USSFCU SPOTLIGHT | SUMMER 2020

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How to Prepare Your Finances for Life After COVID | Pg. 4 S U M M E R

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HOW TO PREPARE InFocus Spotlight Feature YOUR FINANCES FOR GRETA BROWN LIFE AFTER COVID Pg. 19 Pg. 4

OUTLOOK | THE TRAIL TO RECOVERY Pg. 10

Serving Our Members Since 1935

USSFCU Executive Management Timothy L. Anderson President & CEO

USSFCU Board Members Ileana Garcia, CPA Chairman

Christopher D. Shunk

Chairman Emeritus

Kathy Dalfrey

Senior VP/Chief Financial Officer

Tom Wacker Vice Chair

Christopher C. Dey

Jeff Smith

Chief Lending Officer

Secretary/Treasurer

Margaret P. Rushing Director

Heather Mansour SVP, Human Resources & Training

Omar Ramsay

Chief Risk Management Officer

Bertie Bowman Director

Judy Rainey Director

Anthony J. Zagami Director

Mark Fournier

Interim Chief Information Officer

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Jay Moore Director

Letter from Leadership Dear Valued USSFCU Members, I would like to start by giving a big thanks to all of our employees, volunteers and especially our members who have weathered the storm these last few months. While COVID-19 is not behind us, there is optimism of better days ahead. As we continue to move forward as a Credit Union, we are mindful of those whose lives have been physically and financially devastated due to this pandemic. During this period, we have aided hundreds of members facing hardships, and will continue to stand with you during these unprecedented times.

As the nation reopens, USSFCU has started doing the same. We entered Phase I of reopening in June, which saw limited staff return to the office and our Eisenhower Branch reopen, providing drive-through service. We expanded service to Monday through Friday, from 10:00 am to 3:00 pm in the month of June. Phase II started after the July 4th holiday weekend, with our Eisenhower Branch reopening its lobby strictly by appointment only. We also brought more of our employees back into the workplace on a limited basis, with rotating schedules. Lastly, we will reopen our flagship branch in the Hart Senate Office Building on August 17. To book an appointment at one of our branch locations, please visit ussfcu.org/ BranchAppointments.

Phase III will be implemented after Labor Day with all of our employees returning to the workplace on a limited basis. Throughout this process, our number one priority is to continue to deliver world-class service to our members in a safe and secure environment. That is why we have performed deep cleanings in our offices and branches. We will also be utilizing Plexiglass dividers while engaging members in our branches.

Face coverings will be required and sanitizers provided. We continue to follow CDC, federal and state guidelines to provide the safest environment possible to work and do business. If you would like additional information on these phases and other details associated with the pandemic, please visit ussfcu.org/Coronavirus.

We still have a long road ahead before we are on the other side of this pandemic. However, over our 85-year history, USSFCU has weathered many storms and stood strong through it all. While challenges remain, one thing is certain—we will get through this and we will get through it together.

Thank you,

Timothy L. Anderson USSFCU President & CEO

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How to Prepare Your Finances for

Life After COVID The COVID-19 crisis has affected every single one of us, though its level of impact varies. Some of us were financially prepared for a situation like what we just went through, others were not. For all of us, now is a great time to assess where we were, where we are and where we want to be in our financial lives as we recover from the COVID-19 pandemic.

The world is changing financially, and we must adapt. While we may not know what tomorrow will bring, the country is slowly reopening—and that requires a reassessment and plan for our finances. But as state economies slowly reopen, now is the time to begin preparing personal finances for a post-coronavirus world. Being proactive ensures we are better prepared for what comes—even if we don’t know what it may be.

Here are some tips and proactive steps to secure a strong financial footing as the country reopens: Evaluate where you stand financially. Consider these things: » Did you have to take on additional debt to stay afloat during the COVID-19 pandemic? » Did you fall behind on previous bills, loans and other financial contracts, agreements or requirements?

Reassess your budget. During the pandemic, your budget likely changed as you spent more on groceries and utilities while saving on gas and entertainment. But as economies reopen, it’s time to reassess your budget based on your specific circumstances. Will you work from home permanently? Do you have a scheduled furlough? How will you handle childcare? With a new lifestyle, you need to reallocate spending categories to ensure you don’t slip into debt.

Create a budget around the “new normal.” If you’ve had to make some serious life changes and tough decisions, you may need to adjust your budget to a “new normal.” That may mean cutting out non-essential costs and bills so you can really focus on putting your money where you need it the most to catch up on bills.

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Identify the amount of income that is consistently coming in and adjust your lifestyle to match it.

Three questions every person with the ability to take more control of their cash flow should now ask are, “Do I need it?” “Can I afford it?” and “Can I get a better deal?”

Plan for deferred payments.

Deferments on your mortgage or other loans won’t last forever.

Review deferment terms so you know when payments will restart and how much you will owe at that time. Then, create a plan you can plug into your budget. If it is overwhelming, or you need extra assistance, consider a free online credit counseling session.

Reduce expenses. Right now, we just need to get by. It is important to minimize outgoing cash in order to maximize the cash you are receiving.

Items like eating out, new clothes, travel and entertainment need to be put on temporary hold.

