Member Update
news & information from YOUR credit union
January/February 2010
UMassFive’s 6,300 Branches
could withdraw cash in person at the teller line of a
Shared Branching credit union.
Or perhaps you’ve relocated. You no longer live close
to a local UMassFive branch, but your new employer
is unable to set-up your direct deposit right away.
You can easily search by zip-code online to find a
Shared Branching location where you can deposit
your paycheck.
For over three years now, UMassFive members have
enjoyed the convenience of Shared Branching. This
service connects credit unions across the globe.
Members of participating credit unions can conduct
face-to-face transactions at each other’s branches
—that’s over 6,300 locations nationwide!
“Shared Branching” is a concept unique to credit
unions. While most banks wouldn’t want to
encourage their customers to do business with others,
credit unions were built on a cooperative philosophy.
We don’t compete with each other, and we know
the true strength in numbers. By joining the Shared
Branching Network, each participating credit union
can tout thousands of locations nationwide, which is
hard to come by with most banks.
Consider this—you’re vacationing in Florida and
you need cash, but you’ve lost your debit card. In
Orlando alone there are seven locations where you
There are also many Shared Branching locations
throughout Massachusetts. Members in the
Worcester, Boston, and Cape Cod regions may
find some of the Shared Branching credit unions
conveniently located near their home, work, or local
travel destination.
In order to utilize the Shared Branching network,
you’ll just need three things: Your UMassFive
member number, the name UMassFive, and an
unexpired government issued photo ID. (While the
name UMassFive may sound simple, it is important
to know that a Shared Branching employee would
not be able to locate your account if you referred to
us as the “Five College CU.” We are alphabetically
listed under “U.”)
To easily locate a Shared Branching location by zipcode, click the “CU Service Centers” link at the
bottom of our website at umassfive.org, visit cuswirl.
org, or contact any UMassFive representative.
How is your credit score calculated?
Your credit score is calculated by analyzing your
credit history as represented on your credit report.
Five categories are reviewed and weighted by
importance to calculate risk. These are approximate
percentages:
•Payment History – 35% Late payments on bills
such as mortgages, credit cards, or car loans can
cause your score to drop. The more on-time
payments you make increase your score.
•Amounts Owed/Credit Utilization – 30% A
ratio of current revolving debt (like credit cards)
to total available credit; essentially, how much
credit is being used at the time. You can improve
your score by paying off debt and keeping
balances low to lower this ratio.
•Length of Credit History – 15% This is what
it sounds like. As long as you pay bills on time,
the longer you have credit, your score should stay
stable or improve.
•Types of Credit – 10% This refers to what kinds
of credit you have managed. A combination of
things like fixed loans and credit cards shows you
have experience with multiple kinds of debt.
•New Credit – 10% Applying for a lot of credit
in a short amount of time (especially for credit
cards, retail store accounts, and personal loans),
can be viewed as risky and lower your score. Only
open new accounts when truly needed.
Credit scores are predominantly used to determine
“creditworthiness,” or the likelihood an individual
will repay a debt. This prediction is most often
viewed by lenders to determine who qualifies
for a loan, at what interest rate, and with what
credit limit.
Be part of something.
MEMBER SPOTLIGHT
Member Name:
Jean A. Clark
What is your occupation?
Information technology
Where do you live?
Haydenville, a village of
Williamsburg
Do you have kids?
Two sons, Nicholas and Sean O’Brien
Do you have pets?
Not currently, but I have had Boxers and
Dobermans, which I loved.
How long have you been a UMassFive College
Federal Credit Union member?
30 years
What do you like best about UMassFive?
Everyone who I’ve dealt with, from teller to loan
officer to branch manager, has always been helpful,
taking their time to personally help me, answering
all my questions. UMassFive has the best interest
rates. Also, the EZbank Online Banking is great; it’s
user friendly and easy to use so I can do my
banking from anywhere.
Have you had an especially good experience with
UMassFive?
