Lines of Communication | Winter 2021

LINES

Winter 2021

of Communication

FINANCIAL FITNESS FOR LIFE Your Goals Within Reach A little planning goes a long way

Update Your Space Budget-friendly home updates

How to Pitch In Ways to help my community recover

Money Talks How to have hard conversations

The Hustle Should I start a side business?

YOU CAN DO IT Tackle your financial resolutions and celebrate your achievements this time next year.

Our teams and tools can help!

2 President/CEO Message

THIS ISSUE

President/CEO Message

2 President/CEO Message

3

Family Matters

4 Comforts of Home

5 Should I Start a Business?

6

My Money

7 Supporting My Community

8

Planning My Future

BANK ANY WAY YOU LIKE CLICK Bank Online www.capcomfcu.org

Each January, many of us reflect on the past year while looking ahead.

Turning the page to 2021 comes with mixed feelings.

There’s relief that 2020 is over. And there’s sadness for the hardships so many people are enduring. There’s fear about the pandemic’s ongoing toll.

And, there’s hope that better days are coming.

This time of year, that hope inspires the New Year’s resolutions we make.

Your resolutions – whether losing weight, getting financially fit, being a kinder person, or anything else – have more in common than you might think.

It’s important to create a plan with manageable steps to “make good things happen” and be ready when “life happens.” Your team and tools at CAP COM can help you prepare for things you want in your life and situations you want to avoid.

Because your financial needs are unique, so is your journey forward.

Let the financial experts at CAP COM be your success team, here throughout your life, every step of the way.

Warm wishes from all of us here at CAP COM with all the hope a new year brings. Keep safe and be well.

Christopher McKenna President/CEO

CALENDAR JANUARY

FEBRUARY

MARCH

TAP Get our Mobile Banking App www.capcomfcu.org/mobile

Friday, January 1 Branches closed for New Year's Day

Monday, February 15 Branches closed for Presidents Day

Saturday, March 20 First day of Spring

CALL Member Services or Automated Phone Banking (800) 634-2340 (518) 458-2195 Headquarters

Monday, January 18 Branches closed for Martin Luther King Jr. Day

Thursday, February 25 Retirement Bound Workshop www.capcomfcu.org/rb

VISIT Neighborhood Branches plus Shared Branches Across the U.S. www.capcomfcu.org/locations Let's Be Friends Join our growing community.

Thursday, January 28 Retirement Bound Workshop www.capcomfcu.org/rb

Thursday, March 25 Retirement Bound Workshop www.capcomfcu.org/rb

Blogs Browse topics and learn at your own pace. www.capcomfcu.org/blog

Federally insured by NCUA Lines of Communication is published for CAP COM Federal Credit Union members. The Supervisory Committee is the members’ representative. Please address any situations you feel were not handled to your satisfaction by the credit union to: Supervisory Committee, P.O. Box 11279, Albany, NY 12211-0279

Family Matters 3



My Family

Resolution: Make time for difficult financia l discussions with loved ones.

Family

Money Talk for Couples Ideally, couples who co-mingle their finances have the money talk before making major purchases, sharing bank accounts, or going into business together. Yet when you're in love it's easy to follow your heart, thinking you'll get back to those conversations in the future.

Avoid potential heartaches, and headaches, by getting in step with your partner: • Assess your situation. What's your monthly income and how much is directed to expenses? Do either of you have debt? What are your plans to pay it off?

• Dream together. A home purchase, early retirement, or plans to grow your family are goals that can impact your finances today and in the future.

• Accept that financial goals change. Getting on the same page now, and keeping the lines of communication open, can help you avoid problems down the road.

Legacy: Your Parents & You Estate planning is a lot like weigh-in day after your first week on a diet.

You know it's necessary, but it’s tempting to avoid it.

Talking to your parents about what will happen to their financial assets after they're gone isn't easy, but it really should be done ahead of time.

Here are a few tips to prepare.

Schedule a time to talk. You want to avoid surprising your parents with the topic, and let everyone mentally and emotionally prepare to talk.

Lead by example. Show your parents how you've taken care of your family

by creating a will, designating a health care proxy with a medical power of attorney, and purchasing adequate life insurance.

Reduce the chances of your parents feeling ambushed. Your parents may fear you're trying to take away their independence or invade their privacy.

Be patient.

Anticipate follow-ups. While it may not be necessary at the initial discussion, include siblings, relatives, or other key parties when final decisions are made. Excluding others could lead to family tensions.

