CURRENT INTEREST SUMMER 2016
WE MAKE YOUR AUTO DREAMS COME TRUE
As Low as
1.75% APR*
90 days no pay 1% cash back, up to $500 on loans over $10,000
*APR = Annual Percentage Rate 1% cash back, up to $500 on new loans over $10,000.00. Refinancing does not apply to existing Gulf Credit Union loans. All loans and rates are subject to credit approval and product participation. All rates are subject to change. Federally insured by NCUA. See credit union for details.
Federally Insured by NCUA
Crawfish Giveaway ………… 2
Loan Structures ……… 4
Disaster Preparation …… 6
Stay in Stocks in 2016 …… 3
Scholarship Winners … 5
Password Security ……… 7
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GREAT RATES ON AUTO LOANS
+ CRAWFISH GIVEAWAY! Receive a $100 Gift Card to Larry’s French Market & Cajun Restaurant with any auto loan of $10,000 or more. + You’ll be entered into a drawing for a Crawfish Boil Party!
Drawing to be held June 20, 2016.
Catering To All Your Financial Needs! If you would like to register to win, please stop by one of our four office locations or you can mail a 3x5 card to: Gulf Credit Union. Crawfish Boil. Attention: Marketing Department. P.O. Box 848. Groves, TX 77619. Must be 18 years of age or older to enter. No purchase necessary. See credit union for details.
Federally Insured by NCUA
GECU.ORG 2 WWW.GECU.ORG
JOHN PAT WHITE II, CRPC
WHY YOU SHOULD STAY IN STOCKS IN 2016 ONE BAD TRADING DAY IS NOT THE YEAR The stock market has wavered recently. A lackluster year just ended, and this year has started inauspiciously. You may be wondering . . . should you really be invested in stocks right now? Yes, you should be.
Vice President, Wealth Management Gulf Investment Group
john.white@cunamutual.com 409.984.7452
• In the 88 market years from 1928-2015, the S&P had 63 profitable years with its average yearly gain being 21.5%. So across the rough equivalent of a human lifetime, the S&P 500 has advanced on an annual basis 72% of the time.6
In moments like these, investors should not panic and overreact to the headlines. Instead, they should take the long view of stock market investing. Impulsive selling now can lead an investor to try and time the market later, and market timing usually leads investors to make mistakes.
• Looking at the 74 possible 15-year intervals of S&P performance occurring during 1928-2015, roughly 60% of these periods have seen the S&P post a compound return of 10% or better. During 1985-99, the index’s compound return was a striking 18.3%.6
Stock market investing is a long-run proposition. On a bad day, it may seem like the whole market is falling apart but stock market performance is not measured only in days.
Yes, there have been down years for stocks, severe ones among them – think of 2008. There have also been great years, and far more positive years than negative ones. You have to take the good years with the bad. It is simply part of stock market investing.
Consider the following statistics, which highlight some underpublicized truths: • Even with their poor showing in 2015, stocks have advanced notably in the last three years. Across 2013-15, the Dow Jones Industrial Average gained 9.97%, the Nasdaq Composite 18.37%, the S&P 500 12.74%, and the small-cap Russell 2000 index 10.18%. The Dow Jones Internet index advanced 28.85% in those three years, the Nasdaq Biotech index 35.26%.1 • Just recently, the Dow gained 7.00% in a quarter. The Nasdaq rose 8.38% and the S&P 6.45% in the same interval. When did this happen? The fourth quarter of 2015. Yes, the same quarter that just ended with everyone talking about how sluggish the market was.2 • The S&P 500 did lose 0.73% in 2015 in terms of price return, but its 2015 total return (including dividends) was positive – a yearly gain of 1.38%.3 And now, some long-term historical perspective: • Through the decades, the S&P 500 has recovered very well from many of its major one-day descents. Its January 4 plunge was comparable to its August 24 drop, when it was down more than 4% during the trading session and lost 3.2% on the day to close at 1,893.21. It took the S&P just three days to recover the entirety of that big loss. Before that, there had been 54 market days in the past 32 years in which the S&P had lost 3.5% or more. There were 45 year-over-year advances after such days, in contrast to 9 year-over-year retreats.4,5
Those who sell when the market is down often buy back in well after the market recovers. Selling low and buying high is a formula for disappointment. Staying invested through market downturns positions you to buy quality shares when they are cheaper, and when stocks rally, you are in the market and ready to benefit. A particular headline or economic indicator may jolt the market on a particular day, but you are not invested for one day – you are investing for a lifetime. We have many positive signs in our economy – solid hiring, appreciable wage growth, steady consumer spending, a strong housing market – and they may lead to better corporate earnings in 2016. So be patient; better days may be ahead for the market. This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. Citations. 1 - wsj.com/mdc/public/page/2_3023-monthly_gblstkidx.html [12/31/15] 2 - wsj.com/mdc/public/page/2_3022-quarterly_gblstkidx.html [12/31/15] 3 - stockcharts.com/articles/chartwatchers/2016/01/do-dividends-matter.html [1/2/16] 4 - tinyurl.com/oksgh26 [8/25/15] 5 - tinyurl.com/jmams7p [1/4/16] 6 - marketwatch.com/story/understanding-performance-the-sp-500-in-2015-02-18 [2/18/15]
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WHAT IS THE BEST BUSINESS LOAN STRUCTURE FOR ME?
