MoneyWisdomFall 2014

A COMPLIMENTARY SUBSCRIPTION FROM HANSCOM FCU

Goof-proof Your Finances FOR YOUR SPOUSE 5

BUYING TO RENT: Is Property Investment Right for You? 6

CHAIRMAN’S CORNER:

Help Support our Communities 2

CHAIRMAN’S CORNERPaul J. Marotta, Chairman

help support our communities We have always believed in helping our community, especially those who most need support. The Hanscom FCU Charitable Foundation, Inc., which was founded in 2012, has given us a way to harness that energy and direct it toward our highest priorities.

We are excited to be a new partner of the Home Base Program to which we committed $100,000 this year. We began by sponsoring the Run to Home Base, a 5K run/walk for 2,600 participants.

This popular event has provided $9 million over the past four years to support Iraq and Afghanistan veterans and families heal the invisible wounds of war – post traumatic stress and traumatic brain injury – through clinical care, education and research. Our support will continue this fall as a sponsor of the Home Base Program Mission Gratitude fundraising event, where we will team up for our nation’s heroes.

Recently, we made a $5,000 donation to Homes for Our Troops to construct the master bedroom in a new specially adapted home in Hopkinton, New Hampshire, for Army SSG Matthew Dewitt. SSG Dewitt sustained devastating injuries during a rocket attack when serving in Iraq. Read his full story at www.hfotusa.org/dewitt.

This year we continued our fundraising for Children’s Hospital Boston through the Boston Marathon, sponsoring our patient partner Andy Martin, Jr as a wheelchair entrant and Director Ray Phillips as a runner. Thanks to our supportive members, we raised $33,948, a record-breaking amount.

Finally, we are in the midst of a $10,000 cash raffle to raise funds for the Massachusetts Coalition for the Homeless. Tickets are $20 each with only 1,500 available tickets. Your chances of winning are excellent, and all proceeds over the cash prize are going to this important cause.

There are so many worthy organizations that deserve our support. With your help, we can continue to support our military and their families who sacrifice so much for their country, as well as other deserving community activities.

And that is why I am asking for you and your family’s help by becoming members of our Foundation. Annual dues are just $5 per person, with 100% of the money going to charity. It’s easy to activate your membership online, by phone or at any branch. I would also encourage you to support the Foundation by making an additional personal donation, donating your unused MemberPoints, designating the Foundation in the Combined Federal Campaign or considering planned giving in your estate planning.

Together, we can make a difference in the lives of so many people who need our help.

2 Fall 2014

Do Credit Card Balance Transfers the RIGHT WAY

Transferring a credit card balance is a popular way to manage debt. You’ll save by moving from a high-rate card to one with a lower rate.

It also simplifies your finances. You’ll have just one payment and one due date to keep track of, reducing the chances of missing a payment and facing late fees or penalties.

Before you make your move, however, investigate the terms of the deal. Here are some key questions:

• Is there a fee? That could wipe out any savings you get from a reduced rate.

• Is the rate different for transfers than for purchases? Your payments could be applied to the lower-rate balance first, leaving the higher-rate debt to grow.

• How long will this rate last? A very low rate often is good for a limited time. Also, store cards typically only defer interest. If you have a balance at the end of the promotion period, you’ll get charged as if the deal never existed.

A Hanscom FCU Visa® Platinum can help you save and simplify. There are no transfer fees, and rates are the same for transfers and purchases. Your rate is based on your credit profile, not a temporary time period.

Become a Foundation member at www.hfcucharity.org. You can also join by calling 800-656-4328 or at any branch.

If you are a federal employee in eastern Massachusetts, consider donating through the Combined Federal Campaign using OFC #33141.

Get the real deal on credit cards at www.hfcu.org/creditcard.

The holiday season is a time of good cheer, festive décor, family moments and precious memories. For some, the approach of the holidays can also bring about worry, over-spending, and stress over expenses.

You don’t have to fall into the holiday debt trap. Give yourself the gift of well-managed finances. Sensible planning is critical for this time of year and can give you the peace of mind needed to spread joy.

four easy tips to followKeep the season bright beyond the holiday bustle with these tips.

1. mobile and text accessMobile and text access allows you to keep tabs on your spending when you are on-the-go. Whether you are caught in lines at the mall or gearing up for early-bird, door-buster deals, stay within your holiday budget by checking your balance, or making a transfer right from your phone. Visit www.hfcu.org/mobile for details.

