BOARD Your Community Credit Union sm Spring 2014 PRESIDENT’S CORNER Homeschooling Yourself April is Financial Literacy Month, a timely reminder if your New Year’s resolution to manage money better has fallen by the wayside. Fortunately, there’s no need to head for the classroom. Everyday bills and account statements offer several ways to brush up your money skills without leaving home. For example, try these ”homework” assignments: 1. Downsize your cell phone bill. Check recent statements to see if you’re buying minutes or megabytes you don’t use – or are paying extra because you’re exceeding your plan limits. Also, check out smaller carriers or consider choosing a prepaid plan. For more ideas, see “12 Tips to Cut Your Cell Phone Bill” on www.pcworld.com. 2. Ask for a lower credit card rate. If you’ve been making on-time payments for a while, you could qualify for a rate reduction – but you may not get one unless you ask. You have some clout since it would cost about $80 to replace you, says the Database Marketing Institute. 3. Are you paying for more auto insurance than you need? Study the declarations page of your policy for possible savings. Have you changed your commute? Has a teenage driver gone off to college? Could you boost your deductible? 4. Scrutinize “free shipping” memberships. On Amazon.com, for example, qualifying items ship free when you spend $35 or more. By consolidating your purchases accordingly, you wouldn’t need a Prime membership. 5. Weed out excessive account fees. Trawl through your bank account and credit card statements to find overdraft fees, low-balance service fees, annual fees, credit insurance fees, etc. Can you reduce them by shopping around, or eliminate them with better money management? If your research indicates a need for accounts that better suit you now and in the future, chat with us. That’s why we’re here – and we’re ready to provide new solutions that reward your improved financial insight. n Happy Spring! Time to do spring cleaning in and around the house now that the warm weather is coming (I hope). I was going to do this newsletter with the old shameless plug for STCU Credit Union and how great it is to belong to the credit union, but, you already know that! So simply tell everyone you like what we have to offer and how awesome the staff is. Speaking of spring cleaning, I would like to correct some wrongs in history and sayings and to share some interesting quotes and phrases. “Beam me up, Scotty” is a phrase thought to be from Captain James T. Kirk, in the Star Trek series. The closest that Captain Kirk ever got to this was “Beam us up, Mr. Scott”, in the ‘Gamesters of Triskelion’ episode. “You dirty rat!” was thought to be said by James Cagney. This line didn’t appear in any of Cagney’s films. In a speech to the American Film Institute in 1974 he made a point of saying: ‘I never said “Mmm, you dirty rat!”’ How about a cool phrase? Life’s not all beer and skittles, ‘Beer and skittles’ is shorthand for a life of indulgence spent in the pub. Skittles, also known as Ninepins, which was the pre- cursor to ten-pin bowling, has been a popular English pub game since the 17th century. A quote from Ben Franklin: “I am a strong believer in luck and I find the harder I work the more I have of it.” A quote from the wise guy category: “The only successful substitute for brains is silence.” Finally a quote from me: “Car loans and mortgages are just some of the best products we have including mobile banking and free checking.” (so much for not doing the shameless plug!) Please stop in the credit union and say hi! I wish everyone a safe, happy and healthy Spring! Best regards, Michael Ostrowski [email protected]
Transcript
BOARDYour CommunityCredit Unionsm
Spring 2014
PRESIDENT’S CORNER
Homeschooling YourselfApril is Financial Literacy Month, a timely reminder if your New Year’s resolution to manage money better has fallen by the wayside. Fortunately, there’s no need to head for the classroom. Everyday bills and account statements offer several ways to brush up your money skills without leaving home. For example, try these ”homework” assignments:
1. Downsize your cell phone bill. Check recent statements to see if you’re buying minutes or megabytes you don’t use – or are paying extra because you’re exceeding your plan limits. Also, check out smaller carriers or consider choosing a prepaid plan. For more ideas, see “12 Tips to Cut Your Cell Phone Bill” on www.pcworld.com.
2. Ask for a lower credit card rate. If you’ve been making on-time payments for a while, you could qualify for a rate reduction – but you may not get one unless you ask. You have some clout since it would cost about $80 to replace you, says the Database Marketing Institute.
3. Are you paying for more auto insurance than you need? Study the declarations page of your policy for possible savings. Have you changed your commute? Has a teenage driver gone off to college? Could you boost your deductible?
4. Scrutinize “free shipping” memberships. On Amazon.com, for example, qualifying items ship free when you spend $35 or more. By consolidating your purchases accordingly, you wouldn’t need a Prime membership.
5. Weed out excessive account fees. Trawl through your bank account and credit card statements to find overdraft fees, low-balance service fees, annual fees, credit insurance fees, etc. Can you reduce them by shopping around, or eliminate them with better money management?
