CO VER
Your Big Plans in the Spotlight I N
Letter from the President
Explore Your Purchasing Power
T H I S
I S S U E
Get the Best Return on Your Home Renovation
How to Plan a Family Vacation on a Budget
contact LOCATIONS Columbia
1025 Pulaski Street Columbia, SC 29201
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420 E. Park Avenue, Ste. 100 Greenville, SC 29601
Easley
118 Brushy Creek Road Easley, SC 29642
Five Forks (Coming Summer 2020)
117 Batesville Road, Ste. 200 Simpsonville, SC 29681
Member Service Center
Greenville: 864.232.5553 Nationwide: 800.922.0446
Mills Avenue
300 Mills Avenue Greenville, SC 29605
Spartanburg
130 North Town Drive Spartanburg, SC 29303
Taylors
3237 Wade Hampton Boulevard Taylors, SC 29687
Verdae
601 Verdae Boulevard Greenville, SC 29607
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IN THE ISSUE: 3
4
Events & Community
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In the Spotlight
6 10 11 12
Q2
Letter from the President
EXPLORING YOUR OWN PURCHASING POWER
not final
What We Read: ENOUGH
Money Matters with Moxie: TIPS FOR KEEPING MONEY SECURE WHILE TRAVELING
Lifestyle: GET THE BEST RETURN ON YOUR HOME RENOVATION
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How to Budget for Home Renovations
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How to Plan a Family Vacation on a Budget
This credit union is insured by NCUA. SC Telco is a proud member of the Credit Union Service Center Network. co-opcreditunions.org Copyright ©2020 by SC Telco Federal Credit UnionSM and The Brand Leader. All foreign and U.S. rights reserved. Contents of this publication, including images, may not be reproduced without written consent from the publisher. Published for SC Telco Federal Credit UnionSM by The Brand Leader.
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Dear Members, By now, many of you have undoubtedly seen some of the exciting changes that have been announced at SC Telco: my retirement this month and the selection of my successor, Brian McKay. I’ve had the privilege of working alongside Brian for over ten years. His commitment to this organization and service to our members is evident through his unrivaled work ethic, unwavering resolve, and servantminded leadership. I cannot be more excited that Brian has chosen to accept this role, knowing confidently that he will continue to move our organization forward. As I reflect upon my time here — in a career that started with SC Telco in 1987— I realize just how much growth our organization has experienced over the last three decades. Growth not just in our membership, asset size, and number of new locations, but also in new technology and products to better serve you. With this growth came challenges, but through it all, we have been committed to keeping our focus on you, our members.
LETTER FROM THE PRESIDENT
Throughout the years, we have accomplished much. We have garnered some recognition — like that from Forbes, who awarded us “Best-In-State Credit Union” for the past two years. We have also been able to forge new relationships and partnerships to impact our communities, like those with Habitat for Humanity and Homes of Hope, as well as many others. I am especially proud of the role we are playing in affordable housing in our communities, as the affordable housing shortage is at an all-time high. But, our most significant accomplishment was maintaining our financial strength during the turbulent times of the Great Recession, which we have continued to build upon over the last several years. Today, SC Telco is strong and well-positioned for the new decade ahead. As it is my last letter as CEO, I simply want to say thank you. Thank you to the staff and leadership at SC Telco for your hard work and dedication to our members and our community. Thank you to our Board and volunteer committees for your unmatched service to our organization. And finally, thank you to each and every one of our members for trusting us with one of your most valued assets — your money. Thank you for making SC Telco your financial home and allowing me to serve you.
Steve Harkins PRESIDENT & CEO
And without further ado, it is with great honor that I pass the torch of leadership to our new CEO, Brian McKay. In fact, this transition of leadership has been one we have worked on for the past three years, as it was our desire to create a seamless transition for our members and staff. Brian has surpassed every expectation put in front of him since succession planning began. Along with his leadership team, I know that our staff and members are in the best hands to lead this organization to the bright future ahead. ®
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EVENTS & COM M UN I T Y
20 SC TELCO H O L I D AY CLOSINGS
20 M E MO RI AL DAY
05/25 M O N DAY
Upcoming Workshop Focused on Local Scams and Proactive Ways to Protect Yourself In the Winter Edition of Checkpoint, we announced the exciting news that we would expand our Financial Wellness program in 2020 to include community workshops! As part of our ongoing mission to help improve our members financial lives, these workshops will focus on decisions and circumstances we all face during each stage of life. So mark your calendar; you won’t want to miss them!