2. holiday savings accountLuckily, the holiday season does not have to hit your wallet unexpectedly. You can save automatically throughout the year with a CU Thrive savings account. Think of it as a regular bill you pay to yourself. You’ll get a great rate, and since it’s separated from your everyday funds, you won’t be tempted to spend the money impulsively. Get details at www.hfcu.org/thrive.

3. borrow at a great rateDon’t worry if it’s too late to save for this year. Make wishes come true with a holiday loan. You get $1,000 at a low fixed rate. Predictable payments fit into your budget and are designed to be paid off within a year.

If you’re looking for flexibility, a low-rate Visa® Platinum Credit Card from Hanscom FCU fits the bill. You use only the funds you need, and you can pay for holiday purchases on your own

MONEY SAVING TIPS

3

The Gift That Keeps on Giving

Manage Your Finances for a HAPPY HOLIDAY SEASON

Do Credit Card Balance Transfers the RIGHT WAY

For generations, credit unions around the world have been trusted financial partners for their members, improving the lives of millions of individuals, families and communities.

This year’s theme, “Local Service. Global Good,” emphasizes the role credit unions play in individual communities as well as the positive effect they have worldwide.

We will celebrate throughout the day in all our branches. Please stop by to grab a snack and say hello.

Join Us to Celebrate!

INTERNATIONAL CREDIT UNION Day Is Oct. 16

timetable. Plus, free auto rental damage waiver protection and travel accident insurance make Visa Platinum perfect for reducing expenses if you are renting a car.

4. free up cash by skipping a paymentWould it help to have one less bill to pay over the holidays? Skip your loan payment, and use the funds for whatever you choose. You can skip most consumer loans once every 12 months for a $25 fee. There’s no effect on your credit score.

If you need help managing your budget over the holidays, we can help with sound advice and convenient tools. Contact us today to speak with one of our knowledgeable staff.

Let us help you this year with a free eGuide. Download the Holiday Spending Guide today at http://bit.ly/hfcuhsg for tips on savvy shopping, entertaining, and of course, avoiding a post-holiday debt hangover.

4 Fall 2014

Many families have had to be more careful with their money over the past few years. When you don’t have as much money as you’d like, you have to make choices about how to spend it. That forces you to think about what’s really important. The things that you value highly are what you’ll spend money on. But keeping your spending in line with your values isn’t just for when times are tight.

At your age, your income may be increasing. You may be responsible for bigger spending decisions now than you were a few years ago. And that’s when it becomes a real challenge to keep your values dictating your spending. For example, you may have a big, important financial goal in mind, like buying a car, renting an apartment or paying for college. Those are goals that will likely require you to save toward them for a long time.

&KIDS TEENS

Align Your Spending with YOUR VALUES

Losing anything can make you feel sad and mad. But losing money you worked hard to save can feel really rotten. That’s why it’s smart to keep your money in a Big Bucks account at Hanscom FCU. You don’t have to worry about forgetting where you put it or throwing it out by accident. We use lots of tools to help make sure your money stays safe.

The vault, a big room with thick walls and a strong lock is where we keep money. Only a few people with special permission can access the money inside.

Our computer system also helps us keep your money safe. It knows how much money you have in your account. It also keeps track of deposits, withdrawals and how much interest you’ve earned.

Plus, we have cameras all over the building. They see everyone who comes into the building, when they leave and what they do when they are here.

Of course, we can’t tell you everything about our security. Some secrets help us keep your money safe.

Our kids’ accounts don’t cost anything,

and you can open one with just $25. With a Big Bucks account, a parent or other adult can link their account for easy transfers. With an adult co-owner, you can even open a checking account and get a specially designed ATM and Check Card.

For more information, visit a branch or ask an adult to help you look online at www.kidscu.org.

Kids & Teens

A SAFE PLACE to Keep Your Money

be aware of spendingSo how do you keep your big important goal in mind when you have $20 in your pocket and there’s a new movie showing at the local movie theater? Or your friends are getting together at your favorite pizza place? Try these tips:

• Decide to save a certain percentage of your money. Choose an amount that makes good progress on your savings goal but doesn’t make you feel like you can’t have any fun.

• Keep a picture or something else that represents your big goal where you’ll see it often. Your wallet is a good place, because then you’ll see it right at the time you’re about to spend money on something else.

