your$A magazine from WEA Trust Member Benefits

FALL

Dream onFinancial security is within your reach

your accountYear-end deadlines for 403(b) and IRABookmark us for easy account access

your moneyStep away from the checkout and take the purchase test

your kioskHow the new insurance laws will affect you

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2009

on our home page at weabenefits.com to find a time that fits your schedule.

Please encourage your new colleagues to take advantage of the benefit programs and services we offer to help them achieve their financial dreams. And don’t forget that your family members are eligible for many of our programs.

Thank you for all you do, and we hope to see you at the WEAC Fall Convention in Milwaukee—specifically at the closing session on Friday—for a few laughs and a chance to win great prizes.

Have a great school year.

3 YOUR ACCOUNT- Year-enddistributiondeadlines.- IRAfeechange.- ManagingyourIRAinvestments

justgoteasier.- WEATrustMemberBenefits

holidayclosings.

4 YOUR MONEY- Noodlingonthepurchase:Five

questionstoaskbeforeyouswipe.- Buildyourfinancialknowledge

duringMoneySmartWeek.

6 YOUR STORY- Discoverhowonefamilyis

turningtheirfinancialdreamsintoreality.

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Welcome back!Welcome to the

first edition of your$ for the 2009-2010 school year. In this issue, you’ll read about the Buchegers and their dreams for a life built on family, community, and fin-ancial security. It’s a story of two teachers

from Seymour, Wisconsin, who had a vision for what they wanted their life to be and a plan that worked for them.

Also in this issue, we are providing some housekeeping information:

program changes, deadlines, and highlights of a new state law that will impact drivers statewide. Depending on which programs you participate in, you may be required to take action in the near future regarding your account.

Because we know that no one is busier than public school employees this time of year, we encourage you to let us help you in whatever way we can to make sure your personal insurance and retirement savings needs are met. We are here to serve you.

As an added convenience, we are offering online registration for personal phone consultations. Click this button

your$CONTENTS FALL2009

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10 YOUR KIOSK- Learnhowthenewstate

mandatedinsurancelawswillaffectyou.

- Whatisyourhomeworth?- Popcorn,politicalsatire,and

prizesatWEACConvention.

president’s letterDave Kijek, President/CEO,WEATrustMemberBenefits{

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{ your accountIRA and 403(b) NewsYear-end distribution deadlinesLump-sumwithdrawals

If you would like to take a lump-sum withdrawal from your WEA TSA Trust or WEAC IRA accounts before the end of 2009, your original written request form must be received (not postmarked) by us on or before December 11, 2009, for processing the following week. We cannot accept requests via fax. Forms received after December 11 will be processed the second week in January 2010.

403(b)andIRAexchanges/transfers/rolloversExchanges, transfers, and rollovers require a two-week processing time. Paperwork

received in good working order by December 4 will process by the end of December. This includes requests for IRA recharacterizations and conversions. Paperwork re-ceived after that time will process in January 2010.

PostdatedchecksPostdated IRA contribution checks are not accepted. We are not able to accept

checks written and received this tax year (2009) for next tax year (2010). Please do not postdate your checks. Postdated checks will be returned.

2009RMD—notautomaticthisyear!Required minimum distributions (RMDs) for 403(b) and Traditional IRAs were

suspended for 2009. Participants with these accounts will NOT automatically receive their RMD in December unless you have sent in a form requesting the 2009 payment. If you want to take your RMD from your WEA TSA Trust or WEAC IRA account, call us by December 1 to get the form required for the payment. Your original written request form (no copies or faxes) must be received by us on or before December 11 to process before year-end.

IRA fee changeEffective January 1, 2010, the annual administrative fee for IRA accounts will change

from 0.4% ($4 per $1,000) to 0.45% ($4.50 per $1,000). The annual fee cap will remain at $500.

Password painWe all hate change, but it’s inevitable and sometimes a good thing. Last spring we

changed our password system requirements to increase security of account information, and we know it hasn’t been an easy change for everyone. If you are having any problems, please give us a call at 1-800-279-4030.