Expand income. Having a little extra income will go a long way toward setting up your finances for a post-pandemic world. In addition to gig work like Postmates or Instacart opportunities, you may consider a part-time retail job as many stores have expanded hiring. Other possibilities include creative services like graphic design or copywriting through freelancing sites like Fiverr®. You can also earn a little extra cash through services like Rakuten, where you earn cash back for shopping through the site. Or, sell items you no longer need on resale sites like VarageSale or Facebook Marketplace.

Look into finance options post-crisis to help you get back to a reasonable and manageable financial state. » Consider transferring your credit card balances to a lower-rate card to save some money. » Consider refinancing a current auto loan to a lower rate auto loan option to save even more.

Use credit cards where feasible. Although stretching the limits on a credit card can be detrimental to your credit score and long-term borrowing potential, it is now important to be able to rely upon some source of funding. Credit cards can offer a steady stream of money but should only be used for necessities. ussfcu.org | 5

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Keep an eye on credit card spending. This may also be a good time to look at balance transfer deals, but be aware the interest rates can be much higher after the interest-free period; so, make sure you can make a dent in the balance even if you can’t pay it all off during the interest-free period.

The interest rate on credit cards can accrue quickly; as soon as other income becomes consistent, the card should be zero balanced as soon as possible.

Reduce your retirement savings. If you are still employed but have had to manage with a reduced income, consider reducing the amount going into a 401(k) or company retirement plan.

The amount contributed to most retirement plans is calculated and tied to income so it will automatically be lowered somewhat. However, since the income has been changed and expenses may not have changed, it is best to request even less to be deducted. That will leave a greater net amount when your paycheck is received.

Put investing on hold. The pandemic will not last forever, and the idea is to survive financially until then. In the process, save where possible but delay investing until the economy becomes stable. It is possible to catch up later. It may be more difficult to do so in the future, but not as difficult as getting through the next few months with a reduced cash flow.

Get debt advice as soon as possible. You may simply need some advice on making the most of your money, or assistance with budgeting—now more than ever it is essential to take early advice to protect yourself and your family and to make the right decisions based on sound professional advice.

GreenPath™ Financial Wellness Counselors are Here to Help As a valued member of USSFCU, we are committed to serving you and care about your financial health. As a benefit of your membership, we have partnered with GreenPath™ to provide you with access to unlimited one-on-one financial counseling, debt management services and financial education tools.

GreenPath is dedicated to helping you navigate the financial uncertainties of the current situation. They have been assisting individuals for more than 40 years and will work with you to provide the best possible options based 6 | ussfcu.org

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on your individual financial situation. To contact a counselor, simply call toll-free, 1.877.337.3399 or visit www.GreenPath.com/ussfcu.

Prepare for future setbacks, financial challenges or economic downturns.

» Rebuild your savings. If you dipped into savings, now is the time to start

rebuilding so you’ll be ready for the next emergency. Even if you’re still wading through the present pandemic, putting away a few bucks here and there will establish the saving habit. Then, when you’ve regained stability, you’ll find it easier to increase your savings until your emergency fund is fully replenished. Building an emergency saving fund is not only crucial for success but in light of any other hardships, it will help keep your mind at ease that you have backup funds to keep on living securely or at least comfortably for a little while.

» Create an “emergency budget.” This is different from an emergency

savings fund. Knowing what costs you can cut easily, and quickly, can be useful in a time of crisis or urgency. Keeping all of your records, and contact information for your financial institutions, creditors, insurance companies and others quickly accessible will come in handy.

» Take care of the right now. Reach out to see what plans or programs are in place to help you budget in an emergency. It’s good to also become aware of deferment programs that may be available at low or no cost(s) later in the year, post-crisis, to help get you through.

» Work on your credit score. Be strategic in paying bills; paying only the

minimums makes sense when your cash flow is interrupted. The important thing is that you make on-time payments whenever possible. As you pay down your balances, primarily revolving debt (such as credit cards), your score will reflect your progress—especially once you get the balance below 30% of your credit limit.

Other tips on saving money during this time:

» Gym subscriptions. You may officially be tied into a contract, but since many gyms are closed, some providers are negotiating a sensible arrangement during lock down—so contact yours to see what can be done to reduce your payments.

» Travel refunds. Refunds or credits

from airlines and travel agents will be possible. They are inundated at the moment, but make sure you don’t overlook it moving forward.

» Hotel bookings/booking sites. Some

types of hotel reservations that are normally non-refundable are providing flexibility, and moving bookings if ussfcu.org | 7

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required. Make sure to look at and review their official websites for more information, or make contact ahead of your arrival date.

» Payments to various insurance policies. Make sure you don’t cancel

altogether without seeking advice from your adviser first; but payments may be able to be negotiated.

» Online shopping. Limit this to essentials and to items you can definitely afford.

Now is a time of change, and adapting to it will make for a stronger financial future.

Through all of this, it is important to stay optimistic. The pandemic will not last forever. However, the skills and strategy you develop during these trying times can be used in the future to make your financial security even better. And as your children watch you alter your lifestyle and learn new methods of stretching your income dollars, they will learn from you and adopt those skills in their own lives.