Before starting any business, one of the first questions you will need to ask yourself is, “What is the best business structure for me?” You may operate your business under any one of several business structures. Each type of business structure has certain advantages and disadvantages that should be considered. Typically, businesses are created and operated under one of the following types: • Sole Proprietorship (DBA) • Limited Liability Partnership (LLP) • General Partnership (GP)
• Limited Partnership (LP) • Corporation (C or S) • Limited Liability Company (LLC)
While these aren’t all of the business entities available, these are some of the most common business structures that we see in use in Texas. Today we will take a look at the Sole Proprietorship or DBA business structure. The most common and the simplest form of business is the sole proprietorship. A sole proprietorship is an individual or married couple in business alone. This type of business is simple to form and operate and may be operated without a necessity of formal organization. You may need to file for an assumed name certificate (commonly known as a DBA) with the county clerk in the county where the business is located. The business owner is personally liable for all debts incurred by the business. The advantages of a sole proprietorship are: 1. Easy and inexpensive to form 2. No separate taxable entity
3. Freedom from corporate formalities 4. Ability to use losses to offset income from other sources
The disadvantages are: 1. Personal liability of sole proprietor 2. Ownership limited to one person
3. Limited access to funding 4. Ownership interests may not be sold
More information on selecting a business structure can be found on the Secretary of State website at www.sos.state.tx.us or on the SBA website at www.sba.gov. Gulf Credit Union is here to help you with your Business Banking needs. Please contact Todd Gaudin at 409.984.7436 or his assistant, Tracy Chesser, at 409.984.7477 to learn more about how GCU can help you!
MEMBERS’ ACCESS TO CREDIT UNION DOCUMENTS According to Section 91.315 of the Texas Administrative Code, upon request, members of Gulf Credit Union are entitled to review or receive a copy of the most recent version of the following credit union documents: • Balance sheet and income statement • A summary of the most recent annual audit • Written board policy regarding access to the articles of incorporation • Bylaws, rules, guidelines, board policies and copies thereof • Internal Revenue Service Form 990
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PLEASE MAKE REQUESTS TO: Gulf Credit Union ATTN: Office of the President/CEO P. O. Box 848, Groves, TX 77619 Or by phone, 409.963.1191.
Congratulations to these scholarship winners for 2016. We wish you all the best in your future!
SAVANNAH AGEE Orangefield High School
SKYLER KILGORE Monsignor Kelly Catholic High School
JESSICA PARKS Hamshire Fannett High School
BRODY MCBEE Bridge City High School
GUNNAR NICHOLSON Port Neches-Groves High School
ELYSE BROUSSARD Monsignor Kelly Catholic High School
DYLAN MOONEY Vidor High School
WHITNEY DAY Port Neches-Groves High School
ASHLEIGH BRENT West Brook High School
CAMDEN DUBOIS Bridge City High School
Get ready to have some fun on the water thanks to Gulf Credit Union's great rates on boat loans!
As low as 2.50% APR* for 60 months.
GECU.ORG Federally Insured by NCUA
*APR = Annual Percentage Rate. Refinancing does not apply to existing Gulf Credit Union loans. All loans and rates are subject to credit approval and product participation. All rates are subject to change. Federally insured by NCUA. See Gulf Credit Union for more details.
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As low as
Low Home Equity Rates
3.85% APR*
ARE IN FULL
BL
for up to 10 years.
M
We do business in accordance with the Fair Housing Law and the Equal Credit Opportunity Act. *APR – Annual Percentage Rate. All loans and rates are subject to credit approval and product participation. Rates are subject to change without notice.
Are you dreaming of a gourmet kitchen? Or a tranquil master bedroom retreat? Is it time to add on to accommodate your growing family? Now is a great time to make those dreams a reality! Gulf Credit Union’s low rates on home equity loans can make your wishes come true. Freshen your home this spring!
GECU.ORG Gulf Credit is Federally Insured by the National Credit Union Administration.
PREPARE NOW IN CASE OF A DISASTER OR EVACUATION We know the event of a disaster or an evacuation can be very stressful. While we realize many of you may have a physical preparedness plan (items such as food, batteries, clothes, etc.), it is also very important to have a financial plan. In order to help alleviate as much stress as possible for you, Gulf Credit Union has strategically put together a Disaster Plan. The main purpose of this plan is to ensure that you receive minimal disruptions in the event of a disaster or an evacuation, as well as to allow us to return to normal operations in an efficient and timely manner.
We offer many products and services that can assist you while being away from home. Some of these include: • Shared Branching
• Online Bill Pay
• GCU Android and Smart Phone App
• CAT Network
• Online Banking
• Debit Cards
• Direct Deposit
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• Credit Cards
It is very important to have a plan for you and your family during the event of a disaster or an evacuation. During an evacuation, have a point of destination communicated amongst your group, in case you and your family become separated along the evacuation route. It is also important to notate helpful locations along the route, such as Shared Branching Locations, surcharge free ATMs, gas stations and hotels. Please visit our website (gecu.org) to become familiar with our surcharge free ATM and Shared Branching Network locations.
