Travel Smart. Give Wisely this Holiday Season. Six Rules for Managing Credit Card Debt. Time is Money When it Comes to Car Shopping

Transcription

1 Money matters to people. People matter to us. MoneyMatters Travel Smart Banking while you re on the go Give Wisely this Holiday Season Ensure your hard-earned money goes where you want it to Six Rules for Managing Credit Card Debt Take back control of your cards Time is Money When it Comes to Car Shopping Find out why fall is a great time to buy

2 MoneyMatters Q On the Cover 4 Community Impact 5 Give Wisely this Holiday Season 6 8 Index Ask the Expert All Things Digital 7 Six Rules for Managing Credit Card Debt 10 Travel Smart 12 Time is Money When it Comes to Car Shopping Contact Center Security: Be Careful What You Click for Delaying Retirement Should I Consider a Trusteed IRA? Visions Needs You! Medicare Announcement Visions is now on Instagram! Interested in seeing more of what we do out in the community and as a whole? Follow us on Instagram by today! Money matters to people. People matter to us. 2 MoneyMatters Q4

3 Happy Holidays! From the staff, management, board, and volunteers of Visions. A Note from Ty As I started to draft this message, I found one word recurring in my mind: thankful. Defined as expressing gratitude; being appreciative the opportunity to be President and CEO of Visions Federal Credit Union provides me with this feeling day in and day out. A feeling of being thankful for the over 187,000 members we get to serve. In 2017, we reached a new milestone by surpassing $4 billion in assets. This growth has come from your support and willingness to continue investing in our cooperative. The thousands of referrals you make each year for our credit union have propelled Visions to new heights. With that said, we plan to continue investing in you by seeking numerous ways to add more value to your membership. On the deposit side, we introduced a new certificate promotion that provides automatic rate increases each year. We have also run several promotions on the lending side too, like our no closing cost mortgage special that saved our members thousands of dollars. Our goal is for members to see their membership as a benefit. Hopefully, as your trusted financial partner, we find ways to bring true value when examining your banking needs. One of the many goals we have is to make transactions simpler and more efficient. By leveraging technology, our mobile app allows you to deposit your checks remotely in the comfort of your home or provide you additional peace of mind by giving you the ability to turn off your card if you misplace it. We know your time is valuable, and we will continue to invest in areas that make your transactions easier and quicker. I truly appreciate the hundreds of letters and s sent applauding and complimenting our staff. The thousands of surveys we review annually on transactions ensure we continue to make providing excellent service a priority. In closing, I hope you enjoy the new format of our quarterly magazine. It is meant to be educational, informative, and something you can share. Thank you for being a member. Tyrone Muse President & CEO MoneyMatters Q4 3

4 COMMUNITY Impact Your partner, your neighbor. We are people helping people and we love to give back in any way we can! Whether it s donating funds to an organization in need, opening a new branch to bring great financial services to more families, or participating in a large community event - we want you to know that we care, and we re here for you! Natasha Futrell, SSR (right) with the Morris Plains Grand Re-Opening Prize Winner. Courtney Wallace (left) took home some Yankee Tickets! Eleven of our employees from Reading, PA and Binghamton, NY helped United Way make 500,000 prepackaged macaroni & cheese meals for the Greater Berks Food Bank. They assembled, measured, and packaged the meals with 1,000 other volunteers to feed families in need! Visions Night with the Reading Fightin Phils included free admission for 500 members! We handed out Visions novelties, helped with a live radio broadcast during the game, and sponsored a huge fireworks display to end the evening. Franklin Fry, Executive Director of the Greater Syracuse Division of the American Heart Association, awarded Visions the Gold Level Fit-Friendly Workplace Award because of the many health and wellness incentives and benefits provided to all employees! 4 MoneyMatters Q4

