MoneyWisdom Summer 2017
CONQUER YOUR BUDGET with My Money Manager
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INVESTMENT ALERT
Top 4 Myths About Target Date Funds
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Energy Efficiency Is a Year-round Job
6 TIPS TO STAY COOL
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A CO MPL I ME NTA RY SUB SCRIP TION FROM HAN SCOM FCU
Build Yourself a Safety Net with
EMERGENCY SAVINGS If you’re like many Americans, a large chunk of your income goes toward paying down debt such as student loans and credit card payments. Paying off debt as soon as possible is a smart move — it can help you save on interest payments and improve your credit score. But a healthy savings account is also important for healthy finances. Neglecting to build emergency savings can be a potentially dangerous oversight. A financial cushion can see you through rough patches like a job loss, medical emergency or car repairs. What if a couple of crises happen all at once and you don’t have enough cash to float you through? You might be forced to take out a loan, increase your credit card debt or dip into your retirement fund. Resorting to any of these options could end up costing you more than if you had just kept building up your emergency savings over time.
how to build your rainy day fund Financial experts suggest having three to six months of living expenses in emergency savings. This includes food, rent, insurance and other necessities. If you’re single and don’t have kids, this can be a few thousand dollars. If you’re a married homeowner with children, you’ll need much more. Try these three tips to boost your savings over time: 1 Keep a record of your spending. The free My Money Manager tool in Online Access HD can help you track and categorize your spending. 2 Don’t wait until the end of the month to save. Set up a CU Thrive account and deposit part of each paycheck automatically. Choose from $5 to $500 per month and earn a great rate. 3 Find a way to make money on the side, such as a part-time job, a couple of shifts at a restaurant or freelance gigs.
Online Access has a new look! It's easier than ever to manage your accounts. Learn more at www.hfcu.org/online.
CONQUER YOUR BUDGET with My Money Manager “A budget is telling your money where to go instead of wondering where it went.” – Dave Ramsey Budgeting your money is an important step in achieving any financial goal, whether it’s eliminating debt, saving for a home, or building a retirement fund. But it doesn’t have to be complicated or time consuming.
My Money Manager is free and simple to use.
My Money Manager, a free service within Online Access HD, is a new tool that helps you categorize your spending and track where your money is going. Tag individual transactions under categories you select. Track budget items to avoid overspending in any category. Quickly and easily view all your Hanscom FCU accounts, along with accounts you add from over 12,000 financial institutions supported in My Money Manager. Not only that, but you can set goals, estimate your net worth, and optimize your cash flow with a financial calendar. It’s simple to use and there are no fees. Quickly view all of your balances and transactions together in one place, automatically. Visualize your spending patterns via the tool’s easy-to-read charts and graphs. See how My Money Manager works and get more information at www.hfcu.org/mmm.
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Summer 2017
INVESTMENT AWARENESS
TOP 4 MYTHS
About Target Date Funds
When it comes to choosing investments in a retirement plan, picking one that seems the most hands-off may be enticing. For many, that means investing their money in a target date fund, a combination of stocks, bonds, and cash that becomes more conservative as the target date nears. A professional fund manager monitors the fund, and adjusts the underlying investments as needed for the time frame. While a diverse, all-in-one fund may seem like an easy choice, it’s important to understand what it offers – and what it doesn’t. Below, we clear up some common misconceptions about target date funds.
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myth: target date funds are only for retirement
While target date funds are most commonly used in retirement plans, that doesn’t mean they can’t be used for any other long-term savings goals. Target date funds can help students and their families save for future college expenses. Ideally, you would invest in a target date fund at least 10 years before your child’s expected college enrollment
date. Doing so gives the target date fund time to move through its “glide path,” which determines how the asset mix changes as the target date approaches.
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myth: target date funds eliminate risk
Target date funds may seem safe since they take the responsibility of allocating assets out of your inexperienced hands. While professional management is one of the benefits of a target date fund, that management can’t eliminate risk or guarantee a specific return. Target date funds are subject to market forces and other risks just like other investments.
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myth: all target date funds are pretty much the same
Each target date fund has its own risk profile, asset mix, and fee structure. They also have unique glide paths, which describe how the asset mix in the fund changes over time. Some have what are called “to” glide paths, which reach their most conservative mix at the target date. They are generally more conservative than “through” glide paths, which continue to pursue growth after the target date.