Work to secure my family's financial future this year.  Start saving for retirement or increase my contributions  Update beneficiaries on my accounts  Open Youth Savings Accounts for my kids  Set up a 529 college savings plan. More at: www.capcomfcu.org/529  Create a succession plan for my business.

College Bound?

Did you know CAP COM offers member resources for students planning to attend college and their families? To connect with a Certified College Funding Specialist, visit: www.capcomfcu.org/collegebound

True Love... or True Crime?

Like a dream come true, love appears. Suddenly, you're swept up in planning a life together while you cover new expenses that arise.

In 2019, people lost $201 million to romance scams. Know the warning signs before flirting turns to fraud at www.consumer.ftc.gov. Search 'love.'

Peace of Mind Do you have ample life insurance?

Visit www.capcomfinancial.com/calc to calculate your needs. Then head to www.capcomfcu.org/insurance – your single stop for multiple quotes.

LET US HELP. CAP COM financial experts are at your service to talk through money matters, help you make plans, answer your questions, and offer solutions. Call (800) 634-2340 or stop by a branch for assistance.

4 Comforts of Home

Home

Resolution: Decide which hom e improvement proj ects would be most be neficial and affordable.

Improvements for Pleasure & Payoff If you own a home, increasing its value now can pay off when you sell. However, deciding which home improvements will generate the greatest returns can be tricky.

A fresh coat of paint can brighten a room, but it might not increase your home's value like adding a deck or remodeling your kitchen. Generally, more expensive projects tend to add more to your home's market value.

According to the 2020 Cost vs. Value Report, 18 of the 22 home improvement projects that recouped more than 50% of their expense cost between $14,359 and $282,062. If you're not ready to spend that much, your home can still benefit from improvements.

Here are four projects to consider if you'd like to spend less while increasing your home's resale value. Check out the handy cost estimator at www.homewyse.com.

Project Entry Door Replacement | Steel Garage Door Replacement Grand Entrance | Fiberglass Manufactured Stone Veneer

Job Cost Resale Value Cost Recouped $1,881 $1,294 68.8% $3,695 $3,491 94.5% $9,254 $4,930 53.4% $9,357 $8,943 95.6%

LET US HELP. Want help setting a budget to save towards a future project? Can a loan help cover some or all costs? Talk through your options with a CAP COM expert or explore lending solutions at www.capcomfcu.org.

Liven Up Your Living Spaces Looking for inexpensive ways to re-imagine rooms and make them more functional? Here are a few ideas.

Experiment. Moving furniture around can transform rooms in fresh and surprising ways. Try gaining more space by eliminating items you don't need, use, or love.

Shape-shift your spaces. Turn your dining table into a workspace your household's young learners and adult earners, sweeping items into storage during meals.

Use transitional furniture. A sofa bed can convert nighttime sleeping quarters into a daytime office, den, entertainment area, or endless other possibilities.

Utilize hidden storage areas. The unused space under couches, beds, over cabinets, and behind doors, can store seasonal items, craft materials, and home supplies.



My Home Enhance my living spaces with budget-friendly solutions in 2021.  Reduce monthly payments or get cash back by refinancing my mortgage at a lower interest rate. Call us at (800) 634-2340 for a rate check.1  Shop multiple home or renters insurance providers with one application. See if I'm eligible for lower rates, special discounts, or both. Visit www.capcomfcu.org/insurance.  Line up access to cash so I can cover home improvement projects and unexpected expenses.

Apply for a CAP COM Home Equity Line of Credit2 at www.capcomfcu.org/heloc.

1) Mortgage products in New York State only and offered by our Mortgage Team, Homeowners Advantage (HOA), which is a subsidiary of CAP COM FCU. HOA is a Licensed Mortgage Banker – NYS Dept. of Financial Services. HOA NMLS Identifier: 290363. Principal Address: 4 Winners Circle, Albany NY 12205. CAP COM FCU NMLS Identifier: 401261. 2) Home Equity Lines of Credit in New York State only. CAP COM FCU NMLS Identifier: 401261.

Should I Start a Business? 5

Resolution: Follow my dream s and get more money coming in .

Career Growing Your Business Hiring staff, investing in technology upgrades, and increasing product or service offerings are common ways to grow your small business.

But how can you reach new financial heights on a tight budget? Here are a few ideas to consider: Review your expenses and eliminate business solutions that you can obtain for free or at a lower cost — like social media scheduling and online business accounting tools.

Ask for referrals from satisfied clients. And, encourage them to share their positive experiences by writing an online review.

Connect with related businesses. Building relationships might allow you to collaborate on crosspromotions. For example, if you sell homemade dog treats, you could partner with a mobile pet grooming service to offer product bundles to customers.