5 Give Wisely this Holiday Season If you re going to give, it makes sense to do it with purpose. Here are four steps to making sure your hard-earned money goes to a cause that reflects your values and will have the most impact. Research the organization asking you for money. One of the most important aspects of donating is making sure that your hard-earned dollars provide the greatest benefits. Websites like Charity Navigator and Charity Watch rate charities on criteria ranging from CEO salary, percentage of money directly benefiting those in need, and dollars raised per year to assign a grade to different organizations. With the right approach and a little research, you can be sure you re providing the impact you hope for. Think about why you re donating. The only reason you should donate to an organization is because you believe in its mission. If you re doing it because you feel pressured by your employer or have received a lot of sales pitches from the organization, remember that it s okay to opt out if you don t believe in their mission. Use your money for an organization that shares your values and you ll find the result far more rewarding. Consider donating your time. It s a given that organizations need money to function, but they also need volunteers. Sure, some non-profits don t receive all the money they hope for, but in many cases they also require help from volunteers to keep their operations running smoothly. Donating your time allows you to not only provide a cash-free donation, but it also enables you to meet new people and directly see the fruits of your labor. Give from the heart. If you decide you re ready to donate your money, be proud of your decision. Don t fall prey to overbearing marketing campaigns, guilt tactics, or promises of tax benefits. Give what feels right, as giving from the heart will make the most impact for both the organization and you. Calling all New Jersey members! We want to ensure that our neighbors in need are always taken care of. For the entire month of January 2018 we ll be collecting non-perishable food items to donate to the Center for Food Action, serving Bergen and Passaic Counties, and Interfaith Food Pantry, serving Morris County! Help us make a big impact by dropping off items to any of the following Visions offices in January: Augusta Dumont Englewood Cliffs Hackettstown Mahwah Morris Plains Oakland Randolph Saddle Brook Washington Township Westwood MoneyMatters Q4 5

6 Ask the Expert Answers to your financial questions from our very own professionals! Question: I want to get rid of some credit cards I don t use anymore but I m worried that it will lower my credit score. Is it true that closing a card will lower my score, and is there any way to avoid a penalty for it? Finances got you stumped? Need an expert opinion? We re here to help! Albert P. Haskell, NJ Submit a question by: AskTheExpert@visionsfcu.org Mail: Visions Federal Credit Union ATTN: Ask the Expert 24 McKinley Ave, Endicott, NY Online: visionsfcu.org/asktheexpert Answer: It s true that a large portion of your credit score is comprised of your capacity and, more importantly, your utilization ratio (your balances relative to your credit limits). The impact of closing inactive cards is determined by a number of factors. For example, if you have several cards that are maxed out then your utilization ratio is negatively impacted, which can lower your score. It s important to remember, however, that your utilization ratio factors all of your revolving debt and limits. Let s explore two scenarios. 1. You have multiple credit cards and all of them are near their limits. 2. You have multiple cards, with some at their limits but others reporting no balance. Scenario 1 would likely lead to a lower score as all of your capacity is used. On the other hand, scenario 2 would likely result in a higher relative score as the cards with no balances provide a cushion in relation to those with higher balances. After all, it s the ratio that s important here. Without knowing your specific circumstances, it s worth asking yourself whether closing these inactive cards would have a huge impact to your overall utilization ratio. If you generally keep your balances low on your active cards, then closing one or two inactive cards may not have a longstanding impact on your score. If, however, you find that your existing cards have higher balances, then it may be worth hanging on to them to provide you a cushion. It s important to review your total credit situation in addition to potential fees before closing any accounts. There is no way to avoid a slight credit penalty for closing an account, but the level of that impact is largely determined by your unique credit circumstances. Expert: Chris Alfarano VP / Chief Lending Officer Question: Answer: My family is having trouble making ends meet. Do you know of any debt reduction programs or credit counseling services? Sometimes financial issues can t be solved with simple loan refinances. Visions partners with the Balance organization which is focused on debt management. Their representatives are trained to perform a thorough review of your debt load and provide financial counseling services. Balance representatives specialize in areas ranging from student loans, housing, credit report reviews, and more. Caring Family Member Brackney, PA If you re experiencing financial troubles and would like to explore other options, please reach out to Balance. Alternately, be sure to only utilize nationally accredited organizations and be aware of any fees associated with these programs and services. Expert: 6 MoneyMatters Q4 Toll-free or visionsfcu.balancepro.org

7 Six Rules for Managing Credit Card Debt Credit cards make life easy, but high interest rates and hidden fees can add up quickly. Consider the following if you re getting more headaches from your cards than you are convenience. 1. Take inventory. How many credit cards do you have in your wallet? What are the balances and minimum monthly payments? If it s more than you thought or can afford then it s time to pare down. 2. Check the cost. Do you know the interest rates or annual fees for your cards? What about grace periods for late payments? Some cards carry cash advance fees, and if you find yourself carrying a balance you re probably paying a premium for it. 3. Apply for a low-fee or lower-interest credit card. A Visa Platinum from Visions offers low interest rates without annual or cash advance fees. Plus, you get the benefits of rewards, convenient payment options, and local service, too. You can even transfer existing debt from your various credit cards to your new, lower-interest credit card. We re here to help you spend wisely with the right type of card(s). 4. Make the largest monthly payment you can afford. Even if you can t pay your full balance, making the minimum payment may do little more than just cover the accrued interest. Consider putting a few extra dollars on your payment to whittle down the principal faster. 5. Watch out for teaser rates. Your mailbox may be full of offers that promise low interest rates, but if you read the fine print you might see that the issuer doubles the rate in six months or so. That can lead to a big expense if you can t pay off your balance before the rate increases. 6. Don t get in over your head. If the payments seem too high, remember that you may qualify for a convenient, cost-saving consolidation loan. Combining your credit card balances into a lower-interest plan can result in a fixed payment where more of your money goes to the actual debt rather than the interest. MoneyMatters Q4 7

