Checkpoint Magazine - Summer 2023

Investing in Your Future

Letter from the President

Brian McKay PRESIDENT

Dear Members,

There’s something about the warm weather in these summer months that makes us want to take on a new project! Whether it’s tending to a garden or tackling some home improvements, there is no shortage of tasks we can conquer.

In addition to these, I’ve got another project for you to consider that is often overlooked – and that’s investing in your financial future!

According to a recent study from the Financial Health Network, two in three Americans are not financially healthy. If you’re like me, this study got me thinking… what does being "financially healthy" actually mean? Does it mean I have enough to pay my bills each month, or have sufficient savings in case of an emergency? Does it mean that I have a high credit score? Financial health can mean a lot of things, and each of us likely has our own definition that relates to our daily lives. However, one thing is for sure – at Spero, we want all our members to be financially healthy. Our goal is to walk together with you to help meet your current financial goals and future aspirations.

One way that we are investing in your future is by joining efforts with Pinnacle Wealth Management. Serving the Upstate since 2009, their advisory and investment services are the newest extension of financial offerings for Spero members. I encourage you to turn to page six to hear directly from Pinnacle and how they can help you invest in your financial future

Speaking of the future, April is Youth Financial Literacy Month. Investing in your children’s financial knowledge is one of the best ways to invest in their future success. A great way to do this is by instilling good money habits. Of course, speaking from experience, this is a lot easier said than done! As a parent of two teenagers, I remind my girls constantly that money doesn’t grow on trees. Sowing these habits takes time, but I promise that the effort will be worth it. Turn to page 16 for practical money principles to instill in your kids at every age.

One final note – don’t forget that the Spero Financial annual members meeting is taking place on April 18th! You can find all the details on our website, and you can RSVP online. We look forward to seeing you there!

I appreciate you!

Community & Events

BRIAN MCKAY NAMED TO 50 MOST INFLUENTIAL LIST | Members of Team Spero had the opportunity to join President and CEO, Brian McKay, at a celebration held in recognition of him and other members of the community named to Greenville Business Magazine's 50 Most Influential list.

DORA MAXWELL: SOCIAL RESPONSIBILITY COMMUNITY SERVICE AWARD | We were honored to receive 2nd place for the Dora Maxwell Social Responsibility Community Service Award! This award honors and recognizes credit unions and their involvement in their communities.

ANDERSON UNIVERSITY INAUGURAL FOOTBALL JAMBOREE | Members of Team Spero joined Anderson University for their Inaugural AU Trojans Football Jamboree! We enjoyed a great night in the Anderson community hearing from AU Football head coach, Bobby Lamb, and Clemson University head coach, Dabo Swinney.

FINANCIAL COUNSELOR GRADUATION |

Seventeen members of Team Spero completed and received their CUNA Financial Counselor Certification. We threw a graduation ceremony to celebrate!

The 88th Annual Members Meeting will be held on Tuesday, April 18 at 6:00PM in Greenville, South Carolina.

For more details and to RSVP, visit www.spero.financial/annual-meeting.

Spotlight

Robert (Robbie) Davis Micah Valentine

We're excited to share that true to our mission of improving our financial lives, we've been researching advisors in investment services at your request and will now recommend Pinnacle Wealth Management to you, our members, for a variety of investment-solutions, including tax planning, estate planning, financial and retirement planning. Talk about investing in your financial future!

Pinnacle Wealth Management has deep roots in the Upstate. Together, the team has over 35 years of industry experience. The team at Pinnacle strives to be your trusted investment advisor. They’ll work to understand your financial goals and provide you with investment solutions to get you where you want to go.

The financial minds behind Pinnacle Wealth Management are Micah Valentine and Robert (Robbie) Davis, RFC®. First, let’s get to know them on a personal level.

Micah and his wife, Brittany have been married for over 20 years and have three boys. They enjoy exploring state and national parks. Robbie and his wife, Kaye, have been married for over 30 years. Together, they have three children and enjoy attending Clemson football and Greenville Drive games.

Micah and Robbie met over 14 years ago. As their friendship grew, they realized they had a common vision for serving individuals with their investment needs. Pinnacle Wealth Management was formed with a vision to provide personalized financial planning to guide clients on their unique retirement journey.

In serving clients in the Upstate and beyond, Pinnacle helps clients by focusing on their needs, wants, and goals.

Every financial plan is different and is only as good as its execution - so they set up annual reviews and regular check-ins to ensure the plan is still the best fit for the client’s journey.

When explaining why they do what they do, Micah recalled a memorable moment. “A client of mine recently accomplished several milestones on their financial plan. Watching them achieve several big financial goals in retirement is exactly why I love what I do. When I called to congratulate them, they told me they were so thankful for my time and expertise over the years. Nothing means more to me than seeing people reach their dreams; it is the best part of my job.”