At USSFCU we look at our members’ immediate needs. We’re thankful to be able to offer products and services to help each and every member as we move forward in a world post-COVID-19. We want you to know, we’re here. We’ve got your back because as a Credit Union, that’s what we do.

We are a Credit Union of, for and by people.

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USSFCU Financial Advisory Services Powered by

USSFCU has partnered with Fellows Financial Group to bring our members USSFCU Financial Advisory Services. Fellows’ Financial advisors maintain smaller, more exclusive client lists that allow them to focus on their clients unique needs, whether on the business or the individual service side.

Key features Fellows brings to USSFCU members:

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• Investment Services • Legacy Planning • Goal-Based Planning • Home Insurance • Auto Insurance • Umbrella Insurance

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• Business Continuity Planning • Business Succession Planning • Income Protection Plans • Employee Insurance Programs • Commercial Insurance • Executive Compensation Strategies

Set up your FREE consultation today. ussfcu.org/FAS | 703.779.9750 x3 FAS@ussfcu.org Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Wealthcare Advisory Partners a registered investment advisor. Wealthcare Advisory Partners and Fellows Financial Group, LLC are separate entities from LPL Financial. The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: CA, CO, DC, GA, FL, HI, IA, MD, MT, NC, OH, PA, VA, TX, WV. Personal and Commercial insurance services are offered through Fellows Insurance Group LLC. Fellows Insurance Group LLC is a separate entity from Fellows Financial Group LLC, LPL Financial and Wealthcare Advisory Partners. LPL Financial, Fellows Financial Group LLC, Fellows Insurance Group LLC and Wealthcare Advisory Partners do not offer tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

Investments are not NCUA insured. No credit union guarantee. Investments may lose value. Fellows Financial Group LLC, LPL Financial and Wealthcare Advisory Partners are third party partnership and is not affiliated with United States Senate Federal Credit Union and USSFCU Best Life.

Membership eligibility required. This credit union is federally insured by the NCUA ussfcu.org | 9

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LPL RESEARCH MIDYEAR • 2 0 2 0

OUTLOOK THE TRAIL TO RECOVERY Presented by Fellows Financial Group

FORECASTS ECONOMY DOMESTIC: The trajectory of the economic recovery remains uncertain, but based on the depth of the contraction and a multi-staged recovery, our 2020 base case gross domestic product (GDP) forecast calls for a 3–5% contraction in GDP. GLOBAL: We expect economies in Europe to contract more than the United States or Japan in 2020.

After the pandemic ends, deficits and populism may continue to weigh on Eurozone growth. So far, China has led the way out of the global crisis in terms of containing the virus and reopening its economy.

RECESSION: The United States economy entered into a recession in March of 2020 as a result of the COVID-19 lock downs and business closures. Although this recession may end up as one of the shortest on record, the eventual recovery may not be strong enough to get economic activity back to 2019 levels by the end of 2020.

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EMPLOYMENT: Ongoing unemployment in industries that are more challenged because of social distancing may likely delay consumer spending’s return to 2019 levels until 2021.

STOCKS We believe the optimistic economic recovery scenario reflected in stocks may limit their upside potential over the rest of the year. Our 2020 yearend S&P 500 Index target range is 3,250–3,300, based on a price-toearnings ratio (PE) of slightly below 20 and a normalized earnings per share (EPS) number of $165.

BONDS We expect interest rates to remain at historically low levels, but the direction may be higher over the rest of 2020. Our year-end basecase forecast for the 10-year US Treasury yield is 1–1.5%, which would be the lowest level to end a year on record, if realized.

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SWOOSH-SHAPED RECOVERY The trajectory of the economic rebound remains uncertain, but based on the depth of the contraction and a multi-staged recovery, our GDP forecast calls for a sizable contraction in 2020 [Figure 02]. Second-half growth headwinds that may linger well into 2021 suggest a swoosh-shaped recovery, or, if you prefer, a check mark: a quick, sharp decline and— after a small snapback—a gradual recovery over the next 12 to 18 months. We believe the square root symbol (√ ) is too pessimistic because it implies a flat phase of recovery after the initial bounce, and a U-shape doesn’t capture the multiple stages of recovery.

Our characterization assumes a COVID-19 vaccine will not be widely available for another year or so. Verifiable progress on an earlier arrival could help sustain the momentum of the initial rebound and move the economy closer to a V-shaped recovery.

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CONSUMER OUTLOOK Consumer spending comprises about two-thirds of the United States’ GDP, which makes jobs, incomes and consumer confidence vitally important for economic recovery.

With the highest unemployment rate since the Great Depression, and 22 million net jobs lost in March and April, it would be logical to expect a significant hit to consumers’ spending power to show up in recent economic data.

But stimulus efforts helped bridge the gap, including direct checks to individuals, unemployment benefits and financial support for businesses to help them keep employees on their payrolls. We saw the impact of the stimulus in the 10.5% increase in consumer incomes in April and a record 33% consumer savings rate, according to the United States Bureau of Economic Analysis, as well as the record-breaking 17.7% month-over-month spike in retail sales in May.