If your research indicates a need for accounts that better suit you now and in the future, chat with us. That’s why we’re here – and we’re ready to provide new solutions that reward your improved financial insight. n
Happy Spring!Time to do spring cleaning in and around the house now that the warm weather is coming (I hope).I was going to do this newsletter with the old shameless plug for STCU Credit Union and how great
it is to belong to the credit union, but, you already know that! So simply tell everyone you like what we have to offer and how awesome the staff is.Speaking of spring cleaning, I would like to correct some wrongs in history and sayings and to share some interesting quotes and phrases. “Beam me up, Scotty” is a phrase thought to be from Captain James T. Kirk, in the Star Trek series. The closest that Captain Kirk ever got to this was “Beam us up, Mr. Scott”, in the ‘Gamesters of Triskelion’ episode.“You dirty rat!” was thought to be said by James Cagney. This line didn’t appear in any of Cagney’s films. In a speech to the American Film Institute in 1974 he made a point of saying: ‘I never said “Mmm, you dirty rat!”’How about a cool phrase?Life’s not all beer and skittles, ‘Beer and skittles’ is shorthand for a life of indulgence spent in the pub. Skittles, also known as Ninepins, which was the pre-cursor to ten-pin bowling, has been a popular English pub game since the 17th century. A quote from Ben Franklin:“I am a strong believer in luck and I find the harder I work the more I have of it.” A quote from the wise guy category:“The only successful substitute for brains is silence.”Finally a quote from me:“Car loans and mortgages are just some of the best products we have including mobile banking and free checking.” (so much for not doing the shameless plug!)Please stop in the credit union and say hi! I wish everyone a safe, happy and healthy Spring!
Musing about a home equity loan?First, ask yourself these questions
As crocuses and pussy willows begin to bud, so does homeowners’ interest in spring projects – along with concerns about how to pay for them. The idea of getting a home equity loan (HEL) or line of credit (HELOC) has probably crossed your mind. But is that the right solution?
Since taking out any loan against your home is worth a second thought, we suggest asking yourself these questions before deciding:
1. How would I use the money?It’s prudent to take on home equity debt only for uses that will produce savings or a payoff down the road. For example, using a HELOC to finance home improvements can pay off by increasing the value and livability of your home. Eliminating credit-card debt with a HEL can save you interest, if you maintain or shorten the original repayment schedule.
2. How would I pay it off?The term of a HEL is determined when you apply for it, so you’ll know your payoff term and monthly payment in advance.
A HELOC’s variable rate, and the ability to keep borrowing up to your credit limit, means your payoff may change from month to month. For an estimate of the monthly payment or time involved, try the Line of Credit Payoff calculator at www.bankrate.com. Note: The period when you can take advances is limited (it’s often 15 years). After this “draw period,” you pay back fixed monthly amounts until any balance is wiped out.
3. Would I later regret having tied up my equity?Consider this scenario: If you sell your home when its value is sagging, the sale proceeds might not pay off your mortgage plus an equity loan or line. Or if you apply for a reverse mortgage a few years from now, the amount of equity that’s available will determine how much income you’ll get.
If all the signals are green, come in and talk with one of our loan officers. We’ll be happy to discuss our HELs and HELOCs. And chances are, your spring projects could be up, funded, and running before the tulips bloom. n
Why HELs and HELOCs are hot
If your home has regained value in the market recovery, your home equity has probably recovered too.
(Your equity is what’s left when you subtract what you owe on your home from its fair market value.) That could make a home
equity loan or line of credit a good way to borrow.
Choose a loan if you need a lump sum. An equity loan’s rate and payment amount are usually fixed, giving you
more peace of mind.
Choose a line of credit if you need financial flexibility. Equity lines of credit typically have variable rates and more
payment options.
Save money compared to other kinds of credit. You pay a relatively low interest rate because your loan or line is
secured by your home.
Enjoy tax advantages. Interest is usually deductible if you itemize.** STCU Credit Union does not provide tax advice. We recommend consulting a
qualified tax professional to determine how tax laws may apply to your situation.
Blizzards, ice, gale winds, subzero temperatures, flooding… thank goodness winter is nearly over!
This may be the time when unwelcome surprises come to light, though. Frost heaves hammer suspensions. Ice dams melt and roofs leak. House paint peels. Gravel plowed off the driveway piles up on the lawn. The hard-working old furnace breathes its last.
If things in your neck of the woods are a little worse for wear, we may be able to help. Generally speaking, our rates on personal loans are better than most banks’, and we’re glad to assist our members at a time like this.