8 ALL THINGS DIGITAL MOBILE APP LOANS JUST GOT EASIER If you re like us, it seems like you re always on the move. Rather than scheduling time away from your busy day, try a mobile loan application available securely and conveniently through your free Visions mobile app. From credit cards to auto loans and personal loans to home equities, our mobile application lets you apply and close on your schedule anytime, anywhere. Ready to apply? Simply log in to the app, access the main menu, and select Apply for a Loan! MOBILE BIOMETRIC ACCESS The Visions mobile app isn t just convenient, it s also the most secure way to bank with Touch ID and Eyeprint ID. Instead of forgetting your username and password, try safely and securely logging in using your fingerprint or eye scan, instead! The login is as secure as a 50-character complex password, but that doesn t mean it s tough to get started. Set up is quick and easy, so try biometric access on your free Visions mobile app today. For more details and a list of compatible devices, check out visionsfcu.org/e-services/biometrics 8 MoneyMatters Q4

9 Do More with Mobile Card Controls and You You already know that the Visions mobile app provides convenient, secure access to your account when you re on the go, but did you also know about our great Card Controls? Card Controls let you manage your debit and credit cards right through your app, giving you convenience and peace of mind whether you re out of town or just outside normal business hours. Select the Card Controls option from the main menu and check out some of these great benefits! Playing lost and found with your card? Let s say you temporarily misplaced your card but you don t want to block it and order a new one yet. Card Controls let you temporarily disable the card of your choice, then re-enable it when you ve found it. Just highlight the card and flip the Active tab, then flip it back when you need to. Remember that this does not notify us that you might have misplaced the card, so you re still in control if and when you find it. Card really missing? Protect yourself and your account by simply marking the card lost and selecting that you want to reorder it. The request automatically blocks your selected card and sends an to Visions. The best part? That s it it s that easy! Your new card should arrive within 5-7 business days. Has your card seen better days? A little wear and tear is normal for cards, but if you see that yours has really gotten worn down, just select that you want to order a replacement. You can still use your current card until you receive the new one in the mail and activate it. Going out of town? Don t forget that you can schedule travel notices using the Card Controls feature, too! As we discuss on page 10, scheduling a travel notice lets you put in dates and locations, allowing you to focus on the fun parts of travel. Want to save time and paper? Switch to estatements! estatements deliver your monthly account details - including credit card information - right to your Visions account. No more losing your monthly paper records - or finding a place to store them. Plus, no more mail delays. And, it s free! How simple is that? Log in to your VisionLine account, and select the Services button at the top of the screen. Click Continue to the right of estatement Enrollment and follow the on-screen instructions. MoneyMatters Q4 9

10 Travel Smart Your life is fast-paced and you need your banking to keep up with you. Whether you re a snowbird heading south for the colder months or just traveling to visit family for a weekend, Visions makes it easy to keep track of your accounts. The following are a few quick tips to keep your finances stress-free while you re out and about. Keep your address current. Ensuring you get your account statements helps you to stay up-to-date and secure, and we ve made it easy for you. You can stop in to your local office or even set up a temporary address right through VisionLine it s as simple as selecting when you re leaving and planning to head back. Best of all: we can save the address for you if you travel regularly, making changing your address as easy as picking up the phone. Go mobile. With the free mobile app from Visions, you can check your balances, transfer money, make payments, and even deposit a check just by taking a picture. Download this secure and convenient benefit from the App Store or Google Play Store today. Keep your cards working. Your protection is important to us, which is why we have 24/7 monitoring available to make sure that your cards aren t being used when they re not with you. To make sure they keep working while you re traveling, just give us a call or use the Card Controls feature on our free mobile app. You can set your dates of travel and which cards you ll be using, letting you focus on the fun part of traveling. Sharing is caring. One of the many benefits of being part of a cooperative means that you don t have to sacrifice convenience for fees when using non-visions ATMs. Search for our Co-Op Shared Service Centers using our free mobile app or at co-opcreditunions.org. With hundreds of locations available nationwide, you ll find it easy to enjoy your membership both at home and abroad. Add Holidays into Your Budget Stores plan ahead by putting holiday decorations up as early as October, and you can plan ahead for the season with some smart budgeting, too. Visions offers a dividend-earning Holiday Club account that helps you budget for the cooler months and transfers it directly to your savings on November 1st. Put your savings on autopilot by allocating some of your paycheck automatically into it so you don t have to worry about breaking the bank during the shopping season. Still need some extra cash? Keep your eyes peeled November 1st for a Holiday Loan Special! 10 MoneyMatters Q4 Online Defensive Driving For New York and New Jersey Members Are you looking to lower your premium or reduce points on your license? Visit visionsfcu.org and click on Online Defensive Driving under the Online & Mobile tab - or click on Defensive Driving in our mobile app menu! Reduced cost to members - only $29! Administered through American Safety Council Insurance discount up to 10% Reduces points on your license Take the 6-hour course online, 24/7, over a period of 30 days No test English or Spanish Free certificate and electronic reporting to DMV