I’ve had many great experiences with Lauren Duffy,
manager at the Northampton branch, most recently
discussing and comparing credit card so-called
“deals.” Lauren always takes time to discuss
financial concerns with me.
What do you do in your free time?
Walk, exercise, visit and get together with friends,
and watch Red Sox baseball and Celtics basketball.
What is your favorite food?
Thai food & seafood
What profession other than your own would you
like to attempt?
Physical or occupational therapist; something in the
area of sports/helping people with physical fitness.
If you were stranded on a deserted island and
could only have three items with you, what would
they be?
Besides fruit & nuts, a cell phone and radio with
reception.
NOTICES
Blood Drive
The Mercy Hospital Medical Blood Mobile will be at
our Hadley Branch on Thursday, January 14, 2010 from
10am–3pm. Not only will UMassFive give you 1,000
Co-op Points for your donation, Mercy Hospital will
give you a Champion Hoodie sweatshirt!
SPONSOR GROUP SPOTLIGHT:
Mount Holyoke College Athletics
Mount Holyoke College (MHC) offers 14 varsity
sports programs and seven competitive club sports
teams. A member of the NCAA Division III and
the New England Women’s and Men’s Athletic
Conference (NEWMAC), MHC competes among
many top-ranked teams and long-time local rivals.
Bill Pay Notice
If you use another bank’s bill pay site for your UMassFive
VISA payments, please update your records with the
new mailing address, as it has changed to P.O. Box
2711, Omaha, NE 68103-2711. (It is a good practice
to review all of your merchant mailing addresses in Bill
Pay from time to time to ensure paper check payments
arrive at the correct destination.) To pay your UMassFive
VISA from a UMassFive account, it is not necessary to
use Bill Pay in EZbank. Instead, use the Transfer Funds
option on the EZbank tab.
1099 & 1098 Tax Forms
Mount Holyoke is dedicated to the NCAA Division III
philosophy of making athletics an integral part of the
educational experience and creating an opportunity
for student-athletes to become well-rounded
individuals. Emphasis on academic excellence is also
a defining criterion for membership in the NEWMAC,
which includes Babson, Clark, Coast Guard, MIT,
Mount Holyoke, Smith, Springfield, Wellesley,
Wheaton, and WPI. Nine varsity programs also
compete in the annual Seven Sisters championships,
which began in 1980 and include teams from Bryn
Mawr, Haverford, Smith, Swarthmore, Vassar, and
Wellesley.
Mount Holyoke College hosted the 2009 NCAA
Division III Field Hockey National Championship on
November 21 and 22. The tournament, which consists
of two semifinal matches and a championship, took
place at the turf field in South Hadley, Massachusetts.
The weather cooperated for the tournament,
which resulted in record breaking attendance of
approximately 1,600 spectators. Students, parents,
alumnae, faculty, and staff all assisted in making the
Championship possible. The National Field Hockey
Coaches Association (NFCHA) Senior All-Star Game
was also hosted by Mount Holyoke College.
1099 Interest Earned and 1098 Mortgage Interest
Paid tax forms are mailed to members by January 31
of each year. You may receive two 1098 forms if your
UMassFive first mortgage was serviced for part of
the year by us, and part of the year by our servicing
partner, Midwest Loan Services. If you earned less than
$10 interest or paid less than $600 mortgage interest,
the IRS does not require us to mail forms.
If you would like to know the amounts of interest
earned or paid, you may locate them on your year-end
statement or call us at 800.852.5886. If you need a
duplicate form, please let us know and we will produce
one for you. However, a form is not necessary to file
your income tax return; you simply need to report the
amount(s).
College Scholarships
UMassFive will again participate in the Pioneer Valley
Chapter of the Massachusetts Credit Union League’s
Annual Scholarship Program, which will award a total
of six $1,500 scholarships in 2010. Any graduating high
school senior who will be enrolled in an undergraduate
college degree program for the 2010–2011 academic
year is eligible to apply. Applicant and/or parent/
guardian must be a UMassFive member. Applications
may be obtained by visiting any branch or calling us
at 800.852.5886 and must be received by the Credit
Union no later than March 5, 2010 for consideration.
