Choices - Franklin Mint Federal Credit Union

F R A N K L I N
M I N T
F E D E R A L
C R E D I T
U N I O N ’ S
M A G A Z I N E
Choices
ISSUE 2, 2006
®
Vacation & Travel Issue
in style
Ride
with a new
FMFCU auto loan
9 FREE
TOURIST SIGHTS
VACATION HOME
SALES BOOMING
MAKING SENSE OF
YOUR FICO ® SCORE
AMERICA'S FIRST
SUPERHIGHWAY
OFFICIAL FRANKLIN MINT FEDERAL CREDIT UNION SPONSOR
Our Patients Have Spoken.
It’s not just our opinion—
it’s also the opinion of our patients.
Crozer-Chester Medical Center,
Delaware County Memorial Hospital,
Springfield Hospital and Taylor Hospital
are J.D. Power and Associates
Distinguished Hospitals.
Which means our patients have
voiced their opinions to one of
the world’s leading independent
marketing information firms.
They say that DCMH, Springfield and
Taylor are part of a select group
in the nation that can successfully
and consistently provide
An Outstanding Inpatient Experience,
and that Crozer-Chester Medical Center
can successfully and consistently provide
An Outstanding Outpatient Experience.
p r e s i d e n t ’s u p d a t e
Choices
®
FRANKLIN MINT FEDERAL CREDIT UNION’S
MAGAZINE
ISSUE 2, 2006
Publisher
John D. Unangst
Managing Editor
Natalie Pantaleo Smoley
Executive Art Director
Peter Richardson
Executive Editor
Jim Murphy
Supporting Editor
Christine Trabosh
Photography
Lien-Nibauer Photography
Charlene Barth, American Candids
Circulation: 60,000 Members and Business Offices
For permission to reproduce any article in this
magazine, to request advertising information or
to submit a Letter to the Editor, contact:
Choices Magazine
1974 Sproul Road, Suite 300
Broomall, PA 19008
610-325-5100
610-325-5299 (fax)
fmfcu@fmfcu.org
Choices is the official magazine of Franklin Mint
Federal Credit Union. It is published for the benefit
of our current and prospective members and
sponsoring organizations. The information presented
is as accurate as possible, but as with all financial
matters, you should consult your financial, tax or
other advisors before implementing any of the ideas
presented. For specific information about any FMFCU
product or service mentioned, please visit our Web
site at www.fmfcu.org. You can also call the Member
Service Center at 610-325-5100 (for calls originating
outside of PA, call toll-free 1-800-220-3193).
© 2006 Franklin Mint Federal Credit Union.
Dear FMFCU Family,
For many of us, summer makes us think about cars and vacations.
So we've highlighted both in this special issue.
Inside, you'll find valuable information on how to research and
buy a car through FMFCU and how to save money when you travel.
We also spell out 9 FREE places to go in Philadelphia, New York and
Washington, D.C. Free is still a great word.
Postcards … and the Pennsylvania Turnpike
Be sure to take a look at the interesting feature story on the
Pennsylvania Turnpike, the granddaddy of superhighways in this
country. Many of our members don't realize the significance this
highway played in the development of Pennsylvania and the nation.
(What other highway had postcards singing its praises?)
You'll also learn what your FICO® credit score means and how
to change it; why financial planning is more important today than
ever; and how the Credit Union can help turn your house into your
dream home.
Outstanding reception at MacDade Branch
I'm also pleased to announce the opening of our long-awaited
MacDade branch, and the imminent opening of our new Media
branch. Both will go a long way in making life more convenient for
our members in those areas.
Enjoy this magazine. As always, let us know what you think of it …
and our progress here at FMFCU. Just e-mail me at the address below.
Sincerely,
John D. Unangst
President and CEO
johnunangst@fmfcu.org
w h a t ’s i n s i d e
Rev It Up: Special Section
4
Time for a Vacation Home? 10
COVER PHOTO:
The Logan family's new Toyota Sienna,
bought with an FMFCU auto loan, is
packed to the gills. See story on page 4.
Your FICO® Score
14
Teaching Kids About Life
16
Family Finances
18
Financial Planning Q&A
19
22
Profile: Community YMCA 20
departments
Home Remodeling Pays Off 22
Newsbriefs
12
Make Way for MacDade
Run the Numbers
18
24
3
SPECIAL CAR-BUYING/VACATION SECTION
Gina and Tom Logan and their children (from left to right), Elizabeth, Colleen, Patrick, Tommy
and Kathleen are ready to hit the road in their spacious new Toyotal Sienna.
Enjoy the hazy, lazy, crazy days
of summer … with our Special
Car-Buying/Vacation Section. Check
out our new car tips, free places to go, money-saving travel ideas and more!
Rev it up!
UMMER IS HOT DOGS and hamburgers. Reading and relaxation. The
mountains and the seashore. It's a time to get out of the house and get
moving. To see new things. Try new foods. Go new places.
And for many people, the easiest and cheapest way to do that is in
the family car.
S
4
So, read on. You'll learn easy ways to buy
a new car … plus more.
You'll discover:
• Free places to go
• Ways to save on-the-road
• How to save for next year's
vacation
Let us know what you think of our
suggestions. We'll consider including
reader tips and suggestions in next
year's summer issue. Send them to:
johnunangst@fmfcu.org
$$$
Start your car-shopping now
If the time is right and your budget allows
for it, there's nothing like a new car to
enhance your summer fun.
Far more than simply steel and wheels,
a new car can trigger a whole range of
emotions, feelings and memories in us:
independence, romance, indulgence,
luxury, and the call of the open road.
A new car is a cause for celebration.
You drive your vehicle home and your
neighbors and friends instantly gather.
You hear oohs and aahs, and someone is
sure to mention the great "new car smell."
✔✔
More reliability …
and more choices
Today's new cars are high-tech marvels
that require less routine maintenance and
are more reliable than ever before. But
these advantages come at a hefty price.
In 2004, the average sticker price of a
new car crossed the $30,000 mark for the
first time. So you want to be sure you get
the most value for your money. (We'll
show you how to do that further in this
section.)
Of course, car buying has changed
dramatically in recent years, too. With the
rise of the Internet, consumers are armed
with more pricing information than ever
before.
On the other hand, the number of
automobile choices also can be overwhelming. For example, the April 2006
Annual Auto Issue of Consumer Reports®
lists 30 car manufacturers and 238 models.
These include a dizzying array of small
cars, sedans, sports cars, convertibles,
roadsters, sport utility vehicles, compact
pickups, full-sized pickups, minivans,
fuel-efficient cars, wagons and hatchbacks.
ABC
How to make car buying easy
There are several ways to narrow your
choices and select the right car for you:
colleagues. Find out what they do or
don’t like about their car or dealer.
2) Then go to FMFCU's Auto Center
on our Web site (www.fmfcu.org).
You'll find new and used car prices,
vehicle history reports, car shopping
Frequently Asked Questions (FAQs),
information on how to find a
reasonable price and tips on
negotiating with a dealer. Everything
you need to buy a car is right here,
including pricing, finance calculators,
side-by-side vehicle comparisons,
MVCP's buying service with
pre-negotiated prices, and more.
OK
Get your loan approved
in seconds
As an FMFCU member, you can apply for
a loan online, in-person or by phone …
and get a loan approval almost instantly.
We also offer motorcycle loans,
recreational vehicle/motor home loans,
GAP coverage and used car loans.
With an Auto Express Check, you can
even have your financing done before
you shop. Ask us about it.
For information on any kind of auto
loan, including auto equity loans that may
provide tax advantages, call the Member
Service Center at: 610-325-5100. Let us
help put you in the car you want … today!
$
Car buying is simple
at FMFCU's Web site
FMFCU's Auto Center includes everything you need to buy a car: new and
used car prices, vehicle history reports,
magazine buyers' guides, dealer invoice
information, loan calculators, tips on
negotiating prices, FAQs and more!
Just go to: www.fmfcu.org and click
on Auto Center.
Not your grandfather's
accessories
We've come a long way from Henry Ford's
day when you could have a car in any
color you wanted — as long as it was
black.
Not only do today's cars come in a
myriad of colors, they are customized in
ways Henry Ford could never have
imagined.
No longer is your major option a car
stereo system. Many car-makers are now
integrating Apple's iPod® capability right
into their cars, so you can easily pipe in
the entertainment of your choice.
(Continued on next page)
CAR QUOTES
"A suburban mother's role is to
deliver children obstetrically
once, and by car forever after."
— Peter De Vries
"Patience is something you
admire in the driver behind you
and scorn in the one ahead."
— Mac McCleary
"When buying a used car, punch
the buttons on the radio. If all
the stations are rock and roll,
there's a good chance the
transmission is shot."
— Larry Lujack
"I hooked up my accelerator
pedal in my car to my brake
lights. I hit the gas, people
behind me stop, and I'm gone."
"If all the cars in the United States
were placed end to end, it would
probably be Labor Day Weekend."
