerned about how your credit looks, remember that knowledge is power. Our only purpose is to see you improve, so we can help you reach your goals.

5

4 SIMPLE RULES for Investing Some people are intimidated by investing. Hearing terms like “IPO,” “price/earnings ratio” and “margin” may make you think that it’s all too complicated and you’d be better off just stuffing cash under your mattress.

Not so! You don’t need to understand complex jargon to build a sound financial future for yourself. These four simple principles can help guide you toward an investing strategy that puts you on a path toward meeting your goals.

1

Start now. Long-term compounding is one of the most powerful tools available to investors. With compounding, your savings generate earnings, which are then reinvested to generate their own earnings. It’s never too late to start, but the sooner you begin, the better.

The chart to the right illustrates the power of compounding.

2

Don’t avoid risk; manage it. A well-balanced portfolio divided among asset classes such as stocks, bonds and cash equivalents may help you manage risk and reduce volatility (ups and downs). Different asset classes tend to react differently to economic and market conditions, so gains in one asset class may help offset losses in another. Your asset allocation, or the mix of asset classes you use, plays a big part in the returns your money earns.

3

Maintain a long-term outlook. The S&P 500®, a broad measure of the U.S. stock market, was down 37.0% in 2008. But if that drop scared you into selling, you would have missed the 26.5% returns the index posted in 2009*. Returns fluctuate year to year, so you can’t let one bad (or good) year dictate your actions.

4

Avoid or postpone taxes when possible. Tax-deferred or taxfree accounts can give your investment portfolio a significant boost.

Because you don’t have to pay taxes on your earnings every year, your investments compound untaxed, significantly enhancing their long-term growth potential.

Examples of tax-advantaged accounts include employer-sponsored retirement plans such as a 401(k), 403(b) or 457 plan; individual retirement accounts (traditional and Roth); 529 college savings plans; Coverdell education savings accounts; and health savings accounts (HSAs). In some cases, you can defer taxes on your contributions to these accounts as well, helping your account to compound even faster.

we’re here to help A financial consultant at Hanscom Financial Services can help demystify investing and work with you to put together an investment portfolio that’s appropriate for your goals, timeline and risk tolerance. * Source: Standard & Poor’s, www.standardandpoors.com. Past performance is not a guarantee of future results. Individuals cannot invest directly in an index.

Not NCUA Insured

6

No Credit Union Guarantee

Spring 2017

May Lose Value

Set up your free, no-obligation consultation by calling 800-656-4328, ext. 2236.

Put Time on Your Side: Invest Now! These two hypothetical investors with tax-deferred retirement accounts illustrate the advantage of starting to invest early in life.* Once Peter starts investing, he has to invest nearly three times as much per month as Rosa to meet the same goal. And he ends up investing nearly $77,000 more.

Rosa Rightnow

Peter Procrastinator

25

40

$400,000

$400,000

6%

6%

$201

$578

Total amount invested

$96,480

$173,400

Balance at age 65

$400,290

$400,551

Age when investing begins Goal at age 65 Average annual return** Amount invested monthly

* Taxes will be due upon withdrawal from a tax-deferred retirement account. ** Rate of return is for illustration only and does not represent the return of any specific investment. Your returns will vary.

PEOPLE HELPING PEOPLE

Hanscom FCU IN

THE NEWS

Countless Strides

$10,00 raffle prize awarded, proceeds help the homeless

blanket drive helps warm homeless families

Sharon Elizabeth O'Neill was the big winner of the Hanscom FCU Charitable Foundation cash raffle. She took home the $10,000 prize.

Proceeds from the raffle went to support programs at the Massachusetts Coalition for the Homeless. West Roxbury Assistant Branch Manager Belkis Beato, left, Chairman of the Board Paul Marotta, and President/CEO David Sprague brought the good news to her. Many thanks to all who participated.

Terri Bellacini, Kim Houle, and Sheila Mavropoulos of Hanscom FCU display blankets for the Cooperative Credit Union Association Blanket Drive for the Massachusetts Coalition for the Homeless. This annual project helps people in need stay warm through the winter. Since 2011, credit unions donated more than 1,700 blankets to those in need throughout the state.

The Hanscom FCU Charitable Foundation donated $5,000 to Fisher House Boston. The funds will assist with food, transportation, clothing, and small necessities for guests, as well as special events and environmental beautification projects.

