PCU Hits the Road PAID

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1 PRSRT STD U.S. POSTAGE PAID Permit 5 St. Paul MN Drive-thru service only: (9:00 a.m. 2:00 p.m.) Monday, January 19 Martin Luther King Jr. Day Monday, February 16 President s Day PCU Hits the Road Your credit union is part of the CU Service Center Network, which means you can conduct a variety of PCU transactions at participating credit unions including making deposits, withdrawals, transfers and more. The best part is, now you can download 3,000+ Service Center locations onto your Garmin or Tom-Tom GPS locator for FREE. Then you can quickly locate nearby Service Centers no matter where you are in the U.S. Download Service Center locations today by clicking Shared Service Center Locator on your credit union s website at You can also search locations on the CU Service Center website or by calling PCU employees donated their free lunch for October to Second Harvest Heartland to help the food bank feed others instead. Employees are treated to lunch when the credit union exceeds the monthly new member goal. After hearing of increased demand at local food shelves, employees decided to donate the money instead. Presenting a check for $750 to Second Harvest s Bob Chatmas (left) are North St. Paul Branch Manager Sue Miggler and Assistant Branch Manager Doug Zakrzewski Postal Credit Union. All rights reserved. DS0812 Printed on recycled paper containing at least 10% post-consumer paper fibers Victor Hugo Blvd N. Hugo, MN N. McKnight Road North St. Paul, MN S. Robert Street West St. Paul, MN Tamarack Road Woodbury, MN OPENING Denmark Avenue Eagan, MN 55121

2 Winter S E R V I N G A N O K A, C H I S A G O, D A KOTA, H E N N E P I N, R A M S E Y & WA S H I N G TO N C O U N T I E S Saving for Retirement? PCU Can Help! Saving for retirement doesn t have to be risky business. PCU offers a multitude of federally insured Individual Retirement Accounts that can help reduce your tax bite and pave the way to a comfortable retirement. An IRA from your credit union allows your funds to grow quickly and safely. Choose from high-yielding Premium IRA Money Market accounts and Traditional and Roth IRA CDs. You ll earn a generous return on your savings, so you can be confident your golden years will be financially secure. Traditional IRAs Traditional IRAs allow earnings to grow tax-deferred. Contributions may be tax deductible, depending on your income and participation in an employer-sponsored retirement plan. Taxes are not paid until distributions (withdrawals) are made. Distributions are taxed as ordinary income. In addition, you may be allowed to take penalty-free withdrawals to buy your first home and pay higher-education expenses. Roth IRAs Roth IRAs provide a non-deductible alternative to traditional retirement savings. Contributions are made with after-tax dollars, and earnings may be withdrawn tax- and penaltyfree under a variety of conditions after the account has been open five tax years. These include when you reach age 59½, become disabled, make a first-time home purchase, or upon your death. If you have an IRA elsewhere, or retirement funds in a former employer s 401k or pension plan, now is the perfect time to move it to your credit union. Opening your IRA is fast and easy. Our knowledgeable staff can get you set up and on your way to growing your retirement nest egg without delay. You ll also enjoy peace of mind knowing your IRA is insured up to $250,000 by the NCUA. For current rates, visit When it comes to saving for your retirement, there is no better place than PCU. Call today for more information. Be sure to consult your tax advisor for more information about the tax benefits of IRAs. In This Issue: Pg. 2 Feel Confident About PCU Pg. 3 Make Deposits Online Pg. 3 Call for Board Nominations Pg. 4 Relief for Your Business Plan Pg. 4 FIC Scholarship $$ Available Pg. 5 Refer Your Best Buds to PCU Construction on PCU s Eagan branch is progressing nicely. Located at 3225 Denmark Avenue, the new facility will be approximately 3,560 sq. ft. and feature an innovative open teller arrangement, three drive-thru lanes, a drive-up Automated Teller Machine (ATM), and complete member and cash services. The Eagan office is scheduled to open in early 2009.

