looking for extra ca$h? - Members 1st Federal Credit Union

JANUARY 2013
AVENUES
a publication of Members 1st Federal Credit Union, Mechanicsburg, PA • www.members1st.org
We put our members first.
LOOKING FOR EXTRA CA$H?
Consider a Home Equity Loan!
10-YEAR FIXED RATE
APR as low as 4.74%*
15-YEAR FIXED RATE
APR as low as 4.99%*
Sample Terms*
Loan amount: $30,000
Estimated monthly payment: $314.40
Sample Terms*
Loan amount: $30,000
Estimated monthly payment: $237.08
NO closing costs. NO pre-payment penalties. NO points.
s.
ARE YOU TAPPED OUT FROM HOLIDAY SHOPPING? Are
you wondering how you can get the money you need?
d?
Your home’s available equity could help you! If you’re looking to consolidate bills, purchase a new vehicle,
make home improvements, refinance, plan a wedding, pay off tuition bills or take a vacation, you may have
the perfect financial resource!
We offer fixed rate home equity loans with repayment terms up to 20 years. Our variable home equity line off
credit lets you choose the length of your term and borrow up to 100% of your home’s available equity.
Call our home equity specialists at (800) 283-2328, ext. 6040 today!
*APR = Annual Percentage Rate. Rates are effective as of the date of this publication and are subject to change at any time. Home equity
loans are for owner-occupied primary residences only. If you have a rental property, ask your loan officer for rental property rates. Your
rate may differ from our advertised rates and will be determined based on your individual credit profile and your home’s available equity.
Other conditions or restrictions may apply. Additional rates and terms are available. Consult your tax advisor regarding the deductibility
of interest.
in this issue
Bob’s Column .........................................................2
GoDirect® ...............................................................2
Online Bill Payer .....................................................3
Protect Your Pets .....................................................3
Insurance Card ........................................................3
GreenPath ...............................................................4
Protect Your Data ....................................................4
V.me by VISA .........................................................5
Credit Card Charges ...............................................5
Earn Money for College ..........................................6
Safe Deposit Boxes ..................................................6
Planning for Taxes at Retirement .............................7
TurboTax® ...............................................................8
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irectory
„Directory „Directory „Directory „Directory „Directory „Directory „Directory „Directory „Directory „Directory „Directory „Directory
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pa
Directory
TELEBRANCH (customer service)
Account inquiries, transactions,
account services, membership inquiries
(800) 237-7288
email: accountinquiries@members1st.org
Monday-Wednesday:
7:30 a.m. - 5:00 p.m.
Thursday:
7:30 a.m. - 6:00 p.m.
Friday:
7:30 a.m. - 7:00 p.m.
Saturday:
8:30 a.m. - 2:00 p.m.
If you email us:
Do not include any personal information
that would compromise your identity such
as your account number, Social Security
Number, credit card numbers, electronic
services, PINs, passwords or mother’s
maiden name.
OPERATIONS CENTER
(800) 283-2328
5000 Louise Drive
PO Box 40
Mechanicsburg, PA 17055
Monday-Friday:
9:00 a.m. - 5:00 p.m.
MEMBERS 1st ONLINE HELP DESK
(800) 895-2699
A WORD
FROM BOB
By Bob Marquette, President & CEO
What’s your attitude toward your personal inances?
Do you care about what you save and spend each payday, or do
you budget by the seat of your pants in the hope that you can
cover your bases?
Personal finance is unique to individual situations and
circumstances. Each of you have different financial goals, needs,
and desires. Some of you have a strict savings and investment
plan or micro-manage every dime and nickel spent. Some of you
have become so consumed with your debt that you get caught
up in the endless consolidation cycle. Before you know it, your
quest for that perfect financial recovery plan ends up in disaster.
Sound financial management is an evolving process. We realize
that the economy doesn’t make it any easier. You can’t fix years
of running up your credit cards, neglecting bills, raking up loans
and unnecessary purchases by making a 1-800 phone call to the
latest late-night TV get out-of-debt-now quick-fix program.
