MoneyWisdom Hanscom FCU Winter 2017

MoneyWisdom Winter 2017

3 Reasons Credit Union

RATES ARE BETTER

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Keep Your New Year Resolutions

A THREE-STEP PLAN

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Top 5 Tips for a Successful

BALANCE TRANSFER

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

Why Are Credit Union

RATES BETTER?

Credit unions offer a slew of benefits – lower fees, fewer account rules, and a larger ATM network than other financial institutions. One popular perk is the ability to provide better rates than banks. How do we do this?

The answer is multifaceted.

Reason #1: Credit unions are not-for-profit. Banks are typically in the business of making money. This for-profit approach means they aren’t passing savings on to their customers. Credit unions, on the other hand, pour earnings back into their product and service offerings, into providing higher rates on savings accounts and into lowering rates on loans and credit cards. This not-for-profit approach is designed for and by members.

Reason #2: Credit unions have a members-first mentality.

A hallmark of the credit union movement is that they are owned by members. When you become a member, you are an owner. The cooperative structure means members’ financial needs are the top priority. That means offering competitive or even above market rates is important.

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Winter 2017

Reason #3: Credit unions build products around service, not selling. It may sometimes seem like a lost art – but there are organizations out there still dedicated to putting service before the sale.

As has been mentioned before, banks sell for the benefit of others. Their goal is to draw customers into the bank and profit from the products and services they offer.

The mission of credit unions is to benefit their members, which is a direct contrast to a profits-first approach. Credit unions offer higher savings rates because members benefit when we do.

These superior rates help support financial wellness for a lifetime because they allow savings to grow faster and members to owe less over the long term. Those savings can then be put toward other uses – like buying a home, tucking money away in a college fund, saving for retirement and more.

These three reasons are just the beginning. Credit unions offer a wide range of other benefits to members. If you want to learn more about credit unions or browse current rates, contact Hanscom FCU today by visiting www.hfcu.org or calling 800-656-4328.

INVESTMENT SOLUTIONS

Passing Retirement Accounts to Loved Ones

WHAT TO KNOW

So you’ve written your will. Congratulations, you’re done with your estate planning, right?

Not so fast. Among other things, you also need to make sure your hard-earned retirement savings go to the beneficiaries you intend them to.

Retirement accounts, such as IRAs and 401(k)s, aren’t governed by your will. If you want these assets to pass directly to your loved ones, you must name beneficiaries for each of your accounts. This is especially important following divorce and remarriage, when the beneficiaries may not be as clear as you think.

The rules governing retirement accounts can be confusing, so be sure to consult a qualified financial advisor. The points below are the most important ones to remember.

rules for employer-sponsored retirement plans If you’re single, you can name anyone as the beneficiary of your 401(k) or other employersponsored retirement plan. The account will automatically be passed on regardless of what your will says. Just be sure you have named them on the designation form.

If you’re married, you must name your spouse as the beneficiary, unless your spouse signs a document giving up his or her right to your account. In cases of divorce, provisions can be made in the divorce settlement to determine who is entitled to the money or how it will be split.

Your beneficiary will owe income tax on withdrawals from the account (unless it’s a Roth account). Individual plan rules may affect the distribution options available to your beneficiary, such as taking a lump sum, spreading withdrawals over five years or rolling the balance into an IRA. How and when withdrawals are made will affect the amount of income tax your beneficiary will owe.

traditional or roth ira rules If you have an IRA, you can usually name anyone you desire as a beneficiary. IRAs aren’t required

to be passed on to a spouse. You should complete a beneficiary designation form as soon as you open your account so you don’t forget to name someone. You can amend the form to change beneficiaries at any time.

A spouse named as a beneficiary has more flexibility than other beneficiaries in deciding what to do with the account. Only someone who inherits an IRA from a spouse can treat it as his or her own, allowing the beneficiary to make contributions to it or roll it into another retirement plan. Generally, beneficiaries will

owe income tax on distributions from traditional IRAs, but not Roth IRAs. We can help you manage retirement planning, including resources for estate planning. To set up a free, no-obligation consultation with a financial consultant, contact Hanscom Financial Services at 800-656-4328 ext. 2236.

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

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At the start of a new year, many of us take the opportunity to reflect on the past 365 days and consider what we might change going forward. Lose weight, show more gratitude or save more – noble goals that often fall by the wayside by mid-January. This year, take charge with a plan to keep your resolutions on track.

start small and think smart It’s easier to accomplish a big goal when you break it down into a series of smaller goals. These are called SMART goals: Specific, Measurable, Achievable, Realistic and Timebased. A few examples: • Replacing a fast-food lunch with a proteinpacked salad twice a week.

• Sending a thank-you note each time you receive a gift.

• Transferring $25 from each paycheck to a savings account.

Don’t Just Make Resolutions This Year

KEEP THEM

stay motivated with family and friends Instead of making a silent vow and keeping it to yourself, tell your friends and family what your resolution is and how you hope to accomplish it. The added social element can be the motivation you need to stay committed.

Pairing up with other people or creating a challenge to include healthy competition can push you to stay on top of your goals and remain accountable.

expect setbacks and reward successes You might feel as if you’re taking two steps forward and one step back, but don’t worry about it! Focus instead on your next step, not a past mistake. Adapt your goals regularly so a misstep doesn’t derail your effort.

Also be sure to celebrate your victories. The more you enjoy what you’re doing, the better your chances will be for finding lasting success.

Want more tips for success?

Download our Financial Resolution eGuide at http://go.hfcu.org/ financial-resolutions.

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Winter 2017

MONEY SAVING TIPS

Commit to paying well over the minimum to reduce your balance faster and save even more money.