BOND MARKET Modestly rising but depressed yields may leave investors with little return from bonds. Rising Treasury yields contribute to bond prices falling, which can be offset by credit spreads tightening and the interest income that most bonds provide. With the credit spread for the Bloomberg Barclays US Aggregate Bond Index already near the average for the last cycle, and ussfcu.org | 11

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interest income at historically low levels [Figure 06], we would expect the index’s returns to be near flat over the rest of 2020 with some risk of losses; however, it would take a move above our target range to erase gains from the first half of the year. Several factors limit the likelihood of bond yields rising significantly beyond our target range—even in the case of a more robust V-shaped recovery. Short-term Treasury yields will be well anchored by the Fed. Intermediate- to long-term yields may be pushed higher by improving growth, but inflationary pressures may be limited by slack in the labor market until the economy recovers more fully. Demand for Treasuries by international investors may also help to cap rate moves, as the United States’ yields continue to look attractive relative to other major developed market issuers like Germany and Japan.

THE FEDERAL RESERVE The Fed is unlikely to hike (or cut) rates in 2020, and may not in 2021, even if the economic recovery is a little better than our baseline expectations [Figure 07]. Persistently low inflation during the last expansion should minimize any Fed concerns that it needs to raise rates preemptively to keep inflation under control. Consistent with its messaging, we expect the Fed to remain accommodative for some time, and raising rates probably won’t be on the table until after it ends its bond purchase program (known as quantitative easing).

The Fed did not start raising rates in the last economic cycle until more than a year after its final round of bond purchases. The Fed also has discussed the possibility of instituting some form of yield curve control to help support the economy. If this were to happen, the Fed would set a target cap for rates at maturities possibly as long as five years and buy enough Treasuries to keep rates below that threshold. Such a move would further help anchor rates for longer maturity bonds. For now, even the possibility of such a program has helped to keep rates lower at the shorter end of the curve.

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BEAR CASE Core bonds, particularly Treasuries, may benefit if a downside scenario emerges, such as a second wave of COVID-19 cases accompanied by renewed stock market volatility. In that case, the current 10-year Treasury yield of 0.65% (as of June 30, 2020) may be likely to fall at least below 0.5% and could even move toward zero. If that were to happen, Treasuries most likely would see further gains, supporting the broad Bloomberg Barclays US Aggregate Bond Index and helping it build on its positive return in the first half of 2020. While this is not our base-case scenario, it does highlight why suitable investors may consider the potential diversifying benefit of bonds.

INVESTING FOR RECOVERY We would recommend that suitable investors consider positioning portfolios with below benchmark interest-rate sensitivity and near benchmark credit quality. We favor mortgage-backed securities (MBS) for their combination of interest income and limited rate sensitivity. We are neutral on investmentgrade corporate bonds with valuations only slightly attractive and leverage increasing, but we still see incremental value for corporate bonds over Treasuries. We continue to prefer stocks to the credit-sensitive bond sectors.

Nevertheless, for those long-term investors seeking income, the creditsensitive sectors may have a role to play in a well-diversified portfolio.

Among those sectors, we would favor a mix of dollar denominated emerging market debt and high-yield bonds, with an underweight in equities to potentially help offset the added risk. We believe emerging market debt may likely benefit from the broadly supportive monetary policy environment, and valuations for high yield are still attractive, although the asset class leans away from some of the faster-growing sectors. Municipal bond yields still appear attractive relative to Treasuries for tax-sensitive investors. We maintain a bias toward quality and are more cautious on high yield.

Important disclosures: Securities are offered through LPL Financial (LPL), a registered broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Investment advice offered through Fellows Financial Group, a registered investment advisor and separate entity from LPL Financial. USSFCU and Fellows Financial Group are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Fellows Financial Group, and may also be employees of USSFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, USSFCU or Fellows Financial Group. Securities and insurance offered through LPL or its affiliates are: Not Insured by FDIC or Any Other Government Agency | Not Bank Guaranteed | Not Bank Deposits or Obligations | May Lose Value

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GENERAL DISCLOSURES The opinions, statements and forecasts presented herein are general information only and are not intended to provide specific investment advice or recommendations for any individual. It does not take into account the specific investment objectives,tax and financial condition, or particular needs of any specific person. There is no assurance that the strategies or techniques discussed are suitable for all investors or will be successful. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.

Any forward-looking statements including the economic forecasts herein may not develop as predicted and are subject to change based on future market and other conditions. All performance referenced is historical and is no guarantee of future results.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly.

Index performance is not indicative of the performance of any investment and does not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

All index data from FactSet. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

GENERAL RISK DISCLOSURES: Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a nondiversified portfolio. Diversification does not protect against market risk. Investing in foreign and emerging markets debt or securities involves special additional risks. These risks include, but are not limited to, currency risk, geopolitical risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks.

GENERAL DEFINITIONS: Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

The PE ratio (price-to-earnings ratio) is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio.

Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company’s profitability. Earnings per share is generally considered to be the single most important variable in determining a share’s price. It is also a major component used to calculate the price-to-earnings valuation ratio.

The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

EQUITY RISK: Investing in stock includes numerous specific risks including the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market. Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies. Value investments can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time. The prices of small and mid-cap stocks are generally more volatile than large cap stocks.