— Doug Larson
“If automobiles had followed the
same development cycle as the
computer, a Rolls-Royce would
today cost $100, get a million
miles per gallon, and explode
once a year, killing everyone
inside.”
— Robert Cringely
"Except for the American woman,
nothing interests the eye of the
American man more than an
automobile, or seems so
important to him as an object of
aesthetic appreciation."
— Alfred Hamilton Barr, Jr.
— Steven Wright
Sources: www.quotegarden.com/driving.html
en.thinkexist.com/quotations/automobiles
1) Talk to your friends, co-workers and
5
(Continued from previous page)
AUTOMOBILE "FIRSTS"
1st Self-Propelled Road Vehicle, 1769
— A military tractor powered by steam
and invented by French engineer and
mechanic, Nicholas Joseph Cugnot.
1st Motor Vehicle Accident, 1771 —
Occurred when Cugnot drove one of his
vehicles into a stone wall.
1st Practical 4-Stroke Internal
Combustion Engine, 1876 —
Nicholas August Otto's gas motor engine
was then universally adopted for all
liquid-fueled automobiles.
1st Use of Word Automobile, 1897 —
In The New York Times. However, the
name goes back to the 14th Century,
when an Italian painter and engineer
named Martini drew up plans for a
man-powered carriage with four wheels.
He called it the auto-mobile, from the
Greek word "auto" (meaning self) and the
Latin word "mobils" (meaning moving).
The word car reportedly is derived from
the Celtic word "carrus," which means
cart or wagon.
1st Electric Car Heater, 1890 —
By Canadian Thomas Ahearn.
1st License Plates, 1901 — Required
by New York State.
1st Car Windshield Wipers, 1903 —
Patented by Mary Anderson, her
invention became standard equipment
on all American cars in 1916.
1st Car Electrical Starter Motor Ignition
System, 1911 — By General Motors'
engineer Charles Kettering. The selfstarting ignition, which eliminated the
need for a hand crank, was first installed
in a Cadillac.
1st Car Radio, 1929 — By American
Paul Galvin. The first car radios were
not available from manufacturers, so
consumers had to purchase them
separately.
1st Turn Signals, 1938 — Introduced
by Buick.
1st Air-Conditioned Car, 1940 —
The Packard.
1st Cruise Control, 1958 — Patented in
1945 by blind inventor Ralph Teetor, a
mechanical engineer who graduated from
the University of Pennsylvania. First
offered on the Chrysler Imperial, New
Yorker and Winsdor in 1958.
Source: About.Com — a part of The New York
Times Company
inventors.about.com/library/weekly/aacarssteama.htm
6
Plus you can add satellite radio, Global
Positioning System (GPS) navigation,
a portable DVD player, and more.
The car has become a family entertainment center … on wheels.
z
How to cut your travel costs
■ Save on ATM fees
Use CU$®, Pennsylvania's Selective
Surcharge Alliance. Enjoy surcharge-free
transactions at more than 700 ATMs in 14
states. To locate ATMs where you will be
traveling, go to www.fmfcu.org. Scroll
down to Membership/Other Services and
click on: No Surcharge ATM Directory.
Note: Our transactions at these ATMs
are surcharge-free. However, they count
against the nine free transactions (six free
checking, three free savings) you are
allowed each month. Above that number
of transactions, you will be charged $1 per
transaction. However, you can make
unlimited withdrawals at any FMFCU ATM.
■ Save on hotel costs
If you are a member of AAA or AARP,
show your card. Both organizations offer
discounts at major hotel chains across
the country.
■ Save on car rentals
The same advice applies here. An AAA
or AARP card can save you valuable
dollars on car rentals. See their Web
sites for details.
■ Save on gas
Observe the speed limit. Gas mileage
usually decreases rapidly at speeds
above 60 miles per hour, says the U.S.
Department of Energy. Also, use its Web
site to find the lowest gas prices in cities
and states across the country. Just go to:
http://www.fueleconomy.gov/feg/
gasprices/states/index.shtml.
Put away money for
next year's vacation
Want an easy way to save the money you
need for next summer? Just open a
Vacation Club today at FMFCU.
There are:
• No minimum balances required
• No monthly fees
Plus, you'll avoid dipping into your
savings or using high-interest credit cards.
Just decide how much you want in your
Vacation Club fund, and divide that figure
by the number of pay periods you'll have
before you use the money.
Then deposit that amount of money
each pay period. Or, make it easy on
yourself and set up automatic payroll
deductions.
You can make year-round deposits and
withdrawals and track your savings
progress 24/7 via home banking and
e-statements.
Best of all, your money will build up
effortlessly. And when you're ready to go
on vacation next year, your Vacation Club
will be, too.
Pennsylvania Turnpike was
first superhighway in U.S.
While interstate highways are common
today, the Pennsylvania Turnkpike was
the nation's first major limited-access
highway.
Unlike anything in existence in the U.S.
in October 1940, the then-futuristic road's
opening drew huge crowds that created
massive 3-and 4-hour traffic jams at exit
tollbooths the first weekend.
Built for speed
No wonder drivers were fascinated with
this new way of traveling. Along its entire
160-mile length, engineers designed the
revolutionary highway for high speed,
with long sweeping curves, four 12-footwide traffic lanes, a 10-foot median strip,
a maximum grade of 3%, plus 1,200-foot
entrance and exit ramps.
Equally important, there were no
cross streets, driveways, traffic signals,
crosswalks or railroad grade crossings.
Along the same distance on the two
nearby roads, the Lincoln Highway and
US 11, there were 939 cross streets, 12
railroad crossings and 25 traffic signals.
Writing in the Smithsonian magazine
in 1980, author Phil Patton said of the
Pennsylvania Turnpike: "The physical
highway has been bettered by any
number of its successors. But none of
them have ever matched the dreamlike
quality the turnpike possessed; none of
them have inspired such postcards."
Referring to these popular souvenirs of
"The World's Greatest Highway," Patton
said: "The tinters and retouchers who
created these linen postcards also helped
turn a 160-mile expanse of concrete,
punctuated with 307 bridges and 7
tunnels, into the "Eighth Wonder of the
World."
"Like … the Golden Gate or George
Washington bridges, like such skyscrapers
as the Chrysler or Empire State buildings,
lionized in the 1930s, the Pennsylvania
Turnpike stood in its early years as a
monument to national pride."
Interestingly, much of the original
Pennsylvania Turnpike, built in just 23
months, runs along a railroad bed
constructed before the turn of the century.
Started as a competitor to the powerful
Pennsylvania Railroad by William
Vanderbilt in the 1880s, the New York
City & Hudson River Railroad partially
bored nine tunnels and developed 120
miles of the roadbed. But after $10
million was spent on construction and 26
workers had lost their lives, it sold the right
of way in the mid-1880s to the President
of the Pennsylvania Railroad, who killed
the project. The roadbed remained unused
for some 50 years.
Then in the 1930s, several influential
Pennsylvania men, who remembered
playing in the tunnels as children, hit on
the idea of building a superhighway
through the Allegheny Mountains from
Harrisburg to Pittsburgh along the old
roadbed.
Postcard source: www.pumpwarehouse.com/pat.html ©Joseph Topinka
What hasn't changed is the significance
this road has played in American history.
So the next time you travel on the
Pennsylvania Turnpike, reflect on this:
The road you are riding on is the granddaddy of every other long-distance
superhighway in the U.S.
It is the prototype of the Interstate
System … and a national treasure.
Sources: Smithsonian, 1980 www.philpatton.com/
pennpike.htm
Pennsylvania Highways (www.pahighways.com), and
the Pennsylvania Turnpike www.paturnpike.com
LADIES AND GENTLEMEN:
Start your vehicle
loan applications now!
Round-the-clock construction
The rest is history. Through the joint efforts
of the State of Pennsylvania and
the Federal Public Works Administration,
work on the turnpike moved forward at
a feverish round-the-clock pace. Finally
after numerous delays, the highway
officially opened on October 1, 1940.
At that time, the road was 160 miles
long, and included 11 interchanges and
10 service plazas. Standard Oil of
Pennsylvania operated the gas stations,
and Howard Johnson® operated the
restaurants and gift shops.
Today's Pennsylvania Turnpike is 531
miles long, with 57 fare collection points,
21 service plazas, two traveler information
centers, 21 maintenance facilities, 8 State
Police barracks and 5 tunnels.
Instead of the 2.4 million vehicles it
carried in its first full year of operation,
the 2005 Pennsylvania Turnpike recorded
trips by 188 million vehicles.
Get FMFCU loan approvals in seconds for:
• New Autos • Used Autos • RVs & Motor Homes
• Motorcycles • Refinanced Auto Loans
• Auto Equity Loans
It’s quick and easy at FMFCU!
• Excellent interest rates
• Easy application by phone, online or in person
• Auto Express Check, so your financing is done
before you shop
610-325-5100 • www.fmfcu.org
FRANKLIN MINT
FEDERAL CREDIT UNION
The Credit Union of Choice! ®
7
9 FREE PLACES TO GO THIS SUMMER
Want to have some summer fun
at no cost?