TOP 5 TIPS FOR A SUCCESSFUL Credit Card Balance Transfer Switching your credit card balances to a card with a lower interest rate can save you money – if you pay attention to the details. Follow these five rules to get the best deal while paying off debt.

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A transfer is not a payoff. When you move debt from high-rate cards to a single lower-rate card, you’ll save money, but the balance won’t disappear. Stop using the high-rate cards and concentrate on paying off the transferred debt. Don’t let the balances creep up again.

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Fees are not inevitable, but they are out there. Be sure to find a deal with true value. Many credit card companies charge a fee, as much as 5% of the amount you are transferring.

Adding that fee to your balance could wipe out any savings. Fortunately, there are options, including Hanscom FCU's no-fee balance

transfer. No matter what offer you consider, read the fine print and calculate your real savings before you act.

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Not all balances are created – or paid – equally. Credit card companies can choose how to apply your payments.

If you have a different rate for new charges and transferred balances, be sure the higher rate debt is paid first. Otherwise, you’ll keep paying top dollar on your balance.

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Simplify your payment, don’t stretch it out. Your goal is to consolidate your debt into one convenient payment. Commit to paying well over the minimum to reduce your balance faster and save even more money.

Don’t – it’s bad for your credit score. Lenders will see you as a riskier borrower when it comes time to finance a vehicle or a home.

Do you work for a company in Massachusetts?

Let us bring you our Plastic Surgery Lunch and Learn seminar. It's designed for groups and will fit right into a workday. For details visit https://www.hfcu.org/employeebenefits.html or call 800-656-4328 ext. 2093 to schedule your visit.

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Don’t try to repeat a transfer. You may be tempted to move funds a second time, especially if you still have a big balance when your rate’s about to expire.

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Headed to College?

APPLY FOR OUR SCHOLARSHIP If you know a high school senior with plans to continue their education, encourage them to apply for our Condon Scholarship. The program, named for longtime board member John F. Condon, awards up to five $1,500 scholarships.

To qualify, you must be a member at the time of application. You must be planning to enroll in an accredited program of higher education. Other considerations include academic performance, extracurricular activities and community service. Financial need also is a factor.

For details and to download an application, visit our website at www.hfcu.org/ scholarship. To have a package mailed to you, contact Terri Bellacini at 800-656-4328 ext. 2203 or email tbellacini@hfcu.org.

The John F. Condon scholarship program awards up to five $1,500 scholarships.

Did you know you can access your Hanscom FCU accounts at any CO-OP Shared Branch? That’s 5,484 locations from coast to coast. Deposit checks, make withdrawals, transfer funds and get account details at a convenient location, even when you aren’t near a branch.

Find a CO-OP Shared Branch near you at www.hfcu.org/locations or call 800-656-4328.

Source: September 2016 comparison listed on fdic.gov.

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Winter 2017

PEOPLE HELPING PEOPLE

Hanscom FCU IN

THE NEWS

golf tourney raises $50,000 for veterans health David Sprague, Hanscom FCU President/CEO; Michael Allard, Home Base Program Chief Operating Officer; Brigadier General (ret.) Jack Hammond, Executive Director of the Home Base Program; and Paul Marotta, Hanscom FCU Chairman at the Red Tail Classic sponsored by the Hanscom FCU Charitable Foundation. The Foundation raised $50,000 for the Red Sox Foundation and Mass General Hospital Home Base Program. Home Base helps post-9/11 service members, veterans and their families heal from the invisible wounds of war: traumatic brain injury (TBI), post-traumatic stress (PTS) and related conditions.

non-scary halloween fun at trunk r treat event Shane Connell, project coordinator, and Bill Basler, Assistant Vice President and Bedford Branch Manager scored high with their Pac-Man themed display at the Goddard School Trunk r Treat event in Bedford, MA. The team handed out candy to hundreds of families attending the annual event.

cushman award goes to terri bellacini Terri Bellacini, executive administrative assistant, accepts the 2016 Cushman Award from Paul Marotta, Chairman of the Board (right).

The Cushman Award goes to the staff member who best embodies the ideals of Hanscom Federal Credit Union. Ms. Bellacini was lauded for her excellence at providing grace, leadership, command of details and an uncanny ability to quickly devise an elegant solution to any problem as well as her member service skills and willingness to help others.

$1,500 board memorial award presented to retiree group Hanscom FCU honored the Hanscom AFB Retiree Activities Office (RAO) with the 2016 Board Memorial Award. This $1,500 grant goes to a volunteer group serving Hanscom FCU’s membership base. Staffed by volunteers, the RAO provides information and services to retirees from all ranks and services. The group represents retired members at the base and Air Force level, keeping them informed of Department of Defense actions that affect their lives.

member appreciation day Phil Purcell, VP Commercial Lending; Paul Marotta, Chairman of the Board; and David Sprague, President/CEO, enjoy treats from Missy Gale, owner of the Cookie Monstah, during Hanscom FCU’s annual Member Appreciation Day. Gale’s company uses Hanscom FCU business services to finance the popular food trucks.

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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): 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.

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 . .............................................. 69,467 Assets........................................ $1,161,600,000 Loans.......................................... $998,900,000 Deposits................................... $1,022,700,000 Reserves....................................... $117,600,000 October 31, 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. ©2017 Hanscom Federal Credit Union.

MAY

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JOIN US at the Annual Meeting

Where can you learn more about your credit union and also enjoy an evening out?

At the 63rd Annual Meeting, held Saturday, May 6 at Moseley’s on the Charles in Dedham, MA. Doors open at 5:30 pm.

The business meeting will begin at 6:30 pm, followed by dinner and entertainment.

The cost to attend the dinner is $12. Members may bring one guest.

Tickets for the dinner must be purchased in advance. Order yours at www.hfcu.org/meeting, or pick them up at any branch. You can also mail back the form in your January statement or call 800-656-4328. See you there!