Do you have both a Guaranteed and a Mutual Fund IRA with us?Great news! On November 28, 2009, your Guaranteed and Mutual Fund IRA accounts

will be merged into one—making it easier for you to manage your IRA investments. You will be able to move money between the Guaranteed and Mutual Fund investments online or over the phone. The need to complete and mail in forms has been eliminated. Prior to the merge, you will receive a letter outlining information we need from you in order to proceed, including allocation choices for future investments, beneficiary designations, and confirmation of future contributions. Please complete the forms and return by November 1 to ensure a smooth transition.

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Bookmark weabenefits.com for fast account access.The most direct way to access your account online is by bookmarking weabenefits.com.Once there, click the AccessyourAccount button. Retirement accounts cannot be accessed at weatrust.com, which is the Web site for the WEA Trust health and dental programs. Please change your bookmark to weabenefits.com.

CLOSED FOR THE HOLIDAYSWEA Trust Member Benefits will be closed:

ThanksgivingNovember 26–27, 2009

ChristmasDecember 24–25 & 28, 2009

New Year’sJanuary 1, 2010

NEW STATE MANDATES IMPACT INSURANCE COVERAGE See page 10 for details.weabenefits.com

weabenefits.com

{ your money

NOODLING ON THE PURCHASE

T here’s something about the shopping experience that makes it easy for smart people to make not-so-smart purchasing

decisions. For example, the MIT Sloan School of Management conducted a test by setting up a fake auction for tickets to a sold-out Celtics game. Half the participants in the study were told they had to pay in cash in 24 hours. The other half by credit card. Those with the credit card were bidding about twice as high as the consumers with cash, defying the simple logic that if you can’t cover the cost with cash, you probably can’t afford it.

MIT researchers also found that we are more easily influenced to spend money by promotions and other factors when we don’t have concrete goals in mind.

Whether you shop for enjoyment or shop because you absolutely need a new refrigerator, it’s easy to fall into the many traps that cause you to spend more than you should and more than you need to. Stay in control of your shopping experience by asking these questions before you buy.

There are a lot of good deals out there right now. The retailers are eager—no, they are emphatic—about moving merchandise.

LOWEST PRICES. UP TO 85% OFF. TWO FOR ONE.

It’s easy to get caught up in the hype. If you’re trying to reduce your monthly expenses, it can be difficult to resist deals that are seemingly too good to pass up. What should you do? Before you swipe, pass the purchase test.

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If you answer “no” to any of the questions above, step away from the checkout and take a time out to analyze the purchase. In the end, you may save yourself money by avoiding unnecessary spending.

weabenefits.com �

NOODLING ON THE PURCHASE

JOIN US ON FACEBOOK!

Become a fan of WEA Trust Member Benefits.

member news • event photos • upcoming seminars • financial resources

Money Smart Week Wisconsin is a statewide program aimed at helping Wisconsin residents build financial skills and literacy. Financial programs, events, and activities for all ages will be held around the state.

WANT MORE?Money Smart Week moneysmartwi.org

National Save for Retirement Week retirementweek.org

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Have you covered your basic monthly expenses such as mortgage/rent, utilities, loan payments, and insurance premiums? Fixed expenses should be paid first.

If the answer is no, walk away. Delaying the purchase can often eliminate the impulse to buy, and it gives you the chance to shop around for a better deal.

Remember that unpaid balances cost you big time. If you carry a $1,000 balance on a card that is charging 18% APR, you blow $180 every year on interest. That’s money you could use elsewhere. Don’t add to the problem. Pay off your balances first.

Leave your credit cards at home. Shopping with cash allows you to shop within a budget and makes it easier to know when to stop.

This is especially important for big-ticket items. Check consumer reports and product reviews to make sure you’re getting the best value. Check out sites like pricegrabber.com and nextag.com for a quick price check.

{ your story

T he Buchegers have found the recipe for making their dreams a reality. It’s not a complicated recipe. You just have to know

what you want, create a plan to get there, and recognize that there might be detours along the way. “We’re not financial geniuses. Anyone can do it,” says Paul.

Upon meeting the Buchegers, one

shared similar financial goals and spending habits—a big advantage for two young teachers just starting out.

“Being on the same page financially is key,” notes Ana Bonjour, a Retirement Savings Consultant at WEA Trust Member Benefits. “There are so many distractions. Reasons to spend are around every corner, making it difficult to stay on course. Philosophical differences about finances can make it even more difficult to achieve long-term goals.”