Should I Start a Business?

The freedom to pursue your passion, earn additional income, set your own work hours, and build an asset to leave to your family... If you're thinking about starting a business, this could be your year!

It's possible to increase your earnings slowly by working a few extra hours each week, before turning your part-time business into your full-time job. When you're doing what you love, working can be a pleasure.

Uncertainty can prevent you from taking the first step, but a little planning can help reduce those fears. Here are five steps to kick-start your small business and make your dreams a reality this year.

1. Research the market for your product or service.

2. Create a business plan, including funding sources, business structure, location.

3. Register your business with the applicable local, state, and federal agencies.

Visit www.ny.gov/services/business for information and resources.

4. Open a business checking and savings account.

5. Learn about opening a small business and assistance available via the U.S. Small Business Administration at www.sba.gov.



My Business This year, explore starting a business and make a plan.  Check out small business resources such as the websites of the regional Chambers of Commerce and the U.S. Small Business Administration.  Develop my business idea while I'm still employed at my current job.  Visit www.nysbdc.org for assistance developing my business plan.  Create a custom list of NYS forms/requirements at www.businessexpress.ny.gov.  Build an emergency savings fund for a safety net, in case my new business doesn't earn money as quickly as expected.

LET US HELP. CAP COM offers business deposit accounts, low-rate credit cards, digital banking, lines of credit, and equipment, vehicle, and real estate loans. Call (800) 468-5500 ext. 2948 or visit www.capcomfcu.org/business.

6 My Money



My Money Strengthen my 2021 savings.  Open a savings account for my emergency fund and another for large purchases.  Make regular contributions to my savings goals, as expenses in my budget.  Set up automatic transfers or direct deposits into designated savings accounts that match my budget and goals.  Order free copies of my credit report from AnnualCreditReport.com.

Dispute any errors that appear on the reports.  Pay all bills on time and keep account balances low. These two actions have the biggest impact on my credit score.

3 Steps to a New Savings Account Ready to create an account dedicated to a savings goal?

1) Log in to your online account with your driver’s license or state ID handy.

Under Additional Services, select Add an Account.

2) On the next screen, again click Add an Account.

Review disclosures. Next.

3) On the Applicant Info screen, click Savings, Members’ Choice. Follow the prompts to finish up.

TIP. In Settings, name your accounts whatever you like!

Resolution: Create a savings budget for large purchases and manage my debt .

Money Save Up, Just in Case If you're not careful, your paycheck can vanish as quickly as bottled water after a hard workout. Then, when you need to pay for an unexpected expense or have your eye on a large purchase, you might turn to a high-interest credit card to pay for it. Having a dedicated savings account for these situations can ensure your finances won't leave you thirsty.

Financial experts recommend saving six months of household living expenses as a safety net in case of a job loss.

It can take at least that long to find a new job, especially in the current climate.

An emergency fund helps cover bills while reducing financial stress. Put a little away each week and watch your savings grow! You can make a plan with an online calculator or the free Money Management budgeting app in your online CAP COM account.

If you use an emergency fund to purchase large-ticket items, you may not have money when you need it for an actual emergency. Instead, build savings separately for these items over time, so you can pay for them interest-free.

Improve My Credit Score Diet and exercise can change the way you look and feel, just as saving money and improving your credit score can shape your financial future.

Your credit history is a factor in your cost of borrowing, the amount you pay for products and services, where you live, and even where you work. You can improve your credit score by paying your bills on time and keeping credit balances low.

Remember to keep an eye on your credit report by reviewing it for suspicious activity at least once per year. Report potential fraud to your creditors and the authorities before following each credit bureau's dispute policies to remove incorrect information.

Check out 10 Tips for Building Your Credit Score at www.capcomfcu.org/score.

LET US HELP. Looking for help setting up separate savings accounts? Feeling overwhelmed by debt?

Turn to your CAP COM support team for guidance. Call (800) 634-2340 or visit any branch for a financial checkup.

Supporting My Community 7

Resolution: Support my community as a donor or voluntee r.

Key to Happiness? Kindness.

Teaming Up for Impact

Did you know that when you help one person, at least two people benefit? Donating time, money, and wish-list items can help a person in need while elevating your personal happiness.

According to research from UC Berkeley and the American Psychological Association Journal, people who give to others experience better mental and physical health – and heightened positive emotions that linger.

If you’d like to commit to making a difference, here are some ideas.

Visit www.volunteermatch.org to search for local ways to help, including virtual opportunities. You can support outreach via the CAP COM Cares Foundation at www.capcomfcu.org/community.