Steer Clear of Scams Financial exploitation is a growing concern for all Americans, with a study from AARP reporting fraud losses in America equating to over $1.9 billion. Underscoring the issue locally, South Carolina was listed in the top 10 locations with the greatest number of fraud and other consumer complaints in 2019.* So how do you protect yourself? The first step is knowledge.
Free Community Workshop On the evening of May 14, join SC Telco’s Financial Wellness Coordinator Andrea Finley and a guest speaker from the Greenville County Law Enforcement Center, as they lead us in discussion on local scams that may affect you or your loved ones and proactive ways to avoid becoming a victim of fraud. We hope you’ll join us! Thursday, May 14 6:30PM - 7:30PM Maple Street Biscuit Company 2815 Woodruff Road, Suite 107 Simpsonville, SC 29681 Supper will be served. RSVP at sctelco.com/financialwellness *aarp.org/money/scams-fraud/info-2020/ftc-fraud-complaints-rise.html
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IN THE SPOT LIGH T
IN THE SPOTLIGHT Five Forks
SC TELCO’S NEWEST BRANCH
In a few weeks, the SC Telco family will grow by one more — location, that is. The new Five Forks branch — located in the booming area of Simpsonville — is slated to open in the summer, and with it will bring a new way of service and added technology to SC Telco members. The new innovative design — never before seen in any other SC Telco branch — incorporates state-of-the-art technology and the same great level of service you have come to expect from the SC Telco member services team, with a twist. The inaugural staff of five will be able to serve in any capacity within the branch. This means when you come into the branch, the same staff member will serve you the entire duration of your visit, regardless of the transaction/service being conducted. In addition, members will be able to quickly open accounts and close loans via a live video feed with SC Telco’s team in Greenville, as well as utilize an interactive teller machine (ITM). Coming in late fourth quarter, the ITM looks like an ATM but has more complex transaction capabilities. Members will be able to conduct transactions with an SC Telco representative via a live-video feed and use the ITM for depositing checks to getting cash back, making payments and much more. For Shannon Papier, the Five Forks branch manager, the new location and its amenities will mesh perfectly with the surrounding area. “I actually have been part of the community, working in Simpsonville for a few years so I’m very familiar with it, and I’ve seen it growing over the past five years,” Shannon
says. “This area has been named one of the fastest growing communities in South Carolina, as well as being voted one of the Best Places to Live and the Second Best Place to Raise a Family in all of South Carolina. We think we can add even more value to that conversation.” In the quickly growing community, Shannon’s goal is to deepen relationships in the community, get to know our neighbors, and share how her team, paired with the SC Telco full suite of services, can help improve their financial lives. “There are a lot of individuals in this area that don’t know about credit unions, or that we are not-for-profit or member-owned,” she says. “There’s so much more that we can do that financial institutions can’t.” As one additional feature to the new branch, all member service advisors will be certified Financial Counselors — a designation that Shannon’s team will use to help their members navigate financial decisions in their everyday lives. “We want to be a one-stop shop; we want to help them with their entire financial picture,” Shannon says. “We want to help them grow through each stage of their life; I know we can really make that happen.” ®
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To Buy or Not to Buy Exploring your own Purchasing Power By Andrea Finley, Financial Wellness Coordinator & Certified Financial Counselor
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ooner or later, the time is going to come when you start to consider making a big purchase — something more significant than your day-to-day budget allows or accounts for. From power tools to a new car, home appliances, computers, and more, the item may be something you’ve always wanted or dreamed of owning — but the hefty price tag is a huge financial commitment, one that can cause a bit of purchase anxiety. As a result, it is important to never make a big purchase decision without conscious review or consideration. If you do, you may wind up not only racking up some serious debt but getting a major case of buyer’s remorse, as well.
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As you’re weighing the options on your next big purchase, here are six questions to ask yourself.
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ONE
Can I afford it?
It seems simple to start with, but the first question you should ask yourself is this: can you afford it? If you can, go ahead and move to question two. If you can’t, you have a few options! Option one: save up. It may take some time, but if you really want the item, it will be well worth the wait. Option two: consider getting a loan, if appropriate. You could also consider a less expensive alternative to purchase instead.
TWO
Do I really need this?