The ideal rule of thumb is to save enough money to cover your bills for three to six months. We know this may not always be possible; that is why it is important to have a credit card. A credit card will not only assist you in renting things such as hotel rooms, it can also help you to make purchases while you are away from home. In the event of a disaster or an evacuation, it is also important that you carry cash. During below freezing weather, the keypad on an ATM may freeze. During the event of a hurricane or other natural disaster, the machine may run out of money or it may not have electricity due to power failure. However, when you carry cash, please be sure you keep it somewhere secure. In the event of a mandatory evacuation or disaster, all GCU locations will close immediately. Once we have been declared an emergency, we will operate from our Disaster Recovery Center (DRC). Also during this time, we will do our best to keep you informed by posting up-to-date information, as it becomes available, on our website (gecu.org) and on our Facebook page. This information will include closings and re-openings of GCU. Visit our website for additional advice on disaster and evacuation preparedness, as well as for suggestions as to what to bring with you, such as: important documents, water, medicine, etc. When you visit our website and click on the “Disaster Awareness Plan” section, you can print a free Hurricane Tracking Chart. Our website also lists other valuable tools as well as suggestions for your disaster plan supply checklist.
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IT'S TIME TO
GET AWAY! Leave the stress behind and plan a getaway this summer! Our low rates will have you enjoying life at the lake in no time.
WE WANT TO HELP YOU Member service is our priority; we want you to be completely satisfied with every interaction you have with Gulf Credit Union. If you experience a problem, please contact us by mail, phone or email. Our contact information is: Gulf Credit Union P. O. Box 848 Groves TX, 77619 409.963.1191 • info@gecu.org The credit union is incorporated under the laws of the State of Texas and under state law is subject to regulatory oversight by the Texas Credit Union Department. If any dispute is not resolved to your satisfaction, you may also file a complaint against the credit union by contacting: The Texas Credit Union Department 914 East Anderson Lane, Austin, Texas 78752-1699, 512.837.9236 • www.cud.texas.gov
Personal Loans as low as
6.75% APR*
DEADLINE ANNOUNCED FOR TEXAS GECU.ORG UNCLAIMED MONEY FUND Federally Insured by NCUA
*APR = Annual Percentage Rate Refinancing does not apply to existing Gulf Credit Union loans. All loans and rates are subject to credit approval and product participation. All rates are subject to change. Federally insured by NCUA. See Gulf Credit Union for details.
For your protection, Texas state law requires that your account have activity within a three year period. It is important that you contact Gulf Credit Union as soon as possible if you have not had any recent activity on your account to prevent your money from being sent to the Texas Unclaimed Money Fund. Funds for inactive accounts over three years will be sent to the state on July 1, 2016.
PASSWORD SECURITY REMINDER Just a reminder, anytime you remove someone from your account and you use Homebanking or our automated 24-7 CAT, you should re-set your password for security purposes. 7 WWW.GECU.ORG
GULF CREDIT UNION
P.O. BOX 848 GROVES, TX 77619
GULF CREDIT UNION IS FEDERALLY INSURED BY THE NATIONAL CREDIT UNION ADMINISTRATION. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act. *APR = Annual Percentage Rate. All loans and rates are subject to credit approval. Rates are subject to change without notice.
Hours of Operation LOBBY - Monday - Thursday: 8:30 a.m. - 5 p.m. • Friday: 8:30 a.m. - 5:30 p.m. DRIVE-THRU - Monday - Wednesday: 7 a.m. - 6 p.m. • Thursday - Friday: 7 a.m. - 7 p.m. • Saturday: 9 a.m. - 12 p.m.
VISION STATEMENT
MISSION STATEMENT
Gulf Credit Union’s vision is to “create a relationship” with members. Our vision is met by matching our member’s need with the right product.
From generation to generation, Gulf Credit Union is your partner in fulfilling your financial dreams.
GROVES
BRIDGE CITY
BEAUMONT
MID COUNTY
5140 West Parkway • 409.963.1191
4721 Hwy. 87 South • 409.735.5156
2360 Dowlen Road • 409.860.3600
2779 Aero Drive • 409.729.8280
TOLL FREE 800.448.5328
GULF CREDIT UNION BOARD OF DIRECTORS
TERM ENDS
Barry Gorman, Chairman 2017 Libby Arnold, Vice Chairman 2018 Karen Brown, Secretary 2017 Robert Adams, Treasurer 2019 Carl Duplantis 2017 Harold Guilbeau 2018 Camille Jones 2019 Johnny Lewallen 2019 8
2016 HOLIDAYS INDEPENDENCE DAY Monday, July 4
LABOR DAY
Monday, September 5
THANKSGIVING
Thursday, November 24 Friday, November 25 Saturday, November 26
CHRISTMAS
Friday, December 23 Saturday, December 24 Monday, December 26