3 Turbulent times on Wall Street and in financial markets across the globe have brought the importance of knowing who you do business with to the forefront. At PCU, we take pride in being your financial partner, and value the trust and confidence you place in us to help you achieve your financial goals. These basic principles govern our business philosophy: Do what s right for members. First and foremost, this is the driving factor when determining strategy. Does it make sense and is it in our members best interest? If not, it s not the right thing. President s Corner Make sound, safe lending decisions in a fair and responsible manner. While exotic lending products may seem profitable and appealing to consumers, they carry considerably more risk. As we are seeing in the marketplace now, the end result can also carry a hefty price tag. Avoid unnecessary risk. PCU carefully evaluates each and every loan application to ensure creditworthiness and ability to pay back the loan. From an asset/ liability perspective, close attention is paid to the balance sheet to mitigate risk, control expenses and maintain a healthy capital ratio. Maintain and nurture a skilled work force. As members you entrust PCU with your hardearned dollars and depend on us for sound financial advice. PCU devotes the resources needed to ensure our employees are Feel Confident About PCU well-trained, knowledgeable and ready to serve you. Never take members for granted. As with all relationships, it s important to work hard to maintain and grow them. Our goal is to constantly strive to exceed your expectations and show our appreciation for your business with each interaction. As stated in this column before, PCU is financially strong and maintains reserves and capital that far exceed what our regulators would categorize as highly capitalized. Beyond our financial strength, your dollars are insured by the National Credit Union Administration (NCUA) through the National Credit Union Share Insurance Fund (NCUSIF), and backed by the full faith and credit of the U.S. Government. The standard amount of coverage was recently increased to $250,000 for individual accounts until December 31, Retirement accounts remain covered up to $250,000. There are numerous ways to increase your coverage. Updated brochures are available at all PCU locations, or you can call to have one sent. More information can also be found on the NCUA website As we enter the new year, I d like to thank you for the trust and confidence you ve placed in PCU, and assure you our priorities will not change. We look forward to exceeding your expectations in 2009 and beyond. Thank you for being a PCU member! Founded in 1926 as St. Paul Postal Employees Credit Union. Dollars & Sense is published quarterly for members of Postal Credit Union. Editor: Cindy Kurtz Contributors: Shannon Garrity Tonia Theroux Operating under supervision of the Minnesota Department of Commerce Member of River Cities Chapter Minnesota Credit Union Network and CUNA, Inc. An Equal Opportunity Employer BOARD OF DIRECTORS James C. Bryan, Chairman Keith E. Hauge, Vice Chairman Daniel L. Blees, Secretary Allan J. Brennan Laurie M. Ludwig Roger L. McClure Judy A. Schadewald Robert E. Vance Jr. Mary A. White SUPERVISORY COMMITTEE Lisa M. Liddell, Chairperson Jim Carrier Jerry R. Jacobson STAFF Russell M. Plunkett, President Dennis R. Bauer, Executive Vice President Brian G. Sherrick, Executive Vice President Jeanine S. Swanson, Senior Vice President Lawrence J. Miggler, Senior Vice President Kelly R. Johnson, Vice President Michael C. Rush, Vice President All Offices 9-5:30 pm Toll Free* 9-5:30 pm TDD Hearing Impaired 9-5:30 pm PAL Local PAL (2725) PAL Toll Free* Fax Fax, Toll Free* VISA TDD Hearing Impaired Investment Center Mortgage Center Business Services * Except Alaska and Hawaii. 2 w w w. p o s t a l c u. o r g

4 Your Money How to Survive and Thrive in Volatile Markets A message from the MEMBERS Financial Services Program There are two sure things about the stock market it goes up and it goes down. So you think to yourself, I ll jump in when the markets are down, and sell when the markets go back up. That s the theory behind market timing. But does it work? What is Market Timing? The idea behind market timing is to buy stock when prices are low, hold the stock until the market peaks, sell the stock at the peak and wait until the market hits a new bottom. Then, the process begins all over again. The Risks of Market Timing One risk with trying to time the market is that you guess wrong and end up buying high, selling low and losing money. Another risk is that while you are trying to time the market, you miss being fully invested during a significant market upturn. Missing just a few up days can be disastrous to your long-term investment plans. Consider the following hypothetical example based on the return of the S&P 500. Market Timing: One Example On December 31, 