Amy and Paul have stayed extremely focused. They work together to stick to a budget, and if all goes according to plan, they will be mortgage free, have helped both of their girls pay for college, and be comfortably retired within 15 years.

Here’s how the Buchegers are tackling their big financial goals one at a time.

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{ your story

The Bucheger FamilyPaul,Amy,Rachel,&HannahSeymour, Wisconsin

GoalsPay off mortgage by the time their youngest daughter graduates high school.

Build a four-season sunroom.

Save for daughters’ college.

Retire at age 57.

quickly realizes they are a close-knit family that takes pride in their home, their community, and their schools. Like many Americans, their dreams include paying off the mortgage, sending the children to college, and retiring in comfort.

When Amy and Paul married, they shared a vision for their life that focused on family and community, and they also

The Buchegers: Making Their Dreams RealityThrough careful planning and consistent saving, teachers Paul and Amy Bucheger are well on their way to reaching their financial dreams.

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consider the tax consequences (you lose the mortgage deduction on your federal income taxes) and how a mortgage payment fits into your retirement plans.

Making weekly payments like the Buchegers is a great way to trim time and cost off your loan, but not every mortgage

provider offers the option. Bonjour recommends members consult their financial or tax advisor and take advantage of financial resources available through WEA Trust Member Benefits and WEAC.

GOAL: Pay for home improvementsThe Buchegers

When the idea of adding on a four-

GOAL: Pay off mortgage earlyThe Buchegers

Paul and Amy’s original goal was to pay off their mortgage by the time their oldest daughter, Rachel, graduated from high school. Their strategy included making weekly mortgage payments which takes time off the life of the loan and reduces the total amount of interest paid.

When the Buchegers decided to add on a four-season sunroom to their house, they adjusted their mortgage pay-off date in order to pay for the addition. They now plan to have their mortgage paid off by the time their youngest daughter, Hannah, graduates from high school—a three-year difference from their original goal.

What’s right for you?It’s hard to put a value

on the feeling of being mortgage-free, but before you scrape together every dime you have to pay off your mortgage, make sure it’s in your best financial interest to do so.

“Evaluate the interest rates on any debt you may have, as well as the average rate of return on your investments elsewhere,” notes Bonjour. It may not make sense to divert your savings to a mortgage with a 6% interest rate if you have a significant balance on a credit card that’s charging you 18% interest. It’s also important to

season sunroom to their home came up, the Buchegers resisted. Paul and Amy’s practical side said to wait until they retired so they could have the money saved and pay for it all up front, but Paul’s parents encouraged them to build it while they were working and the girls were still at

home to enjoy it.Amy and Paul took the

advice, and decided to move up their plans to build their “dream garden room.” They took out a home equity loan, and they have since refinanced their mortgage and rolled their home equity loan

into a fixed, 10-year loan at a much lower percentage rate. They also continue to pay their mortgage weekly.

“We want our home be a place not only to live, but a place to relax and find peace,” says Amy. “The sunroom allows us to talk, read, listen to music, birdwatch, and admire our garden. We had to deviate from our original plan, but we don’t regret the decision. We have a great relationship

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THE GOAL THE PLANPay off mortgage by the time their youngest daughter graduates high school.

Refinanced their home loan and rolled their home equity loan into their home loan for a fixed, 10-year loan at a lower percentage rate. PLUS: They pay their mortgage weekly, taking off time from the life of the loan, as well as reducing the total amount of interest paid. If they reach this goal, they will have had the mortgage for 23 years.

Build a four-season sunroom. Aggressively paid down their home mortgage, allowing for enough equity for a home improvement loan. PLUS: They established a relationship with their credit union’s lending officer, giving them confidence in their decision to deviate from the plan.

Save for daughters’ college. Automatic payments put into each girls’ 529 education account each month. PLUS: Grandparents also contribute on birthdays and holidays.

Retire at age 57. Regularly contribute to 403(b) (Traditional and Roth) and Roth IRA accounts.

Regularly review investment portfolio. PLUS: Moved 403(b) accounts to WEA TSA Trust to reduce fees paid.

Increase retirement savings contributions each year. They started with just $25 per pay period 16 years ago.

