Together Is Better:
Enhance your financial playbook with the Spero team I N
Spotlight: United Way & The Backpack Program
T H I S
I S S U E
Pros and Cons: Paying Cash for A New Car
How Much Do You Need to Retire?
Are Meal Kits Worth It?
LOCATIONS Anderson
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IN THIS
ISSUE:
3 4 5 6 9 13 14 16
Letter from the President Community Partner Spotlight: UNITED WAY & THE BACKPACK PROGRAM Calendar/Events Teammate Spotlight: AMANDA SCHMIDT Feature: P ROS AND CONS: PAYING CASH FOR A NEW CAR What We Read: CHESS NOT CHECKERS: ELEVATE YOUR LEADERSHIP GAME Money Management: H OW MUCH DO YOU NEED TO RETIRE? Health and Wellness: ARE MEAL KITS WORTH IT?
Insured by NCUA Spero Financial is a proud member of the Credit Union Service Center Network. co-opcreditunions.org Copyright ©2021 by Spero Financial 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 Spero Financial by The Brand Leader.
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T E A M
S P E R O
Don’t sit on the sidelines. Elevate your financial game with Spero! Whether you need a financial coach, teammate, or cheerleader, we’ve got you covered. At Spero, we do whatever it takes to help you, our members, win with money!
Talk to us to learn how to enhance your financial playbook!
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Dear Members, As we move through summer and into the fall, there is a lot to look forward to — cooler weather, the beginning of school, and of course — football! While I have to admit to never playing the sport formally, I did play soccer (we were two-time state champions, by the way), and there’s nothing quite like the thrill of people joined together under bright lights, rooting for a common cause. Really, football games are where real community happens.
Letter from the President
And after this past year, I know we are all excited to start rebuilding our own communities once again. In this issue, we’ll be focusing a lot on community — and family — and how Spero can help you build your own financial playbook to get you to your end goal, whatever that may look like. Because you are our VIPs, we’ve included some articles to help you jump start your financial game; check out Pros and Cons for Paying Cash for a New Car on page 9 or How Much You Need to Retire on page 14. We’ve also included a piece evaluating popular meal kits (page 16) to help get your family back-to-school ready and prepped for what may be a hectic fall season. Finally, we hope you’ll plan on joining us for our own community reunion at the Annual Meeting this October. More details will follow, but we are excited to see you in
Brian McKay PRESIDENT
person once again! No matter what your financial situation or financial goals, we are happy to be on your team to make them happen! Check out all the resources we have available—from our financial insights blog to Your Money Matters and GreenPath. Plus, follow our social media channels for more information about a couple financial wellness workshops we will be hosting this fall and winter. We’re so glad you’re part of our community, and of the larger Spero family. Please let us know if there is any way we can help you move the ball forward in any of your goals — we’re cheering for you!
I appreciate your membership.
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In the Spotlight United Way & The Backpack Program The back-to-school season holds a lot of excitement for kids and parents alike — with new teachers, new clothes and new supplies as part of the preparation for a new school year. But for many parents who can’t afford school supplies for their children — 15 million across the U.S., in fact, according to the National Center for Children in Poverty — it can be a time of anxiety and stress. Fortunately for school-age kids in Greenville County the United Way’s backpack program ensures each child will have access to the supplies they need for the upcoming school year. The mission of United Way is to “mobilize people and resources to improve lives, strengthen the community, and advance equity for the benefit of all.” To accomplish this mission, United Way invests strategically in organizations whose programs are built to address the complex issues faced by individuals and families in our community, as well as operates direct service programs that also address these complex needs. As one of those direct service initiatives, the backpack program began more than 20 years ago, with the realization that there was (and still is) a great need in the local community to support families who were struggling financially to provide school supplies for their children. “This program has grown tremendously since its origins 20 years ago,” shares Ann-Lawrence Ellerbe, United Way of Greenville County’s Corporate Giving Manager. “The backpack program provides necessary school supplies for students to start school on time ready to learn.” The program has provided everything from paper and pens to Kleenex, notebooks, and more — all included
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in a backpack the child can claim as their own. Each year, around 3,000 backpacks are provided to students in need. In addition, the program has provided classroom supplies for teachers who too often spend money out of their own pockets to provide for their students. Even in 2020, when “back to school” looked different due to the pandemic, United Way was able to give back to students and teachers alike — providing not only backpacks but also WiFi hotspots and classroom supplies for teachers. Fortunately, the program is one where businesses and individuals can also play a direct role in changing a child’s school year. Ellerbe notes that they are hopeful that once again, companies and individuals will get involved to sustain and grow the program. “We do expect school supplies for students and classroom supplies for teachers to be a part of this year’s project, but also will include other needs that are identified,” she said, noting that more details will be released this summer to begin in early August. “We are currently identifying the most critical needs for students and teachers and are building a project that will address these needs, and encourage anyone who wants to be a part of it to reach out.” Visit www.unitedwaygc.org/schooltools to get involved!