Once you determine if you can truly afford the item, the next question becomes: do you really need it? You should examine your potential purchase through the lens of necessity. Is it necessary to buy this and give it lasting space in your home or life? (“Necessity” in this case is an item that will provide you with “value” — a time-saving convenience, a simple life pleasure, needed rest and relaxation, and so on.) If yes, it’s good to know that you may have other options besides an outright purchase. In lieu of a cruise or cross-country vacation, you might consider trading spaces with a faraway friend for a week. Need new tools for that big landscaping project? From chainsaws to carpet cleaners, there are many things that you can rent or borrow instead.
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THREE
Does this have a lasting purpose?
To determine something’s long-lasting value, try to estimate its “use” factor. How much will you actually use this item? Is it something that will show up in your day-to-day life, or will it take up closet space for most of the year? If it’s something you’ll only touch every once and a while, you may be able to borrow one from a friend or even rent one for cheaper; if you need it daily you’ll likely do better to buy it outright. Also, how long will it last? Is it a tool that you can pass down a generation, or one that will burn out in a year or two? The bottom line is this: if the price tag doesn’t meet the return on your investment, you may want to reconsider its value to you in the long run.
FOUR
Does this duplicate something else I already have? We all love shiny new things! But you may discover that you already own an item that accomplishes the same tasks of that shiny new thing. This is especially true in areas like kitchen appliances, where the newest thing on the market is often just rehash of another tool (or seven). While blenders, food processors, hand mixers, and stand mixers do similar things, the same can be said of numerous power tools, jewelry, and more. So before swiping the card, be sure to take a stroll around the house to look for something you may already have that can provide the value needed.
EXP LO R IN G YO UR OWN P UR C HAS IN G POW E R
5 FIVE
Do I benefit from buying this now?
Sometimes, you can be better off financially by holding off on a purchase; other times, you can reap higher benefits from buying now. Some examples? Buying new mattresses during a large holiday sale can save hundreds of dollars, and buying a car at the end of the month (or even better, the end of the year) may save you thousands. In cases such as these, the now-or-later question is determined by whether you can make the purchase within the optimal window of time. Of course, if your laptop has died today and you need it to generate revenue or help your kids with homework, the benefit of savings may be outweighed by the more immediate need.
6 SIX
Is it worth it? Finally, ask yourself: is this purchase worth it? While something’s worth to you can be determined by answering the questions above, you should also examine the thing itself. For products, look at reviews online. For services (like travel planners), research their history through the Better Business Bureau. Ask your friend and family network — chances are you know someone who has already bought the thing you’re considering and can give you some additional insight. And finally, make sure you’re getting the best price.
As you walk through this process, you may find that you’re 100 percent settled on getting that big thing. Conversely, you may have decided it’s better to wait, or that you don’t even need it at all. Regardless of which side you end up on, remember that we’re here to help — visit one of our member service representatives if we can be of any service to you as you reach out for all the big things life has to offer. ®
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RESO URC E S
WHAT WE READ Synopsis:
A Special Takeaway:
Enough is John C. Bogle’s written attempt at revisiting what true financial success looks like and what really is “enough”. Bogle leans on his own experience to back up his theories — as founder of the Vanguard Mutual Fund Group and creator of the first index mutual fund, that experience is above average, to say the least.
In our opinion, one of the best parts of the book is the beginning chapters, where Bogle lays out in detail his own career path and a bit of his history. Understanding his roots and where he came from is fascinating, as was the insight as to how he had the idea for the first index mutual fund which, ironically, was developed to cut out the expenses to middle men in the investing arena and increase returns for the consumer.
Why Read It: If you constantly worry about having enough money in your account or enough power to make things happen, but can’t really define what that means, this book is for you. In three main sections, Bogle breaks down what he thinks we are all missing when it comes to Money, Business, and Life — from trust to simplicity, value, and leadership. Because Bogle is someone deeply embedded in an industry that is more about score-keeping and profit than service and people, his point of view is refreshing and much needed. 10
The Final Word: It’s clear that Bogle hearkens back to a different era when it comes to finance, but that makes his pointof-view on the evolution of our relationship with money, fame and power all that more interesting. His experience offers a lot to the reader in terms of understanding what truly constitutes “enough”, and we consider it a great read for anyone who wants to feel more content with what they already have. ®
RE SOURCE S
MONEY MATTERS WITH
Tips for Keeping Money Secure While Traveling Going on a trip? Whether you’re traveling for work or pleasure, keeping your money safe should be a top priority. Here are a few ways you can keep your finances safe while you are away. 1. Let us know Sometimes, purchases made in an atypical location may freeze your account due to security protections enabled on your account. Before you leave, let a member service representative know where you’re headed to and for how long, so that your trip can truly be smooth sailing. (Pro Tip: Use the Location Services in the My Mobile Money and SC Telco Credit Card Apps to give us the digital “heads up” you’ll be away.) 2. Use your apps While we’re talking about apps, did you know that My Mobile Money has a few features that are worth their weight in Traveler’s Checks? Turn your card on or off, get fraud alerts, or set amount notifications. These are just a few ways to manage your card while on the road.
