January-March 2007
IN THIS ISSUE
Message from Dan
•
How to give your debts a
financial check-up
•
Paying off high-rate
credit cards pays off
•
…and more!
CONTACT US
(AZ) 480.441.5900
(TX) 512.996.4000
Toll-free 800.528.1441
truwest.org
HOLIDAY
CLOSURES
January 1
New Year’s Day
January 15
Martin Luther King Day
February 19
President’s Day
It’s a new year, a new set
of resolutions and a new plan
for getting your finances in
order. Whether you’re struggling
to choose the right savings
account, or you're worried
about having too much debt,
TruWest can help you develop a
plan that fits the "bill".
This issue of On The Money
will help you get started down
the right path, but TruWest
encourages you to call today to
set up a no-obligation meeting
with an experienced and trusted
representative who can help
explain all your options for
getting your ducks in a row for
2007 and in the future.
You’re also invited to attend a
free Personal Financial Basics
seminar! Visit truwest.org for
dates, times and other details.
A message from
The President/CEO
Dan Desmond,
President/CEO
It has been another great year for TruWest, and I
am excited about what 2007 holds. The New Year
will bring new benefits to our Visa credit card
holders, a focus on helping members get their
finances in order and a continued dedication to
helping members, employees and our communities
experience the TruDifference.
Information Security is a Priority
In a time when technology is integrated into many
areas of our lives, I want to remind you that
TruWest maintains the highest standards for the
protection of your personal information and utilizes
the latest technology and methods to protect our
members’ information. Please remember that
TruWest will never ask for verification of a card
number or ATM PIN code upon login for Data Link,
our Home Banking product, and you can visit
truwest.org to learn how you can help further
protect your information online.
Time for a Financial Check-up?
Many New Year’s resolutions include getting
finances in order. That’s why I’m inviting you to get
your “ducks in a row” by contacting us to review
your options. Whether you have savings and
investment needs, or you’re looking to consolidate
some debt – TruWest has an answer for you.
TruDifference Means True Rates
Part of the TruDifference is great rates. Everyone
says they have great rates, so what makes TruWest
different? While other companies may have
special promotional rates, which often include
hidden fees, TruWest prices loan and deposit
rates to be consistently great – with and without
special promotions. Plus, we’re not out to nickel
and dime our members with hidden fees and
other gotchas. The TruDifference was created to
help make a difference in our members’ lives, and
we are dedicated to helping each of you
experience it. Be sure to check out our rates by
visiting truwest.org today.
A New Visa Operating Platform
To ensure we are providing the best service
possible, we are enhancing our Visa credit card
operating platform. This means you will now be
able to receive 24/7 customer service for your
TruWest Visa card. No matter what time it is, you
will be able to call our VIP Customer Service line
to resolve any billing questions, apply for an
emergency credit line increase, and address
other account inquiries. Later this year, you will
also have the ability to choose from a selection of
payment dates so you can be sure your payment
is due at a convenient time for you. You will be
hearing more about what this new platform has to
offer, so stay tuned!
I hope you had a wonderful holiday season and I
wish you a prosperous and happy New Year!
Stop searching for great
Part of the TruDifference is consistently offering great rates on our loan and
deposit products. Check these out! (Rates current as of December 11, 2006 and
are subject to change.)
Dividend Rates
rates!
Loan Rates
Investment Certificates
(based on $20,000 deposit)
APY*
6 & 12 month
5.00%
Minimum Balance
APY*
12 month
5.00%
$0 - $9,999
1.00%
24 month
5.05%
5.10%
$10,000 - $24,999
3.75%
36 & 60 month
Mortgages
$25,000 - $49,999
4.00%
Fixed rates as low as 5.744% APR††
Adjustable rates as low as 6.935% APR††
$50,000 - $99,999
4.25%
$100,000 – and over
4.50%
TruWest offers additional tiers, as well as
higher yielding IRA Investment Certificates.
Money Market Maximizer
APY*
(A minimum initial deposit of $1,000 is required.)
$0 - $9,999
1.10%
$10,000 - $24,999
1.50%
$25,000 - $49,999
1.80%
$0 - $4,999
1.00%
$50,000 - $99,999
1.90%
$5,000 - and over
1.25%
$100,000 – and over
2.00%
(A minimum of $5,000 initial deposit is required.)
As low as 6.74% APR** Intro†,
7.74% APR thereafter
For more rates or to apply for any of these
Money Market Checking
Minimum Balance
Home Equity Line of Credit
products, visit truwest.org or call (AZ)
480.441.5900, (TX) 512.996.4000 or toll-free
800.528.1441.
Share Savings
APY*
* APY’s are based on monthly compounding. Call 480.441.5900
or 800.528.1441 for applicable fees and terms.
** OAC. APR is a variable rate based on the highest prime rate
as published in the Wall Street Journal and may increase
after the loan is booked. Life cap of loan is 18%.
† 6 month intro rate available for a maximum of 80% Loan to
Value, minimum loan $20,000.