• Keep your savings safe and growing. Every time you get money, whether from a paycheck, an allowance or a gift, deposit the percentage that you’ve chosen into your savings account at Hanscom FCU.

Keep your savings on track! Open a Hanscom FCU checking

account (you may need an adult co-owner). That way, you can separate your spending money from savings. You can get a specially designed ATM and Check Card to help keep track of purchases and ATM withdrawals.

MONEY SAVING TIPS

5

It’s not uncommon for one partner to be the primary decision maker for a couple’s finances. If that describes you, how easy would it be for your spouse to assume sole responsibility for paying bills and managing investments?

Here are some steps you can take to make the transition easier.

Get OrganizedYour spouse will be navigating a paperwork maze to claim life or disability insurance proceeds, request Social Security benefits and change asset ownership. Give your spouse a starting point by compiling a master financial list.

• Include account numbers, passwords, each company’s contact information and details for any automatic payments.

• Leave instructions regarding where to locate important papers such as income tax returns, car titles, marriage certificates and military discharge papers. If they’re in a safe deposit box, both partners need access.

• For collectibles, leave approximate values and the name of a trusted expert to help sell the items.

• Put these items in a secure location and make sure your spouse can access them quickly.

plan ahead for investment decisionsA spouse who is less involved financially may be particularly insecure about making their first solo investment decisions. Even with a modest investment portfolio, the surviving spouse may need to invest life insurance proceeds. Investment decisions can be overwhelming yet have a long-lasting effect on your family’s financial future.

If you work with a financial advisor, be sure that your spouse has met your advisor and has a plan of action to reach out after your death or incapacity. If you don’t have a relationship with a financial advisor, consider meeting with one now as a couple. Your spouse may need the continuity that comes with an advisor who is familiar with your finances and family situation.

SET UP FINANCES TO BE GOOF-PROOF for Your Spouse

update your estate planMake sure you both have current wills, financial powers of attorney and health care directives – and that your spouse knows how to find them. Review beneficiary designations for life insurance and retirement plans. If you have a revocable trust, verify that it’s properly funded. Your financial advisor can work closely with your accountant and attorney to make sure that your estate plan is up-to-date and reflects your current wishes.

Having these discussions can be difficult emotionally for both of you. But you’ll gain peace of mind knowing these tools are in place to help your spouse through the transition and into a financially secure future.

You can rely on the expertise of the professionals at Hanscom Financial Services to help you with a plan that meets your objectives.

Call 781-698-2236 today for a free, confidential consultation with one of our investment counselors.

The investment products sold through LPL Financial are not insured Hanscom Federal Credit Union deposits and are not NCUA insured. These products are not obligations of the Hanscom Federal Credit Union and are not endorsed, recommended or guaranteed by Hanscom Federal Credit Union or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.

Securities and Advisory services offered through LPL Financial, a registered investment advisor. Member FINRA / SIPC.

Hanscom Federal Credit Union and Hanscom Financial Services are not registered broker/dealer and are not affiliated with LPL Financial

Investment and insurance products:Not federally insured | Not a deposit of this institution | May lose value

6 Fall 2014

With low mortgage interest rates and numerous properties on the market, now is an excellent time to purchase a second property for generating income. Investing in rental properties can be a great way to boost your income or fund your retirement.

is this the right investment for you?Becoming a landlord is not a simple undertaking. First, you’ll need to assess your financial situation, including your credit score. You must either have funds to invest, or be able to borrow it. We’ll be happy to help with a free credit score enhancement that will give you your score and an understanding of your credit report.

Second, be sure you understand the responsibilities involved. You will need a team to help you with legal and financial matters, not to mention property maintenance, marketing unrented units and anything else you don’t have the time or expertise to handle.

get off to a good start With any real estate purchase, location is key. Search for homes in areas with a healthy economy and a strong demand for housing. Single family homes in good condition located within a safe school district in a mid-priced neighborhood often make successful rentals.

The monthly rent should be competitive with other rental properties in the area, but high enough to cover your mortgage payment, upkeep, taxes and insurance, and provide supplemental income for you.

If you’re considering purchasing a second home to rent out, we can prequalify you so you know what you can afford before starting your search. We also offer a wide range of mortgage options. Come in and meet with one of our loan specialists today.

BUYING TO RENT: Is Property Investment Right for You?

