MoneyWisdom Hanscom FCU Spring 2016

MoneyWisdom Spring 2016

GET LOWER PAYMENTS on a Better Car

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9 REASONS TO LOVE YOUR

Hanscom FCU ATM & Check Card 4 4 Tips for STARTING A LOCAL BUSINESS 5

A CO MPL I ME NTA RY SUB SCRIP TION FROM HAN SCOM FCU

CHAIRMAN’S CORNER Paul J. Marotta, Chairman

welcome to the hanscom fcu family Credit unions have always been known for cooperation and collaboration. It’s often how we solve problems. It is how we build knowledge, and working together is how the credit union movement continues to remain fresh and vibrant.

Today is a time of great change for financial institutions.

There’s increased focus on mobile banking, a greater need for sophisticated security measures, and a highly regulated business climate. Credit unions are feeling pressure to add technology and the staff to manage it.

Not every credit union can dedicate staff for compliance, security or information technology. Over the years, many smaller organizations have come to us for advice and guidance. And we respond by helping, whether by dedicating resources or providing support.

These credit unions come to us with the confidence that we are there for them. When we go through the process of working together, some credit unions find we can assist their members in a strong and dependable way.

That’s when a merger becomes a viable option.

In the past year, we completed mergers with two other credit unions. Houghton Mifflin Harcourt Employees Federal Credit Union and the W.H. Nichols Employees FCU were financially healthy and the mergers resulted in a positive outcome for their members as well as for Hanscom FCU. When searching for a merger partner, each of these credit unions realized that Hanscom FCU was a great fit for their members, offering a full range of products and services, while also sharing the same credit union values and structure.

The advantages of Hanscom FCU membership are now being discovered by our new members. To help them explore all of our offerings, we created a video. I invite you to watch it as well. Maybe you’ll find something new, too.

Find the video at www.hfcu.org/magic.

Dedication Plus Experience Equals

MARATHON MAGIC

Race day is almost here for Hanscom FCU runners Ray Phillips and Mike Rzeszutek.

Ray, a director at Hanscom FCU, and Mike, Hanscom FCU Sales Manager, have put their hearts into this year’s Miles for Smiles Boston Marathon campaign for Boston Children’s Hospital.

Ray and Mike are cheered on by their patient partners. Andy Martin Jr. has been Ray’s inspiration since his first race 17 years ago. The experience inspired Andy to compete in the race twice himself. A word about Ray’s dedication: Boston will be his 100th marathon run.

Mike ran his first marathon last year. He received a team award for increasing team spirit for the Credit Unions Kids at Heart team, the group Hanscom FCU belongs to.

This year, he is paired with Marathon veteran Timmy Stevens.

There’s still time to get involved. Your donation goes directly to fund research on pediatric brain cancer and Moyamoya disease, a rare, progressive disease that puts children at risk of stroke. There is nothing taken out for administrative expenses.

Make your pledge today at any branch, by phone or at www.hfcu.org/marathon.

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Spring 2016

MONEY SAVING TIPS

What Is Better Than a Lease?

SAFETY AND RELIABILITY

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“We had a young family and it was really important to me that my wife had a safe car to drive,” said Hanscom FCU member and Marketing VP Steve Silva. “The challenge would be to find a safe and reliable car at a price point we could afford.”

For the Silva family, Hanscom FCU’s Better Than a Lease loan was the answer. “It allowed us to own the car while enjoying the lower payments that come with a lease,” Steve said.

By financing only for the time that you plan to use the vehicle, a Better Than a Lease loan works in a similar fashion to a lease program.

Payments are typically 30% lower than traditional loans with the same term. Buyers can choose low or no down payments and will not pay security deposits, initial fees or penalties for early payment.

The title is in your name – not the dealer’s – and you can use Better Than a Lease to purchase new or used cars, trucks or SUVs.

A Better Than a Lease loan allowed Steve Silva to budget a low payment without compromising quality for his family car.

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The staff at Hanscom made the auto loan application very timely, simple and straightforward. I was out of town when the papers needed signing, and with their help I was able to sign everything electronically.

The interest rate was excellent and automatic payment from my account makes it even easier.