Took advantage of the personal finance and retirement savings resources through WEA Trust Member Benefits, WEAC, and their credit union.

“We’re not financial geniuses. Anyone can do it. We started saving for retirement with a small amount—$25 each per pay period. It was what we could afford.-PaulandAmyBucheger,SeymourCommunitySchoolDistrict

{FEEDBACKDo you have a story to tell? Do you want to tell us what you think about the magazine or suggest an article idea? Send an e-mail to memberbenefits@weatrust.com.Please type “your$” in the subject line.

with our credit union’s loan officer. She helped us evaluate our situation and made us feel comfortable with our decision,” says Amy.

What’s right for you?The appeal of home equity borrowing

resides in the low interest rates and the tax deductibility of interest. However, the equity you have in your home also represents a valuable asset and emergency borrowing capacity. When you borrow from your home’s equity, you reduce the equity or ownership you have in your home. Another drawback is the fact that your home is on the line and you could lose your home if you default on your payments. If you are considering a home equity loan, make sure to talk over your situation with a trusted professional.

GOAL: Save for kids’ collegeThe Buchegers

Paul and Amy opened up a 529 education account for each of their daughters nine years ago, when Hannah was born.

A 529 education account is a tax-advantaged savings plan designed to encourage saving for higher education expenses.

Paul and Amy’s contributions are automatically made each month, plus both sets of grandparents contribute on birthdays and holidays.

What’s right for you?A year of undergraduate study at a

private college in Wisconsin can easily top $20,000, and even our public universities can cost more than $12,000 a year. Most

parents don’t want to deprive their kids of the opportunity to attend college, but few people can fork over that kind of cash without planning ahead.

But how should you balance saving for college with your other financial goals, namely retirement?

In general, your retirement plan takes higher priority over your children’s college funds.

Your kids can get through college with loans, scholarships, grants, and their own hard-earned cash, but there are no loans to pay for retirement.

“The best case would be to fund your 403(b) account and IRA to the maximum contribution limits,” suggests Bonjour. “Any extra money beyond that point can be put aside for your child’s college.”

{MEMBER PROFILEPaul and Amy Bucheger both work and live in Seymour, a small town just west of Green Bay.

Paul teaches high school math and physics, and Amy teaches choral music in the middle and high schools.Paul, Amy, and their girls—Rachel and Hannah—enjoy riding their bikes, spending time

with relatives, and playing cards. The family also enjoys spending time in their “dream garden room” which they built two years ago. The four-season sunroom, which looks out to their backyard garden full of rose bushes, bird feeders, and beautiful greens, is a room the whole family enjoys. “The garden room allows us to talk, read, listen to music, birdwatch, and admire our garden,” says Amy.

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WHAT A VIEWWith careful financial planning, the Buchegers were able to build their four-season sunroom which looks out to their beautiful garden.

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GOAL: Retire earlyThe Buchegers

Paul and Amy hope to retire at age 57.They began saving for retirement the year

after they were married. “We started saving a small amount—$25 each per pay period. It was what we could afford,” says Paul. “We have our contributions automatically deducted from our paychecks, and we increase our contribution amounts each time we receive pay increases.”

“Our parents have been great financial role models,” says Amy. “They encouraged us to begin early planning for retirement.”

Paul and Amy have also taken advantage of the financial resources available through WEA Trust Member Benefits and WEAC to help them evaluate their situation.

“In June 2008, Paul and I met with Ana at WEA Trust Member Benefits, and she did an outstanding job of helping us roll over our retirement portfolio and helping us make important decisions regarding our retirement savings.”

By rolling over their 403(b)s and IRAs to WEA TSA Trust, the Buchegers were able to reduce fees and consolidate their accounts, making account management easier.

In August of that same year, Paul and Amy met with Bob Moeller, financial planner at WEAC, who looked over their financial profile and advised them on their financial progress.

What’s right for you?The younger the retiree, the greater

amount of forethought and planning required. With people living longer, you need to be prepared for the possibility that you may spend as many years in retirement as you did working. Will you have enough saved to provide income for 30+ years? Another significant cost issue is health insurance. Medicare won’t kick in until you’re age 65, so you may need to cover the cost in the interim.