Here are 3 great tourist spots
in the Philadelphia area that
won't cost you a penny … plus
3 bonus picks each in New York
City and Washington, D.C.
Economize … and enjoy!
PHILADELPHIA FREEBIES
■ Benjamin Franklin Bridge
■ Staten Island Ferry
Take a walk on what was the world's
largest single span suspension bridge
when it was built in 1926. This graceful
1 3/4-mile-long landmark offers walkers
great exercise and unique views of
Philadelphia and Camden. The southern
walkway, which was closed because of
construction, reopened March 30, 2006.
The northern walkway is now closed for
the same reason.
Experience awesome views of Lower
Manhattan, the Statue of Liberty, Ellis
Island and the New York Harbor from
this 24-hour commuter ferry. Round-trip
takes about one hour.
Hours: 6 a.m. to 6 p.m.
Location: Entrance to free
bicycle/pedestrian walkway is at 5th
and Vine Streets
Web site: www.drpa.org/publish/bfb_
walkway.asp?loc=DRPA
■ Edgar Allan Poe House
Photo by B.Krist for GPTMC.
■ City Hall
Tour the building the American Institute
of Architecture called "perhaps the
greatest single effort of late 19thcentury American architecture." Better
yet, go up to the tower for breathtaking
views of the area. You can see for miles.
Fun Facts: City Hall is the nation's
largest municipal building — larger than
the U.S. Capitol. And, according to the
Philadelphia Inquirer, its clocks (with the
distinctive illuminated yellow clock
faces) are larger than those on the clock
tower of the House of Parliament in
London, familiarly known as "Big Ben."
Location: Broad and Market Streets
Phone: 215-686-2840
Hours: Tower tours weekdays 9:30 a.m.
to 4:30 p.m.
Note: Elevators leave every 15 minutes,
but only hold four people and fill up
fast. Interior tours weekdays from the
Tour Information Center, Room 101, at
12:30 p.m.
Web site
www.phila.gov/property/virtualcityhall/
visitorsinfo.asp
8
Visit the home of famed writer Edgar
Allan Poe, who spent some of his most
productive years in Philadelphia.
Among works he wrote here are
"The Tell-Tale Heart" and "The Fall
of the House of Usher." His last house
in Philadelphia, the only one that
survived, is now a national historic site.
Hours: Wednesday – Sunday, 9 a.m. –
5 p.m.
Address: 532 N. 7th Street
Phone: 215-597-8780
Web site: www.nps.gov/edal
Sources:
www.phila.gov/property/virtualcityhall/
visitorsinfo.asp
www.frommers.com/destinations/philadelphia/
0023010029.html
Hours: 24 hours; every 20-30 minutes
weekdays, less frequently during
off-peak and weekend hours
Location: Departs from the Whitehall
Ferry Terminal at the southern tip of
Manhattan
Phone: 718-815-BOAT
Web site:
www.ci.nyc.ny.us/html/dot/html/masstran
/ferries/statfery.html
Route Information:
Staten Island: Departs the St. George
Ferry Terminal at 1 Bay Street,
Richmond Terrace
Lower Manhattan: Arrives at the
Whitehall Terminal at 1 Whitehall Street
at South Street
■ Times Square
Join over 26 million people who visit
this fantastic, 24-hour a day sound-andlight show. Pulsating with energy and
excitement, it's simply an unforgettable
experience. But be prepared for huge
crowds.
Neighborhood boundaries:
• 40th Street on the South
• 53rd Street on the North
• 9th Avenue on the West
• 6th Avenue on the East
www.nhnh.essortment.com/cityhallphilad_rnpn.htm
■ St. Patrick's Cathedral
www.gophila.com
Walk through the door of this
remarkable gothic structure on fashionconscious Fifth Avenue, and you will
quickly be struck by the quiet,
contemplative atmosphere inside. The
largest Catholic Cathedral in the U.S.,
St. Pat's seats 2,200 people and attracts
3 million visitors a year. The building's
spires rise 330 feet above street level.
BIG APPLE FREEBIES
Hours: Sunday – Friday, 7 a.m. –
8:30 p.m.; Saturday, 8 a.m. – 8:30 p.m.
Location: Fifth Avenue between 50th
and 51st Streets
Phone: 212-753-2261
Web site:
www.nyarchdiocese.org/pastoral/
cathedral_about.html
Sources:
gonyc.about.com/od/freestuff/tp/free_
attraction.htm
www.frommers.com/destinations/
newyorkcity/21_indattr.html
WASHINGTON, D.C. FREEBIES
142 million objects. Includes everything
from the Fonz's leather jacket to the
Hope Diamond to a tollbooth from the
original Pennsylvania Turnpike. Start at
the "Castle" — the Smithsonian
Information Center.
Smithsonian Information Center
Hours: Daily 8:30 a.m. – 5:30 p.m.;
Info desk, 9 a.m. – 4 p.m.
Address: 1000 Jefferson Drive SW
Transportation: Metro: Smithsonian
Phone: 202-633-1000
Season: Closed Dec 25
■ The U.S. Capitol
Photo courtesy of WCTC.
■ Arlington National Cemetery
Stop at the reverent resting place of
260,000 war veterans. Follow the crowd
to the gravesite of President John F.
Kennedy, or visit the Tomb of the
Unknowns, containing unidentified
remains of service members from many
of our country's wars.
Hours: April – September, daily 8 a.m. –
7 p.m.; October – March, daily 8 a.m. –
5 p.m.
Location: Just across the Memorial
Bridge from the base of the Lincoln
Memorial
Transportation: Metro: Arlington
National Cemetery. If you come by car,
parking is $1.25 an hour for the first
3 hours, $2 an hour thereafter.
The cemetery is also accessible via
Tourmobile
Phone: 703-607-8000
Web site: www.arlingtoncemetery.org
Get a close-up look at the workings of
government in the massive, magnificent
U.S. Capitol building, one of the most
recognized structures in the world. See
where our legislators shape policy,
admire the spectacular rotunda and visit
the original Supreme Court chamber.
Tours: Call 202-225-6827 for current
tour information.
Hours: Free time-entry passes, one per
person, are distributed each morning,
beginning at 9 a.m., from the kiosk at
the Southwest corner of the Capitol
grounds, across from the Botanic
Gardens. No advance tickets are
available. During the busy spring and
summer months, the line for tickets
forms quite early in the morning, so
please plan accordingly.
Location: At the east end of the Mall,
entrance on E. Capitol Street and
1st Street NW
Transportation:
Metro: Union Station or Capitol South
Phone: 202-225-6827
Web site: www.aoc.gov
Season: Closed for tours Sunday,
plus January 1, Thanksgiving, and
December 25
Other: Parking at Union Station or
on neighborhood streets
■ The Smithsonian Institution
Explore the world's largest museum
complex and research organization (17
museums in D.C. and the National Zoo,
plus two in New York City). View over
Sources:
www.districtcolumbia.com/DC_Twenty_Five_
Free.html
www.frommers.com/destinations/washingtondc
9
ZERO-POINT FINANCING
Vacation Homes:
A booming and boomers' market
F SUMMER BREEZES spark your desire for a
vacation home at the shore … the Poconos
… or as a winter escape down south —
you're not alone.
An annual report by the National Association
of Realtors® (NAR) says sales of vacation homes hit
a record 1.02 million in 2005. Some 12.2% of all
homes purchased in 2005 were vacation homes —
at a median price of $204,100.
"Typical vacation-home buyers in 2005 were 52
I
10
years old, earned $82,800 and purchased a property
that was a median of 197 miles from their primary
residence," Realty Times reported.
Baby boomers are driving the second home
market, says David Lereah, NAR's chief economist.
"They're at the peak of their earnings, interest rates
remain historically low and boomers want to
diversify investments."
Marty Burke, Assistant Vice President and
Mortgage Development Officer at FMFCU, says the
majority of members buying vacation
homes through the Credit Union last
year chose to purchase down the shore.
The breakdown:
65% — New Jersey Shore
30% — Pocono Mountains
5% — Georgia, Florida and
South Carolina
FMFCU will handle mortgages for any
states except Texas and California,
Marty says. "The lending regulations are
too unusual" there. A vacation home is
defined as no greater than one-unit, or
it becomes an investment property,
he says.
FMFCU makes the mortgage
process for vacation homes as easy as
possible, Marty says, and rates are the
same as on a primary residence.
Right now, the Credit Union is
offering its homegrown 3/2 ARM, an
Adjustable Rate Mortgage for those
with a 10% down payment, or a Fixed
Rate Mortgage for those putting
a minimum of 5% down. FMFCU has
a variety of other loan types to consider
for purchasing a vacation home as well.
The rate on the 3/2 ARM is fixed for
the first two years, and then adjusts
every two years thereafter. Unlike most
ARMs that can increase by 2% at each
adjustment, FMFCU's ARM won't
increase more than 1.5% at each
adjustment.