11 Calling in? The Contact Center is here! I am pleased to announce the introduction of our state-of-the-art Contact Center! Many of our members are familiar with what used to be Tel-A-Branch, the Call Center, or maybe even just That number. The new Contact Center is now a one-stop location for our members financial needs all without having to leave their home. We wanted to ensure you get the best experience possible, which is why we ve made a number of exciting enhancements designed with you in mind. Our 45 universal employees are now trained to handle all telephone transactions that come across the line, resulting in shorter hold times and a reduction in the number of people you need to speak with to complete your request. Additionally, we took your feedback and combined it with new software to improve numerous functionalities. First and foremost, we simplified our phone menu options. This means you no longer need to listen to prompt after prompt when selecting your reason for calling. Better yet, we ve added the benefit of return-call functionality if you re on hold for more than a minute. Rather than wait, you can request to receive a call back at the number you re calling from no more sacrificing your time waiting on hold for fear of losing your place in the queue. Looking ahead, we plan to introduce new communication channels like messaging and video chat via our online and mobile applications. Whether it s already in place or planned for the upcoming months, we want you to know that we listened to you and are working to make your telephone experience more welcoming and efficient. I invite you to call with your financial needs and let our Contact Center handle your request in a professional, timely manner. We ve worked to merge technology and member service to produce an optimal, streamlined experience. Our goal has always been to be our members financial partner for life, and now we ve made it easier. Give us a call at ! Charles McKinney, Jr. Contact Center Manager Same Day ACH (and You) ACH? What s that? If you re like most, you re probably more familiar with the benefits of Automated Clearing House (ACH) than you are with the name or process itself. ACH is an electronic financial transaction network separate from other payment methods like debit cards. Allowing both credits and debits, ACH lets you do things like receive direct deposit electronically or pay your utility bill online through your checking account. Traditional ACH transactions are typically processed within a day or two, but a recent enhancement called Same Day ACH may soon impact you. Although not instantaneous, Same Day ACH allows credits or debits to hit your account the same day that they are initiated, rather than the traditional window of one to three business days. Visions enabled Same Day ACH crediting for deposits last year, and now withdrawals are possible under this new process, too. So, what does that mean for me? Let s say you go online to your utility company s website to pay your bill. If the company utilizes Same Day ACH processing, it s entirely possible that those funds could be removed from your account the same day (note that ACH transactions are still only processed on Federal Reserve business days). Whether or not Same Day ACH impacts you is entirely dependent on the company issuing the request Visions just enables this process for compliance purposes. If you continue to use your account as you always have such as not authorizing withdrawals without available funds then this new process should have a minimal impact on you. You ll still enjoy the benefits of ACH, but now it might come a little quicker. MoneyMatters Q4 11

12 Time is Money When it Comes to Car Shopping Timing is everything, and this is especially true when it comes to getting behind the wheel of a new vehicle. If you ve been thinking about buying a new car but want to save yourself some cash, consider the fall months as one of the better shopping seasons. As auto manufacturers get ready for their annual new-model introduction, you ll start seeing 2018 vehicles roll onto your local dealer s lot and the prices greatly reduced on current and prior model years. Hitting the dealership as they re rotating out their stock can result in huge savings benefits, but the flip side is that you may be more limited in your choice of exact color and options. It s best if you go in with a plan and realistic expectations, and the tips below should help you get in the seat with confidence Get educated Websites like Kelley Blue Book and Edmunds.com allow you to compare prices and values of vehicles with the manufacturer s suggested retail price (MSRP). These invoices will show you what typical consumers in your region have actually paid, so make sure you re negotiating with those values in mind rather than the MSRP. If you want the best deal, don t buy brand new Sure, that new car smell is nice, but used cars come with that, too. Vehicles depreciate quickly once they re off the lot and buying a year or two out means the rate of depreciation has likely slowed down. Did we mention timing? We already established that the model year s end will likely get you the best deals, but also consider the month s end. Dealerships and individual salespeople may have monthly quotas to meet and shopping at the end of the month might make them more willing to negotiate. Bring your own financing A pre-approval helps you to set a realistic price, estimate your monthly payments, and gives you a better bargaining tool. Plus, financing with Visions will likely net you a lower rate saving you even more. Pre-approvals can be applied for at your local office, online, or even through our mobile app giving you convenient options that work on your schedule. Finally, don t forget value-adding loan options like our Guaranteed Asset Protection (GAP) and Mechanical Breakdown Protection (MBP) that can give you that extra peace of mind for life s uncertainties. Purchasing a vehicle is an investment, but with the right knowledge and timing you ll find it rewarding. For more information, visit visionsfcu.org/loans/auto today! 12 MoneyMatters Q4