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EQUITY DEFINITIONS: Cyclical stocks typically relate to equity securities of companies whose price is affected by ups and downs in the overall economy and that sell discretionary items that consumers may buy more of during an economic expansion but cut back on during a recession. Counter-cyclical stocks tend to move in the opposite direction from the overall economy and with consumer staples which people continue to demand even during a downturn.

A growth stock is a share in a company that is anticipated to grow at a rate significantly above the average for the market due to capital appreciation. A value stock is anticipated to grow above the average for the market due to trading at a lower price relative to its fundamentals, such as dividends, earnings, or sales.

Large cap stocks are issued by corporations with a market capitalization of $10 billion or more, and small cap stocks are issued by corporations with a market capitalization between $250 million and $2 billion.

FIXED INCOME RISKS: Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. Bond yields are subject to change. Certain call or special redemption features may exist which could impact yield. Government bonds and Treasury bills are guaranteed by the US government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.

Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate, and credit risk, as well as additional risks based on the quality of issuer, coupon rate, price, yield, maturity, and redemption features. Mortgagebacked securities are subject to credit, default, prepayment, extension, market and interest rate risk.

FIXED INCOME DEFINITIONS: Credit quality is one of the principal criteria for judging the investment quality of a bond or bond mutual fund. As the term implies, credit quality informs investors of a bond or bond portfolio’s credit worthiness, or risk of default. Credit ratings are published rankings based on detailed financial analyses by a credit bureau specifically as it relates to the bond issue’s ability to meet debt obligations.

The highest rating is AAA, and the lowest is D. Securities with credit ratings of BBB and above are considered investment grade. The credit spread is the yield on corporate bonds less the yield on comparable maturity Treasury debt. This is a market-based estimate of the amount of fear in the bond market. BBB-rated bonds are the lowest quality bonds that are considered investment-grade, rather than high-yield. They best reflect the stresses across the quality spectrum.

The Bloomberg Barclays Aggregate US Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment-grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.

International debt securities involve special additional risks. These risks include, but are not limited to, currency risk, geopolitical and regulatory risk, and risk associated with varying settlement standards. These risks are often heightened for investments in emerging markets. Highyield/junk bonds (grade BB or below) are not investment-grade securities, and are subject to higher interest rate, credit, and liquidity risks than those graded BBB and above. They generally should be part of a diversified portfolio for sophisticated investors.

Municipal bonds are subject to availability and change in price. They are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise. Interest income may be subject to the alternative minimum tax. Municipal bonds are federally tax-free but other state and local taxes may apply. If sold prior to maturity, capital gains tax could apply.

This content provided herein is a sample of LPL Research’s 2020 Midyear Outlook. For the complete report please contact Michael Schimmel at michael@fellowsfg.com.

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» Pay Bills, Loans & Credit Cards » Transfer Funds » Open Accounts » Apply for Loans ...and more.

Online & Mobile Banking

Remote Check Deposit1

Touchless Pay

Nationwide Network

with the USSFCU Mobile App

with the USSFCU Mobile Wallet

ATMs & Shared Branches

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USSFCU e-services gives you the ability to do most of your banking tasks from almost anywhere.

ussfcu.org/e-services 1 Member must have been enrolled in Remote Deposit Anywhere™ (RDA).

Membership eligibility required. This credit union is federally insured by the National Credit Union Administration.

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Are You Financially Ready for the Semester?

Secure your funding before the semester begins.

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ussfcu.org/studentloans 1 APR = Annual Percentage Rate. All loans subject to credit approval. Not all applicants will qualify for the lowest rate. The APR displayed includes a 0.25% reduction for enrolling in automatic monthly payments from a personal checking or savings account to pay principal and interest amounts that are due. This rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of forbearance. As a result, any increase will take the form of higher payments. APRs for variable rate loans may increase after origination if the LIBOR index increases. 2 A new private student loan with an original balance of $50,000 and a 180-month (15-year) term with a APR of 4.18% total a monthly payment of $374.37.

Terms and conditions apply. Loan products, terms, and benefits displayed in an email message or on the website or direct mail may be modified or discontinued at any time without notice. Your initial rate will be determined after a review of your application and credit profile.

You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet US Senate FCU’s credit and income requirements to qualify for a loan. Applying with a creditworthy cosigner may result in a better chance of loan approval and/ or lower interest rate. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing.

Please be aware you may potentially lose certain benefits associated with your federal student loans by refinancing with private loans. We strongly advise you to review and understand your options and the benefits of refinancing your federal loans before doing so.

Membership eligibility required. This credit union is federally insured by the National Credit Union Administration.

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InFocus Spotlight Feature

GRETA BROWN

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f there is a person in our entire organization that has, over the years, become the very face of the organization on Capitol Hill, it would have to be Greta Brown. Managers and organizational leaders have come and gone; but for almost four decades, Ms. Greta has been a constant that so many of our members and employees depend on. The relationships she has formed over the years have shaped the very perception of the Credit Union inside the walls of the Senate Office Buildings. Greta leaves an indelible mark on so many people; giving respect and warmth with every encounter. In many ways, you could say that Greta is the embodiment of the very best USSFCU strives to be.

There truly are no words to describe what Greta means to the USSFCU family.