Turbo Tax Online
Visit Turbo Tax®, the most popular online tax preparation
site, directly through UMassFive’s EZbank Online
Banking site! Turbo Tax® is a fast, easy, and economical
way to prepare and file your 2009 tax return. Taxpayers
who have an adjusted gross income (AGI) of $27,000
or less or qualify for the Earned Income Tax Credit can
use TurboTax® Online 1040EZ or TurboTax® Online
Basic free of charge through a link to the Intuit Tax
Freedom Project.
Co-op Points Update
In 2009, we credited our members with more than 32
million Co-op Points! Members used them to waive
over 10,000 fees, saving over $100,000! Members also
redeemed Co-op Points to lower the interest rate on
over 600 Consumer Loans and raise the interest rate on
over 1,300 Term Share Certificates!
Tired of running errands?
Pay bills in your pajamas.
Free EZbank Online Banking is paperless, efficient, and can save you
money. You can take care of lots of your banking needs from the comfort
of wherever, whenever. Sign up for Bill Pay and you can quickly take care of
your monthly payments in just a few clicks, leaving you time for a nap.
Better Online Banking & Bill Pay
Wouldn’t you like to be able to take care of your
banking business at any time without even visiting a
branch? During 2009, we were pleased to be able to
upgrade our free EZbank Online Banking service to
make this tool better than ever with a streamlined
look and feel, clearer organization, and a more
intuitive Bill Pay function.
If you haven’t signed up for EZbank Online Banking,
you may want to consider this convenient option.
Not only will you be able to review all of your account
balances at any time of day or night from the comfort
of your own computer, you can also customize the
layout of items for your unique needs, transfer funds
between accounts, and make UMassFive loans and
VISA payments. Transfer history and scheduled
activities can be located with just a couple of clicks.
Adding the Bill Pay feature only enhances your
abilities in EZbank. When you include it, you can
easily set up all of the merchants you regularly pay as
well as those who you only pay once (or once in a
while) and save their information to pay any bills
quickly at any time. You’ll save yourself a trip to the
post office, money you would have spent on stamps,
and a lot of time.
Bill Pay also allows you to schedule payments for the
future and those that are recurring so that they are
paid automatically. You can view your payment
history, set up a payment calendar, and make changes
easily at any time.
EZBank Online Banking and Bill Pay are free! Simply
sign up with any UMassFive representative.
FINANCIAL & INVESTMENT SERVICES:
Tax-Free Retirement Income
In 2010, a change in tax rules could benefit you if
you have a traditional IRA. Most people would agree
that tax-free retirement income is a good thing.
Unfortunately, most retirement plans and traditional
IRAs will pay income in retirement that is fully taxable
because contributions were made pre-tax. There is an
opportunity in 2010, however, to convert your taxable
retirement income to tax-free retirement income.
A Roth IRA is an IRA that grows tax-free vs. taxdeferred the way a traditional IRA grows. Contributions
are made after tax, and there is a minimum holding
period of five years to remove all your contributions
and earnings tax-free. (Like all retirement accounts,
early withdrawal penalties may apply if funds are
withdrawn prior to age 59 ½.) The beauty of the Roth
IRA is that earnings can accumulate for an unlimited
time and be paid out tax-free, as there are no Required
Minimum Distributions. This is a distinct advantage
over retirement plans and traditional IRAs.
The process of converting your traditional IRA to
a Roth IRA has been available for many years, but
significant obstacles have included both taxes and
income limitations. Roth conversions are considered
taxable income in the year of conversion, which can
diminish the benefit of the conversion. In addition,
anyone who converted to a Roth in 2009 or before
had an income limit of $100,000.