Personal finances are all about the choices you make. With
the right financial attitude, you are effective at setting realistic
financial goals and establishing a workable, realistic financial
plan. When you’re committed to a financial plan, you feel
confident and secure. The stress of not having a plan just makes
it worse.
Start 2013 with the right financial attitude and maintain it all
year long. You’ll be surprised how far ahead you could be by this
time next year. If you need help consolidating bills, refinancing
loans, transferring credit card balances, or developing a savings
plan, call us.
SEND GENERAL
CORRESPONDENCE TO:
Members 1st Federal Credit Union
PO Box 40
Mechanicsburg, PA 17055
MAIL LOAN PAYMENTS TO:
Members 1st Federal Credit Union
PO Box 2104
Mechanicsburg, PA 17055-2104
MAIL DEPOSITS TO:
Members 1st Federal Credit Union
PO Box 2110
Mechanicsburg, PA 17055-2110
When sending a loan payment or deposit,
please include your payment coupon
and/or use a deposit or loan payment ticket
available on www.members1st.org.
For additional phone numbers
go to www.members1st.org
and click “contact us.”
Consider the following financial
resolutions:
• Use GreenPath, a financial
management program that
provides you with free access to financial experts and
financial education tools including financial counseling,
debt management plans, credit report reviews, help with
housing issues and online education. See article on page 4.
• Learn the difference between wanting something and
really needing it.
• Become keenly aware of your income and expenses and
budget accordingly.
• Take care of tomorrow’s finances by developing a savings
plan for short and long-term goals and emergencies.
• Meet all of your credit obligations on time and make a
better effort at paying more than the minimum monthly
payment.
• Start planning for next year’s holiday season by opening a
Holiday Club.
• Teach your children to save with a Youth Club account.
• Utilize direct deposit and automatic payments so that you
know your money is where it should be at all times.
• Use Members 1st Online (home banking) and all its
features to better manage your accounts.
• Call us to discuss your financial needs, no matter how
small they are.
• Do not use payday loans or tax refund anticipation loans.
• Make a no-obligation appointment with Members 1st
Investment Services to discuss your long-term financial
plan.
It’s the Law: Switch Your Federal Benefit
Checks to Direct Deposit Today!
If you still receive a paper check for your Social Security or other federal benefit payments, you are required by law to
switch to direct deposit by March 1, 2013.
ACT NOW AND MAKE THE SWITCH BEFORE TIME RUNS OUT.
• Sign up at your local Members 1st branch.
• Visit www.GoDirect.org.
• Call the U.S. Treasury Electronic Payment Solution Center at (800) 333-1795
(Monday – Friday from 8 a.m. – 8 p.m. EST).
Wait times are usually minimal, but call now to avoid delays near the deadline.
When you enroll, you’ll need our routing number (231382241), your account number, your Social Security Number, the
amount of your last federal benefit check and the check number from a recent federal benefit payment/claim numbers
from the paying agency.
Time is running out – make the switch today!
Save Money with FREE Online Bill Payer
Monday, February 18
(Presidents’ Day)
closings
Sign up today! It’s FREE for Silver, Gold, Platinum and Titanium members!
„holiday
Protect Your Beloved Pets
closings
Sign up today and
protect your cherished
furry
y friends in 2013!
closings
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closings
While we’re talking insurance – when was the last time you took a good look at your current auto coverage? Check with Members
1st Insurance Services to have them review your policy and provide you with free quotes. Credit Union members are eligible for an
additional discount with several national and regional carriers through our insurance agency. You can reach our insurance advisors at
(800) 283-2328, ext. 5218 or 5245 or visit www.members1st.org>products and services to complete an online quote request. We may
be able to save you money!