There's no pre-payment penalty,
and the 3/2 ARM does not require
Private Mortgage Insurance (PMI), a big
savings to you. Usually, when a buyer
puts less than 20% down on most
mortgage loans, PMI is required. There
are other creative financing options that
avoid PMI, like taking two loans at the
time of purchase — the first loan would
normally finance 80% of the purchase
price, and the remaining funds needed
are financed through a home equity
loan. These loans are typically known as
80/10/10 (when putting a 10% down
payment), or 80/15/5 (when putting a
5% down payment).
So, if you're considering a vacation
home, stop in and see the loan officer
at your branch. You also can visit us
online at www.fmfcu.org/site/
mortgagereps.html or call us at
610-325-5017. Turn your dream into
reality. We're here to help you.
5
reasons
to get your mortgage
through FMFCU
make the process easy, and
1 We
walk you through every step.
wholly owned subsidiary,
2 Our
State Financial Network, Inc.,
will service your mortgage
throughout the life of your loan.
So you will always deal with us.
process, underwrite and
3 We'll
close your loan, with no
pre-payment penalties of
any kind.
offer low closing costs,
4 We
low down payment programs
and no points on most loan
products.
been closing mortgages
5 We've
since 1984. You can be
confident that we know what's
involved from beginning to end.
Source: http://realtytimes.com/rtapages /
20060406_vacationhome.htm
1.02 Million Americans Purchased Vacation Homes in 2005.*
Will you be next?
Whether you’re a first-time homebuyer, or in the market
for the vacation home you’ve always wanted, we can help
you get a mortgage that makes the most sense for you.
Our staff of professional advisors has been helping
members buy homes for more than 20 years, and our
experience speaks for itself as we walk you through
the entire process — from application through closing.
•
•
•
•
•
•
FREE Pre-Qualifications
Online Applications
Competitive Rates
Zero-Point Financing
Zero Down Payment Options
Loans with no PMI** & More!
So, let FMFCU help you purchase your dream home.
FRANKLIN MINT
FEDERAL CREDIT UNION
The Credit Union of Choice! ®
610-325-5100 • www.fmfcu.org
*As reported by the National Association of Realtors® (NAR) in its 2005 annual report.
** PMI (Private Mortgage Insurance) is not required with FMFCU’s 3/2 Adjustable Rate Mortgage.
11
newsbriefs
VITA PROGRAM AIDS
83 CHESTER RESIDENTS
A Volunteer Income Tax Assistance
Program (VITA) set up at FMFCU's
Chester Branch paid off for 83 Chester
residents, says Richard B. Elam, Sr.,
Community Relations Manager at the
branch.
The 83 tax returns equaled 237%
of the goal set by the Internal Revenue
Service (IRS), Richard says.
FMFCU provided space for the tax
assistance and promoted the program to
area members and to a VITA list for
Delaware Country.
VITA offers free tax help to people
of low-to-moderate income ($38,000
and below) and those who cannot
prepare their own tax returns, the IRS
Web site says.
Lorpu Jones, an economics major
at Swarthmore College, and Joyce Lacy,
Director of Experiential Education at
Widener University's School of Business
Administration, prepared almost all of the
returns, Richard says.
FMFCU first became involved in the
VITA effort through Richard's work on the
Foundation Board of the Delaware County
Asset Development Group.
John Greskiewicz, FMFCU Vice
President and Regional Manager, says the
tax assistance and preparation took place
on Mondays, Tuesdays and Saturdays from
early February to the second week of
April. FMFCU employees also met with
residents at three Chester sites and the
Credit Union branch itself to help them
set up FMFCU direct deposit accounts.
Opening FMFCU accounts gives the
residents a vehicle for saving money — an
important tool for financial self-sufficiency.
Direct deposit speeds up the refund
process and also eliminates the possibility
of stolen or lost checks.
The VITA effort was "well received"
by the community, John said.
FMFCU works with numerous
community organizations in Chester, as
well as with the Philadelphia Higher
Education Network for Neighborhood
Development (PHENND), which is
headquartered at the University of
Pennsylvania.
FMFCU RECOGNIZES
ACHIEVEMENT AT PARTNERS
IN LEARNINGSM BANQUET
FMFCU celebrated education at its firstever Partners In Learning Banquet April 6
at the Drexelbrook Corporate Events
Center in Drexel Hill.
Highlights of the evening included:
• Presentation of the 2006 Financial
Literacy Advocate of the Year Award
to Margaret (Peggy) Wanger,
Interboro High School Business
Education Teacher.
• Awarding of the annual John D.
Unangst Scholarships to: Colleen
DeFruscio, Kelly Anne Farrelly and
Rachel Barrett; and the John D.
Unangst Interboro Scholarship to
Harry Chin III. The scholarships
valued at $1,500 each, attracted
over 100 entries, some from as far
away as California.
• Recognition of business teachers
Rita Deitrich, Springfield High School,
and Anthony Fortuna, Upper Darby
High School, for their commitment
to financial literacy.
• Presentation of Student Branch
Leadership awards to Student Branch
Council Presidents Matthew Hawkins,
Interboro High School; Sara Antolini,
Upper Darby High School; and Phil
Sabato, Springfield High School.
• Awarding of plaques to Student
Member Service Representatives at
FMFCU's three student-operated
branches.
2006 FMFCU scholarship winners pose with President and CEO John D. Unangst (third from
the left) at the Credit Union's first Partners In Learning banquet. The winners are (left to right):
Colleen DeFruscio, Harry Chin III and Kelly Anne Farrelly. (Not shown: Rachel Barrett.)
12
Rick Durante, Assistant Vice President
and Director of Education, also
announced plans to open two more
student-operated branches this fall at
Penn Wood High School in Lansdowne,
and at Strath Haven High School in
Wallingford.
DELCO HI-Q TEAMS HONORED
Marple Newtown High School's
championship Hi-Q team was honored
at the 2006 Partners In Education Dinner
held May 10 at the Drexelbrook
Corporate Events Center in Drexel Hill.
As 2005-2006 Delco Hi-Q
Champions, the team will display the
Donna Zerby Trophy in the school for
one year. It's named in honor of the
longtime Hi-Q Director and first Hall of
Honor inductee who passed away in
August 2005.
Also receiving recognition were
Garnet Valley High School and Delaware
Valley Christian School, which took
second and third place respectively.
FMFCU is a primary corporate
sponsor of Delco Hi-Q, the oldest
continuous academic quiz competition
in the nation.
2 FMFCU PUBLICATIONS
RECEIVE AWARDS
The 35th Anniversary Issue of Choices ®
magazine and Homegrown Cash, an
FMFCU marketing campaign promoting
home equity loans and lines of credit,
won an award in the Service Industry
Advertising Awards (SIAA).
Choices received a gold award in
the collateral financial services materials
section; Homegrown Cash won a merit
award in the financial services total
advertising campaign category. Over
1,500 entries were judged in the
competition. Criteria included execution,
creativity, quality, consumer appeal and
overall break-through advertising content.
20042
L I N
F R A N K
M I N T
L
F E D E R A
C R E D I T
’ S
U N I O N
I N E
M A G A Z
Choices
ARY
35TH ANN IVERS
ISSUE
TM
TEACHING
DOLLARS
AND SENSE
RN
STUDENTS LEA
ANCE
REAL-LIFE FIN
FIRST
AT FMFCU'S
NCH
SCHOOL BRA
WHAT'S NEXT
?
FOR FMFCU
N'S
SUZE ORMA
BUDGET BASICS
BUY OR
SHOULD YOU
CAR?
LEASE THAT
MENT TIPS
GREAT RETIRE
SHOULD KNOW
EVERYONE
OF
MAKING SENSE
MAZE
THE MORTGAGE
JOE BANKS HERE — REALLY!
FMFCU campaign uncovers two
strange — but true — events
A recent marketing program for
FMFCU produced two unusual and
unexpected coincidences.
The first occurred the day FMFCU
President and CEO John D. Unangst
unveiled the "Joe Banks Here"
campaign to employees at FMFCU's
annual In-Service Day.
As John pointed to the 8-foot
Langston Williams stands near
screen
behind him, and a larger-thanhis look-alike.
life silhouette of a 30-something guy
against a neon green background appeared, FMFCU employees began to
murmur: "Is that Langston"?
Surprise 1: Joe Banks takes a bow The image looked so much like
Langston Williams, FMFCU's Network Administrator, that he immediately
stood up and took a bow.
"Joe Banks Here," a joint effort by the Octo Design Group and FMFCU's
Marketing Department, “used Joe Banks as a symbol for anyone who wants
better service from their financial institution. We never realized that the
silhouetted image we chose resembled an employee," says Drew Stanley,
FMFCU Assistant Vice President of Market Development.
The second coincidence occurred after the campaign began appearing
throughout three local school districts granted eligibility for Credit Union
membership — Upper Darby, Interboro and Springfield.