CAL EN DA R/E V E NTS
The perfect time to celebrate our community together!
Holiday Closings July 5 I N D E P E N D E N C E D A Y, OBSERVED
Sept 6 L A B O R D AY
IN THE COMMUNITY After the past year, our Spero teammates are excited to get back out into our local communities and do what we love best — connect with you! We’ve been hard at work supporting our local non-profits and businesses, and we hope to see you along the way! C E L E B R AT E O U R M I L I TA R Y FA M I L I E S !
Golf Tournaments: Anderson University, Habitat for Humanity, Junior Achievement
With Independence Day upon us, it is the perfect time to remember and celebrate our own members and military families, who help provide us with the freedoms we enjoy daily! As part of this celebration, we will be spotlighting military teammates and members on Spero social media pages (@MySperoFi) all month long! If you know of someone who we should honor, please email us at intheknow@spero.financial! Meals on Wheels of Anderson Staff Volunteer Day
C O N G R AT U L AT I O N S T O O U R SCHOLARSHIP WINNERS! Each year, we award three members with $3,000 each toward their college education, through the Louis C. Addison Scholarship program, in honor of our long-time board member Louis Addison. This year, we are excited to announce that the scholarship has been awarded to Katrina Wolfe, Kitara Henry, and Neal Dhankhode. Please join us in congratulating these fine scholars!
Five Forks Community Small Business Pop-Up
Katrina Wolfe
Kitara Henry
Neal Dhankhode
AnMed Health Mobile Mammography – Powered by Spero Financial
HONORING VETERANS THIS FOURTH OF JULY
Teammate Spotlight Amanda Schmidt While the Fourth of July is a great time for backyard barbeques and fireworks, it’s also a time to celebrate our country’s independence. As part of our Independence Day celebrations this year, we want to honor one of our teammates who has played an important part of ensuring the freedoms that we all enjoy today.
Meet Amanda Schmidt, Electronic Services Specialist and Veteran I officially retired in December of 2019 as a Sergeant First Class (SFC) with just under 22 years of service. During my time with the Army Reserves, I trained in Germany, deployed to Afghanistan and Iraq, and was immersed in so many different cultures — experiences that really remind me how grateful I am to live in the United States of America. When I reflect back, I am proud of what I was able to accomplish. When deployed, you live in tight quarters, and do everything together, which creates trust and friendships that last a lifetime. This support is hard to put into words, as you literally trust them with your life in some situations. I have so many great stories and memories from those times, and also some more somber ones that encourage me to be the best person I can be each day. I would be remiss if I didn’t acknowledge my Spero family’s impact on my life during this time, as well. While in Iraq, Spero Financial (then SC Telco), adopted my unit. We were a small team of 15 — mostly engineers on the civilian side in some capacity — but Spero went above and beyond to make each of us feel so loved and cared for.
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TEAM M ATE SPOTLIGH T
"
– Jeff Goodman
As an example, I had each of the soldiers give me a few items that they “wished” for if someone wanted to adopt them over the holidays. Most of their answers were so selfless; I really had to push to get some to answer with something other than they “had no need and just appreciate the thoughts and prayers.” One soldier asked to have flowers delivered to his wife to let her know that she was not forgotten during the holidays; another asked for things he knew his children would enjoy. It made me so proud of my Spero family and how they all showed up without question — even going above and beyond what any of us anticipated. Not only were flowers delivered and gifts sent to families stateside, but we each received a box with our name on it, filled with such thoughtful items that we couldn’t get where we were. For a few hours, we gathered on that holiday to come together, as a family away from family, and I was so proud that it was my credit union family that made it so very special for each of us. That was having the heart of a servant put into action and all of us will be forever grateful for that! The military has tested me in ways that I didn’t even know existed. There were
It made me so proud of my Spero family and how they all showed up without question — even going above and beyond what any of us anticipated. – Amanda Schmidt
more good days than not so good, but honestly, it forced me to really lean on my faith. Knowing that He was in control and had a big plan was really what got me through. I have been blessed to have had the opportunity to serve and experience so much from my time in the service, as well as my time as part of the Spero team. Both have helped shape who I am today.
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A U T O
L O A N
The perfect tailgating experience starts with a better tailgate. Kick off the savings with 90 days of no payments* when you get an auto loan from Spero! With low rates and flexible terms, our auto loans can make your next vehicle purchase or refinance fast and hassle-free.
Apply Today!
Membership required. Insured by NCUA. Subject to credit approval. *Must meet minimum credit and collateral criteria to qualify. Existing Credit Union auto loans are not eligible for refinancing with this offer. Program, rates, terms, and conditions are subject to change without notice.