3. Use credit cards Compared to a debit card, credit cards can be a safer payment option while you’re away. The reason: Debit cards are linked directly to your checking account, so if stolen, the thief could potentially drain your entire account. On the flipside, credit cards are not connected to a pool of funds, and if stolen, the charges can be disputed with the credit card provider. 4. Keep a money stash While traveling, one of the most important assets you have is cold, hard cash. But it’s important to not carry your money all at once, and don’t put what you do carry all in one place. Spread it around. Put a bill in your shoe; carry some in a concealed pocket; leave some in the safe at the hotel. That way, in the unfortunate event that something happens to your purse or wallet, you can have peace-ofmind knowing you still have cash stowed elsewhere. 5. Take photos Take photos of your debit and credit cards. This may seem like an odd tip, but in the case you misplace your cards or they get stolen, these photos will provide you with the necessary information to report the cards stolen and cancel them. While you’re at it, grab a few snaps of your insurance card and driver’s license too — just for an added bit of protection.
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LIFEST YL E
Makeover Basics Get the Best Return on Your Home Renovation When you first purchased your home, you probably felt like you were on top of the world. Typically, you choose your new house because it fits your lifestyle the best. But as time goes on, that same home will surely require routine maintenance or new upgrades, either to keep up with your life changes or to remedy the typical aging of appliances, rooms, and structure.
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LIFE STY LE
S
o, how do you know what renovations to consider when trying to increase the value of your home? To help you decide which home projects will provide the positive return you’re looking for, we’ve compiled a list of renovation hits — and misses!
Fortunately, when it comes to projects that pay you back, there are a few projects that traditionally have shown to provide true return on investment (though this is dependent on many factors).
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Adding On
While the price tag for a home expansion can be high — anywhere from $50,000 to $100,000 — the overall result of taking your three-bedroom house to a four-bedroom model, or adding a home office or bonus room can’t be underestimated. Also in this category: a new deck, which increases outdoor living space and adds to the home’s overall appeal.
Major Remodels
Remodels can take a lot of time, use a lot of energy, and require a lot of resources, but all that output can potentially offer significant returns when it comes to bathrooms, kitchens, and basements — rooms where details like fixtures and design can determine whether the home feels modern or dated. Keep in mind, however, that many remodeling projects can be started with little expense — a can of paint and a white sink to replace an avocado green one can transform a room right away.
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Energy Efficiency
From tankless water heaters to solar panels, insulated steel exterior doors to airtight window fittings, energy-efficient additions are becoming increasingly popular — and for good reason. These additions not only provide a great upgrade to the house, but they also offer you (as well as a future buyer) valuable savings over time, and there are many ways — big and small — that can have a big impact.
No matter what project you’re thinking of tackling for your next home renovation, you’re sure to have a lot of questions. Fortunately, there are some outstanding resources available to help you determine the value of your project, including Remodeling Magazine’s Cost vs. Value calculator, which can help you determine prices and outcomes for each type of project. Whatever you decide your next home project will be, we can help you finance your dream home makeover. Call us or stop by your nearest SC Telco branch location to speak with one of our member service representatives. ®
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MONE Y M AN AGE M E N T
REASONABLE REMODEL
HOW TO BUDGET FOR HOME RENOVATIONS
By Grant Moses, Marketing Coordinator with several home renovation projects under his tool belt
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MO N EY MA NAGE ME NT
A
mericans’ passion for home renovations is bigger than ever. A 2019 study by Trulia showed that approximately 90 percent of all homeowners are considering a home renovation of some kind, and if that includes you, it is important to know how to budget for the project. Here are a few tips on how to keep your next big project on budget.
1. Select the Project The real question is: What is it that you’re wanting to gain as a result of the completed renovation? If you’re upgrading your home to put it on the market, you’ll want to focus on home renovations that provide the best return on investment. But if you’re trying to fill a life’s need, or get more usable space, lay out what that looks like.