For many, Greta is a fiery spark full of love and character. To others, she is the exemplary strong, positive and confident woman. Intelligent and encouraging, she is a great listener, understanding and empathetic, with time for colleagues and members. She is as selfless as the day is long, always looking to help others grow; to better themselves.

“Greta is one of the finest individuals I know. She demonstrated the utmost dedication, poise and flexibility in every task she undertook.

Her abilities are legion, her character is faultless, and her personal drive and enthusiasm are boundless. Her complete understanding of high-level security and safety issues, her keen sense of responsibility and aggressive support of the United States Senate served as an inspiration to all those with whom she came in contact. I have not found a harder working, more dedicated individual than Greta Brown.”

—Ambassador Alfonso E. Lenhardt

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reta’s journey started in the Russell Senate Office Building in 1981.

The Credit Union was a lot smaller then, employing just 10 people; a handful of tellers and two managers. Membership consisted of approximately 12,000 members and assets totaled just over $10 million.

The important role Greta would come to play in the Credit Union was evident almost immediately. She got on famously from the start, quickly making an impression on her colleagues and members. She had a knack for asking the right questions, giving the members the best experience each and every time. Everyone who came in contact with her thoroughly enjoyed her company.

She was the perfect fit on so many levels—sometimes you see people and they just fit in, like pieces of a jigsaw—that was Greta. She worked hard—building her reputation with a gentle nature and passionate

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professionalism. She was so proud of her work. She had such passion for the people she worked with. This passion brought about success and it didn’t take long before she, and the Credit Union, established a presence within the Capitol community.

“Ms. Brown stands out as a professional who is honest, caring and dedicated to the U.S. Senate Federal Credit Union and its members.”

—Senator Maxwell Baucus To keep up with its growing size, the Credit Union expanded its operations, moving from its original home in the Russel Senate Office Building to a larger location in the Hart Senate Office Building in 1984.

“Once I moved to the Hart Senate Office Building, I felt like I was in a real financial institution,” recalls Greta.

“Over the course of 39 years, I have worked under five different CEOs. I have enjoyed conducting business with clientele, such as United States Senators and Staff. I have met a lot of important people during my time here at the Credit Union. I make an effort to understand the financial needs of my members and to provide them with the best customer service that I can. I always say remember that your members are people too and that they should be your driving motivation to provide them with exceptional customer service. Treat them the way that you would like to be treated.” “[We] have raved about Ms. Brown in the past and she continues to be an asset to [our] family. She is an astute financial advisor and we are grateful for her assistance and our ongoing relationship with the U.S. Senate Federal Credit Union.”

—The Burton Family Greta’s commitment, pleasant demeanor and exceptional member service skills are her calling card. There are plenty of examples that highlight just how much she means to our members. Constant phone calls from Senators and illustrious dignitaries.

Many young staffers seeking financial advice as they begin to develop their financial lives. Over the course of her years serving the U.S. Senate community Greta has received dozens of letters from members thanking her for her munificent service. Our members depend on her. More so, ussfcu.org | 21

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many have transitioned from members to lifelong friends.

“Greta is a tremendous asset at the United States Senate Federal Credit Union. She embodies the credit union motto of “people helping people” by consistently serving our members with excellence and compassion. She is the epitome of professionalism, and does a wonderful job supporting coworkers and leaders throughout the organization. Greta is one of the longest serving employees at the Credit Union. When I joined the organization, 20 years ago as manager of the Hart Senate Office Branch, as she does with everyone, Greta was [right] there to provide assistance and wise counsel. As we celebrate our 85th anniversary, I am grateful Greta continues be a significant part of that history. We appreciate Greta, and are fortunate to have her aboard.”

—Timothy L. Anderson USSFCU President & CEO Thank you, Greta, for all you have done and continue to do for our members and friends within the Credit Union and throughout the U.S. Senate community; you are truly treasured.

START LEARNING TODAY!

BEST LIFE LEARNING CENTER

» Budgeting » Investing » Homeownership » Retirement Planning » & More

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USSFCU—Sponsored National Financial Bee was a Huge Success The National Financial Bee was designed to teach real-world financial education skills in a fun and engaging manner to students across the country, who are social distancing at home during the extended school closures.

The first-of-its-kind interactive digital learning challenge enabled students in grades seven through 10 to learn about important financial literacy concepts that often do not get enough classroom time during the traditional school year.

The National Financial Bee consisted of a five-part course and an essay contest where students wrote about their financial dreams and how they plan to achieve them.

The nationwide initiative coincided with Financial Literacy Month and drew nearly 40,000 participants, with almost 2,800 students submitting an optional capstone essay in an effort to win an academic scholarship.

USSFCU Standout Student Essays: Wealth and finances influence almost every decision someone will make during their lifetime, especially the goals they wish to reach. Savings, debt, income and credit score are among the many deciding factors in how these objectives will be reached.

Lindsay B. My biggest financial dream is to take a European vacation immediately after I graduate from high school, without letting the expenses heavily affect my college education payments. Through my education on finances, through the United States Senate Federal Credit Union, I have learned various methods to help me achieve my objective. To begin, there is a way to avoid frivolous spending and save money: determine what are “wants” and ussfcu.org | 23

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what are “needs.” Prioritizing small purchases is key to budgeting for larger purchases and being smart about risk-taking when spending. A key budget strategy is the fifty/twenty/thirty rule, which satisfies both wants and needs.