Surprise 2: Joe Banks drives a bus Suddenly, Joe Banks, a school bus
driver in the Southeast Delco School District, began getting teased by his
co-workers about his Internet sideline. And he had no idea what they were
talking about.
Little did he know that materials for "Joe Banks Here" had begun
appearing in direct mail, print and cable TV outlets, local newspapers and
on a SEPTA bus wrap. Life-size "Joes" were even placed at area FMFCU
branches.
One woman said to Joe: "I saw your new Web site on the side of the
113 SEPTA bus; we know you’re up to something."
Joe finally realized what was going on the next day, when a fellow
bus driver left a copy of FMFCU's newspaper ad on Joe’s chair.
The ad explained why "Joe
Banks" joined the Credit Union
and publicized his Web site,
www.joebankshere.com, which lead
viewers to FMFCU's official site.
When Joe saw the ad, he
laughed out loud. “Naturally, I had
to join," he says.
However, Kelly Beavers, the
Member Service Representative
who took Joe's call, thought it was
a prank. "But the gentleman on the
phone persisted. I finally realized
that I was talking to the real Joe
Banks," Kelly said.
Now, Joe Banks really does
bank at a Credit Union — right here
The real Joe Banks is an FMFCU member.
at FMFCU.
13
What’s in your FICO® score?
Types of
Credit in Use
New
Credit
Length of
Credit
History
10%
Payment
History
10%
35%
15%
30%
Amounts
Owed
Source: myFICO.com
Everything you need to know about your FICO® score …
but didn't want to ask!
This important number can affect your life in many different ways
I
F YOU'RE LIKE MOST PEOPLE, you
don't know your FICO score. You may
not even know what it is.
Named FICO for Fair Isaac Corporation
— the company that developed them —
FICO scores are calculated from different
credit data in your credit report. Among
them: your payment history, amounts
owed, length of credit history, new credit
and types of credit.
But be aware of this: your FICO score
affects how much you may pay for credit
cards, for car insurance, car loans and
mortgages.
And, according to Consumer Reports,
employers, landlords and utility companies
are also using credit history and credit
scores to help them make other important
decisions about you.
So take a few minutes now to learn
about your FICO score. Knowing what it
is … and how to improve it … could save
you thousands of dollars each year.
What is your credit score?
It's a number between 300 and 800+ that
helps lenders assess your credit risk. The
14
higher the number, the lower risk you are,
and the less you pay for credit.
Allan Stevens, Vice President and
Senior Loan Officer at FMFCU, says there
are hundreds of credit scores. "Clearly
the most well-known is the Fair Isaac
Score."
Nationally, 85% of scores range from
600 to 800+, and the median score is 723.
(That means half of consumers scored this
number or higher, and half scored at this
number or below it.)
Fair Isaac's excellent Web site,
myFICO.com, illustrates the impact of
your score on a $216,000 30-year fixed
mortgage.
In its example, people with scores of
760 to 850 paid $1,313 a month; those at
620-639 paid $1,542 a month, a difference
of $229 a month or $2,748 per year!
Dramatic effects on your interest rate
On the day of this interview in early April,
Allan checked rates offered by a major car
manufacturer’s finance company. People
with scores of 730 or above paid the
lowest interest rate, 6.25%. Those at 620
to 649 paid 11.75%. And those with
scores of 619 or below paid a whopping
14.65%.
"It's really a more equitable way of
pricing a loan than one price fits all,"
Allan says. The scores are not perfect he
says, but they predict a probability of
default, or the failure to make a loan or
debt payment when due.
"It comes down to odds," he adds.
For people with top scores, there's about
a 1 in 200 chance that they will default.
For those with the lowest numbers, the
odds are 1 in 3 or 1 in 4 that they will
default, he estimates.
How do you improve your score?
"The number one thing is to pay your
existing loans or accounts on time," Allan
says. This includes loans, credit cards
and utilities. Consumers can also take
advantage of automatic online bill
payments, like the no-cost service offered
on FMFCU’s Web site. Once accounts
are properly set-up to be paid online,
there is little room for error, much less
late payments.
Other suggestions:
• If you have a problem with a creditor,
contact them about an alternative
schedule, so you can pay on time.
• Pay down or off your revolving
balances.
• Don't apply for any new credit unless
you absolutely need it.
What is not in your credit score
FICO credit scores do not consider:
• Your race, color, religion, national
origin, sex or marital status
• Your age
• Your salary, occupation, title,
employer, date employed or
employment history.
• Where you live
Many people are surprised to find that
income is not part of your credit score.
"Lenders know your income figure,"
Allan says. "Credit agencies do not."
Closing unused credit cards can actually hurt your score
While it's wise to pay off credit card accounts, you don't want to
close them. That strategy could actually raise your score. How? Liz
Pulliam Weston at MSN Money notes that your credit score looks
at the difference between available credit and what you are currently using. You gain points if you tap only a small percentage of
available credit. If you close an account, your total available credit
shrinks. Your balances will then appear greater than your available
balance, hurting your overall score.
Closing older credit cards will reduce your average account age,
Consumer Reports says, "which makes up a good portion of your
credit score."
So pay off your credit card accounts … but leave them open.
How do you find out your score?
The best advice, says Allan, is to order
FICO® Deluxe from myFICO.com,
a partner of FMFCU and one that
Consumer Reports linked to in its August
2005 issue on credit reports. FICO Deluxe
will provide your FICO scores and credit
reports from all three major credit
bureaus.
Because scores are based on information the individual credit bureaus keep on
file, your scores may vary from bureau to
bureau. And since lenders may look at all
three, you want to know what your score
is for each … and how to correct it if
there are mistakes.
For first-time buyers, the cost of FICO
Deluxe is: $44.85. Other options also are
available. Just click the my FICO link at
the bottom of FMFCU's home page.
Once there, you can click on "More
myFICO products" and select which one
you want. Or, once you've clicked on
"More myFICO products," scroll up and
click on "Credit Education" in the title bar.
You'll find a wealth of information about
credit scores and how to change them.
SOURCES:
www.myfico.com/CreditEducation/Default.
aspx?fire=5
www.consumerreports.org:80/cro/
personal-finance/credit-scores-805
/overview.htm (Available only to
subscribers.)
http://moneycentral.msn.com/content/Ban
king/Yourcreditrating/P41876.asp
15
FINANCIAL
FITNESS
Peggy Wanger teaches her
students about real life
“Peggy Wanger is a trailblazer,” says FMFCU’s Michael B. Magnavita.
W
HEN FMFCU first proposed the
idea of a student-operated
Credit Union branch to several
local schools in 2004, Interboro High
School's business teacher Peggy Wanger
jumped at the opportunity.
Why? She knew from Interboro's
interviews with its top students that they
felt well prepared academically. But in
day-to-day financial matters, they were
far less informed and confident. One
gifted student simply said: "I don't know
16
anything about real life."
Peggy has helped change that.
She championed FMFCU’s idea and
helped Interboro become the first
student-operated Credit Union branch
in the Philadelphia area, and recently was
named first-ever recipient of FMFCU's
2006 "Financial Literacy Advocate of the
Year" Award.
In accepting, she said: "I tell my kids
you can't depend on anyone but yourself.
You have to make yourself financially fit."
Peggy, Business Education Co-op
Coordinator at Interboro, pounds that
message home to students in her
"Financial Fitness" course, a onesemester elective.
Shocked by cost of credit
At the start of the course, she says, most
of the students know very little about
budgeting, loans or about the cost of
credit. "We hit the cost of credit hard,"
she says. When she explains how many
years it takes to pay off a credit card
when paying minimum balances,
"they're shocked."
Some of the students have no savings
accounts, no relationship with a financial
institution. When she began the Co-op
class some years ago and asked students
where they cashed checks, she was
amazed to hear they were patronizing
high-cost check-cashing agencies. "That
was my first class," she says. "Things
were a little different."
Peggy uses computers, books,
magazines and outside experts to make
sure she's teaching "real-life" material.
While discussing credit scores, she has
her students go online and get free credit
reports. For the savings and investment
portion, she takes them to Vanguard's
and FMFCU's Web sites, and has the
students evaluate how much risk they
can tolerate.
Learning how to budget
Budgeting is a real eye-opener for many
of the students. Most say they can't
budget, because they have no money.
They don't consider the money mom
gives them for lunch or the birthday
check grandma sent as income.
When Peggy challenges them to save
$10 a week, their response is: "No way."
She persists: "How much are you
spending for that Frappuccino® or that
Wawa® coffee or Swiss Farms Iced Tea?
Do you need this or that?"
"The budget exercise gets them
thinking," she says, and helps them learn
to track their spending.
Training alongside her students
Like any good teacher, Peggy keeps
learning new things. When her Interboro
students started an FMFCU summer
training program before the Credit Union
branch opened there, Peggy volunteered
to join them. She told herself: "I really
should sit there with them and see exactly
what they are doing."
She did, and was much better able to
answer questions about the branch and
the students' qualifications.