You may be wondering what the benefits are of having a financial advisor, and we think that Robbie said it best, “For me, the best way to explain it is that we act as a personal coach. We make the game plan and draw up the plays, so that the members can execute the plays throughout their life in order to win.”

The offerings of Pinnacle are not limited to standard investment service (i.e. IRAs, annuities, mutual funds, etc.) but also include tax planning, estate planning, financial planning for business owners, and business succession planning. In their words, “Financial planning is about far more than just putting away money and hoping to be ready for retirement… it’s about balance, living in the now while preparing for the future.”

Best yet, if you’re ready to take the first step toward investing in your future, give us a call to set up your appointment! You may opt to meet with Pinnacle at your local Spero branch or at their local office in Mauldin, South Carolina.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and brokerdealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Spero Financial Federal Credit Union is not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Spero Financial, and may also be employees of Spero Financial. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliated with, Spero Financial.

Securities and insurance offered through LPL or its affiliates are: Not Insured by NCUA or Any Other Government Agency, Not Credit Union Guaranteed, Not Credit Union Deposits or Obligations, and May Lose Value.

Nothing means more to me than seeing people reach their dreams; it is the best part of my job.

Rates So Good, You’ll Do a Double-Take

Earn 5.00% APY* (on balance up to $15,000) with a Kasasa Cash® Checking account. Plus, connect a Kasasa Saver® Savings account to earn 2.50% APY* (on balance up to $100,000). Both accounts are free to open!

To earn these rates, simply make 12 debit card transactions each month, enroll/receive eStatements, and receive one direct deposit or ACH transaction each month.

Open your account today to start earning!

Insured by NCUA. Membership required. *Annual Percentage Yield (“APY”) is valid as of 03/01/2023 and is subject to change without notice. The Monthly Qualification Cycle (“Cycle”) begins at 12:01am on the last day of the month and ends at midnight of the second to last day of the following month. The Minimum Service Requirements (“MSR”) include: 1) make 12 debit card point-of-sale purchases that are posted to your account during the cycle; 2) have one direct deposit to OR an electronic debit or credit (ACH) post to your account during the cycle; and 3) receive your monthly statements electronically (e-statements). This account is a tiered rate account. Dividends are calculated based on the Average Daily Balance. APY of 5.00% applies to balances up to $15,000 and APY of 2.50% applies to balances of $15,000.01 to $100,000, if the MSR are met during the cycle. If you do not meet all the MSR during the cycle, an APY of 0.25% will apply to the entire balance in your account. Transfers between accounts do not count as qualifying transactions. The dividend period begins on the first calendar day of the month and ends on the last calendar day of the month. Kasasa accounts are limited to one each per primary account holder’s social security number. Available only for personal accounts. Account is subject to credit approval.

Social Security

Is It Enough?

For many Americans who are planning for retirement, Social Security is a topic that is certainly top-of-mind. Created in the 1930s, Social Security is meant to provide economic security for the nation’s people. But, is it enough to support the lifestyle of your Golden Years?

If you plan to live solely on Social Security after your working days are over –keep on reading. We’ve got some things that you may want to consider!

Social Security by the Numbers

The Social Security Administration estimates that of the 46 million Americans who receive Social Security:

of married couples of singles

of married couples

rely on Social Security for 50%

of singles

Social Security Amounts Vary

How much income per month does a person get from Social Security? It depends. The average monthly Social Security payment in 2022 for those collecting at age 65 was $2,484; however, this amount can vary. Some may draw as little as $1,000 per month, while others may take home approximately $3,000 per month. There are a few factors to consider that affect the amount of Social Security you can collect:

• Your lifetime earnings affect your monthly payment amount

• If you start drawing Social Security before the retirement age, your monthly check will be lower

• If you wait to start getting your Social Security check each month, you’ll receive more money each month

Without knowing exactly what amount your Social Security check will be each month, it’s difficult to say whether or not it alone will be enough to support your lifestyle. For example, if you get a check for $1,500 per month, this comes out to around $18,000 each year, which is not sufficient for the majority of people. It is important to first create a budget that will reflect your needs during retirement, then you can see what percentage of that budget can be covered by Social Security.

Supplement Your Retirement Income

As a general rule, most financial advisors would agree that seniors need more than just Social Security to live comfortably. To bring home an average income in retirement, it is best to supplement that income with money that you’ve saved independently while working. That means that preparation during your working years is key! A few ways that you can save before retirement include:

• Contributing to an employer-sponsored retirement account like a 401(k)

• Opening an IRA or Roth IRA

• Investing in CDs

• Contributing to a retirement-specific savings account

To better prepare for retirement, give us a call so we can help you invest in your retirement future!

There are many options to supplement Social Security, but it can be difficult to decide what the best option is for you.