†† OAC.
(A minimum $25 balance in Share Savings
is required to be eligible for other services.)
What would you do with 1 million ScoreCard Reward points?
This is the question TruWest asked members and the responses
came pouring in! The feedback was much appreciated. Here are
a few ideas that your fellow members came up with.
I would take myself, my spouse and my six children and fly us all
to Indiana to see my brother and his boys, who we haven't seen
in years. Each of my children would be content on the flight with
their new MP3 players courtesy of the ScoreCard reward points.
— Submitted by Trevor Hansen (Mesa, AZ)
I would buy my six grand babies gifts.
— Submitted by Tari Fitzgibbons (Chandler, AZ)
I would use the points to bring my seven children home for a visit.
They live all over the U.S. and I just completed six months of
chemotherapy, so I would like to see them.
— Submitted by Judith A. Tynan (Scottsdale, AZ)
Travel, travel, travel! I would start in Texas and end in Texas.
— Submitted by Greg Beck (New Braunfels, TX)
Stay tuned for the announcement of the winner of the 1 million
ScoreCard reward points! The winner will be announced in
mid-January, so be sure to check MillionRewards.ORG for the
name of the winner and more details about the giveaway!
How to give your
debts a financial
check-up
Do you want a straightforward depiction of your financial
position? It’s as simple as calculating your debt-to-income ratio.
A debt-to-income ratio is a measure of financial stability
calculated by dividing your monthly minimum debt payments (i.e.
car and credit card payments) by your monthly gross income.
Typically, the lower your ratio, the better handle you have on debt.
Five steps to determining your debt
1. Collect your most recent credit billing statements
for current balances.
2. Outline your total monthly bills using two
columns: bill type (such as car loan,
mortgage/rent payments, and so on), and
monthly payment. (Do not include bills such
as taxes and utilities in this list.)
3. Add up the total for all of the monthly payments listed.
4. Calculate your monthly before-tax income. Note: If you receive
a paycheck every other week, as opposed to twice a month,
your monthly gross income is your before-tax income from one
paycheck multiplied by 2.17.
5. Your monthly debt-to-income ratio is calculated by dividing
your monthly debt payments by your monthly income (figure
from step 4).
Example: Someone with a monthly income of $2,000 who is
making monthly payments of $500 on loans and credit cards has
a debt-to-income ratio of 25% ($500 / $2,000 = .25 or 25%).
What is shared branching?
Common errors to check
for in your credit report
Did you know that almost 79% of all credit reports contain
errors? Considering how important your credit report is to
maintaining good credit and getting new loans, that number is
a little scary.
Periodically checking your credit report can help you
understand how credit history information is obtained and
reported. It will also help you ensure that the information is not
reported incorrectly, and that there has been no fraud under
your name or SSN.
Here's what to look for when you get yours: misspelled
name, wrong Social Security number, inaccurate birth date,
inaccurate information about a spouse, out-of-date address,
"closed" accounts listed as "open," the same mortgage or loan
listed twice, and absence of major accounts that demonstrate
creditworthiness.
If you find an error in your report, you can visit FTC.GOV for a
sample dispute letter to tell the credit-reporting agency that you
received your report from (Experian, Equifax or Trans Union)
what information you think is inaccurate. Be sure to include
copies of documents that support your position.
Since the Fair and Accurate Credit Transactions Act (FACTA)
was signed into law in December 2003, you can now get one
free copy of your credit report annually. This free credit report
does not include a credit score, but it will show you your credit
history. So, now you have a way to cross off another item on
your financial check-up list for the New Year.
How to get your free annual report
• By Phone: 1-877-322-8228
• Online: www.annualcreditreport.com
• By mail: FTC Annual Credit Report Request Service P.O. Box
105281, Atlanta, GA 30348-5281
numbers keep growing as more states and credit unions join
the Shared Branching Network.
Through a partnership with other credit unions, CU Service
Centers give you to access your TruWest account at more
Visit www.cuswirl.com to find a CU Service Center near
than 2,300 locations in 46 states, Puerto Rico, Japan, South
you today!
Korea, Italy and Germany. What’s even better is that these
Paying off high-rate
credit cards pays off
It's not unusual for
If you make $100 monthly payments, it'll take you nearly three
borrowers to take 20 to
and one-half years to pay off the $3,000 balance, and you'll
30 years to pay off a
pay $1,016 in interest charges.
mortgage, but imagine making
payments that long to pay off a big-screen TV or summer
If you make a $257 monthly payment you'll make those
vacation. The television may not last as long as the payments
payments for a little more than one year before paying off the
and the tan’s gone in a matter of weeks.
$3,000 balance, and it'll cost you $323 in interest charges.
Yet long-term credit card bills can be a harsh reality for
Choosing a lower-rate card makes a noticeable difference.
cardholders paying only the minimum payment on hefty bills.