1996, $10,000 is invested in a stock index fund based on the S&P 500 Index. By December 31, 2006 the $10,000 would have grown to $22,252, an average annual total return of 8.33%. However, suppose this investor starts timing the market during that ten-year period, and as a result missed the market s 10, 20, 30, 40 or 60 best single-day performances. How would their return be affected? The Penalty for Missing the Market This chart illustrates a $10,000 investment in the S&P 500 Index from Dec. 31, 1996 Dec 31, AVERAGE ANNUAL PERIOD OF TOTAL GROWTH INVESTMENT RETURN OF $10,000 Fully Invested 8.33% $22,252 Miss the Best 10 Days ,864 Miss the Best 20 Days ,548 Miss the Best 30 Days ,849 Miss the Best 40 Days ,148 Miss the Best 60 Days ,125 Source: AIM Management Group Inc.; This is a hypothetical example used for illustrative purposes. The performance of an unmanaged index is not indicative of the performance of any particular investment. The performance of an index assumes no transaction costs, taxes, management fees or other expenses. It is not possible to invest directly in any index. Past performance cannot guarantee comparable future results. Your Best Defense Market fluctuations make many investors sufficiently nervous that they decide to sell their stock investments. This is tantamount to trying to time the market, which brings its own set of risks. Your best defense when the market is volatile is to work with a financial advisor who can help you stay focused on your long-term financial goals. Andy Barnick is a Financial Advisor with MEMBERS Financial Services located at Postal Credit Union. If you have any questions, or would like to provide feedback, regarding the information presented in this article, you may contact Andy Barnick at Representative is not a tax advisor or legal expert. For information regarding specific tax situations, please contact a tax professional. For legal advice, consult an attorney. FR F Andy Barnick Your MEMBERS Financial Services Representative Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (866) Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution.cbsi is under contract with the financial institution, through the financial services program, to make securities available to members w w w. p o s t a l c u. o r g 7

5 If you need a safe place to store your valuables, consider renting a Safe Deposit Box from your credit union. A variety of boxes can be found at the Hugo, North St. Paul and Woodbury branches, as well as the new Eagan branch when completed. Annual rental fees range from $25 to $105 depending on box size. Please stop in one of our branches to review your Safe Deposit needs. Get your income tax refund ASAP by using the TurboTax Online link on your credit union s website at There are several tax packages and pricing structures to choose from, and you can work on your return at your own pace. You will be asked for your credit card information prior to submitting your completed returns. Electronic filing ensures your return will get to the IRS quickly and accurately. Your refund will then be directly deposited into your PCU account in as little as 7-12 days! Attention first time homebuyers if you purchase a home between April 9th, 2008 and July 1, 2009 and meet certain qualifications, you may be eligible for a newly created homebuyers tax credit of up to $7,500. This tax credit is refundable and can be used to reduce your tax liability. For example, if you file taxes for 2008 and owe $500.00, and you qualify for the tax credit, you would receive a check from the IRS for $7,000. The tax credit essentially serves as an interest-free loan to be repaid over 15 years. To determine if you qualify, consult your accountant. We ve added helpful new features to PCU s website. A Printable Forms page can now be accessed via the Online Services drop-down menu. When you visit this page, you can complete and print PDF forms allowing you to open additional accounts, make changes to your current accounts and more. In addition, PCU now has a helpful Security Center online. Learn what to do if your wallet or identity is stolen and how to protect yourself from Internet, phone and check scams. Visit click About Us and scroll down to Security Center. PC ACCE$$ now gives you the ability to view holds on your accounts to help you more accurately determine your available balance. Just click the link under the Available heading. Congratulations to the winners of Bucky Bear s Halloween Coloring Contest: Joshua Schert; Samuel Blank; Addison Berger and Luigi Viggiano. Each received a $25 PCU Visa Gift card. Bucky sends a big thanks to all who participated. Just a reminder if you are planning to travel outside the U.S. and you have a PCU Cash & Check Card or Visa Credit Card, be sure to let us know when and where you ll be travelling. Due to heightened debit and credit card security, your PCU card(s) may not work in foreign countries (including Canada & Mexico) if you do not contact us in advance. Call or during normal business hours and we will put a note on your account. Contributions to Casual for a Cause. Thank you to the following members for contributing to your credit union s Casual for a Cause fundraiser for local charities: Gary Kirsch; Darlene Brenna; Pamela Hayes; John Palumbo; and Traa Bradley. Thank you for your outstanding loyalty!