Want to know more? Call our commercial lending team at 781-698-2186 for a free guide to Investment Property Ownership.

Hanscom FCU in the Community

PEOPLE HELPING PEOPLE

7

heroes honored at spinners game Heroes Among Us honoree Jonathan Martins gets a congratulations from Lowell Spinners first baseman Nick Moore after throwing out the first pitch June 26 at LeLacheur Park. We honored five military heroes over the season. See photos and learn about all our heroes at www.hfcu.org/hero.

hanscom fcu joins education session with u.s. rep. clark Chairman of the Board Paul Marotta and CEO/President David Sprague met with Congresswoman Katherine Clark (D-MA) at a recent credit union gathering. Clark represents the 5th Congressional District, replacing Sen. Ed Markey.

lowell high reach for the stars scholarshipChairman of the Board Paul Marotta congratulates Nicole Zapata, the 2014 recipient of the Paul J. Marotta Reach for the Stars Award. The award is presented annually to a member of the Lowell High School Junior AFROTC program who excels in encouraging peers to reach their potential and best displays the core values of the U.S. Air Force.

warm welcome home for hanscom airmen Hanscom FCU Chairman of the Board Paul Marotta, right, and David Sprague, President/CEO, second from left, celebrate the Hanscom Heroes Homecoming with event organizer CMSgt Bobby Jacques, USAF, Ret., left; former 66th ABG honorary commander and WBZ-TV anchor Jonathan Elias, center; and Mary Jacques. Hanscom FCU was a sponsor for the event, which honored more than 70 Airmen returning from deployment in the past year.

be yourselfie winner Kit Pang takes a selfie with the O’Neill Branch team. Kit received the most votes in our Summer Selfie Facebook contest, taking first place and a $1,000 prize. See the winning photo on our page at www.facebook.com/ hanscomfederalcreditunion.

our missionTo provide superior financial service responsive to our members’ needs.

contact usHeadquarters: 1610 Eglin Street, Hanscom AFB, MA 01731

800-656-4328

www.hfcu.org

Mobile access: www.hfcu.mobi

Download our free app for iPhone® and AndroidTM

Short code for text access: 692667

www.facebook.com/HanscomFederalCreditUnion

Routing Number (for direct deposits and withdrawals): 2113-8048-3

NMLS# 410771

To report a lost or stolen Visa® card: 800-656-4328 Overseas (24 hr): 701-461-0621 (call collect)

board of directorsPaul J. Marotta, ChairmanMark D. Walsh, Vice ChairmanJohn A. Delcore, SecretaryAlan M. Hart, TreasurerTeresa S. ConradHugh W. McNeilRay T. Phillips Frederick C. RyanLawrence S. RzepeckiFerdinand L. Fecteau, Director Emeritus

statisticsMembers ............................................... 55,326

Assets ....................................... $1,077,000,000

Loans .......................................... $747,000,000

Deposits ..................................... $956,000,000

Reserves ....................................... $98,000,000

July 31, 2014

This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material. Websites not belonging to Hanscom FCU are provided for information only. No endorsement is implied. Images may be from one or more of these sources: ©Thinkstock, ©iStock, ©Fotolia. ©2014 Hanscom Federal Credit Union.

1610 Eglin Street Hanscom AFB, MA 01731

Switch to email delivery today. Just scan the code with your smartphone.

Federally insured by NCUA.

Page 1 of 1

12/7/2012http://bitly.com/SM3Slv.qrcode

WIN $10,000, Help the Homeless

Enter our raffle to win a Hanscom FCU ATM & Check Card preloaded with $10,000. That could fund a great winter getaway, a new look for your living room, or any number of indulgences.

Tickets are $20 and sales are limited to 1,500, so you could easily be a winner. The raffle winner will be drawn when all tickets are sold, but no later than Dec. 31, 2014.

Your ticket purchase will benefit the Massachusetts Coalition for the Homeless, an association of organizations that work to address the issues that lead to homelessness. Tickets are available now at a branch, on our web site or by telephone. Buy yours today and start dreaming about how you would use your $10,000 ATM & Check Card!

Go green. Log in to Online Access HD to sign up for online statements. Learn more at www.hfcu.org/online.

Visit www.hfcucharity.org and select Win 10K, stop by a branch or call 800-656-4328 for a copy of raffle terms and conditions.