Helping Interboro students learn "the
nitty-gritty" about financial matters
remains her passion. Besides promoting
financial fitness in her class and helping
spearhead the Credit Union branch,
Peggy also brings in her former student,
Rick Durante, FMFCU Assistant Vice
President and Director of Education, to
teach a Financial Literacy seminar for
Interboro seniors.
Peggy credits the school administration
for being "extremely supportive" of the
partnership with FMFCU. "They've been
very accommodating," she says. "It's
been wonderful."
In presenting her with the Financial
Literacy Advocate of the Year award,
Michael B. Magnavita, Executive Vice
President/Chief Financial Officer at
FMFCU, called Peggy "a trailblazer."
"She stepped up when the studentoperated branch was first proposed,"
he said, "and she continues to step
up today."
PEGGY'S COURSE COVERS
FINANCIAL BASICS
Her "Financial Fitness" classes
include:
• Importance of Financial Planning
• Career: Labor You Love
• Budget: Don’t Go Broke
• Savings and Investments
• Credit: Buy Now, Pay Later
• Insurance: Your Protection
• Strive to Drive: How to Buy a Car
(Everything from car-shopping to
paying for the vehicle, routine
maintenance, buying insurance, etc).
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17
Family Finances
HOME BANKING & BILL PAYER
GET NEW ENHANCEMENTS
Bill Payer than ever before, and we are
getting more users every day."
Other improvements:
Responding to members' suggestions,
FMFCU continues to improve Premier
Access Home Banking & Bill Payer
services.
Here are the two most popular new
enhancements, says Liza Mattis, Vice
President of Support Services:
■ Members
can start Bill Payer
immediately, adding payees the
same day. Before, there was a
three-day delay.
■ Members
can now submit several
online forms electronically. The most
popular forms are: Member-toMember Transfer Forms, Debit/ATM
Card Applications, Bill Payment
Maintenance and Address Changes.
Members seem to like the changes, Liza
says. "We've had more people sign up for
FMFCU has added rate information on
Certificates and IRAs. This gives members
more control in making financial decisions.
Members can now download a history
of mortgages and other loans to
Microsoft® Money and Quicken®.
For more information, go to:
www.fmfcu.org or call the Member
Service Center at 610-325-5100.
INSURANCE ON RETIREMENT
ACCOUNTS JUMPS TO $250,000
As of April 1, 2006, FMFCU members'
retirement accounts will be insured for up
to $250,000 by the National Credit Union
Share Insurance Fund, an arm of the
National Credit Union Administration
(NCUA).
Worthy of a Standing Ovation
but you’ll want to sit down with us for this one…
FMFCU’S PERFORMANCE CHECKING
For the member who maintains higher balances and requires
a little more from their checking account, allow us to roll out
the red carpet. FMFCU’s Performance Checking, please take a bow!
★3.50% APY* guaranteed
until December 31, 2006
★ Unlimited Check Writing
★ $25 Annual Credit toward
Check Purchases
★VISA Premier Check Card
®
★ FREE Safe Deposit Box
for One Year
**
★ FREE Home Banking & Bill Payer
★ FREE Cashier’s Checks and
Money Orders
... and More!
Start earning higher yields today at your Credit Union.
610-325-5100
www.fmfcu.org
FRANKLIN MINT
FEDERAL CREDIT UNION
The Credit Union of Choice! ®
*Annual Percentage Yield (APY) is effective from 6/1/06 through 12/31/06 on Performance Checking Account balances
of $10,000 or greater. To avoid fees, the Performance Checking Account requires a $10,000 minimum balance, or combined
deposit balances of $25,000 or greater under the same member account number. Membership eligibility requirements apply.
**Safe Deposit Boxes are only available at our Broomall location and are in limited supply.
18
This is the first increase authorized by
Congress in more than 25 years.
The change, which recognizes the fact
that many Americans planning for
extended retirement have accumulated
more than $100,000, also affects the
Federal Deposit Insurance Company
(FDIC), which insures deposits at U.S.
banks.
The higher coverage includes
traditional and Roth IRAs, self-directed
Keogh accounts, 457 Plan accounts and
employer-sponsored 401 (k) accounts.
The limit remains $100,000 on other
deposit accounts.
With the added coverage, you may
find it convenient to consolidate your
retirement funds at FMFCU, especially
once regular distributions begin.
HOW TO MAXIMIZE COVERAGE
OF OTHER DEPOSITS
While coverage on non-retirement
accounts remains at $100,000 under the
new law, there are ways to qualify for
much more.
How? By changing the way your
accounts are titled and setting up
deposits in different ownership
categories. With joint titling and trust
accounts, your total amount of insurance
can easily total $1,000,000 or more.
For information, stop by any FMFCU
branch.
Run the Numbers
13
Average number of credit obligations
today's consumer has on record at a
credit bureau. Of these, nine are credit
cards and four are installment loans.
$19,000
Total available credit a typical
consumer has — when all credit cards
are combined.
15
Percent of consumers with credit card
balances over $10,000.
Source: www.myfico.com/CreditEducation/
AverageStats.aspx
Q&A FINANCIAL PLANNING
An interview with Christina Moore, Financial Advisor, CUSO Financial Services, L.P. (CFS)
Q
Why do we need help with Financial Planning
today? People used to handle their own finances.
A
Today people have more options than ever before
when it comes to investing money. Talking those
options over with a financial advisor, who knows the
marketplace and stays current on changing laws, will
help the average investor to make better choices.
Q
A
someone who gets to know you, listens and is easy
to talk to.
Q
A
What's the biggest financial mistake you see?
Q
A
Why did you become a financial advisor?
Q
How can members learn more about financial
planning through FMFCU's Financial Center?
A
Just call us at 610-480-9996 and set up a free
consultation. Or e-mail investmentctr@fmfcu.org.
There's no obligation. You'll learn what your financial
options are before you need them. And you'll have
a plan.
What kind of laws?
There are a lot of laws people need to be aware of,
especially when it comes to retirement investments.
Rollovers, transfers, what’s deductible, what’s not,
investment limits and IRA distributions are all
governed by IRS regulations. For example, if you take
a distribution from your 401(k) and it's made payable
to you, 20% tax will be withheld. If you choose a
direct rollover, the funds go right into the hands of
your financial institution and taxes will not be withheld. Contribution limits are constantly changing and
the older investor is able to contribute even more.
New products and new rules are being introduced
to the market all the time. We help people make
decisions that are right for their particular situation,
and help them avoid making mistakes.
Q
When do people usually decide to see a financial
advisor?
A
Major "life events" often prompt people to look for
help. Marriage, divorce, changing jobs, buying a
house, having a baby, inheriting money, nearing
retirement … it’s an endless list!
Q
A
What does a financial advisor do?
Q
A
Do most people have clear goals and objectives?
Q
A
How should people choose a financial advisor?
Many people wait too long to begin saving for
retirement — they need to start saving at an earlier
age. And, they need to realize they can't depend on
company pensions or Social Security. They need to
do the saving themselves.
I like being able to guide people, and take some of
the fear of finances away from them.
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. Representatives are
registered through CFS. Member NASD/SIPC and SEC Registered
Investment Advisor.
We help people look at their whole financial situation
objectively: insurance, college planning, retirement
planning, investment planning, tax planning and
estate planning. We review their assets, liabilities,
investments, income, family situation, their goals and
objectives. Then we help develop a plan so the goals
and objectives can be met.
Some do and some don’t. For those that don’t, it is
usually because they don’t understand their options
and don’t know how to get started. We're here to
help educate them.
Of course, you want someone who is an expert in the
field. But, more importantly, you want to look for
Christina Moore likes guiding people through their finances.
19
PARTNER PROFILE
NOW
THEN
The Community Y's physical plant and its programs have grown dramatically
in the past 58 years. (Left: In the late 1940s, Garrett Road had just a stop sign at
Lansdowne Avenue ... and a lot less traffic.)
COMMUNITY YMCA
OF EASTERN DELAWARE COUNTY
Still changing with the times
A
PHOTO OF the original Community
YMCA of Eastern Delaware County
building, taken from Lansdowne Avenue
in the late 1940s, reflects a far simpler
time.
In those days, a lonely stop sign
stood quietly at Garrett Road.
Today, fueled by traffic from three
high schools and a hospital all located
within a quarter mile of the Y, Garrett
Road and Lansdowne Avenue is one of
the area's most congested intersections.
Changes in the Y's programs over
the last 58 years have been equally
dramatic.
"We're not serving just the young
anymore," says Michael Ranck, President
and CEO. "We service infants to seniors."
Rather than fulfilling the original
purpose of YMCAs, "which was to get
young men out of the bars and brothels,"
Michael says, a YMCA today "is really
what the community wants it to be."
Key current programs include
childcare for over 525 children a day,
plus after-school and summer-camp
programs that fill "the void for struggling
families." There's also a new program
20
called H.I.P. Kids, a Health Intervention
Program aimed at boys and girls ages
eight and up who are at risk of becoming
overweight or obese.