At Spero, we are committed to helping you make the best decision for your family and your wallet. You’ve saved up. For months or years, you’ve put
to buy a new car, and you have the funds to do it. But
away cash into savings in order to purchase a new
should you? There are definitely good reasons to pay
car. Maybe you wanted to avoid the financing game
in cash for your next car, but there are some cons as
at the dealership, or wanted to have the option of
well. In this article, we’ll dive into the good, bad, and
buying from a private seller. Either way, you’re ready
the ugly of buying your next car with cold, hard cash.
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Pros
Obviously, paying cash for a new car isn’t for everybody, but if you can swing it, there are a few upsides that might make it worth writing that big check. Here are the top three reasons you should pay cash for your new car.
YOU WON' T OVERSPEND
When you’re paying cash for a car, your ability to
around 5.27% for 60 months (according to the Federal
overspend greatly decreases. After all, if you don’t
Reserve), that is money that can add up to big amounts
have the money, you don’t have it. This also helps
pretty quickly.
you avoid ending up upside down in a car payment, where you owe more than the car is worth, because
YO U R C R E D I T R AT I N G M AY I M P R O V E
you financed too much in the beginning.
If you have a big purchase in the future and expect that someone will be reviewing your credit soon,
YO U'L L SAV E M O N E Y
it could be beneficial to pay cash for a new car.
It sounds odd to say that you’ll save money by
Oftentimes, when lenders review credit applications,
spending money, but when it comes to buying a car,
not having a car payment can be a point in your favor.
paying in cash can do just that. If you forgo getting a
In addition, you won’t have the minimal penalty of
loan or financing, you’ll also miss out on paying loan
hard pulling another credit report in order to apply for
fees and interest charges for the duration of the loan
financing, which can stay on your credit report for up
term. With the average interest rate for cars being
to two years.
P R O S AN D C O N S : PAYIN G CAS H FO R A NE W CA R
However you decide to buy your next vehicle, we at Spero can help. Simply complete our Auto Loan online application at your convenience or ask us about our Extended Warranty solution - available even if you don’t finance your vehicle through us. This warranty protects you from major mechanical expenses because even the most reliable vehicle can develop a mechanical problem during its lifetime.
Cons
If paying cash isn’t in the cards for your next vehicle
for their financing options. These savings can
purchase, don’t worry; there are some solid reasons why
be significant, so it’s worth exploring all your
paying cash isn’t the best option for everyone.
options if the car and the dealer you are working with has a special offer in play.
LIMITED BUYING OPTIONS
When you’re paying cash, you have a defined amount
YO U M AY I M PAC T YO U R S AV I N G S
that you can spend, which may limit your options in your
If you’ve been saving to buy a car for years
car purchase. Unless you can smooth-talk your way into
and now have the amount you need to head to
getting a dealership to add some upgrades or discounts
the car lot, it may mean that you’re about to
to that more-expensive model, you may have to settle for
deplete your savings account. Is it worth buying
something a little less expensive in order to pay cash for it.
something a little less expensive or saving for a little longer to keep some money saved up for
M I S S I N G O U T O N S PEC I A L SAV I N G S
an emergency? If it’s not an option, you’ll want
Sometimes dealerships will run special savings, like cash
to have a plan for how to reboot your savings
back offers, which are only available if you are applying
account quickly.
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P R O T E C T +
Call your own plays & run up your credit score! With the Protect+ Credit Score Simulator, instantly see how decisions like opening a new credit card, increasing a credit limit, and paying off debt will impact your credit score — and improve your financial game plan. Add Protect+ to any Spero checking account for only $5.00 per month.
Talk to us to learn about all the perks of Protect+.
Checking Account Insured by NCUA. Credit score is a VantageScore 3.0 based on single credit bureau data. Third parties may use a different VantageScore or a different type of credit score to assess your creditworthiness.
What We Read Chess Not Checkers: Elevate Your Financial Game by Mark Miller SYNOPSIS
The goal of most business owners is to grow their business. But the larger it grows, it’s inevitable at some point that the tasks and objectives used at the business’ infancy will no longer suffice to generate future growth. In this book, author Mark Miller examines this effect and lays out a simple path for how business owners can implement a scalable and sustainable trajectory of growth, by being more strategic in how they play the game. WHY READ IT
A great book for those interested in tightening up their organizational leadership skills, Chess Not Checkers is a business resources that every owner or entrepreneur should keep close by. With four major tenets illustrated by the fictional, personal story of a CEO in over his head, the book focuses on leadership (“Bet on Leadership”), alignment (“Act as One”), engagement (“Win the Heart”), and excellence (“Excel at Execution”). No matter what stage of growth your business is in, this easy-to-read book is worth keeping around and referring back to often.