– Paul

I recommend HFCU to anyone wanting that oneon-one experience. They even helped me work on my credit report to make my credit even better.

– Denise

When the term of the loan ends, you have four choices: 1 Return the vehicle. We’ll take care of the loan

balance for you.

2 Keep the car and refinance. We have the

same rates for new or used.

3 T rade in the car to a dealer and realize any equity you have built up.

4 S ell the car privately and pay off the balance.

Any profit is yours to keep.

Are You Ready to Refinance?

For most homeowners, now is a good time to refinance a mortgage.

If you're considering this move, take these steps to help ensure your paperwork is handled smoothly: • Have proof of income available, including copies of your paystubs, W-2s, tax returns and bank statements.

• Provide verifiable information about your current mortgage, including outstanding balance.

• Sign the application and other requested documents as soon as possible.

• Check in once or twice a week just to make sure things are moving forward.

Even if you've refinanced within the past couple of years, you may be able to save on interest, reduce the length of your mortgage and/or switch from an adjustable-rate to a fixed-rate loan. A loan/mortgage officer at Hanscom FCU will help you run the numbers and see whether refinancing would be beneficial to you. For rates or to get details, visit our mortgage center at www.hfcu.org/ mortgage or call 800-656-4328.

“Since those baby days, we have taken advantage of this program a few times. We now have three growing boys and find ourselves driving many friends and hauling lots of sporting equipment,” Steve said. “While the kids have grown and the cars have changed, safety and reliability remain a top priority. The Better Than a Lease loan was a great way for us to meet our needs,” said Steve.

To learn more about the Better Than a Lease program, visit www.hfcu.org/lease, or stop by a branch and speak to a representative.

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9 REASONS TO LOVE Your Hanscom FCU ATM & Check Card

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Your Hanscom FCU ATM & Check Card is now backed by secure chip technology as well as the power of MasterCard®.

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Theft Protection Services. MasterCard scours the internet and alerts you if it detects your personal and financial information – credit and debit cards, Social Security numbers, driver’s license numbers and other sensitive data – is being bought or sold online.

Experts can help replace cards and documents right away if your wallet is lost or stolen. If you suspect your identity has been compromised, help is available 24/7/365 to guide you through the process, from filing an affidavit and cancelling accounts, to notifying the major credit reporting agencies.

Zero Liability Protection. You are protected from unauthorized transactions, including PINbased transactions at the point of sale, ATM withdrawals and online or mobile transactions.

Automatic Updates for Recurring Debits. We’ll automatically update your card information with recurring billers in the event of an expired, lost, stolen or compromised card. You won’t get stuck making those calls or, worse, having services delayed or suspended due to outdated card information.

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MasterCard is the only payment brand that provides these theft protection services at no cost to cardholders. Take five minutes to sign up your card at www.mastercard.us/ idtheftalerts.

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Online Shopping Protection. MasterCard SecureCodeTM enhances your ATM & Check Card with a private code, similar to a PIN. Use the code when you shop at participating online retailers for additional protection against unauthorized use of your card.

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Spring 2016

Save at the Pump with Fuel Rewards.

MasterCard’s free Fuel Rewards® Network makes it easy to save with discounted fuel each time you fill up at participating Shell stations.

It’s easy to sign up. Get details at www.fuelrewards.com.

Apple Pay®. Enjoy the convenience of paying with your iPhone® 6 or Apple Watch® at participating retailers. Learn more at www.hfcu.org/applepay.

For more information or to open an account, contact us or visit www.hfcu.org/chip.

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Worldwide Acceptance. Already, members have conducted thousands of transactions with their ATM & Check Cards totaling millions of dollars without encountering acceptance issues. MasterCard is accepted at over 200 million merchants and 1.5 million ATM locations in over 200 countries and territories.

Surcharge-Free ATMs. As you have come to expect from us, you will continue to have access to over 100,000 ATMs with no surcharge.

MemberPoints. You'll continue to earn MemberPoints redeemable for gift cards, merchandise or travel rewards.

MONEY SAVING TIPS

4 TIPS FOR STARTING a Local Business The “eat local” movement has proven to be a powerful, lasting trend. It has spawned other locally driven movements, including Small Business Saturday®, rallying consumers to shop at locally owned businesses the day after Black Friday. It’s no surprise that both seasoned business owners and those looking to get started are turning toward investing money in their local communities.