For the person making minimum monthly payments, as in the
first example, a lower rate can cut at least 1 year off your
Say you have the typical average month-to-month credit card
pay-off time and almost $900 off your interest charges.
balance of $3,000, and figure monthly payments at 3% of
the balance with a $25 minimum monthly payment, and
So take advantage of all that credit cards have to offer, but
don’t add any other purchases. It'll take you 11 years to
don't let issuers with high-rate cards take advantage of you.
pay off the balance, and you'll pay $2,495 in interest charges
Get all the perks and the best deal by choosing a low-rate
if you choose a high-rate (18%) bank credit card over a
TruWest Visa, and consolidate your credit card balances to our
TruWest credit card.
card for a better deal.
TruWest spreads the TruDifference
in the community
TruWest is dedicated to giving back to its communities. To help
spread the TruDifference, a group of TruWest volunteers
participated in the 2006 Make A Difference Day.
On Saturday, October 28, TruWest’s Employee Volunteer Program
donated their time and materials to help beautify the Town of
Guadalupe’s Youth Center. The Town of Guadalupe is currently
ranked as the poorest town in Maricopa County, the fourth poorest
town in Arizona and the 14th poorest town in the United States.
TruWest employees participated in activities ranging from
scraping and repainting the front of the building to pulling weeds
and planting new landscaping. TruWest even got an in-ground
basketball hoop donated, which was later installed by a group of
teen volunteers from the Town.
AFTER
BEFORE
A good power washing, a few coats of paint, new landscaping and
four hours of hard work by TruWest employees helped make a
TruDifference for the Town of Guadalupe’s Youth Center!
On CUE with Mike Melby
The Importance of Taking Charge of Your Retirement
Historically, individuals could count on a three legged stool
to generate retirement income: social security, company
2. Save for college with tax-free 529 plans.
The federal tax-free treatment of qualified withdrawals
pension and their own private savings. In today’s economic
was scheduled to expire in 2010. That scheduled expiration
and political marketplace, the importance of the individual
has been eliminated.
investor taking charge of their own savings is more
important than ever for these reasons.
• No one knows what’s going to happen with social
security and we have no control over it.
• More and more individuals are not eligible for a pension
and those that are don’t always know whether their
pension will be there when they need it.
Each individual needs to take control of their own
retirement, save as much money as they can, and
understand what their options are relative to savings,
distributions, etc. The new Pension Protection Act of 2006
has increased your opportunities to reach your retirement
savings goals. The major changes are listed below.
1. Prepare for retirement by increasing IRA contributions.
The Economic Growth & Tax Relief Reconciliation Act of 2001
(EGTRRA) established increased contribution limits to IRAs.
3. Make direct charitable donations from IRAs.
This is another estate planning option for you to consider if
you are 70 years older and are taking Required Minimum
Distributions from your IRA.
Distribution options, including proper beneficiary designation,
and income strategies for retirees and people planning for
retirement offer greater flexibility and usefulness today
than ever before. Valuable opportunities can be lost if
distributions and beneficiary options are not carefully
evaluated. I encourage you to visit truwest.org to read the
extended version of this article and to contact your TruWest
Financial Advisor to discuss these opportunities.
Mike Melby is the President and CEO of CUE Financial Group, the broker/dealer who
provides financial planning representatives in the TruWest branches. Visit
truwest.org and click on “On CUE with Mike Melby” in the Members in the Know
section for a comprehensive version of Mike’s comments on investing for total return.
C
R
Information for the above article was obtained through publications of MFS Funds. Neither CUE Financial Group or your TruWest Advisor offer tax advice. Mutual funds, annuities and other
investments available through CUE Financial Group, Inc. member NASD and SIPC and a registered investment advisor in certain states. TruWest Credit Union is not an affiliate of CUE Financial
Group, Inc. Investments are not insured by NCUA, NCUSIF or any Federal Government Agency, are not a deposit, may lose value, and carry no credit union guarantee. This is not an offer to
purchase or sell any mutual funds or securities. Purchases must be offered by Prospectus. For a Prospectus, please contact your TruWest Financial Advisor.
TruWest Credit Union is chartered under the laws of Arizona and governed by a Board of Directors elected by its members.
Officials: Board of Directors: Tom Cummiskey, Chairman; Jeff Homer, Vice-Chairman; Rich Hill, Secretary; and Dave Prechtel, Treasurer.
Board members at large: Bill Fulton, Scott Johs, Michael Moulton, Tim Niesz and Dan Price. Supervisory Committee: Scott Johs, Chairman;
Victor Berrios and Maximilian Steinbuchel.
TruWest’s Senior Management: Daniel F. Desmond, President and Chief Executive Officer; Alan Althouse, Executive Vice President and Chief
Financial Officer; Doug Lake, Executive Vice President and Chief Lending Officer; Gary Bernard, Senior Vice President and Chief Operations
Officer; Tom Gessel, Senior Vice President and Technology Officer.
On the Money: Copyright 2006, TruWest Credit Union, P.O. Box 3489, Scottsdale, AZ 85271
Editor: Mandy Tenud
E
American
Printed on recycled paper.
Share
Insurance