Regardless of when you wish to retire, Bonjour says the most important thing is to start saving as early as possible and work to contribute to the maximum limits. “Time is your best ally. The earlier you get started, the better chance you have of retiring early.”TSA program securities offered through WEA Investment Services, Inc., member FINRA.The Trustee for the WEAC IRA program is First Business Trust and Investment Services.

{KIDS & MONEYWhat are you teaching your kids about money? Or, rather, what are they learning? Well before they start school, children develop attitudes that could influence a lifetime of financial behavior. Parents can influence even very young children for a lifetime by demonstrating sound money management. In addition, talking to your children about money can help them build a sense of financial awareness and financial responsibility. Here are some ways you can teach your kids about money.

As soon as children can count, introduce them to money.Take an active role in providing your kids with information about where your money comes from, what money looks like, and so on.

Communicate with children about your values concerning money.Talk with your kids about how to save money, how to make it grow, and most importantly, how to spend it wisely. Also teach your children the difference between wants and needs. Knowing this difference can prepare them for making good spending decisions.

Set goals.Setting goals is fundamental to learning the value of money and saving. Consider having your child save their allowance or birthday money for a toy or game they’ve been wanting. Such goal setting helps children learn to become responsible for themselves, and they will feel the inherent satisfaction that comes with reaching their goal.

When giving an allowance, give money in denominations that encourages saving.If the amount is $5, give them 5 $1 bills and encourage that at least one dollar be set aside in savings. This technique can also be used to encourage giving. Paul and Amy give both their girls, Rachel and Hannah, an allowance to help them learn how to budget and manage their money. But they also use it to teach the girls about the importance of giving. “Starting this school year, both Rachel and Hannah save their allowance but give a portion to the charity of their choice,” explains Amy.

Allow them to make spending decisions.Children will learn from their spending choices, whether good or poor. You can then initiate an open discussion of spending pros and cons before more spending takes place. Ask questions like, how do you feel about your purchase? Would you spend your money differently if you had it to do over again?

At ages 12 and 9, Rachel and Hannah have already begun to see how their spending choices can benefit others. “One time Rachel and I combined our money to purchase a stuffed dog from Build-A-Bear,” says Hannah. The stuffed dog was a gift for their friend, Jenny, who has a service dog. “The stuffed dog looked exactly like Jenny’s dog, Wilson,” says Rachel, with obvious pride. �

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Insurance mandates included in Wisconsin Act 28—the budget bill which passed this summer—will impact all Wisconsin residents with automobile and umbrella coverage. The changes will also impact all insurance companies offering these insurances in the state. Be aware of the following:

Auto insurance: It’s the lawEffective June 1, 2010, Wisconsin will

join the 40+ states that require insurance to operate a motorized vehicle.

Medical payments coverage increase mandated

Act 28 raised the minimum limit for medical payments from $1,000 to $10,000. This increase will be made automatically to your policy unless you choose to reject the coverage. Rejections must be made by phone or in writing. This mandate is effective November 1, 2009.

Big changes to uninsured and underinsured motorist (UM & UIM) coverage

The following changes to UM/UIM coverage will take effect on November 1, 2009.

UIM coverage is no longer an optional coverage. Act 28 requires that all motorist insurance policies include UIM coverage.

State-imposed minimum UM and UIM coverage limits are increased to $100,000/$300,000.

New rules require UM/UIM coverage on multiple vehicle policies to “stack” or be added together for up to three vehicles, doubling or tripling the coverage for multiple-vehicle households.

Stacking may also apply to umbrella policies with UM/UIM coverage. Our policy will allow stacking (up to three vehicles), so adjustments may be required to ensure you have the right amount of protection.

For more details about the law changes and coverage definitions, go to weabenefits.com/act28.

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StAtE MANDAtES IMpAct INSurANcE cOvErAgE

MEMBER BENEFITS POLICYHOLDERSIf you have your auto or umbrella policies with WEA Trust Mem-ber Benefits, watch your mail for information requiring action. You can get more detailed information about the law changes at weabenefits.com/act28.