2. Set your Budget Once you’ve determined what project you’re going after, you’ll need to figure out how much you should budget for your home improvements. According to Home Advisor, a typical renovation will cost somewhere between $100 and $200 per square foot. Doing that math is a great place to start. If you’re borrowing for the home renovation, you may consider one of three programs: a Home Equity Line of Credit (HELOC), which is a line of credit based on the equity you already have built in your home; a Home Equity Loan, which is a cash-out loan for a fixed amount; or a Cash-out Refinance, in which by refinancing you can turn your equity into cold, hard cash.
3. Prioritize Needs Make sure you take a look at the things that are truly important to making the project successful, and budget for them first. Then, as you progress, you can add the smaller options and upgrades back in if you still have room in your budget. Above all, do your research to make sure you’re getting the best price possible.
4. Make a Plan Once you have your budget in place and know the project “musts,” you can set a plan of action. What resources will you need? Will you DIY (do it yourself) or hire a contractor? What tools or materials will you have to buy or find in order to make your vision come to life? And last (but definitely not least), how long will the project take?
5. Get Bids & References Once you have all of the above in place, it’s time to get things moving! Getting bids is a crucial part of the process, and skipping the bid process is setting yourself up to potentially overpay. While you’re at it, get references! With contractors and vendors alike, there are a lot of things you want to know, and a reference is the best way to find out.
6. Reduce Costs Keep in mind that your project doesn’t have to be an “all-or-nothing” affair. Depending on your project’s scope, you may do some work yourself — putting in some true sweat equity — then turn over the more advanced items to a professional. You can also reduce costs in other ways — look for low-cost alternatives, make price comparisons, or find gently used pieces at a Habitat for Humanity ReStore or home appliance consignment shop. If you follow these simple steps, planning for that next home renovation can be easy! Keep in mind that whatever your home renovation plans, setting a budget (and sticking to it!) can be the difference between serious renovation remorse and loving the space you’re in. ®
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FAMILY
Your Getaway Guide: How to Plan a Family Vacation
on a
budget
By Bethani Williams, Marketing Director that also has the title of wife and mom by which she has become quite skilled at planning vacations on a dime
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or many, the idea of a family vacation is a bit of a love/hate relationship. We all want to enjoy some time away, but then questions like “How will we afford it?” or “Where will we go?” come to the forefront of the discussion.
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FA MILY
Thankfully, taking a trip doesn’t have to break the bank (or should we say credit union)! If you’re trying to plan your next family vacation on a budget, here’s how to go about it.
• Determine your budget While the average vacation may cost thousands of dollars, it doesn’t have to be that expensive. To get started, determine how much you can afford to spend on the trip, and set that as your budget number to hit.
• Pick a location Within that budget, determine where a reasonable location to travel may be. If your budget is on the lower end, you could opt for somewhere within driving distance instead of a faraway destination that requires multiple airline tickets and car rentals. You may want to vacation near family or friends that will let you stay at their place for free.
• Establish your timeline While 62 percent of travelers will make their trip this summer, according to AAA, you don’t have to head out at the same time. In fact, you can save a lot of money by traveling in the off-season — not only in lodging costs but in all the other aspects of travel, too.
• Get some help When all else fails — find an expert! While it may seem counterintuitive to pay for the services of a professional, travel planners often have access to significant discounts or unknown options that they can pass on to you. Many times, the savings you gain from working with a skilled agent will outweigh the cost of their services.
• Save, save, save Once you have a good idea of what your vacation is going to cost, start saving! To come up with a manageable monthly installment plan, simply divide the amount you need to have for the trip by the number of months until you travel. Then, chip away at the overall price tag by putting regular payments into savings or a Vacation Club savings account.
• Stick to the budget You’re not quite done yet! The appeal for all of us to “make memories” is real, so keep in mind that while you’re on vacation, you may get the urge to spend outside your budget. If you can avoid it (and you absolutely can), don’t give in to the urge to do something you haven’t planned for. With a little self-discipline, you can avoid going over the budget you are comfortable with. Whenever and wherever you decide to take your next trip, we’re supporting you all the way! Whether you need help setting up a Vacation Club savings account or keeping an eye on your accounts while you’re away — just contact your local member representative to see how we can help. ®
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SM
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PO Box 10708 Greenville, SC 29603 sctelco.com