Respond to the specific needs of local charities. While monetary gifts sustain nonprofits, hard-to-find supplies, hygiene items, nonperishable foods, and volunteer support are also in demand.

Offer your skills or creative talents to organizations in your community. Are you a notary, web designer, or lawyer?

Encourage a healthcare worker by leaving a supportive voice message on the Health Hero Hotline at (877) 226-HERO. Do you work in healthcare or simply need a bright spot in your day?

Listen to the messages at www.healthherohotline.com.

During this unusual year, the CAP COM Cares Foundation provided support to 72 organizations in the Capital Region including:

Share the Love Winners Five Share the Love sweepstakes winners received $1,000 and CAP COM donated $1,000 to the charity of each winner's choice.* Sarafina A. shared the love with the Bernard & Millie Duker Children's Hospital at Albany Medical Center.

Frank A. shared the love with Mohawk Hudson Humane Society.

Maureen S. shared the love with Camp Good Days and Special Times.

Mya R. shared the love with Neurofibromatosis Northeast.

Patricia S. shared the love with A Safe Place, Inc.

Regional Food Bank of Northeastern NY. We volunteered at a drive-thru food pantry event at Albany International Airport, worked in their sorting warehouse, and donated $50,000.

Capital Roots. CAP COM’s volunteer crews (pictured above) helped build raised garden beds at a Capital Roots' community garden.

Homeless and Travelers Aid Society. Our volunteers have been assisting with the Feed and Read Program, which ensures hungry children in Albany receive meals and nutrition.

Other Highlights of 2020 • $15,000 to St. Peter’s Health Partners for PPE • 1,127 school supply backpacks for students via 24 local schools and organizations.

Watch: www.capcomfcu.org/backpack-video • $80,000+ in scholarships and awards for local students going to college and trade schools, and educators.

Watch: www.capcomfcu.org/scholarship-video

Local Nonprofits: Thank You In our 2021 Calendar, we celebrate local nonprofits devoted to helping those in need.

Request yours next time you visit a branch.

*Random drawing from eligible entries determined five sweepstakes winners.

LET US HELP. To assist individuals and families in need across the Capital Region, the CAP COM Cares Foundation

partners with a multitude of local nonprofits. Want to support our local outreach? Visit www.capcomfcu.org/community.



My Future Commit to a retirement savings routine this year.  Use an online retirement calculator to estimate when I can afford to retire.  Explore the merits of a health savings account.  Schedule a meeting to develop a retirement income plan with a CAP COM Financial Services advisor at (518) 782-0209.

Move or Stay Put? If you find yourself thinking ahead to retirement, do you picture living in a different locale? While relocating can be bittersweet, it can offer benefits.

If you move and sell or rent out the home you currently own, you could generate cash flow.

Moving to an area with a lower cost of living can reduce expenses. As you think about when and where to retire, consider: • Will I own my home free and clear before or shortly after I retire?

• Do I crave social connections that may fade once I leave work? How will those needs be met outside the workplace?

• How much retirement savings will I have when I exit the workforce?

CAP COM Financial Services 8

Resolution: Make a long-term plan to save towards a comfortable retire ment.

Future Retirement Readiness Like a personal trainer, your financial advisor guides you with expertise, planning, and actions that bring you closer to financial independence.

Advisors work with individuals and families — regardless of their age, investing experience, or income. They can review your financial situation and create a personalized retirement plan that aligns with your anticipated retirement time-frame.

Whether you're just starting your career, are a mid-career earner, or are ready to transition to retirement, the advice of a qualified investment professional can help you grow and protect your hard-earned money.

Partner with a financial advisor to get answers to important questions like: – How much should I save for retirement?

– What are my post-retirement health insurance options?

– When should I start taking Social Security benefits?

– Should I set up a college savings plan for my children (or grandchildren)?

– How can I reduce my tax burden in retirement?

5 Steps Forward Attend an upcoming Retirement Bound online workshop and discover five important steps you can take now on your journey to a happy, secure retirement. Workshops are held twice each month, and you can sign up at www.capcomfcu.org/rb.

Resources at Your Fingertips If you like learning on your own, read our blog at www.capcomfinancial.com/ccfsblog, explore possibilities with our calculators at www.capcomfinancial.com/calc and follow CAP COM Financial Services for financial fitness tips at

LET US HELP. Embark on your journey to Financial Independence supported by experienced guides who can help you understand your options. Call (518) 782-0209 to schedule a phone, video, or in-person meeting with distancing.

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

May Lose Value