Brought to you by: Investment Services

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1 Third Quarter 2016 General Electric Credit Union (GECU) General Electric Credit Union Bright Horizons Making Financial Recommendations Work for You IN THIS ISSUE A Message from Our CEO When You re Buying A Home and Selling One, Too Financial Recommendations (continued) Online Services: Join Your Fellow Members Home Equity vs. Equity Rich Why Your Credit Score Matters Factors That Determine Your Auto Insurance Rate Boat Loan Special What Happens to Someone s Assets When They Die? CU Magic Minute Brought to you by: Investment Services In the financial world, there are a lot of recommendations about what you should be doing. In theory, they sound reasonable, but depending on your situation they may not be easy to follow. Let s look at some common financial recommendations and why it can be hard to implement them. Build an emergency fund. Theory: Set aside at least three to six months worth of living expenses in an emergency savings account so your overall financial health doesn t take a hit when an unexpected need arises. Problem: While you re trying to save, other needs--both emergencies and non-emergencies--come up that may prevent you from adding to your emergency fund. Getting back on track might require time, which may lead you to decrease or stop your contributions toward other goals such as college or retirement. One solution: Don t put your overall financial life completely on hold trying to build an emergency fund. If you ve been saving for a while and accumulated two or three months of reserves, consider that a good base and contribute to your long-term financial goals instead. You can always add to your emergency fund when possible. Start saving for retirement in your 20s. Theory: Start saving for retirement when you re young because time is one of the best advantages when it comes to amassing a nest egg. continued on page 3...

2 2 l Third Quarter 2016 A MESSAGE from our president & ceo There are many things to which GECU owes its continued success, the main being your steadfast membership. I want to take a moment to thank you for your loyalty, trust, and support, as well as your feedback and suggestions. We appreciate hearing from you as this is what drives us and helps us understand how we can better meet your needs. As we serve a diverse range of members, we regularly evaluate our product and service offerings to determine if we re meeting the needs of our entire membership; it s important for us to serve all members, throughout all stages of their financial life. With that in mind, we recently reviewed the minimums of our IRA and HSA Certificates and lowered them to $500 (with the exception of our 1-Year Jumbo IRA Certificate), making it easier to save for future retirement or healthcare expenses. Additionally, we introduced our new Anytime Line of Credit; it s a personal line of credit that provides access to funds anytime the need arises. Improving the quality of your financial life is our guiding principle. This principle includes providing you tools and information so you can make the right decisions for you and your family. One such tool is our complimentary Investment timothy d. ballinger... We re committed to your financial future through valuable solutions, helpful tools, and positive experiences. Services seminars. If you haven t attended one yet, please take a look at the list of upcoming topics and consider attending in the coming months. Our representatives cover a variety of retirement and investment planning topics and are available to answer any specific questions you may have. Our website is another great resource; don t forget about our financial calculators, the Financial Answer Center, and monthly Hot Topic articles. We offer you value through competitive loan and dividend rates, but our vision is much larger. We re committed to your financial future through beneficial solutions, helpful tools, and positive experiences; we want to take the fear out of banking by creating positive feelings about your finances. Thank you for choosing GECU to be your financial partner; we are grateful for your continued trust and loyalty and thank you for being part of the GECU family. When You re Buying A Home and Selling One, Too Brought to you by: Real Estate Services Buying a home, in general, is a huge undertaking, but, when you re buying a home and trying to sell one simultaneously the process is even more challenging. You don t want to feel rushed to find a new home or carry the financial burden of paying two mortgages. Take a look at these tips to get you through the process. Know the market. In many cases, when it s easy to sell, it can be hard to buy. If you know the market you re in, you can focus on the more difficult part first. Use a professional. You ll want to find an agent who is proactive in the home buying and selling process and can walk you through this challenging time. Be ready. Your time is limited. Therefore, make sure you are ready to move. You ll want your home ready to sell so fix any repairs that need to be made. See the big picture. Your goal is to sell your home and buy one at the same time. This means that some things you might fixate on if only buying, or only selling, will need to take a back seat. If you are selling your home, buying a new one, or doing both at the same time, contact Real Estate Services, in the Financial Mall, at: How to Buy A Home While Selling One, Hal Bundrick with NerdWallet, June 5, Real Estate Services provided by Home Information Network, Inc.: CincyHomesOnline.com.