Pictured left to right are Collin Victorine, Hanscom FCU Member Service Representative; Paul Marotta, Hanscom FCU Chairman of the Board; Elizabeth St. Pierre, Fisher House Boston Manager; Alan Hart, Chairman of the Hanscom FCU Charitable Foundation; and David Sprague, Hanscom FCU President/CEO.

It’s time again to cheer on Team Hanscom.

We’re raising funds for Boston Children’s Hospital through the Credit Unions Kids at Heart Boston Marathon team. Our team includes three racers:

1 air force cadets get classroom makeover from hanscom fcu

veterans and families benefit from fisher house donation

AT THE BOSTON MARATHON

Hanscom FCU renewed sponsorship for a classroom at the Air Force JROTC program at Lowell (MA) High School. The $500 grant will be used to keep the classroom updated.

David Sprague, Hanscom FCU President/CEO; LtCol Eileen Ironfield (Ret.), Lowell High School Senior Aerospace Science Instructor; and Hanscom FCU Chairman of the Board Paul Marotta stand with cadets in the Air Force JROTC program.

Hanscom FCU Director Ray Phillips, a master marathoner, who has run each of the 18 years we have participated and ran his 100th marathon last year. His inspiration and dedication are the backbone of this program.

2

Andy Martin, Jr., was Ray’s patient partner for 14 years. He was inspired to train as a wheelchair racer and completed the Boston course in 2014 and 2015.

Welcome back for the 2017 race, Andy!

3

Mike Rzeszutek, Hanscom FCU’s AVP of Sales and Training, is running his third Boston Marathon. He ran his first marathon in 2015 after attending the Boston event and vowing to compete the next year.

These racers will all take on Heartbreak Hill and feel the energy from spectators along the 26.2-mile course. You can be part of it all by donating to the campaign.

volunteers help burlington food pantry serve the community Margie Souza-DiPaolo (l) and Sheryl Berglund (r), Hanscom FCU employees, volunteer with Jane McIninch, co-coordinator of the Burlington Food Pantry. Hanscom FCU has helped receive food deliveries and stocked shelves for over a year. The monthly volunteer commitment is a way to give back to the communities we serve.

One hundred percent of funds raised go directly to the labs conducting vital research. The projects we support work to understand and cure debilitating conditions such as cerebral palsy, Moyamoya disease, Sturge-Webber disease, and pediatric brain tumors.

This kind of directed fund-raising can have an enormous impact on families and children currently dealing with these specific issues. Make your pledge today at any branch, by phone at 800-656-4328, or online at www.hfcu.org/marathon.

7

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): 412-552-2698 (call collect)

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

Learn more at www.hfcu.org/statements.

Get the Facts at

Lunch and Learn 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 . ............................................... 71,165 Assets........................................ $1,184,800,000 Loans........................................ $1,016,100,000 Deposits.................................... $1,044,800,000 Reserves.......................................$120,500,000 January 31, 2017

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. ©2017 Hanscom Federal Credit Union.

SEMINARS AND WEBINARS Come to a seminar or register for a webinar for up-to-date information on hot financial topics. Taught by an expert from Hanscom FCU, these presentations pack a lot into 45 minutes.

Plus, our seminars include lunch!

Home Buying: What You Should Know About Mortgage Loans • Pre-qualification • Types of mortgages: conventional vs. ARM • Fees: closing cost, prepayment, points • Debt-to-income ratio • Can my finances handle a home loan?

Estate Planning: Protect Your Family's Financial Security • Why an estate plan is vital to protect your family's future • How a revocable trust can enhance financial security • When planning can reduce or eliminate estate taxes

Spotlight on

Rate Watch Are you planning a refinance or home purchase soon? Let us keep an eye on interest rates for you. Sign up for Rate Watch and we’ll e-mail you when rates reach your goal. If you prefer, we’ll email current rate information to you on a regular basis.

Rate watch can help you get the best rate without the hassle of looking up rates. Get details at www.hfcu.org/ mortgage.

Investment Property: What to Look For • Vacation home, multi-family, mixed-use rental or commercial real estate • Turn investment property into a cash cow • Crunching the numbers • Wait for the right property, patience is key!

Car Buying • Questions to ask the dealer • Taking a test drive • Get the best price • Negotiating your trade-in 10 Steps to Financial Success (Webinar) Using Home Equity (Webinar) Find an event near you and sign up at www.hfcu.org/events or call 800-656-4328, ext. 2291 to register.