Additionally, it is important to be educated on types of payments. These include direct, cash and credit payments. There are consequences when choosing to use credit cards, especially when an individual may be in the position of having a poor credit score, or a number assigned to a person that indicates to lenders their capacity to repay a loan.

Balancing an expensive education with expensive travel will be difficult, but with proper financial planning I hope to arrive at my goal. The lessons learned through the [United States Senate] Federal Credit Union aided in an optimistic perspective of achieving my financial dream in the next few years. With the proper saving or investing, I am certainly hopeful.

—Excerpts from USSFCU Member Lindsay B.

My biggest financial dream, to graduate from college debt free, is not easily achieved.

I have learned several key takeaways from the National Financial Bee course, which will help me achieve my dream. I learned from the course that I must begin to save now. To save now will be easier if I determine my wants from my needs. I will use categorizing my desired purchases before I buy— needs, wants and then savings. The 50/20/30 Rule is a new concept for me. This will help me create new habits regarding spending and saving.

Isabella S.

I also learned, I must be mindful of credit card use. A credit card can build my credit rating but there is a risk if I am not on time with my payments for purchases. Having to pay interest will make a purchase cost even more than the original cost.

Specifically related to my goal is the information provided on paying for college. I learned that grants, scholarships, College savings plans, personal savings, loans and work-study programs can all be a part of my planning for college. I will explore those options to finance my education.

There are immediate next steps I need to take to help me achieve my dream. First, I should get a good idea of the amount I want to spend on college based on the career I wish to pursue. Next, I should open a savings account for my 20 percent savings. I will decide on an app and download to begin tracking my spending. Tracking will help me determine those “budget busters.” I am certain the use of a budget app will be helpful.

I will make the budget and stick with it. That means I will say “no” to unnecessary spending. I will write down my needs and wants and refer to the list often until my spending routine becomes a habit.

—Excerpts from USSFCU Member Isabella S. 24 | ussfcu.org

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MEMBERS’ VOICE YOU SPEAK. WE LISTEN. Member comments from our member satisfaction surveys.

“I wanted to give a big shout out and applause to the United States Senate Federal Credit Union of thanks for saving us and our families’ lives during this huge pandemic. There are no words that can adequately express our gratitude for all that you are [doing] for your members during our times of hardship and difficulty.

Warm-hearted people like you all seem to find a way to make others feel good.

They look for no rewards or medals. They do good things just because they care about their members’ well-being and hardship they add a spark of joy to the lives they touch and leave a lasting impressions on us forever. So I say to USSFCU: Thank you for being one of those wonderful caring corporations [that] cares about your members during not just only difficult times, but you care about your members overall and for touching our hearts with your kindness.” —Vanessa • Washington, DC “I had the opportunity to be served by Kimberly. She was extraordinary in her approach to assisting me with more than one issue. I am not the most literate with technology, I am [a little] challenged; but, I am thankful [for] the professionalism she displayed by actually walking me through the entire process until its completion.

She was very pleasant, patient and knowledgeable about each issue. Every time I tried to apologize for wasting her time she said to me, ‘Don’t worry about it; right now, you are my priority.’ I am so grateful to have had such a wonderful experience with her and I learned a lot as well.” —Marvin • Washington, DC “Tammy just helped me get two months of statements I needed for the refinancing of my condo. She was efficient, friendly and quickly got me what I needed. As always, great customer service at USSFCU.” —David • Virginia

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“I am grateful to have this opportunity to express my appreciation for the U.S. Senate Federal Credit Union Members Services Department, the place where I have benefited through your Members Service representative, Ms. Greta Brown.

Over the years, she has been the utmost consistent, professional, and courteous, financial Members Services representative, never to delay to respond to help me as a member facing challenges and stressful emergencies when I needed loans.

Ms. Brown, always ‘got’ my loan request approved right away, what a relief— even when it had been an extremely busy day for her. She makes her customers feel important; she knows to take everyone seriously to help.

I like when she says, ‘How can I help you today?’ I trust her judgment. She is extremely skilled, seeing to it that my loans had the best interest rates and discounts. I have never walked away disappointed. It’s wonderful to have a person like her on staff at [USSFCU].

Ms. Greta Brown is a lady of eloquence, she is extraordinarily passionate about her work [and] giving excellent customer service. I always wait my turn to get her help, regardless of who is ahead of me.” —LaBelle • Washington, DC “As a very long time member of the Credit Union, I’ve completed many transactions over the decades.

During the last year, three staff members stand out as having given excellent service. I’d like to let you know that Patricia, Whitney and Phylicia did a GREAT job helping my husband and I to get a Home Equity Line of Credit approved, funded and up and running. Please know these three ladies are ultra professional, courteous, helpful and diligent.

[When] I called with a question there was Whitney, as kind and professional as usual and got me exactly what I needed, quickly!

I wanted to let you know Whitney, Patricia and Phylicia are assets to your organization and demonstrate the Credit Union’s commitment to their members.”