13 SECURITY ONLINE SAFETY: BE CAREFUL WHAT YOU CLICK FOR The Internet is a great tool, letting us share information instantly with the click of a mouse. Unfortunately, information isn t the only thing that can be shared online, so watch out for these web-based warning signs. COMMON VIRUS SCAMS: Pop-ups are annoying, but they can also be a portal for intrusive malware to infect your computer. Be wary of messages stating your computer has a virus. These messages will prompt you to input your credit card information and pay a fee to fix the problem, all while potentially adding more malware to your device. If you re concerned, contact a local, reputable computer repair shop for a check-up. WORK FROM HOME SCAMS: Be aware that you should never have to pay for your employment a common strategy used by scammers on those looking for jobs at home. If your online employer requires you to send and receive funds to your account then you re likely in trouble. Watch out for additional warning signs like poor grammar and spelling from a prospective employer. There are a number of websites available to determine a job s legitimacy, so make sure you do the proper research before committing. ROMANCE SCAMS: Maybe that person you met online seems too good to be true. Whether they profess their love in a short time, work in a foreign country, or if they re having trouble cashing a check and ask for your help with it, then you might be involved in a romance scam. Warning signs might take a while to realize, but if you re being asked to conduct any financial activity especially loaning money think twice before doing it. SOCIAL MEDIA SCAMS: Offers for free money with no responsibility are just plain false. In addition to pop-up offers, look out for embedded links. Inspect a link before you click by hovering your mouse over it to display the URL. Finally, beware of anyone looking to use your bank or credit union account. By providing any of your information including online banking access, debit card information, and more you become responsible for any activity they perform through your account. MoneyMatters Q4 13

14 Delaying Retirement May Provide the Financial Boost You Need Many people welcome the opportunity to extend an enjoyable career, maintain professional contacts, and continue to learn new skills. Whether you look forward to staying active in your later years or simply need the income, delaying retirement has many perks worth considering. Americans are living longer, healthier lives, and this trend is affecting how they think about and plan for retirement. For instance, according to the Employee Benefit Research Institute, the age at which workers expect to retire has been rising slowly over the past couple of decades. In 1991, just 11% of workers expected to retire after age 65. Fast forward to 2014, and that percentage has tripled to 33% -- and 10% don t plan to retire at all. 1 Working later in life can offer a number of advantages. Many people welcome the opportunity to extend an enjoyable career, maintain professional contacts, and continue to learn new skills. A Financial Boost In addition to personal rewards, the financial benefits can go a long way toward helping you live in comfort during your later years. For starters, staying on the job provides the opportunity to continue contributing to your employer-sponsored retirement plan. And if your employer allows you to make catch-up contributions, just a few extra years of saving through your workplace plan could give your retirement nest egg a considerable boost, as the table below indicates. A Few Extra Years Could Add Up Year Maximum Annual Catch-Up Total Annual Contribution Contribution for Contributions Workers Age 50 and Older 2015 $18,000 $6,000 $24, Indexed to Indexed to 2020 inflation inflation $??,??? Delaying Distributions In addition to enabling you to continue making contributions to your employer s plan, delaying retirement may allow you to put off taking distributions until you do hang up your hat. Typically, required minimum distributions (RMDs) are mandated when you reach age 70½, but your employer may permit you to delay withdrawals if you work past that age. Keep in mind that if you have a traditional IRA, you are required to begin RMDs by age 70½, while a Roth IRA has no distribution requirements during the account holder s lifetime -- a feature that can prove very attractive to individuals who want to keep their IRA intact for a few added years of tax-deferred investment growth or for those who intend to pass the Roth IRA on to beneficiaries. A Look at Social Security Your retirement age also has a significant bearing on your Social Security benefit. Although most individuals are eligible for Social Security at age 62, taking benefits at this age permanently reduces your payout by 20% to 30% or more. Waiting until your full retirement age -- between 66 and would allow you to claim your full unreduced benefit. And for each year past your full retirement age you wait to claim benefits, you earn a delayed retirement credit worth 8% annually up until age Consider researching your options to continue working past the traditional retirement age. By remaining on the job, your later years may be more secure financially and more rewarding personally. 1 Employee Benefit Research Institute, 2014 Retirement Confidence Survey, March 18, Social Security Administration. The benefit increase no longer applies when you reach age 70, even if you continue to delay taking benefits. Because of the possibility of human or mechanical error by Wealth Management Systems Inc. or its sources, neither Wealth Management Systems Inc. nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall Wealth Management Systems Inc. be liable for any indirect, special or consequential damages in connection with subscriber s or others use of the content DST Systems, Inc. Reproduction in whole or in part prohibited, except by permission. All rights reserved. Not responsible for any errors or omissions. 14 MoneyMatters Q4 #