"Our mission is not to make money,
not to make a profit, but to serve the
community." Michael adds. For example,
"$25 for seven weeks of swimming
lessons doesn't even pay for the teacher,"
but aquatics is a service the Y feels is
important to provide.
Promoting summer safety
Because single parents need a safe place
for their children when school is out, the
Y's policy is to open summer camp the very
day school ends … and keep it
open until school begins. The Y's goal,
Michael says, is to be a positive part of
family life in Delaware County, promoting
the values of caring, honesty, respect
and responsibility.
Putting its money where its mouth
is, the Y provided about $250,000 in
financial assistance last year on a budget
of $6.5 million. "Eighty-five cents out of
every dollar goes to families in need of
daycare or summer camp services, 13 cents
goes to program and membership
support and just 2 cents to overhead,
which is pretty low," Michael says.
Volunteers set the pace
Some 45 volunteers on two boards help
run the Y: a Foundation Board that
manages the endowment and an
Operations Board involved in community
development and fundraising.
Doing the day-to-day work at the
Lansdowne Avenue branch, a Ridley
Branch that opened in 1997, the St. John
Child Care Center in Lansdowne and an
after-school program at Ardmore
Elementary School are 40 full-time staff,
and 300 part-time staff.
The Y provided service for some
25,000 members last year, 54% of them
female. No longer solely for Christians,
the Y embraces all religions, Michael says,
and encourages people to celebrate their
beliefs. "We don't evangelize
Christianity."
Busy morning to night, the Y’s regular
hours are 6 a.m. to 11 p.m., Monday
through Friday; 7:30 a.m. to 8 p.m.,
Saturday; and 11 a.m. to 6 p.m., Sunday.
Attesting to the Y's breadth of
activities is its 48-page, 2006 Spring
Program Guide, which lists over 70
programs and 19 summer camps.
The Y doesn't want to duplicate what
other organizations do, Michael says. So
it runs basketball for 3 and 4-year-olds.
"We try to think what can we do best.
What's our best avenue for doing it?"
Running so many programs for so
many age groups presents scheduling
problems for the Y, Michael admits.
So does the condition of the original
building, which has been expanded and
renovated over the years. "Its various
sections are on different levels," Michael
says, referring to the structure as "a
hodgepodge."
While the newer Ridley branch has
ramps, the Lansdowne branch does not.
"It's one of the challenges we face here,"
he says, "How to make everything
accessible."
Michael believes partnering is the
key to the Y's continued success and
growth. He cites a summer camp at
Sabold Elementary School in Springfield,
and a partnership with Ridley High School
as proof of the concept. "We've lent our
expertise in pool management (to Ridley)
and they're lending us their space."
"Everyone's answer is to build. We
need to look beyond our four walls. We
can grow here."
Fast Facts
Members:
Volunteers:
Daily Day Care Recipients:
Summer Camp Attendees:
Financial Assistance Provided:
25,064
Over 300
525
1,206
$250,000
Wilson Chu and Family
Members since 1974
You’ve worked hard
for your home. . .
Now let your home work for you!
Have you considered the flexibility of a Home Equity Line of
Credit (HELOC)? Maybe its time you do. There are many advantages
that make it a very viable solution for tackling your next home
renovation (or other important events that need financing):
•
•
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•
•
•
•
•
Rates as low as Prime minus 1.01% APR*
No Application Fees
No Annual Fees
No Closing Costs**
Low Monthly Payments
Pay Interest Only on Funds Used
Check-Writing Privileges
Possible Tax Advantages* & More!
What are you waiting for?
Stop by, give us a call or visit us online!
www.fmfcu.org • 610-325-5100
FRANKLIN MINT
FEDERAL CREDIT UNION
The Credit Union of Choice! ®
Jenn Strasinski, FMFCU’s Assistant
Vice President of Business Development,
has just been elected to the Community
Y’s Board of Directors.
* Prime minus 1.01% APR is for Home Equity Lines of Credit up to 85% Loan to Value (LTV)
with a minimum initial external advance of $20,000. Other rates and programs available.
Interest paid on Home Equity Loans / Lines of Credit may be tax deductible, check with
your tax advisor. Member eligibility requirements apply.
**There are no closing costs on Home Equity Lines of Credit less than or equal to 85% of
the loan-to-value of your home.
21
‘Tis the Season… FOR HOME REMODELING
Debbie Mattsinger, a member since 1990, enjoys both her dog Frodo and the new exterior paint job on her home.
She financed the touch-up work with an FMFCU Home Equity Loan.
W
ARM WEATHER has arrived, and
property values are at an all-time high
in most areas. With those two
motivators, many homeowners are using the
equity in their homes to make long-awaited
renovations that add function, efficiency and
comfort.
What would you change about your home
if you could? Add a second bathroom? Redo
22
your kitchen? Get hardwood flooring? Install
central air? Perhaps the better question to ask
is what renovations will yield the best return on
your investment?
According to a recent article entitled,
Worthwhile Home Renovations published on
AskMen.com, the return on your investment
depends on many things, but topping the list is
the scope of the renovation and how attractive
the change will be to potential buyers. Here is a list of home
improvements that the Web site identifies for getting the most
return for your dollars:
If you’re a homeowner who’s ready
to renovate, there are a few things
to consider beforehand:
1)
Adding new heating or air conditioning system
Cost: $2,000 to $8,000
Estimated Payback: 100% for heating system,
75% for air conditioning
Take the time to get estimates from
at least three contractors; in addition
to selecting the best price for your
budget, you may even get a few new
ideas through the bidding process.
2)
Adding a bathroom
Cost: $4,000 to $12,000
Estimated Payback: 92%
Ask for references from the contractor
you choose; while the price may be
right for you, there’s no substitute for
actual testimonials on the quality of
work performed.
3)
Make sure that the contractor you
select is bonded and insured;
accidents happen even to
professionals and you’ll want to be
covered for any mishaps should they
occur.
4)
Think twice before using friends or
family to get your job done; it’s much
easier to provide critical feedback
when necessary to someone you’re
not involved with emotionally.
5)
Consider your comfort level with the
contractor you select; it’s not all about
price and experience — remember
these people will be in your home for
several weeks during the renovations.
6)
Obtain and save receipts from all
supplies purchased and work done
on your home because some
renovations are tax deductible.
Check with your tax advisor.
Remodeling a kitchen
Minor Work Cost: $150 to $4,500
Estimated Payback: 94% to 102%
Major Work Cost: $4,501 to $25,000
Estimated Payback: 90%
Adding a new family room
Cost: $18,000 and up
Estimated Payback: 86%
Remodeling a bathroom
Cost: $200 to $8,500
Estimated Payback: 25% to 77%
Remodeling your home office
Cost: $800 to $8,000
Estimated Payback: 69%
Once you select a contractor, it’s
important to define business-related
items upfront. You should agree on the
length of time needed to complete the
job; how the contractor expects to be
paid (installments? cash versus check?
etc.); if they’ll be using subcontractors;
and what hours/days they will be working
in your home.
Of course, there are no guarantees
that any home project will be done
flawlessly and in the agreed-upon time
frame. But using the tips above, choosing
your projects wisely, and employing a
little common sense should help you
improve your home for functionality as
well as pleasure. Plus, making home
improvements can easily add resale value
to your home.
Adding a garage
Cost: $100 per square foot and up
Estimated Payback: 65%
Improving your landscaping
Cost: $200 to $15,000
Estimated Payback: 30% to 60%
Finishing your basement
Cost: Several thousand dollars
Estimated Payback: 15% to 25%
Adding a pool
Cost: $2,000 to over $12,000
Estimated Payback: 5% to 15%
Source: www.askmen.com/money/
investing_100/105_investing.html
Looking to finance your next home project?
Call the lending specialists at FMFCU for great
rates and flexible terms on Home Equity Loans
and Lines of Credit at 610-325-5100, or visit us
online for loan payment calculators, current
rates and other information at www.fmfcu.org.
23
Branching out!
Perfect weather and a large crowd of dignitaries helped celebrate the opening of FMFCU's latest branch on MacDade Boulevard
MAKE WAY FOR MACDADE
Newest branch proves popular with Members
W
HEN FMFCU's MacDade branch
opened its doors for the first time
on the morning of April 10, two
members in a row walked in and made identical
comments to co-managers Marie Cannon and
Donna Surotchak.
"It's about time," they said.
"They're thrilled we're here," Donna says.
24
"People come up and say, 'Finally. Thank
you,'" Marie reports.
One member, driving by on MacDade
Boulevard, saw the FMFCU-wrapped car with
colorful balloons attached, made a "U" turn and
quickly came back to the branch.
"Is it open? Oh, my gosh, I'm so excited,"
another said.
Member Services Representative Jill
Hildenbrand says that FMFCU members
who had been driving to Mercy Fitzgerald
or Granite Run told her they were very
happy. "They don't have to travel so far."