* The following members are among those who have been with your credit union for more than 30 years: Harriet Langer; Ron Henningsen; and Anne P. DuCharme. *(Editor's note: If you are a long-time credit union member and proud of it, please call Cindy Kurtz at or send an with your name and phone number {please do not include account number} to ckurtz@postalcu.org to be included in future issues of Dollars & Sense.) 6 w w w. p o s t a l c u. o r g

6 Deposit Checks Without Leaving Home Depositing funds into your PCU account just got easier. PCU now offers Online Deposits through PC ACCE$$ Online Banking. This FREE service allows you to deposit checks online 24/7 and then mail them to PCU. Funds are immediately available up to a designated dollar amount (which will be provided when you enroll), so you can enjoy the convenience of having immediate access to your funds. Take it easy Whether you have a consumer or business account at PCU, Online Deposits can help you save time and money. You ll save on gas and have one less errand to run when you need to deposit checks. Start today If you already use PC ACCE$$ Online Banking, enrolling is easy sign into PC ACCE$$ and click Online Deposits. If you re not signed up for PC ACCE$$, call PCU at or to request a password be mailed to you. Find out if you qualify If you are not qualified for Online Deposits, you will be notified when you attempt to enroll online. You need an active PCU checking account to sign up for this service. Business members you must call PCU to find out if you qualify for Online Deposits. Call the Business Services department at or during normal business hours. Start saving time and money with this convenient service today! Call for Board Nominations Nominations for your credit union s Board of Directors are now being accepted. To be eligible you must: a. Own at least one full paid share b. Be at least 18 years of age c. Have not caused a previous loss to the credit union d. Are bondable e. Do not have a past criminal history causing doubt as to the safety or security of the credit union, its employees or assets. A background check will be conducted. Members who meet these criteria and wish to run for election to the board must submit their name in writing received by February 1, Mail to Postal Credit Union, 8499 Tamarack Road, Woodbury MN 55125, attn: Laurie Ludwig. Nominations are not allowed from the floor at the Annual Meeting. Please include a brief biography (150 words or less) and photo with your letter of nomination. All candidates running for the board will be featured in the spring 2009 issue of Dollars & Sense. Nominating Committee Laurie Ludwig, Chairperson Bill Wessinger Florence Jaeger Contact number: Board of Directors Expiring three year term: Daniel L. Blees Judy A. Schadewald Mary A. White The next Annual Meeting will be held Sunday, April 26, 2009 at the Prom Center in Oakdale. Watch for complete details in the spring issue of Dollars & Sense w w w. p o s t a l c u. o r g 3

7 Economic times are tough and making sure your business is set up to weather the financial storm is essential. Below are some helpful tips to keep your finances on track. Re-evaluate financial goals. Are they realistic and attainable? Develop goals based on financial history, changing market demands, and other businesses within the same field. Review your business plan for the coming year and make sure it s in line with current economic conditions. Remember the bottom line. It s easy to lose sight when times are good. Take a close look at expenses and maintain a weekly budget. Look for ways to cut costs without jeopardizing the quality of your products and services. Exceeding Your Small Business Needs Relief for Your Business Plan Reserve cash, your most valued asset. Make sure current investments are providing acceptable returns. Evaluate your investment plan and move money if necessary to minimize future losses. Re-examine debt. Can you refinance current debt at a lower interest rate? How long will it take to pay off current debts? Also, calculate the amount of new debt you plan to incur in 2009 and consider how it will affect the bottom line. Real answers from PCU Business Services. PCU has the tools to help you achieve your business s financial goals. We offer a variety of business deposit, loan, and investment products. To find out how PCU can help, call or BusinessServices@ postalcu.org today! Does PCU offer a credit card program with rewards? Yes! PCU recently launched a Visa Platinum Rewards credit card with a low