Two important changes occur in 2010. First, the income
limit has been eliminated. The second change concerns
taxes on the conversion. IRA owners converting in
2010 can choose to pay taxes in 2010 or defer the tax
liability for a year and split it equally between 2011 and
2012. Tax deferral is always good and splitting the tax
burden between two years can make the conversion
more palatable.
One of the benefits of doing a conversion is reflected
in your estate planning. As mentioned previously, there
are no Required Minimum Distributions at age 70 ½
for Roth IRAs. Also, Roth IRAs can pass to beneficiaries
completely income tax-free and be held by those
beneficiaries indefinitely, all the while continuing to
grow tax-free.
Home Buying 101
Wednesday, 1/13/10, 5:45-7:00pm, Northampton
Thursday, 1/14/10, 5:45-7:00pm, Hadley
Wednesday, 2/10/10, 5:45-7:00pm, Northampton
Thursday, 2/11/10, 5:45-7:00pm, Hadley
In fact, IRA owners should realize that they can pay
taxes on any IRA now or later. At some point, whether
in their life or after it has been passed to a beneficiary,
taxes will be paid on a traditional IRA. Does it make
sense to pay taxes on the balance sooner while the
account value is lower than it could be many years
from now? Some consider doing a Roth conversion as
a strategy to help protect against higher tax rates in
the future.
You may be able to take advantage of the new
conversion rules if your retirement funds are in a
company sponsored retirement plan as well. If you
are retired, you must first rollover your plan to an IRA.
Then, all the above applies to your situation. If you are
still working you may be able to roll over some or all of
your retirement through an in-service withdrawal. Your
benefits coordinator can tell you if your plan allows it.
There are more details to consider than this article can
cover. You should consider your own situation carefully
and enlist investment and tax professionals to help you
decide whether it is right for you.
Financial & Investment Services and CFS* will offer the following workshops at designated branches.
Seating is limited. Please RSVP to 800.852.5886 or register online at umassfive.org to reserve your seat.
Receive 250 Co-op Points for attending one of these workshops!
Tuesday, 1/12/10, 5:30-7:00pm, Hadley
Whether you’re starting out to save for retirement or education, or building and trying to manage a nest
egg, it is vital to understand the basics of investing. This knowledge will help put you in the driver’s seat,
heading toward your desired financial destination.
Roth IRA Conversion
Tuesday, 2/2/10, 5:30-7:00pm, Hadley
There are new opportunities in 2010 for IRA and retirement plan owners to convert taxable retirement
income to tax-free retirement income. Come learn about changes in tax laws and income limitations as well
as the pitfalls to avoid if you are considering a Roth IRA Conversion. We will discuss who this makes sense
for and who should avoid Roth Conversions. Remember, the tax advantages are only available in 2010.
Get the facts so you can decide.
Long-Term Care Insurance
Tuesday, 2/23/10, 5:30-7:00pm, Hadley
At this seminar you can learn:
• What long-term care is and how much it costs.
• What Medicare and Medicaid really cover.
• How to stay in your own home as long as possible.
We are dedicated to helping you become an
educated consumer. This winter, UMassFive will
offer the following complimentary workshops at
designated branches. Seating is limited. Please RSVP
to 800.852.5886 or register online at umassfive.org
to reserve your seat.
RECEIVE 250 CO-OP POINTS
FOR ATTENDING ONE OF THESE WORKSHOPS!
COMPLIMENTARY SEMINARS
Basic Investing
FREE
WORKSHOPS
• How proper planning can help you protect your assets, estate, and your family’s well-being.
*Investment products and services offered through CUSO Financial Services, L.P. (CFS), an independent broker-dealer,
are not NCUA/NCUSIF insured, not Credit Union guaranteed, and may lose value. Advisors are employed by UMassFive
College Federal Credit Union and registered through CFS. (Member FINRA/SIPC)
A house is often the biggest purchase people make
in their lifetime. This workshop takes a step-by-step
approach to home buying, so you fully understand
the buying process. It includes locating and working
with a real estate agent, understanding your financing
options, tips on searching for a home, the value of
inspections, and how to make an offer. You will also
learn what closing costs are associated with getting a
mortgage.