15 Welcome Jeffrey G. Thatcher, CFP Jeff Thatcher joined Visions Federal Credit Union as the Managing Director of Visions Investment Services with the purpose of building a leading full-service relationship based financial planning division for all members to help provide them with financial strategies for important life and financial milestones. Prior to joining Visions FCU, Jeff spent the last 13 years managing the Financial Services department for Hudson Valley Federal Credit Union. During his tenure at Hudson Valley Federal Credit Union Jeff built and managed one of the top Financial Services programs nationwide, and in 2014 was named one of the top 50 program managers nationally by Bank Investment Consultant magazine*. Jeff has the distinction of being a registered Financial Representative for more than 25 years. His extensive background in finance and a high quality of member service provides him with a comprehensive foundation that will benefit the members of Visions FCU. Jeff has earned the designation of CERTIFIED FINANCIAL PLANNER, which required completing a rigorous 2-year course and passing the national exam. CFP professionals must meet the Financial Planners Standards Council standards in education, experience, examination and ethics. CFP professionals must also have 30 hours of continuing education every year and agree to abide by the CFP Code of Ethics to renew their right to use the credential annually. Jeff is married with two children and two Labrador dogs named Buddy and Lucky. He is an active member in the community and currently volunteers and is a board member for two organizations. *Ranked by Bank Investment Consultant magazine on several criteria, including percentage growth in team assets, percentage growth in team production, production per advisor, number of advisors and number of licensed branch employees. # Meet the new Financial Consultants serving the New Jersey Region! Miguel Pereira ext Office: Saddle Brook By appointment: Dumont, Englewood Cliffs, Mahwah, Oakland, Westwood You trust Visions with your banking, now make more of your money. Schedule a free consultation at visionsfcu.org/milestones or call , ext David Vigilante ext Office: Randolph By appointment: Augusta, Hackettstown, Morris Plains, Washington Township Not NCUA Insured Not Credit Union Guaranteed May Lose Value Not Insured by Any Federal Government Agency Not a Credit Union Deposit Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Visions Federal Credit Union and Visions Investment Services are not registered broker-dealers and are not affiliated with LPL Financial. MoneyMatters Q4 15

16 Should I Consider a Trusteed IRA? In most cases, an IRA owner names one or more beneficiaries to receive the balance of their IRA upon death. The question for the beneficiary then becomes: what do I do with the money now? Whether the goal is to have a source of income or to take advantage of the tax benefits of an inherited IRA, it is normally to the advantage of the beneficiary to keep the funds in an inherited IRA. This, however, isn t the only option. Once they receive the funds, a beneficiary does not have to keep the IRA and can withdraw all or part of the funds at any time. The original beneficiary can also name a new beneficiary to receive the balance of this inherited IRA upon their death, meaning the original owner of the IRA no longer has a say as to where the remainder of the funds from the inherited IRA may ultimately go. If these are not the goals you had in mind for your IRA, a trusteed IRA can provide you with a single account that combines the tax benefits of an IRA with the security of a trust. Consider the following planning opportunities with a trusteed IRA: Spendthrift protection for beneficiaries. To keep things simple, let s look at John and his IRA for an example. With a trusteed IRA, John can restrict payments to his beneficiaries so they cannot demand a withdrawal of all the funds or close the IRA. The trustee can be provided with the discretion to pay out more than the required minimum distribution (RMD) for their health, maintenance, and support. Further, John can also elect to terminate any restrictions upon his beneficiaries once they reach a certain age. The blended family. Family situations can change, so let s consider a few more scenarios with John and his IRA. Maybe John is in a second marriage and has kids from his first marriage, or maybe John s wife remarries after he dies. A trusteed IRA allows John to control who the remainder beneficiaries will be for any funds remaining after his wife s death. If John is in a second marriage, his new wife can t change the remainder beneficiaries to her children from a prior marriage. Finally, if John s widow should remarry, she can t name her new spouse as the beneficiary of any remaining funds. Lifetime benefits. Sometimes life throws you a curve ball, so let s revisit our friend John and his IRA for our final example. If John becomes incapacitated during his lifetime, his trusteed IRA allows his trustee to continue to administer and invest the funds for him in his IRA. Further, distributions can be made for John s benefit, including routine bill payments if needed. Plus, John also has the benefit of working with a professional corporate trustee to assist with the management of his IRA. If you have $100,000 or more in an IRA and are interested in learning about a trusteed IRA account with the Trust Department at Visions, please contact: Sharon Burghardt CTFA, Trust Officer , ext Linda Hamlin JD, AVP, & Senior Trust Officer , ext MoneyMatters Q4

