Gen
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ion
Un
Third Quarter 2016
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Electri Credit
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General Electric Credit Union (GECU)
Bright Horizons
Making Financial
Recommendations
Work for You
IN THIS
ISSUE
2
• A Message from Our CEO
• When You’re Buying A
Home and Selling One, Too
3
• Financial Recommendations
(continued)
• Online Services: Join Your
Fellow Members
4
• Home Equity vs. Equity Rich
• Why Your Credit Score
Matters
5
• Factors That Determine Your
Auto Insurance Rate
• Boat Loan Special
6
• 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...
www.gecreditunion.org l Third Quarter 2016
A MESSAGE
from our president
timothy d. ballinger
& 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
“
... We’re committed to your financial future
through valuable solutions, helpful tools,
and positive experiences.
“
2
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: 513.243.8600.
www.usatoday.com, “How to Buy A Home While Selling One,” Hal Bundrick with
NerdWallet, http://usat.ly/1sYbeHI, June 5, 2016.
Real Estate Services provided by Home Information Network, Inc.:
CincyHomesOnline.com.
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
Members who
are using Online
Banking also have
access to...
Web
BillPay
Popmoney®
Mobile
Banking
e-Alerts
e-Statements
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: 513.243.6510 or by
email at: [email protected]
or [email protected].
*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 2016. 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
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 300850, 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.
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.
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
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.
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.
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:
www.AnnualCreditReport.com 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
What is a Credit Score? Retrieved June 13, 2016,
http://www.myfico.com/CreditEducation/articles/.
FICO is a registered trademark of Fair Isaac
Corporation in the United States and other
countries. For primary cardholders only; will be
updated quarterly.
1
2
Choosing the Right Line of Credit for You
Home Equity Line of Credit
How it works
Perfect for those who need access to funds
over time. Use this line of credit for big
purchases, projects, or to consolidate debt.
Introductory rate of:
Rate
Fees
2
.99%
APR*
Equity Rich Line of Credit
Great for those with equity built in their homes.
Refinance your existing mortgage for a lower
rate and have access to your equity through
this line of credit.
Equity Rich Line of Credit
3
Then converts to:
Locked in through
December 31, 2016
.75%
APR*
Prime-0% up to $49,9991
or Prime-.25% $50,000 and up*
No: application fee, annual fee, inactivity fee, closing costs,
or pre-payment penalties.
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
www.gecreditunion.org 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
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
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.
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: 513.243.8100 or
send them an email at:
[email protected]. They
provide free rate quotes on a variety of
different policies.
www.iii.org, “What Determines the Price of My Auto
Insurance Policy?,” http://www.iii.org/article/whatdetermines-price-my-auto-insurance-policy. June
2016.
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
4
Rates as low as:
.49%
APR*
*GECU membership is required to take advantage of this offer. Offer good through September 9, 2016. 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 #449875.
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
Condensed Financial
Statement
Number of Members...........157,053
Loans....................... $2,180,232,310
Shares...................... $2,147,507,610
Assets...................... $2,423,787,435
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:
513.243.8300. There’s a no-charge,
initial consultation.
Contact Us
Member Services
513.243.4328 l 800.542.7093
[email protected]
Hours
Mon-Thur: 8am - 5pm, Fri: 8am - 6pm
Sat: 9am - 2pm
Financial Mall
Located at Reading Road
513.243.7887 l Hours: M - F 9am - 5pm
Ending May 31, 2016
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.
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 20th – September 25th.
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:
www.cumagicminute.com.
Credit & Debit Cardholder Services
(including to report your card lost/stolen)
• During normal business hours,
contact us at: 513.243.4328
and select Option 2.
• For after-hours cardholder
services, call: 513.243.4328
and select Option 1.
Sourceline
513.243.3333 l 800.589.2875
www.gecreditunion.org/contact-us
Federally Insured
by NCUA
Equal Opportunity Lender
GECU NMLS #449875