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myth: you don’t need to keep track of your target date fund Target date funds work as a “one-size-fits-all” plan. Your current financial situation, goals, and risk tolerance aren’t considered. It’s up to you to determine whether a target date fund is appropriate for your situation and then to monitor its results to be sure it’s meeting your expectations. The financial consultants at Hanscom Financial Services can help you understand your options for saving and choosing investments that are right for you. Schedule a free consultation with Hanscom Financial Services at www.hanscomfinancialservices.org or call 800-656-4328 ext. 2236. Investment products: Not federally insured Not a deposit of this institution May lose value
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3 in 1 Home Equity Advantage Plan
Put Your Home
EQUITY TO WORK
Looking for ways to pay for large home improvement projects, college tuition and expenses, or manage medical expenses? Thanks to lower interest rates and potential tax advantages, tapping your home equity can be an ideal way to finance big-ticket items. If you’ve lived in your home for a while, you probably have built up some equity. That can create a lot of borrowing power. Because your loan is secured by your home, you typically pay less interest than you would for other types of borrowing, such as a personal loan or a credit card.
know your options Most homeowners have two choices: a home equity loan or a home equity line of credit. Home equity loans allow homeowners to borrow a single lump sum that is repaid over a set term, usually at a fixed interest rate. Home equity lines of credit, or HELOCs, are funds issued in the form of a revolving line of credit with a variable interest rate. They allow homeowners to borrow smaller amounts, up to their credit limit, as needed. As the funds are repaid, they become available to borrow again. Hanscom FCU’s 3 in 1 Home Equity Advantage Plan combines the convenience of an equity line of credit, with options for fixed rate advances and a credit card. There are no application fees, no minimum draw requirements, and no closing costs.*
expert guidance Our home equity and mortgage experts are happy to answer your questions and help you understand your available options. We understand your unique financial needs and have the tools and expertise to help you achieve your goals. Let our dedicated home equity team find the perfect solution to make your financial dreams a reality. Learn more at www.hfcu.org/equity. * If you terminate your line within the first 24 months after closing, you will be responsible for closing costs.
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Summer 2017
HOME IMPROVEMENTS
ENERGY EFFICIENCY Is a Year-round Job Summer is here, along with hot, humid weather. Is your home’s cooling system keeping up? Use these tips to reduce your energy use and stay comfortable year round.
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Avoid cranking your thermostat extra low when the mercury rises outside. Your home will not cool down any faster and it could result in wasted energy – making your bill that much higher. Install trees or bushes to reduce solar heat gain. Deciduous trees with high, spreading crowns (i.e., leaves and branches) can be planted to the south of your home to provide maximum summertime roof shading, without blocking winter sunlight.* Insulate and seal leaky windows. It’s not just for winter drafts. Keeping the cool air inside can help your energy performance in the summer. Control the temperature with a programmable thermostat. Check your local hardware store for what’s best for your home. Make use of ceiling and other fans to keep the air flowing. In summer, use your fan in the counterclockwise direction. You’ll feel a cool breeze when you stand underneath. Don’t place TVs or lamps near your thermostat as they tend to produce heat, causing your thermostat to rise even though your home is cool.
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do it yourself Seek professional advice for keeping your home energy-efficient year round. Many websites offer tips and advice tailored to your ZIP code and type of home. Visit the Mass Save website at www.masssave.com for ways to make your home more comfortable and energy efficient. The U.S. Department of Energy’s “Home Energy Saver” website, hes.lbl.gov, helps you compare your overall energy costs to those of the average house in your area and those of an energy-efficient house.
When It’s More than a Draft – an Energy Efficiency Loan Can Help A 0% APR** Mass Save® Heat Loan, sponsored by the gas and electric companies in Massachusetts, can help qualified homeowners install energy efficient improvements up to $25,000. Get details at www.hfcu.org/masssave. For projects that don’t qualify under Mass Save, the Hanscom FCU 3 in 1 Advantage Plan can help you access your home’s equity. This flexible plan combines a line of credit with options for fixed loans and a credit card, all in one package. Contact us at 800-656-4328 or visit www.hfcu.org/equity for more information. * Source: Energy.gov, https://energy.gov/energysaver/landscaping-shade ** Annual Percentage Rate
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TIPS to Get
the Most from Your Insurance
Insurance coverage is a powerful tool. The right coverage can make the difference when facing a devastating loss. Be smart about how you buy and use insurance to get the most for your money. The following tips can help. Think twice before filing small claims. Submitting claims that exceed the deductible by only a few hundred dollars may increase your premiums down the road and ultimately cost more than the repair would have cost out of pocket.
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Buy the right amount of coverage. Be sure your coverage is adequate, but not excessive. Revisit your policy limits every year. Do you need to update your homeowner coverage because of major purchases or a remodel? Or perhaps some of your personal belongings have decreased in value over time, requiring less coverage. Update your home inventory annually and check for possible savings. With auto insurance, consider dropping collision or comprehensive coverage on older cars if their decreased value makes the coverage no longer cost-effective.
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Increase the deductible. Raising the deductible by a few hundred dollars can result in a significant decrease in your premium. By raising a deductible from $250 to $1,000, you could save nearly 25% on homeowners premiums and 40% on collision and comprehensive coverage for your car.*
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Look for safety discounts. You could lower your homeowners premium if your home has safety features such as dead-bolt
Summer 2017
locks, smoke detectors, an alarm system, storm shutters, or fire retardant roofing material. See if your provider has discounts on auto insurance for anti-theft or safety features on your vehicle.