—Misty • Oregon

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introducing

BUY FROM HOME with Home Delivery

Handle all aspects of your vehicle purchase without ever needing to go into the dealership. Have your vehicle delivered to you and complete your paperwork at home.

ussfcu.truecar.com Membership eligibility required. This credit union is federally insured by the National Credit Union Administration. TrueCar’s trademarks, trade names, service marks, logos, brand features and product and service names are trademarks and the property of TrueCarŽ. ussfcu.org | 27

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U S S F C U

SEG Spotlight Join us in welcoming the

Syska Hennessy Group, Inc.

USSFCU is proud to announce the addition of a new Select Employee Group, Syska Hennessy Group, Inc. Syska Hennessy Group is the leading global, full-service MEP, information and communication technology (ICT) and commissioning engineer for the government and commercial sectors. With more than 500 professionals across 18 offices, they provide a full range of engineering services for projects of every size and budget: from global headquarters to small office renovations; from premier healthcare facilities to essential mission critical facilities.

Considered one of the largest US-based engineering design firms, they’ve been at the forefront of innovation since the firm was founded by John Hennessy and Adolf Syska in 1928 to design complex, mechanical and electrical systems at the heart of iconic structures. Whether it’s GSA’s super-efficient Los Angeles Federal Courthouse or one of the world’s tallest mixed-use structures, Lotte World Tower, in Seoul, South Korea, they are the preferred partner for clients who want to create exceptional, smart and sustainable high-performing buildings.

Syska Hennessy Group’s energy and simulation modeling enable clients to predict design implications across entire project life cycles and pursue carbon neutral buildings. By integrating essential systems—lighting, power, audiovisual, security, wireless and the core network—they’re designing smarter buildings to improve the quality of the environment for occupants as well as reduce operating costs and environmental impact.

USSFCU is proud to welcome Syska Hennessy Group, Inc. to our field of membership.

Learn more about Syska Hennessy Group, Inc. at syska.com.

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Adapting Financial Education in the time of COVID-19

USSFCU Virtual Financial Literacy Workshops During this time of unprecedented uncertainty, we remain committed to helping our members and their families plan for their financial future and achieve financial wellness.

USSFCU has teamed up with Fellows Financial Group and various other partners to offer our members and Select Employee Groups access to virtual financial education workshops.

Check out the virtual financial workshops and engagement activities we’ve done over the past few months on the next two pages, and watch your inbox for many more to come.

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TAKING CONTROL OF YOUR FINANCES: A PLAN TO REDUCE DEBT AND BUILD SAVINGS U.S. SENATOR OF ILLINOIS STAFF | APRIL 2020 | HOSTED BY FELLOWS FINANCIAL GROUP Through this workshop, participants were able to learn how to cut spending and pay down debt quickly so that they can achieve greater financial stability and long-term success.

Information covered: » » » » »

Analyze your personal balance sheet Discuss the right ways to use debt Review your spending habits Create a budget that lets you save for the future Take steps to reduce debt and avoid trouble in the future

STUDENT LOAN DEBT REPAYMENT AND RELIEF OPTIONS GAO STAFF | MAY 2020 | HOSTED BY JOHN HUPALO, FOUNDER OF INVITE EDUCATION The GAO Financial Literacy Committee invited USSFCU, along with John Hupalo, nationally recognized expert in education loan finance and college planning, to host a virtual presentation to GAO staff on student loan repayment. Topics on the agenda included: student loan refinancing, student loan consolidation, income-driven repayment plans and student loan forgiveness.

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A CLOSER LOOK AT YOUR SOCIAL SECURITY BENEFITS GAO STAFF | JUNE 2020 | HOSTED BY MICHAEL K. Another GAO Financial Literacy Committee event, this presentation focused on Social Security Benefits. The presentation provided a general overview of certain rules related to Social Security and retirement including individual benefits, spousal benefits as well as maximization strategies.

FINANCIAL PROTECTION ISSUES IMPACTING OLDER ADULTS USSFCU MEMBERS | JUNE 2020 | HOSTED BY THE NCUA AND THE CFPB USSFCU members were invited to learn about and receive more information and updates on the impact of elder financial exploitation and other COVID-19 related scams.

In this live webinar, the National Credit Union Administration (NCUA) and the Consumer Financial Protection Bureau (CFPB) teamed up to provide an update on how older Americans are impacted by elder financial exploitation and other scams. The agencies also shared the latest information and resources available to combat and address these issues.

PREPARING FOR RETIREMENT USSFCU MEMBERS | JULY 2020 | HOSTED BY FELLOWS FINANCIAL GROUP USSFCU members nearing retirement joined to learn tools and information that can assist them in budgeting for retirement, managing income and expenses, and planning for significant longterm medical and health care coverage.

BANKING & CREDIT BASICS U.S. SENATE STAFF | AUGUST 2020 | HOSTED BY FELLOWS FINANCIAL GROUP The Senate Training team invited staffers to learn the basics of banking services, healthy account management habits, credit principles plus some lending and borrowing rules of thumb. The presentation also addressed which financial services consumers should be wary of (like rent-to-own or check cashing services). ussfcu.org | 31

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Schedule Your Appointment Today! ussfcu.org/branchappointments

USSFCU Branches Open by Appointment Only P.O. Box 77920 Washington, DC 20013