Budgeting Essentials
Wednesday, 1/20/10, 5:45-7:00pm, Northampton
Thursday, 1/28/10, 5:45-7:00pm, Hadley
Wednesday, 2/17/10, 5:45-7:00pm, Northampton
Thursday, 2/25/10, 5:45-7:00pm, Hadley
This budgeting overview presents five basic steps to
better money management in an easy-to-understand
manner. Learn how to set realistic financial goals,
create a budget, and understand how to use credit
wisely. This workshop also includes over 250 money
saving tips you can start using right away.
Living on Less
Thursday, 1/21/10, 5:45-7:00pm, Hadley
Wednesday, 2/3/10, 5:45-7:00pm, Northampton
Are you are under financial stress due to a reduction
or loss of income? This workshop will give you the
knowledge you need to objectively assess your
current situation, set priorities, and create an action
plan so you can regain control of your situation. We
will also address how to work with creditors and
understand your rights as a consumer. You will learn
about local resources that are available to assist you
during this difficult time.
NEW! Understanding Credit
Tuesday, 1/19/10, 5:45-7:00pm, Hadley
Wednesday, 1/27/10, 5:45-7:00pm, Northampton
Tuesday, 2/2/10, 5:45-7:00pm, Hadley
Wednesday, 2/24/10, 5:45-7:00pm, Northampton
This workshop is a primer in learning about the wise
use of credit. It will help you understand your credit
report, explain how credit scores are determined,
and give you tips to improve your score. You will also
learn what to look for to find the best credit card and
the questions you should always ask when applying
for a loan. Members will be introduced to “Debt in
Focus,” an interactive website for understanding and
managing personal debt.
Main Office:
200 Westgate Center Drive
Hadley, MA 01035
Member Update
tel: 413.256.5500
toll-free: 800.852.5886
fax: 413.253.9123
www.umassfive.org
Presort Standard
US Postage
PAID
Permit 183
Greenfield, MA
01301
Holiday Closings:
New Year’s Day: Friday, January 1
Martin Luther King, Jr. Day: Monday, January 18
Presidents’ Day: Monday, February 15
EQUAL HOUSING
L E N D E R
Federally insured by the NCUA
Printed on 50% recycled paper
with 25% post consumer fiber
Trying to
conserve heat?
You don’t have to put on another sweater.
UMassFive is pleased to partner with MassSAVE’s HEAT Loan Program. This provides our members the opportunity to
apply for a 0% loan from UMassFive to assist with the installation of qualified energy-efficient improvements in your
home. To apply, you must own and reside in a one- to four-family residence and obtain a Home Energy Assessment
through the MassSAVE Program. Ask any UMassFive representative for more information or check out masssave.com.
Certain restrictions apply.
SMART Employee: Eileen Malinowski
Call Center Representative and was promoted
to the full-time position of Senior Call Center
Representative in 2007.
Eileen Malinowski is the SMART Employee of
fourth quarter 2009. SMART is the Credit Union’s
quality service motto, which stands for “Sharp,
Motivated, Aware, Responsible, Team-player.”
Eileen has been employed in our Call Center for
over four years. She started off as a part-time
Eileen has earned the SMART employee award
for her dedication to her Call Center position and
her passion for helping our members on a daily
basis. Eileen is one of our most veteran Call Center
employees, making her the “go-to” person for
other Representatives who may need assistance
in answering a member’s question or conducting
research. Eileen is passionate about solving
problems for our members and really enjoys
teaching the other Call Center Representatives
how she arrived at a solution.
We are lucky to have Eileen in our Call Center.
Thanks, Eileen!
Join us for our
2009 Annual
Meeting!
All members are invited to join us at
our Hadley Branch on Thursday, March
25, 2010 for our Annual Meeting. A
social event begins at 5:30pm and the
business meeting follows at 6pm.