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Buy your home and auto policies from the same insurer. Some companies offer a discount for multiple policies.
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Maintain a good credit rating. A poor credit score may raise the cost of insurance, while a high score may result in cost savings.
Don’t smoke. Cigarettes are the leading cause of residential fire death across the country and property losses total millions of dollars each year.** Because of this, insurers often charge lower premiums to smoke-free households.
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Turn to a trusted partner. Using quotes from multiple insurance carriers, Hanscom Insurance Agency will match you with the best coverage at the most affordable price. We have a solution for almost any need, including auto, homeowners, business, life, and renters insurance, plus specialty insurance products such as wedding and pet insurance.
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For details, visit www.hfcu.org/insurance, or call 800-632-9887 for a free quote. * Source: Insurance Information Institute, www.iii.org. ** Source: Coalition for Fire-Safe Cigarettes, www.firesafecigarettes.org.
PEOPLE HELPING PEOPLE
Hanscom FCU IN
THE NEWS
affn doubles $1,500 grant to rao boosters
top students win college scholarships
Hanscom FCU officials presented a $1,500 grant from AFFN to the Hanscom AFB Retiree Activities Office Booster Club. The funds match the Board Memorial Award presented to the group last fall. Standing left to right are: David Sprague, President/CEO; Maj. Chris Spaulding, Hanscom AFB credit union liaison; Tom Fredericks, 66th Air Base Group Deputy Director; Paul Marotta, Chairman of the Board; Mike Hennessey, RAO Deputy Director; Dean Mottard, Director of the RAO Booster Club and RAO Director; Col. Mark Wilson; Hugh McNeil, Hanscom FCU Director; and Ray Phillips, Hanscom FCU Director.
Hanscom FCU awarded $10,500 in scholarships at the Annual Meeting in May. This year’s recipients are Matthew Dunbar of Franklin, Wesley Gallishaw of Seekonk, Michael McAlarney of Lexington, Cadet/Colonel Sabrina Diaz of Lowell, and Cadet Zane Adam Sharkawy of Bedford. Logan Stansbury of North Reading and Benjamin Lacroix of Littleton were unable to attend. Each received a $1,500 scholarship recognizing their top academic performance and community service.
teens get real at cu 4 reality Students from Lowell High School’s AFJROTC program, joined by their counterparts at Bedford High School, completed a CU 4 Reality experience at Hanscom AFB hosted by Hanscom FCU. Participants were given a monthly income based on their chosen career, and then worked to create a balanced budget. “It showed us what adulthood will be like,” observed a participant. “It’s good to be prepared.”
successful marathon campaign brings in $45,000
Successful Drive Brings a Book for Every Child Hanscom FCU donated 2,054 books to the children’s book drive sponsored by the Cooperative Credit Union Association (CCUA). We have collected gently used or new books for children in need since the drive began in 2001.
Hanscom FCU Director Ray Phillips stopped in Wellesley at the Boston Marathon. He and fellow Team Hanscom members Mike Rzeszutek, sales manager, and Andy Martin, Jr, patient partner, helped raise $45,000 for pediatric brain research at Boston Children’s Hospital. Thank you to the many members whose gifts made this event successful.
new branch now serving billerica We recently celebrated our new branch in Billerica’s Treble Cove Plaza with a ribbon cutting. The branch is located next to Market Basket and is open six days a week. Four fulltime staff members provide account and loan services, as well as financial education and advice. The branch has 24-hour ATM service, and offers free, public seminars on topics such as budget planning, home buying, and car shopping.
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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.
GET A $100 CASH REWARD
for Every New Line You Switch to Sprint 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
This new exclusive cash rewards offer is our best one EVER! Now, as a credit union member, you can earn $100 for every line when you switch to Sprint®. Here’s how it works: • Members get a $100 cash reward for every new line when you switch to Sprint®. • Current Sprint customers will receive a $50 cash reward for every line transferred into Sprint Credit Union Member Cash Rewards. • Plus, get a $50 loyalty cash reward every year for every line.
Members . ...............................................75,207
Here’s how to sign up for Sprint cash rewards:
Assets........................................ $1,232,900,000
1 Become a Sprint customer. at LoveMyCreditUnion.org/ 2 Register SprintRewards or in the Love My Credit Union Rewards® app. up to six to eight weeks 3 Allow to see cash rewards directly deposited into your credit union account!
Loans....................................... $1,044,800,000 Deposits.....................................$1,088,100,000 Reserves.......................................$123,400,000 April 30, 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.
Make the switch today and save with the Sprint Credit Union Member Cash Rewards!