17 VISIONS NEEDS You! Visions is looking for qualified members to serve on various volunteer committees - including our Board of Directors. As a volunteer, you can help shape the future of your credit union while using your skills to contribute to its mission. Any member age 21 or older, with the exception of credit union employees and their immediate families, is eligible. A background in finance or the financial services industry would be helpful, but is not required. All inquiries are held in strict confidence. Applicants are subject to a credit check. For complete details, contact Edward Butler at , ext , or complete a volunteer application (available on our website or at any branch) and drop it off at any branch to his attention. Visions has an exciting history built on the efforts of volunteers, strong leaders, and dynamic staff. With your continued involvement, we look forward to many more successful years of serving you and your fellow members. POLITICAL ADVOCACY As a member-owner, it s important to stay informed about the topics we advocate for at our nation s capital and in the New York, New Jersey, and Pennsylvania state legislature. Banking laws and regulations have a direct, significant impact on credit unions, in turn affecting our members. Visions partners with credit unions and our national association to build support for pro-credit union legislation and to reduce unnecessary regulatory burdens. Our overall focus is on four key issues: preserving the credit union tax status, merchant data breaches, member business lending, and regulatory relief. This summer, Visions staff visited with our state legislators to discuss legislation and regulatory issues that are key to our members. For credit unions in New York, legislative priorities focus on four main legislative issues: the inclusion of credit unions in the state Banking Development Districts Program, increasing penalties for robberies committed with a demand note, allowing credit unions to accept municipal deposits, and the creation of a state funds deposit program. In Pennsylvania, legislators are working on passing a bill in the Senate that would permit financial institutions to conduct savings promotion raffles. A similar bill has already been passed in New Jersey and in New York. Visions members in New York can currently take advantage of the Prize Linked Savings program more commonly known as the Lucky Savers Program (visit visionsfcu.org/luckysavers for full details). In New Jersey, we are advocating for a motor vehicle electronic lien and titling system (ELT) to replace traditional paper liens and titles. ELT significantly reduces paperwork, opportunities for fraud, and costs for both lienholders (lenders) and for the state. Pennsylvania, New York, and a growing number of other states already have ELT systems in place. New Jersey s Motor Vehicle Commission has intended to implement ELT, but that project has been delayed due to competing demands on the Commission. While New Jersey s Motor Vehicle Commission has adopted regulations allowing it to create an ELT system, as far as we are aware it is not yet actively working on developing one. In September, your advocacy team visited our representatives in Washington, DC to promote our members legislative interests. Watch for updates regarding advocacy at visionsfcu.org/advocacy. MoneyMatters Q4 17