One member walked to the branch
with her two children. "There's a large
concentration of our members here,"
Donna says. "They're thrilled it's in their
backyard."
The building's modern, pleasant
appearance also got rave reviews. "It's
amazing when you look at it and see this
was a gas station at one time," Donna
says. "It has that new-building smell to it."
Mike Bunner, Assistant Vice President,
Electronic Marketing, agrees. "We really
like the way the branch turned out.
Seeing it in person is very impressive."
"It definitely has a lot of parking
available to members in front and on the
side of the building" adds Joe Zeminiski,
Assistant Vice President of Facilities and
Purchasing.
The new MacDade branch is well
marked by a large green sign with gold
FMFCU letters that was lowered into
place by crane. The colorful sign sits on
a specially constructed brick wall close
to MacDade Boulevard.
"I think others would agree that our
sign is one of the nicest on MacDade
Boulevard," says Mike Bunner.
In a joint effort with the builder,
FMFCU’s internal marketing department
designed the 4.4 ft. by 9.2 ft. sign. At
the top of a brick wall base is a white
aluminum structure that mirrors details
of the building's portico.
The 1,000-sq.-ft. branch includes two
offices, a 24-hour ATM and night drop,
three Remote "Video" Teller Systems
(RTSs) for added safety and security, and
an Internet service station to connect
with FMFCU's online banking.
Hours are Monday to Friday, 9 a.m. to
7 p.m.; Saturday, 9 a.m. to 4 p.m.;
Sunday, noon to 4 p.m.
Like Granite Run Mall's branch,
MacDade will be open seven days a week
— but without the holiday schedule.
program that included:
•
•
•
•
•
•
•
Choices® magazine story
Bus wrap
Cable TV ads
FMFCU car parked out front
Town Talk ads
Notice on FMFCU Web site
E-marketing campaign to nearby
members with referral offer
• Direct mail campaign to non-members
throughout the community
"Based on early activity, it appears that
our communications plan for this new
branch was on target," Drew says. "The
response from new and existing members
has been terrific."
REMOTE VIDEO TELLER SYSTEM
INCREASES SECURITY,
REDUCES WAIT TIME
The Remote "Video" Teller System —
or "Teller TV" — offers Credit Union
members a number of advantages.
The system has received many positive
comments at the Granite Run and Mercy
Fitzgerald branches, but like anything
else, it takes a little getting used to. If
you need any help, please ask an FMFCU
staff member for assistance.
BRANCH NOTES
The Media branch is expected to open
on June 26. Check the FMFCU Web site
for up-to-the-minute details … As
announced in the last issue, FMFCU's
Mercy Suburban branch plans to increase
its size. However, work has been delayed.
The hospital and local zoning board must
approve new plans. "It's going to get
resolved," says Joe Zeminiski, Assistant
Vice President of Facilities and Purchasing.
"We’ll keep members posted as to when."
Come In,
We’re Open!
Introducing
FMFCU’s Newest Branch …
2211 MacDade Boulevard
(Just East of Route 420)
• 7-Day Banking
• Free Member Parking
• 24-Hour ATM & Night-Drop
Depository
• Free Internet Access to
FMFCU’s Online Banking
• Remote Video Teller Systems
for Quicker, Secure Service
Stop by — we’re waiting for you.
www.fmfcu.org • 610-325-5100
THE MARKETING
OF MACDADE
Drew Stanley, Assistant Vice President,
Market Development, says members
learned about the new MacDade branch
through a multi-media, promotional
• Adds a layer of safety & security
for members and staff
• Enhances members' privacy during
transactions
• Speeds transaction time
FRANKLIN MINT
FEDERAL CREDIT UNION
Membership eligibility
requirements apply.
The Credit Union of Choice! ®
25
Want to join
Franklin Mint Federal
Credit Union?
Call 610-325-5100 now
to find out if you are eligible!
(Outside PA: 1-800-220-3193)
Or, visit us online at www.fmfcu.org.
Broomall ▲ ◗
1974 Sproul Road, Suite 100
Carol Amplo, Cluster Manager
Chadds Ford
Village at Painters Crossing ▲ ◗
Routes 1 & 202
Pamela L. Hellyer, Branch Manager
Chester
University Technology Park ▲
1450 Edgmont Avenue
Ann Wilson, Branch Manager
Crozer-Chester Medical Center ▲
Old Main Building
One Medical Center Boulevard
Pamela Caldwell, Branch Associate
Darby
Mercy Fitzgerald Hospital Campus
Medical Office Building ▲ ▲ ◗
1501 Lansdowne Avenue, Suite 109
Deborah Warrick, Branch Manager
NEW MEMBERS' BONUS OFFERS
Drexel Hill
Delaware County Memorial Hospital ▲ ◗
501 N. Lansdowne Avenue
Christina Gerlacher, Branch Manager
Horsham
Centocor ▲
800 Ridgeview Road
Suite H-2 1058
Melanie Moser, Branch Manager
Restricted Access
King of Prussia
Maschellmac Office Complex ▲ ◗
1020 First Avenue
Ground Floor Lobby
Lynda Stanton, Branch Manager
Get an extra
.25% off
Media
Granite Run Mall ▲▲ ◗
1067 W. Baltimore Pike
Lower Level
Larry Schuelie, Branch Sales Manager
Elaine Palandro, Branch Operations Manager
Open 7 days a week
an
Auto Loan or
Home Equity Loan!
Get a
very generous
BRANCHES
Widener University ▲ ◗
University Center Building
One University Place
Cathy McInnis, Branch Associate
FREE
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SWITCH KI
INING
MAKES JO
SY!
FMFCU EA
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our many branches & ATMs are ready to serve you
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Bonus-Rate
9-Month Certificate!
(ask us for details)
Just say you saw these offers
in Choices® Magazine!
Offers expire August 31, 2006.
Tinicum Township
Keystone Mercy Health Plan ▲ ◗
200 Stevens Drive
Ground Floor Lobby
Peggy Crowley, Branch Manager
West Chester
QVC Studio Park ▲ ◗
1200 Wilson Drive
Linda Jones, Branch Manager
Restricted Access
STUDENT-OPERATED BRANCHES
Prospect Park
Interboro High School ▲
500 16th Avenue
Nichole Kistler, Cluster Manager
Matthew Hawkins, Branch Council President
Restricted Access
Springfield
Springfield High School ▲
49 W. Leamy Avenue
Nichole Kistler, Cluster Manager
Phil Sabato, Branch Council President
Restricted Access
Upper Darby
Upper Darby High School ▲
601 N. Lansdowne Avenue
Nichole Kistler, Cluster Manager
Sarah Antolini, Branch Council President
Restricted Access
MEMBER SERVICE CENTER
P.O. Box 1907
Media, PA 19063
610-325-5100
1-800-220-3193 (calls originating outside of PA)
Gloria Mann, Manager
ADDITIONAL ATM LOCATIONS
Boscov’s, Granite Run Mall
Lower level, entrance nearest
AMC Theater
U.S. Route One
Media, PA
Community Hospital
9th & Wilson Streets
Chester, PA
Media ▲
101 W. State Street
Linda Fahey-Hudyma, Cluster Manager
Delaware County Community College
901 S. Media Line Road
Media, PA
Riddle Memorial Hospital ▲
Outpatient Pavillion, Suite 3108
1098 W. Baltimore Pike
Peggy Barnum, Branch Manager
Restricted Access
Endo Pharmaceuticals
100 Endo Boulevard
Chadds Ford, PA
Restricted Access
Norristown
Mercy Suburban Hospital ▲
2701 DeKalb Pike
Carol Amplo, Cluster Manager
Philadelphia
Mercy Hospital of Philadelphia ▲ ◗
501 S. 54th Street
Karen Coles, Branch Manager
MacDade Mall
Inside mall, near Kmart entrance
MacDade Boulevard
Holmes, PA
Mercy Health System
One W. Elm Street
Conshohocken, PA
Limited Access
Ridley Park
Taylor Hospital ▲
175 E. Chester Pike
Pat Herko, Branch Manager
Springfield Mall
(Two ATM locations)
Inside mall, upper & lower levels
Baltimore Pike
Springfield, PA
Ridley Township ▲ ◗
2211 MacDade Boulevard
Marie F. Cannon, Branch Sales Manager
Donna Surotchak, Branch Operations Manager
Open 7 days a week
QVC
Enterprise Building
1365 Enterprise Drive
West Chester, PA
Restricted Access
Swarthmore
Swarthmore College ▲ ◗
Parrish Hall
500 College Avenue
Kelly Lynn, Branch Manager
▲
▲▲
◗
ATM Location
Two ATMs at this location
Night Depository Location (Night Depositories are
for personal deposits, not business drop-offs.)
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T-602148-021706
BAD-05-06-8798
FRANKLIN MINT
FEDERAL CREDIT UNION
The Credit Union of Choice! ®
P.O. Box 1907 • Media, PA 19063-8907
www.fmfcu.org
Presorted
Standard
PO
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PAID
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