So if you need to pave the driveway, paint the house, replace the boiler, buy a new set of shocks, or make another repair or investment to recover from winter, just talk to us. We’ll try to help you bounce back – with a “spring” in your step. n
Our very own Amanda Grelha, STCU Credit Union’s Consumer Lending Officer sang God Bless America at the Springfield Falcons game Saturday night, March 1, 2014.
STCU Credit Union Has Something to Sing About!
Bouncing Backfrom Winter
Wear and Tear
Thinking of trading in your car?Did you know that the most popular time to buy a used car is roughly between Valentine’s Day and Mother’s Day? (That may not surprise you after driving in a northern New England winter.)
If you’re thinking of trading in your wheels for a newer vehicle, consider seeing us first. We can prequalify you for an auto loan, which will put you in a better bargaining position when you find the car or truck you want to buy. And because we’re a not-for-profit organization, our rates may well be lower than the financing a dealer offers. Ready to roll? Give us a call! n
Mobile Banking:Keeping it Convenient, Keeping it Safe!
You know that Mobile Banking with STCU Credit Union is a convenient way to access your account wherever you may be! And, while Mobile Banking with us is also safe and secure, there are some simple rules you can follow to ensure that your private information stays that way:
• Never send your account information or password via text message or e-mail.
• Know that public internet connections are not always secure. Before you log into your account, make sure you’re not connected to a public network, such as in a coffee shop.
• Avoid using your phone to visit any websites that seem illegitimate – even if there is just a hint of doubt
• Avoid clicking on hyperlinks embedded in emails
• Create complex user passwords
• Keep your phone password protected
STCU CU Board of Directors Norman HallsChairperson
Main Branch:145 Industry Avenue, Springfield, MA 01104
453 East Main Street, Westfield, MA 01085
1-413-732-9812 TOLL-FREE 1-877-732-9812FAX: 1-413-737-7635LOAN DEPARTMENT FAX: 1-413-886-0156
www.stcu.com
Easy Bank: 1-413-827-8000Outside of Hampden County Toll-Free: 1-800-264-0600Lost/Stolen ATM/Debit Card: 1-413-732-9812Lost/Stolen Credit Card: 1-877-875-8078Lost/Stolen Debit Card after hours: 1-800-472-327224/7 Lending Call Center: 1-800-805-0399The Chalk Board is a quarterly newsletter publication for the
benefit of STCU members.
STCU Credit Union Financial ServicesInformation from STCU Credit Union and CFS* to help keep your financial life in balance.
Successfully Transition into RetirementAre you thinking about the next chapter in your life? The first step to ensuring your transition to retirement living goes smoothly is to be prepared. For many workers, investing means having a portion of their paycheck systematically invested in an employer sponsored retirement account. Little thought is given to the retirement account after that. Saving for retirement is arguably the most important aspect in preparing for retirement. Having a carefully laid out plan may help smooth the transition from working to retiring. The sooner you devise a plan, the more time you have to explore and evaluate your options. Taking these steps might make the difference between a successful retirement and a disappointing one.
Seek Professional AdvicePreparing for retirement is not an easy process. With all of the information and products available today, developing a strategy that best suits your individual needs may be daunting. To avoid the headache of trying to tackle this task alone, seek the advice of a trained professional. Your credit union is staffed with experienced financial professionals who may be able to help identify investment goals, and develop and implement a well-structured investment plan.
Define Your RetirementIt’s important to decide how you want your retired life to look. This is your chance to define the next stage in your life. Will you continue working in some regard? Most baby boomers are interested in a rewarding second act. Discover what you’re passionate about and incorporate that into your retirement.
Test-Drive Your BudgetOne of the most important steps in analyzing your retirement picture is being aware of your total household expenses. Unfortunately, many of us may not be aware of what our current lifestyle costs. In retirement, you may find it necessary to live on a smaller portion of your pre-retirement income. For example, if you plan on retiring on 85% of your current income, consider carving out 15% of your current income and investing it in your retirement account. This strategy may help you in preparation of living on a reduced income, potentially boost your overall retirement account balance, and possibly reduce your taxable income.
Who Can Help Me?As there often seems to be an insurmountable number of variables in navigating your retirement picture, the aid of an experienced financial professional can be an invaluable resource. Please visit your credit union branch today so that we may assist you in answering many of these difficult questions. n
Investment products and services are offered through CUSO
* Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer
(Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise
federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of
principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit
investment products and services available to credit union members. CFS and its Registered Representatives do not provide tax
advice. For such advice, please consult a qualified tax advisor.
Our MissionAssist our members in reaching their financial goals by providing superior products and services in a personalized manner.