Tips for investing in a local business:

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Learn how to evaluate local opportunities. Passion can be the driving force to get you going, but you’ll need to be objective in evaluating the prospective outcome. If you do not have much experience creating business plans or understanding financial statements and forecasts, you may want to do some research on these fundamentals.

successful businesses. See if you can arrange a brief informational interview to get tips.

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Consider joining or starting a local business network. Find people with similar goals for healthy discussions and referrals. Search for outreach events centered on local businesses.

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Meet with a business lending professional. If you’re passionate about starting or expanding your business, the next step should be for you to partner with a trusted financial institution. A lender can help you evaluate your situation and offer valuable advice.

For more information on funding for your business, contact Phil Purcell at 781-698-2186.

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Get involved in your community and look for success stories. Start watching for evidence of success. Companies that are doing well may purchase new equipment, expand facilities or hire new employees. Get up-to-speed by reading a local business journal or publication. Find a local executive who has a legacy of building

TOP 3 BENEFITS of Having a Will Writing a will probably isn’t very high up on your to-do list, especially if you’re young and healthy. But a will is very important in many stages of life. If you have minor children or assets of any kind, you will be doing loved ones a great kindness by having a will to guide them.

Here are three great reasons you should stop procrastinating and create a will.

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Name a guardian(s) for your children. It’s wrong to assume that guardianship will automatically be granted to a grandparent or close relative should you and your spouse both die without a will.

A court could decide to grant guardianship to a relative you wouldn’t have chosen to care for your children or to an institution or other party.

If you have children from a previous marriage, things could be even more complicated. A will ensures that your children will be taken care of according to your wishes.

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Avoid family conflict. Many people assume that when they die, everything they own will go to their significant other. This isn’t always the case. If you have a life partner and aren’t legally married, your surviving partner, no matter how long you’ve been together, could get nothing. And if you don’t have a surviving partner, having a will can help ensure that your family isn’t left fighting over who gets what.

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Protect and allocate your assets. “Intestate” is a term used for someone who dies without a written will. When this happens, the intestacy laws of the state that you reside in determine how your assets, including your property, bank accounts and valuables, are divided. If you haven’t appointed an executor or personal representative in your will, a court-appointed administrator will decide what happens to any property you don’t own jointly with someone else. Without a will, there can be no guarantee that your assets will be distributed according to your wishes.

Ready to sit down and draft that will? You may need some help getting started. For information about estate planning services, call 781-698-2236 and take advantage of our free consultation services.

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NO JOKE: Why an IRA Might Be Right for You If you’re at the very beginning of your career – or still job surfing to try to figure out what kind of career will be a good fit – thinking about retirement is totally ridiculous, right?

Wrong! In reality, the younger you are, the more benefit you can gain from starting retirement savings in a tax-advantaged account like an individual retirement account (IRA). That’s because time is the most powerful element of long-term tax-deferred compounding.* And while you’re young, it’s working in your favor.

With compounding, your savings generate earnings, which are then reinvested to generate their own earnings. Tax-deferral means that you don’t have to pay taxes on the earnings in the account every year, as you would in a regular savings or investment account. If two accounts pay the same rate of return, but one is taxable and the other is tax-deferred, the money in the tax-deferred account will grow faster.

enjoy the ease and flexibility of an ira If you’re new at your job, you may not qualify to contribute to a 401(k) or other employersponsored retirement plan. Or your employer may not offer one. But opening an IRA is simple, and doesn’t depend on where you work. You can open an IRA at Hanscom FCU and get a great start on retirement savings.

To open an IRA, you must have earned income or be married to a wage-earner. Annual contributions are limited to the following amounts or your taxable compensation for the year, whichever is less. (Those ages 50+ can make an additional $1,000 catch-up contribution.)** Tax year 2015: contributions of up to $5,500 can be made until April 15, 2016.