THE FINAL WORD If you’re a business owner or entrepreneurial aspirer, Chess Not Checkers is a great book to have in your arsenal. By focusing on the long game strategy and the big picture, business owners can more
A S P E C I A L TA K E AWAY
effectively move the pieces in
One of the major tenets of this book — Act as One —
a way that spells success for
stresses the importance of alignment within all the many
all involved.
players within your operation. After all, when multiple players are all focused on the same goals, the overall impact is multiplied for the good exponentially.
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As you look toward retirement and the days when traveling to see grandkids or deciding to work in the garden is the hardest decision you have to make for the day, it can be exciting. However, without proper planning, retirement can take on its own challenges, so it’s important that you focus on building up savings for that time while you have the income to do so. In this post, we’ll break down why, how, and how much you should be saving for retirement to make those years everything you want them to be.
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HOW M UC H D O YO U N EED TO RE T IRE ?
Why save for retirement? There are a number of reasons to save for retirement, even far beyond just having income during your golden years. While many will have Social Security, it’s important to realize early on that that amount is only equivalent to around 40 percent of your salary — and there are concerns about benefits being trimmed back in the future. In contrast, the Social Security Administration claims you’ll need to cover around 70 percent of your pre-retirement income. To make up the difference, you’ll want to have a solid amount of money in savings to supplement that governmental benefit. In addition, it’s important to realize that there are other benefits to saving for retirement. By putting tax-deferred money into a retirement account you can save thousands of dollars in taxes as your savings accumulate over time.
How much should I save up for retirement? While the standard advice from the Social Security Administration says you should try to replace between 70 and 90 percent of your current income, other suggestions are all over the place. Yes, we know… so helpful, right! But generally, a retirement savings formula can be calculated using the following information: •
How long you have to save until retirement
•
How many years of retirement you are planning for
•
How much you currently make
•
How much income you will need during retirement
•
Inflation (around 3 percent)
•
Rate of investment return prior to retirement (around 6 percent)
•
Rate of investment return during retirement (around 5 percent)
Retirement calculator
Still, these calculations can be complicated, so it’s far easier to use a retirement calculator like the one at Your Money Matters to run the actual numbers and see how far you still need to go. We’re here to help you get your financial plan in order — for now or even for your retirement years. However we can support you as you make financial plans for the future, we’d love to help you get started today.
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You’ve seen the TV commercials and online ads. Meal kit companies like Blue Apron and EveryPlate offer to save you time and money by delivering tasty, high-quality meal ingredients right to your door. They even provide the recipe and preparation instructions. All you have to do is open the box, follow directions, and enjoy a healthy, home-cooked meal. With back to school season just around the corner (plus fall sports and activities picking up), this may sound like the perfect solution for your hectic and on-the-go lifestyle.....But are meal kits really worth it?
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AR E MEAL K ITS WORTH IT ?
There’s no denying the convenience factor of having chef-inspired recipes and ingredients delivered right to your door. But is all that convenience worth the price? When you consider that the average cost of a restaurant meal is $13.00, the $8.99 price of a meal kit serving offers clear savings. But if you were to do your own grocery shopping and make meals for $5.00 (or less!), meal kits are more expensive. However, if saving time is your main concern, the time you’d spend creating meal plans, making grocery lists, and shopping for the ingredients yourself can add up. From that standpoint, having a meal service select the recipes, package the ingredients, and provide the prep instructions can save you a few hours a week. Last but certainly not least, you’ll need to factor in the prep time for each meal — and this is where your love of cooking (or lack thereof) comes into play. Since most pre-packaged meal kits take between 30-45 minutes to prepare, you can probably factor in a full hour for prep, cooking, and clean up. If you love spending time in the kitchen, this may not be a big deal. It might even be a way for you to relax. But if you view cooking as a necessary evil, the extra time in the kitchen may not be worth the financial savings you get by not ordering takeout. Ultimately, your decision will come down to whether time savings or financial savings is more important. If you find yourself constantly
Ultimately, your decision will come down to whether time savings or financial savings is more important to you.
dining out because you don’t have time to do your own grocery shopping, meal kits can help you save some money by making your meals at home. If your budget is already stretched thin, the financial cost of home meal kit delivery may not be worth the time savings. If you’re trying to figure out how to make meal kit delivery services work for your budget, most of the services offer trial subscriptions at fantastic savings. Visit their websites, compare the meal selections, and find a deal that works for you. Even if the service isn’t a long-term solution for you and your family, you’ll wind up with some tasty meals — and that’s always a good thing! Whether meal kits are a difference-maker for your finances or a fun experiment that winds up not being worth the price, you can always count on our Spero team to help you find other ways to build a strong financial future.
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PO Box 10708 Greenville, SC 29603 www.spero.financial