3 3 WE LL BE CLOSED Monday September 5, 2016 in observance of Labor Day. We hope you enjoy the holiday with your family! 64% of GECU members are enrolled in Online Banking e-alerts Members who are using Online Banking also have access to... e-statements Web BillPay Mobile Banking Popmoney Mobile Deposit JOIN YOUR FELLOW MEMBERS Use All the Online Services Available to You Online Banking is the gateway to all our online services. Once enrolled, you ll have access to a variety of tools to help you manage your money how, when, and where you want. Whether you re checking your balance, transferring funds, or paying bills, you ll be in full control. Visit us at: gecreditunion.org/online-banking for more information and to get started....financial Recommendations continued Problem: How many 20-somethings have the financial means to save earnestly for retirement? Student debt is at record levels and young adults typically need to budget for: rent, food, transportation, monthly utilities, and cell phone bills, all while trying to contribute to emergency and down payment funds. One solution: Track your monthly income and expenses on a regular basis to see where your money is going. Establish a budget and try to live within your means. Then focus on putting money aside in your workplace retirement plan. You can start by contributing a small percentage of your pay and adjust as your income and/or lifestyle changes. Start saving for college as soon as your child is born. Theory: College costs increase every year without fail, no matter what the overall economy is doing. As a result, new parents are often advised to start saving for college right away. Problem: New parents often face many other financial burdens that come with having a baby; for example, increased medical expenses, baby-related costs, day-care costs, and a reduction in household income, etc. One solution: Open a savings account and set-up automatic monthly contributions in small, manageable amounts and add to it when you can. Subtract your age from 100 to determine your stock percentage. Theory: Subtract your age from 100 to determine the percentage of your portfolio that should be in stocks. For example, a 45-year-old would have 55% of their portfolio in stocks. Problem: A one-size-fits-all rule may not be appropriate for everyone. For instance, people are living longer and may be able to hold more stocks in their portfolio. However, some investors may not feel comfortable with holding stocks due to their risk tolerance. One solution: Focus on your own tolerance for risk while also being mindful of inflation. Consider meeting with Investment Services to review your portfolio and discuss your options. Ultimately, your own peace-of-mind trumps any financial recommendation. Our Investment Services CFS * Registered Representatives, Todd Blessing and Erik Waldron, can walk you through some of these financial recommendations and determine the best solution for your situation. You may contact them at: or by at: todd.blessing@cusonet.com or erik.waldron@cusonet.com. *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. General Electric Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. Prepared by Broadridge Investor Communication Solutions, Inc. Copyright BroadridgeInvestor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual s personal circumstances.