18 NEED TO Know SAVE THE DATE Special Events Medicare Announcement We are pleased to announce that Visions is now able to provide Medicare Advantage and other Medicare plans to our members! Visit visionsfcu.org/medicare to learn about educational seminars, plan options, and how you can schedule an appointment. Or, give us a call at Holiday Club Fund Reminder As mentioned on page 10, funds from your Holiday Club account will be disbursed on November 1. The money will be automatically deposited into your primary savings or elected share account. Interested in opening a Holiday Club? Stop into any Visions office or learn more at visionsfcu.org! 18 MoneyMatters Q4 Update Information Always make sure your critical account information including home and cell phone number, mailing address, and address are up to date. We don t want you to miss out on important updates, reminders, or account changes! Howloween at the Zoo Saturday, October 7 Sunday, October 8 Saturday, October 14 Sunday, October 15 10:00 a.m. - 4:00 p.m. The Zoo at Ross Park 60 Morgan Rd Binghamton, NY Stop by any Visions office to pick up FREE tickets. Endicott Shred Event - FREE! Saturday, October 14 9:00 a.m. - noon Huron Parking Lot #22 Endicott, NY Norwich Shred Event - FREE! Saturday, October 21 9:00 a.m. - noon 5411 Route 12 (Near Lowe s) Norwich, NY Paying For College: The Financial Aid Process Seminar Thursday, November 2 6:00 p.m. - 8:00 p.m. SUNY Broome 907 Front St Binghamton, NY Decker Building Room 201 Please call , ext to RSVP. Steeler Fellowship Club Kiddies Christmas Party Saturday, December 2 10 a.m. - noon Scottish Rite Cathedral 310 S. 7th Avenue. Reading, PA Donations of unwrapped toys are being accepted at the party. All Carpenter Employees and Retirees are invited to bring their children and grandchildren 12 & under. Evening with Santa Friday, December 8 6:00 p.m. - 8:00 p.m Sussex Turnpike Randolph, NJ Christmas in the Park Sunday, December 10 2:00 p.m. - 6:00 p.m. Highland Park 801 Hooper Rd Endwell, NY Visit our website and click Events for a current list of upcoming seminars and activities. All loan types referenced in this publication are subject to Visions Federal Credit Union s standardized policies including, but not limited to, lending, membership, and creditworthiness. Please contact a credit union representative for more information regarding application requests.

19 OFFICE CLOSINGS Mark Your Calendars Oct. 9 Columbus Day Monday All Offices Closed Nov. 11 Veterans Day Saturday All Offices Closed Nov. 23 Thanksgiving Day Thursday All Offices Closed Dec. 25 Christmas Day Monday All Offices Closed Audit Verification Notice As part of our annual Supervisory Committee audit, randomly selected members will receive letters requesting they confirm a loan or share balance with Visions. These letters will be sent in October and will be signed by our Chief Audit Executive, Betty McQuay. Responses are to be sent to our CPA firm, Clifton LarsonAllen LLP, 1966 Greenspring Drive, Suite 300, Timonium, Maryland If you receive a confirmation letter, please respond as quickly as possible. Privacy Notice Federal law requires us to tell you how we collect, share, and protect your personal information. Our policy has not changed. You may review our Privacy Policy at visionsfcu.org/privacy or call Prefer a digital copy? All member households will receive a mailed copy of MoneyMatters at the beginning of each quarter. If your household prefers to read this financial magazine online, please complete the unsubscribe form at visionsfcu.org/moneymatters or call our Contact Center at DIRECTORY President & CEO Tyrone E. Muse Executive Vice President Edward J. Butler Senior Vice Presidents Kenneth M. Burt, CFO Tracey E. Wheeler, CMEO Vice Presidents Christopher Alfarano, VP Lisa Darling, VP Cynthia A. Schroeder, VP Steve Wayman, VP James L. Wyatt, VP Mark Bowman, AVP Mandy L. DeHate, AVP Christopher Gomez, AVP Linda L. Hamlin, AVP Betty McQuay Chief Audit Executive Jenna Rosenberg, AVP Rebecca Trick, AVP Sherri L. Westcott, AVP Board of Directors George S. Bobinski, Jr., Chairman Alan G. Hertel, Vice Chairman Scott M. Hotalen, Treasurer Kenneth H. Kidder III, Secretary Steven P. Hill Joan S. Lacey Christopher H. Marion R. Mark Patterson Kelly A. Roche Jose Moreira, Associate Director Laurie Schorno, Associate Director Supervisory Committee Douglas J. Camin, Chairman Frederick K. Getz, Vice Chairman Denise B. Stoughton, Secretary Mary Robinson Mark A. Wasser Brian J. Eldridge, Alternate Thomas E. Knight, Alternate Federally insured by NCUA. MoneyMatters Q4 19

20 24 McKinley Ave Endicott, NY We love the educators in our communities for all the passion they put into their jobs. We also understand that most put a lot of their own money into the classroom. In fact, it s estimated that educators pay an average of about $450 out-of-pocket for items not covered by the school budget. That s why we created the Visions Loves Educators Classroom Program. Visions will award full funding to projects submitted by educators at the elementary, middle, and high school levels. Classroom Program Simply tell us about an educational activity not covered by your school s budget and explain what makes your class deserving. Several worthy projects will be selected and Visions will fund them in full. Our educators give so much to their kids and our community. This is just one small way we can give back to them. Visit VisionsLovesEducators.com to submit your project now! Looking for a College Scholarship opportunity? We d like to help! Online applications are available December 1 - March 31. Apply online at aim.applyists.net/visions Visions membership required. Due to the large amount of applicants, formal notification will be sent only to scholarship winners during mid-late April.