Should You Invest When the Market Is Down?

Trying to determine the best time to invest in the stock market? You’re not alone – it’s difficult to know when the time is right. But, here’s a secret… any time is a good time to invest in the market! Whether the market is sky-high or taking a downward turn, investing is a good idea.

Most financial experts will continue to advise you to invest as long as you are patient and have a long-term strategy for your investment goals.

Make an Investment Strategy Based on Your Needs – Not Market Conditions

Market downturns are normal and expected, so don’t let them deter you when creating your investment strategy. However, depending on who you ask, seasoned investors will have different opinions whether you should continue investing when the market takes a dip.

One school of thought advises against “throwing good money after bad.” Usually offered as a warning, this saying cautions against spending extra money to address an unfixable problem or recoup frustrating losses. In the down market scenario, this means doubling-down on riskier investments to try making up for temporary losses in others. To play it safe, it’s best to slow investment activity and ride out the drop.

Some investors follow the idea of “buy low, sell high.” When the market falls, your portfolio and stock prices may drop. For some, this looks like an outstanding opportunity to snag some shares at bargain prices. That’s certainly possible, but there’s always the chance that a plummeting stock may be falling for a reason. If a single stock is dropping but the wider market remains steady, it may be best to avoid that stock. While it’s possible to profit when investing during a down market, this strategy requires research and caution. As a general rule, it’s typically safer to invest when the market as a whole is down instead of trying to buy individual stocks that are bottoming out.

Down markets offer a unique blend of risk and reward, but regardless of the state of the market, it’s important to do what’s best for your personal situation. Creating a sound, long-term investment strategy involves a few basic steps: setting your goals, minimizing costs, establishing risk tolerance, diversifying investments, and invest consistently.

Pinnacle Wealth Management makes investing in your future even easier. Whether you’re a seasoned investor looking to diversify your portfolio or an investment rookie who’s ready to invest for the first time, we can help! Read more about Pinnacle Wealth Management services on page 6.

Give us a call today to get started.

It’s typically safer to invest when the market as a whole is down instead of trying to buy individual stocks that are bottoming out.

Helping your children build good credit is great way to prepare them to succeed financially. Building credit without any aid or credit history is difficult, but there are steps you can take to help your kids! Let’s take a look at a few simple ways that you can invest in your children’s future by assisting them in building good credit.

Start Early

Studies have shown that children develop money behaviors as early as three years old, and these behaviors are nearly solidified by the time they’re seven. Even at a very young age, your children are watching the way that you use money and are subconsciously molding their own views after what they see you do. To create good money habits early on, give your children incentives to earn money rather than simply giving it to them. For example, give them a weekly or monthly allowance if they complete chores around the house. Cementing these habits early on instills good financial habits for the future.

Teach the Difference Between Debit & Credit Cards

Kids can easily associate that one swipe of a plastic card allows their parents to buy things, but it’s crucial to teach them that not all cards are the same. Debit cards are essentially like using cash, but credit cards use borrowed money and must eventually be paid off with real money. This is a good thing to tell your kids so that they do not overspend in the future or rack up a ton of credit card debt. Likely, your child will have a debit card before a credit card, which they can use to build good habits before getting a credit card.

Add Your Kids as an Authorized User of Your Credit Card

You can help your child build credit before they turn 18 by making them an authorized user of your credit card. Many cards require a new user to be at least 13-15 years of age, but some have no minimum requirement. With authorization, your child can use the card independently, and you can use this as an opportunity to teach them when to use a credit card and the importance of paying their credit card bill off monthly.

Word of caution: Adding your child as an authorized user to your credit card can also impact his/her and your credit score negatively if the card is not used responsibly. Keeping a close eye on card usage and paying the full card balance monthly is key.

Co-sign on a Credit Card or a Loan

If you have an older teenager who's buying their first car and who you trust to make regular payments, consider co-signing on a card or a loan with them. This can help them get their foot in the door of the credit world as they turn 18. If you choose this option, it is important to remember that your credit is also on the line, so keep an eye on those payments.

For more ways to help build your kids credit or create good money habits, talk to a Spero member advisor today or visit us at one of our convenient branch locations!

Kids & Money: Principles To Teach at Each Age

Teaching your kids responsibility when it comes to money is an effective way to invest in their future, and you can start teaching them earlier than you might think! Let’s take a look at money principles that you can teach your children at any age.

TODDLERS

From as young as the age of 3, kids are already forming their own ideas around money. They mimic the things that you do, so you can start establishing good money habits by simply modeling your own good money habits to them.

As parents, we often forget our kids learn by seeing, so in modeling your money habits, do so physically (not just verbally). For example, make a list for the grocery store and check it off as you put items into your cart. While simple, this shows them budgeting basics and how to avoid impulse buys. If they ask for something not on the list, explain why you can or cannot buy it.