4 4 Why Your FICO Score Matters Your FICO Score is an essential number that factors into your overall financial picture. The score is derived from information housed in your credit report at one of the three credit bureaus: Equifax, Experian, and TransUnion. FICO Scores are used by 90% of top lenders to determine the level of credit risk for an individual. 1 Your FICO Score can range from , and can fluctuate throughout the year based on your financial activity and the credit bureau from which it is being requested. It s crucial that you understand why this number plays an important role in your financial health. Your FICO Score helps a lender determine whether or not you re approved for credit. Your score represents your creditworthiness, or how reliable you are as a borrower. Lenders will take your score into consideration when approving you for a mortgage, vehicle loan, credit card, and various other types of loans. If your score indicates a high-level of risk, you may not be approved for your loan. It can drive how much you pay in interest. Strong credit health can help qualify you for the best interest rates on products. For instance, if you re looking to apply for a car loan, the lender will run a credit check to determine if you re a qualified borrower. The higher your score, the less interest you re likely to pay, saving you money in the long run. Various factors are affected. Even if you don t plan on applying for credit anytime soon, your score is still important. If you re looking to rent an apartment, your score can influence a landlord s decision on whether or not you re approved, and the size of your initial security deposit. Knowing your credit and score is essential in having a successful financial future. Request a free copy of your credit report from each of the three bureaus once a year by visiting: so you can review the items on your report which affect your credit score; if an item is incorrect, follow the proper steps to have it corrected. Your score is not included on this report. However, as an added benefit of membership, GECU credit cardholders will soon be able to view their FICO Score for free within the Credit Card section of Online Banking. 2 1 What is a Credit Score? Retrieved June 13, 2016, 2 FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries. For primary cardholders only; will be updated quarterly. Choosing the Right Line of Credit for You How it works Home Equity Line of Credit Perfect for those who need access to funds over time. Use this line of credit for big purchases, projects, or to consolidate debt. Equity Rich Line of Credit Great for those with equity built in their homes. Refinance your existing mortgage for a lower rate Equity and have Rich access Line to your of equity Credit through this line of credit. Rate Fees Introductory rate of: 2.99% APR * Locked in through December 31, 2016 Then converts to: 3.75% APR * No: application fee, annual fee, inactivity fee, closing costs, or pre-payment penalties. Prime-0% up to $49,9991 or Prime-.25% $50,000 and up * GECU membership is required to take advantage of this offer. * Equity Rich Line of Credit (ERLOC)/Home Equity Line of Credit (HELOC): Offer is limited to owner-occupied, single-family property located in Ohio, Kentucky, and Indiana. APR = Annual Percentage Rate. Rates listed as of published date (June 21, 2016). For qualified borrowers only. New money and refinances from other financial institutions only. Offer is subject to change at any time. Line of credit up to $49,999 has an introductory rate of 2.99% through June 30, 2017 and then converts to a rate of Prime - 0%; the rate is subject to adjustment on the first day of each calendar quarter to Prime - 0% (subject to program minimum APR of 3.75% after the introductory period; the maximum APR for this loan plan is 9.99%). $50,000 and up has an introductory rate of 2.99% through June 30, 2017 and then converts to a rate of Prime -.25%; the rate is subject to adjustment on the first day of each calendar quarter to Prime -.25% (subject to program minimum APR of 3.75% after the introductory period; the maximum APR for this loan plan is 9.99%). The Prime Rate is from the Wall Street Journal and is currently 3.50%. There is no annual fee. The minimum finance amount is $10,000. Standard closing costs are generally waived. The loan must be for a primary residence only. Maximum 80% loan to value (LTV). Property insurance required to open plan.

5 5 l Third Quarter 2016 Factors That Determine Your Auto Insurance Rate Brought to you by: Insurance Services You ve likely been paying for car insurance for some time, but have you ever wondered how your insurer determined your specific rate? We ll decrypt car insurance rates to give you a better understanding of why you re paying what you re paying. DRIVING RECORD The better your driving record, the lower your premium will be. Conversely, if you have more accidents, your premium will be higher. CAR USAGE Insurance companies look at how much you use your car, or the distance you drive. The more you drive, the greater the chance for accidents. Therefore, your premiums will tend to be higher. AGE Mature individuals tend to have more driving experience and fewer accidents, making their premiums lower than less experienced drivers. GENDER In general, women tend to have fewer accidents and therefore will often pay less than men on their policies. However, individual driving history has a big impact over what you ll pay for auto insurance. THE CAR The type of car can also factor in to your premium. Insurers look at the: price of the car, costs of repairs, overall safety