Tax year 2016: contributions of up to $5,500 can be made Jan. 1, 2016, to April 15, 2017.

get started today Contact a service representative at Hanscom FCU today to open an account or learn more about how an IRA can benefit you. Call 800-656-4328 or visit www.hfcu.org/ira. * Taxes will be due at ordinary income tax rates upon withdrawal from a traditional IRA. Withdrawals from a Roth IRA are tax-free if the account holder is at least age 59½ and has held the account for at least five years. Premature withdrawals from either a traditional or Roth IRA are subject to ordinary income tax and a 10% tax penalty. ** These limits are indexed to inflation for future years.

Traditional IRA

Roth IRA

Contributions tax-deductible?

Sometimes – depends on participation in an employer plan and income if you or spouse participate

No

Earnings taxdeferred?

Yes

Yes

Distributions tax-free?

No

Yes, if account has been held at least 5 years and owner is 59½ or older

The Advantage of Time This hypothetical example illustrates the advantage of starting early to save for retirement.

Sally Sooner begins investing at age 25.

She puts $200 a month in an account that earns an average annual return of 6%.* At age 65, her account balance is $398,298.

Larry Later puts off investing until he turns 40, then earns the same 6% return. He would have to invest $575** a month to accumulate the same amount as Sally by age 65. And he would end up investing $76,500 more. * Rate of return is for illustration only and does not represent the return of any specific investment.

Your returns will vary. ** This amount exceeds the annual contribution limit for IRAs.

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Spring 2016

PEOPLE HELPING PEOPLE

Hanscom FCU IN

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THE NEWS

raffle winner scores, wins autographed helmet

Hanscom FCU CEO/President David Sprague (left) and Jamaica Plain/Brockton branch manager Megala Anbazhagan (right) presented Junelle Valdez of Brockton, MA, with a helmet autographed by Tom Brady. The helmet was a raffle prize to benefit the Red Sox Foundation and Massachusetts General Hospital Home Base Program.

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blanket donation helps keep homeless families warm

Hanscom FCU President/CEO David Sprague, Member Liaison Sheila Mavropoulos, Executive Administration Assistant Terri Bellacini and Chairman of the Board Paul Marotta prepare blankets donated to the Massachusetts Coalition for the Homeless through the Cooperative Credit Union Association blanket/clothing drive. This is the sixth annual credit union blanket drive.

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gift cards provide support for families of hospitalized veterans

Hanscom FCU President/CEO David Sprague, Hanscom FCU Chairman of the Board Paul Marotta and Fisher House Boston Manager Elizabeth St. Pierre accept a donation of $1,000 in Thank You cards from John Broda, President & CEO of the Armed Forces Financial Network. The $50 cards will be distributed to family members of veterans seeking treatment at the VA Boston Healthcare System West Roxbury campus.

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hanscom fcu receives awards for member and community programs

Hanscom FCU was recognized by the Cooperative Credit Union Association (CCUA) for receiving two community and member service awards. The Dora Maxwell Social Responsibility award recognized the fundraising campaign for Boston Children’s Hospital. The Louise Herring Philosophy in Action award was for the Lunch and Learn workplace financial education program. Pictured among employees are (L-R) Hanscom FCU Chairman of the Board Paul Marotta, CCUA President/CEO Paul Gentile and Hanscom FCU President/CEO David Sprague.

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brownies support base giving tree

Brownie Troop #76164 purchased 22 items for the Hanscom AFB Giving Tree program, administered by Hanscom FCU. MSgt James L. Oliver and MSgt Richard J. Abbott helped coordinate requests and delivered warm winter clothing to 60 children from base families. The troop of second and third grade girls raised funds to purchase the items as part of a Take Action Project.

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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.

Short code for text access: 692667 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): 701-461-0621 (call collect)

Go green. Log in to Online Access HD to sign up for online statements.

Learn more at www.hfcu.org/statements.

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 Members . .............................................. 65,733 Assets........................................ $1,115,000,000 Loans...........................................$927,000,000 Deposits...................................... $982,000,000 Reserves.......................................$110,000,000 January 31, 2016

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. ©2016 Hanscom Federal Credit Union.

We Love to

SEE YOU SAVE We’re offering daily budget-boosting tips on social media. Here are a few.

To see them all, follow #CUSave2016 on Twitter, like us on Facebook, or find us on Instagram.