variable rate, no hidden fees and an unmatched CURewards package. Plus, this card is loaded with other great money-saving perks like no annual fee, no fees on balance transfers and cash advances, and free online account management with PC ACE$$ Online Banking. Earn points on every dollar charged and redeem them for travel adventures and high-end merchandise. Visit to track and redeem your accumulated points or browse more than 500 merchandise and exotic travel options. $11,000 in Scholarship Money Available through the FIC The Minnesota Family Involvement Council (FIC) has $11,000 available in scholarship money for Minnesota credit union members who are continuing their education. The FIC is offering two $1,000 scholarships and eighteen $500 scholarships to 20 credit union members throughout Minnesota. Any individual attending a college or university, graduate or law school, 2- or 4-year program or community or technical college in the fall of 2009/spring 2010 is eligible. Those interested in applying need to complete a one-page application form and submit a typed essay (up to 500 words in length) answering the question, Financial education is a high school graduation requirement in several other states. Explain the pros and cons of Minnesota doing the same. Applicants are encouraged to research the topic using any sources available. Scholarship deadline is Monday, February 2, The 20 scholarship recipients will be selected and announced in the spring of For an application packet, visit any PCU branch or call or You can also apply online at scholarships.html. Enjoy the safety and security of Visa and an unbeatable rewards package. Apply 24/7 online at 4 w w w. p o s t a l c u. o r g

8 Refer Your Best Buds to PCU Is your Best Bud looking for a new financial partner? Like to earn some $$ for making the connection? Due to the success of the campaign, PCU will again reward loyal promoters with $25 for every qualified referral. Plus, once a quarter, the names of all referring and new members from the quarter will be placed in a drawing for fabulous prizes, including a big screen TV, laptop computer or other big ticket item. Winners will be chosen at random. How it works Become a PCU Promoter by referring your friends, family, neighbors and coworkers to the credit union. For each successful referral you make, we ll credit your Share Savings account $25 - it s that easy! There is no limit to the number of referrals you can make, and no cap on the rewards you can earn. It s our way of saying thanks for helping to spread the word about PCU. New members must open a checking account or have a combined loan, deposit or investment balance of $1,000 or more at account opening. New members 18 years of age and younger do not need to meet these requirements. Take advantage of this money-making offer by inviting your friends, family, coworkers, neighbors everyone you know to open an account at PCU today! See official rules for details. For more information, call or , or visit Official Rules 1. This Best Buds Member Referral promotion is sponsored by Postal Credit Union, 8499 Tamarack Road, Woodbury MN The promotion will run from January 1 through December 31, Members will receive $25 in their savings account for each referral that results in a new member. The people you refer must meet membership eligibility criteria. New member must open a checking account or have a combined loan, deposit or investment balance of $1,000 or more at account opening. There are no age requirements on referrals and no qualification requirements for those 18 years and younger. 3. Each quarter the names of referring members and all new members from that quarter will automatically be placed in a random drawing. One winner will be chosen at random to receive the prize selected for that period. Each quarterly drawing will be based on entries received for the preceding quarter. 4. All Postal Credit Union members, except employees, Board of Directors and Supervisory Committee members are eligible to win. 5. No purchase necessary. To enter without a referral or transaction, send a 3 x 5 postcard with your name, address, and phone number to Best Buds Member Referral Program, attn: Marketing, PCU, 8499 Tamarack Road, Woodbury MN All entries must be received by the end of each quarter. 7. Odds of winning depend on the number of entries received. Winners need not be present to win. Winners will be notified by mail or phone. Prize winners will be featured in credit union publicity and will be asked to complete a publicity release form. 8. Postal Credit Union reserves the right to disqualify entries that are incomplete or do not comply with official rules. Decisions are final and not subject to appeal. 9. This offer is void where prohibited and subject to federal, state and local laws and taxes. Applicable taxes are the responsibility of winners Postal Credit Union. All rights reserved w w w. p o s t a l c u. o r g 5