record, likelihood of theft, and how well it protects passengers. TYPE & AMOUNT OF COVERAGE There is a minimum amount of liability insurance all drivers must have; however, in many cases, drivers purchase additional insurance. There s also comprehensive and collision coverages that many decide to purchase as well. The deductibles of these coverages effect the premium you pay. If it has been a while since you reviewed your auto insurance policy, or you d like to compare costs, contact Insurance Services at: or send them an at: insurance@gecreditunion.org. They provide free rate quotes on a variety of different policies. What Determines the Price of My Auto Insurance Policy?, June Summer will soon be over... and, so will this great special! Take advantage of a lower rate and defer your first payment 60 days. No pre-approval fees No prepayment penalties Convenient payment options ACT NOW! Apply at: gecreditunion.org/apply IT S A SUMMERTIME boat loan special Rates 4as low as:.49% APR * *GECU membership is required to take advantage of this offer. Offer good through September 9, NEW MONEY ONLY (new loans or refinances from other institutions; not valid on existing GECU loans). APR = Annual Percentage Rate. Boat loan rates as low as 4.49%APR available up to 180 months on all loan amounts, only for qualified borrowers with a sample repayment schedule of 180 monthly payments of $7.65 per $1,000 borrowed. A balloon, with a 20-year amortization repayment option is available; ask a credit union representative for details. The 60-day deferred payment option is available to qualified borrowers with a credit score of 680 or higher. Other rates and terms are available. Terms and conditions of these offers are subject to change without notice. These offers are not available in conjunction with any other promotion. GECU is an Equal Opportunity Lender. GECU NMLS #

6 6 What Happens to Someone s Assets When They Die? Brought to you by: Legal Services The answer depends on how those assets are titled. If the asset is: joint and survivorship, payable on death, transfer on death, life insurance, or an IRA or retirement plan with a named beneficiary, then the asset transfers directly to the survivor or the beneficiary. If the asset is titled in the name of a trust, it will remain in the trust under the control of the trustee or, if the trustee is deceased, the successor trustee. The answer depends on how the assets are titled. But if the asset is none of the above and is titled in the decedent s name only, it will enter probate. The disposition of probate assets is directed by an executor (Will) or administrator (no Will) of the decedent s estate. His or her actions are subject to the oversight of the Probate Court in the county in which the decedent was domiciled at death. This is accomplished through filings with the Court and the Court s response in Court entries signed by the judge. The fiduciary pays the debts and expenses of the estate and files income and estate tax returns and pays those taxes. Remaining assets will be paid to the beneficiaries of the Will or, if the decedent left no Will, to the deceased s heirs at law as determined by the Ohio Statute of Descent and Distribution. The trustee of a living trust has responsibilities similar to the executor of a Will. The major difference is that with the trust there is no probate. The trustee will first gather all assets that were in the trust when the decedent died or were transferred to the trust at the decedent s death. Then the trustee will follow the directions given in the trust by the maker of the trust. These include payment of debts, expenses and taxes, and distributions as directed by the trust. Because they are not subject to probate, the administration of a living trust is significantly easier than the administration of a Will in probate. An experienced estate plan attorney should be consulted to discuss which of these options are right for you. For more information please contact our Legal Services team at: There s a no-charge, initial consultation. ATTENTION PLATINUM CARDHOLDERS Win A Magical Shopping Spree What is it? An all-expenses-paid trip for two to Chicago and access to a warehouse full of high-end merchandise TVs, laptops, tablets, sporting goods, appliances, and more and one full minute to grab as much as you can. How do I participate? To participate, register through CURewards by accessing the Credit Card tab in Online Banking or visit: curewards.com. To be entered, use your card 3 or more times in a week from June 20 th September 25 th. Each week you do, you ll earn an entry into the sweepstakes. More information! See full sweepstakes rules, FAQs, and how to enter without purchase at: Condensed Financial Statement Number of Members...157,053 Loans... $2,180,232,310 Shares... $2,147,507,610 Assets... $2,423,787,435 Contact Us Member Services l memberservices@gecreditunion.org Hours Mon-Thur: 8am - 5pm, Fri: 8am - 6pm Sat: 9am - 2pm Financial Mall Located at Reading Road l Hours: M - F 9am - 5pm Credit & Debit Cardholder Services (including to report your card lost/stolen) During normal business hours, contact us at: and select Option 2. For after-hours cardholder services, call: and select Option 1. Sourceline l Ending May 31, Bright Horizons is published quarterly by GECU for its members. Availability, terms and rates of services are current at press-time; however, they are subject to change as determined by the credit union Board of Directors without prior notice. Questions about the newsletter should be directed to the Marketing department. Federally Insured by NCUA Equal Opportunity Lender GECU NMLS #449875