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Join us at the WEAC ConventionDon’t miss out on the hilarious skits and musical parodies of current events

performedbytheCapitolStepsatthisyear’sWEACConvention.TheWashington-based troupe of Congressional staffers turned songwriters are performing atthisyear’sclosingsessionat1:00onOctober30attheMidwestAirlinesCenterinMilwaukee.Snackonsomefresh-poppedpopcornwhileenjoyingtheCapitolStepsastheyperformsongsfromtheir latestalbum,ObamaMia!, includingsongslikeHelpMeHonda,LittlePlumberBoy,andmore.

Besuretostickaroundforyourchancetowinoneofmanyfabulousdoorprizes.WEATrustMemberBenefitswillbegivingawaygreatprizesincludingaTrekbike.

Stop by our booth for details. See you there.10 weabenefits.com

weabenefits.com 11

Homeowner’s Guide

How much is your home worth?

800-457-1142 . weacu.com

*Membership eligibility required. Offer available for limited time only and loan must remain open for 90 days. 1% Cash Back incentive is valid only for refinances of autos from other institutions. Maximum reward $250 per member. Approval subject to normal credit standards.

Example: refinance a $20,000 car loan and earn $200 - and enjoy WEA’s low rates!

1%REBATE1%REBATE

When you Refinance an AUTO LOAN !

StAtE MANDAtES IMpAct INSurANcE cOvErAgE

Defining Excellence.

Delivering Value.

THE TRUST DIFFERENCE.

Just one more way the WEA Trust makes a diff erence ...

As of January 1, 2010, the Trust will cover health insurance premiums of Trust health plan members who have been laid off , based on years of coverage by the Trust.

For more information, visit weatrust.com or talk to your fi eld representative.

When determining the current value of your home for insurance purposes, it is important to differentiate between the assessment value, the market value, and the replacement cost. These values usually are not the same and serve different purposes.

Assessment valueThe assessment value is the dollar amount placed on your home

by your local government for taxation purposes (i.e., property taxes).

Factors considered when calculating your home’s assessed value may include the selling price for similar properties in your area, the replacement cost, and the land value depending on where you live. The higher the assessed value, the more you pay in taxes.

Market valueThe market value is how much you could expect to get for your

home in the current real estate market if you were to sell.The listing and selling price of comparable homes in the local

area, square footage of the house, location, amenities, condition of the property, etc., are used to determine the market value.

Replacement costWhen insuring your home, you want it to be insured for 100%

of its replacement cost. This is different from both the assessed value and the market value.

The replacement cost reflects how much it would cost to rebuild your house in the same spot, with materials of like kind and quality.

Because the cost of materials and labor fluctuates, it is important to evaluate your coverage periodically to make sure you have adequate protection. If you have remodeled or added on to your home, your insurance coverage should be adjusted to reflect the improvements.

I believe...■ I belIeve every KId deserves a Great school. Wisconsin’s public schools are among the very best in the nation because of our state’s talented, caring and committed teachers and education support professionals. Wisconsin students have their best chance at a successful future with high graduation rates and individualized attention from highly qualified teachers and education support professionals.

Children reach their potential as students and human beings when they have a well rounded education that includes a wide variety of courses and programs. Students learn best with up-to-date learning tools and safe, secure facilities. ■ I belIeve Investments In Great schools buIld stronGcommunItIes. Every great school is the result of successful teamwork: students, educators, parents and communities working together for a brighter future. Public schools work with parents and communities to instill the character values that help children become lifelong learners, responsible adults, and kind, caring people. Public schools build local economies by preparing young people and attracting the jobs of the future to our communities. Local public schools are the heart of their communities and provide a place for friends and neighbors to come together. ■ I belIeve WIsconsIn taKes PrIde In Great schools. The public schools we have today are the result of the investments, ingenuity and commitment of our parents, grandparents and great grandparents.

We take pride in the quality of our public schools and our Wisconsin way of living: successful students; happy and caring young people; a high quality of life; top graduation rates; the most highly qualified teachers and staff; top scores on the ACT and other tests. Elected officials should take the same pride in our public schools that we take. Together we can maintain our traditions and keep Wisconsin at the forefront of quality and innovation in public education. ■ We belIeve Great schools benefIt everyone.

33 Nob HIll Road | PO Box 8003 | Madison, Wisconsin 53708-8003 | 608.276.7711 | 800.362.8034 | 608.276.8203 FAX

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