At this age, you can also begin teaching them to save. Grab a clear jar, and as they receive money for birthdays and other occasions, have them put it in the jar. While they may not understand the value of money yet, they will see their money “growing.”

Lastly, start teaching your kids how to make decisions. You can do this by giving them two options and making them pick one. They may struggle early-on. If so, give them a timeframe to make the choice. It can be as practical as picking between two outfit

options for the day, or choosing the shoes they want to wear. Not only will this help build self-confidence and empowerment, but as they get older, this skill will help guide choices when it comes to their buying behaviors.

PR ES CHOOL AND KINDERGARTEN

At this age, your kids may still not grasp the value of money, but they know that they need it to buy things. You can help establish this value in a few ways.

Explain how you make money. Around three or four, your child will probably ask you why you go to work. When she/he does, use it as an opportunity to explain that working allows you to make money so you can buy things like food, clothes, and more.

Show your kids that things cost money. Grab a few of their dollars (aka their budget) and take them to a store of their choice. When selecting their items, remind them of their “budget.” It never fails that they will select an item or items outside their budget. Explain that they will have to select a new item or put an item back to stay within their budget. Let them physically hand the money to the cashier to complete the transaction.

ELEMENTARY SCHOOL

Between 1st and 5th grade, your child will have a better understanding of the value of money, so now it’s time to show them the benefits of earning and saving money.

Remember the glass jar tip we spoke of in the earlier section; consider expanding it to multiple jars: Savings, Spending, and Giving. Explain the importance of each. While the Giving jar is typically beyond standard budgeting practices, we recommend it. Teaching kids to give at an early age instills the importance of helping others. A practical way to put this into action is by encouraging your kids to use their own money to buy their siblings/parents birthday or holiday gifts. By doing so, they also experience the joy in giving.

Kids at this age are ready to start earning an allowance by doing simple things such as making their bed, cleaning their room, or helping fold clothes. If there is an item they want to buy, remind them of the importance of saving for it. This shows them that money is something that must be worked for, and saving it helps them earn things that they want.

Lastly, show them that instant gratification is not always best. Help them weigh opportunity costs — If you buy this now, you won’t have enough money to buy the other item in the future. This conversation is also key in teaching your kids how to avoid impulse buys. If your child sees something at the store, don’t just buy it. Instead, consider making them save for it or wait for a holiday or special occasion to get it.

MIDDLE SCHOOL

Throughout the pre-teen and early teen years, begin giving your kids the responsibility of managing money. Take the glass jars mentioned in the previous section, and use the funds to open up a bank account. By 14 years-old, most financial institutions will allow your child to have a debit card, as well as online and mobile banking. Teach your child the importance of deposits and withdrawals, and the importance of not overdrawing his/her account.

Take this to the next level by allowing your kids to manage their expenses. For example, instead of taking them to back-to-school clothes shopping, deposit the funds you’d plan to spend into their account.

When taking them shopping, leave it up to them on how to make the purchases (i.e. bargain shopping or name-brand). You can even do this with back-toschool supplies or an “allowance” for extra-curricular activities with friends.

Teach them the power of price comparison. A simple way to do this is by taking them to the grocery store. Compare similar products (i.e. price, quantity, ingredients, flavor, etc.) to determine which one is best. While basic, in the long-term, this simple practice will aid in future large purchases such as a car.

Lastly, the middle-school age tends to be the years of comparison, and social media does not help. Be intentional about teaching your kids contentment. Doing this now will help them avoid the vicious cycle of “keeping up with the Jones” as they get older.

HIGH SCHOOL

As your kids start thinking about life after school, start giving them a taste of “adulting.”

Help your teen learn how to make money. He/She can get a part-time job or put his/her entrepreneur hat on. While most teens would love the option to forgo working, the reality is that sooner or later they will have to. So, starting early will instill essential soft skills that will set them up for success long-term, all while helping them bring in income and add to their resume.

Give them financial responsibilities. At this age, your teen should have a good grasp of wants versus needs. For the “wants,” consider making them pay for items such as outings with friends or clothing. For the “needs,” if income allows, consider making them pay for items such as his/her car insurance, gas, or cell phone bill.

Lastly, expose them to financial tools. By this age, your teen should understand how to manage a personal bank account. Now, introduce them to the power of compound interest. This can be done by opening a savings account, certificate, or even an investment account. You can also teach your teen the responsibility of credit - from building credit to opening their first credit card. By giving them an understanding of these financial tools, you can help prepare them when they start making those money decisions on their own.

Ready to set your kiddo up with their first account? Spero is here to help! Stop by one of our convenient branches to set your child up for future financial success.

PO Box 10708

Greenville, SC 29603

www.spero.financial