„holiday
Moral of the story? Carry proof of auto coverage with you when you are driving a rented car. Simply request a second auto ID card
from your agent or utilize your insurance company’s mobile app. A special note of interest: If you are driving to Canada, a special
Canadian ID card must be obtained for proof of coverage in order to cross the border. Your insurance agent can provide this for you.
marketing@email.members1st.org
alerts@members1st.org
courtesyalerts@members1st.org
accountinquiries@members1st.org
notifications@members1st.org
cardpersonalization@members1st.org
cards@members1st.org
Hr4u@members1st.org
closings
certain coverages for a rental car in the U.S. and its territories, it may prove helpful to carry proof
of insurance with you when you travel in a rental car. Recently, a member was on vacation
outside of Pennsylvania when she was pulled over by a police officer in her rental car. The police
officer asked her for proof of insurance, in which she replied that it was a rental car and her
personal auto policy covered her while driving a rental car. The police officer still insisted, and
when she couldn’t produce her insurance card the officer cited her for “failure to provide proof
of insurance” – along with a hefty fine. Since this occurred on a Sunday, she wasn’t able to contact her agent to get the needed proof.
She eventually was able to provide the required proof, but the entire event inconvenienced her during her intended vacation.
„holiday
FIND YOURSELF NEEDING TO RENT A CAR? While your personal auto insurance extends
closings
Bring your insurance card with you
when you rent a car!
Please consider setting
your spam filter to accept
emails from Members 1st.
Sometimes we may send you
important announcements
or alerts and we don’t want
you to miss them! You’ll
want to be sure that your
settings allow you to accept
emails from the following
Members 1st email addresses:
„holiday
For a free quote, visit www.GoPetplan.com. Just enter promotion code
SUB0109C and you’ll receive a 5% premium discount and an additional
5% discount for buying online.
IMPORTANT
MEMBERS 1ST
EMAILS
closings
With Petplan you can obtain comprehensive, flexible and affordable
coverage for your pets. You can visit any licensed veterinarian in
the U.S. and Canada for treatment of all unexpected accidents and
illnesses – including chronic or hereditary conditions.
®
„holiday
DOES YOUR CAT OR DOG REQUIRE DAILY MEDICATION OR
FREQUENT VISITS TO THE VETERINARIAN? Members can now
benefit from Petplan®, which covers prescription medication, lab
tests and other diagnostic testing, scans, surgery, and even cancer
treatments and after-hours emergency visits.
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Check the calendar of events on
www.members1st.org for additional
holiday and early closings.
closings
Do you use Members 1st Online, but haven’t tried Bill Payer? Log into your account
and select the Bill Payer tab to get started. With Bill Payer, you can set up recurring
payments, view your payment history, add or delete payees and make one-time or
irregular payments. Please note that you must have a Rewards Checking Account to
utilize this service.
Our Administrative Offices and all
branch locations excluding our in-store
Giant branches will be closed on:
3
page
„holiday
OUR BILL PAYER SERVICE IS NOW FREE FOR ALL LEVELS OF OUR MEMBER
LOYALTY REWARDS PROGRAM. Not sure if you’re a member of the program?
Check your statement or log into Members 1st Online. You can also call TeleBranch
(Customer Service) at (800) 237-7288.
Holiday Closings
pa
ge
seminars
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seminars
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seminars
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seminars
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seminars
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seminars
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seminars
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seminars
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seminars
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seminars
4 Free Seminars
For directions, visit members1st.org.
Click on “locations.”
FIRST TIME HOME BUYERS
Seminar provides an overview of the home
buying process and types of mortgages available.
Perfect for the first time buyer!
Wednesday, April 10
6-8 pm
Administrative Headquarters
5000 Louise Drive, Mechanicsburg
Presented by our Mortgage Services
Department
RSVP: (800) 283-2328, ext. 6026
HOME CONSTRUCTION LOAN
Seminar reviews the criteria for obtaining a loan
and how the process works.
Wednesday, April 17
6-8 pm
Administrative Headquarters
5000 Louise Drive, Mechanicsburg
Presented by our Mortgage Services
Department
RSVP: (800) 283-2328, ext. 6026
FINANCIAL AID
Seminar presents information about various
types of financial aid available for students and
parents and reviews the financial aid application
process.
Thursday, February 7
Thursday, April 25
Thursday, June 6
Thursday, August 22
Thursday, November 7
Thursday, December 12 (FAFSA)
6-8 pm
Administrative Headquarters
5000 Louise Drive, Mechanicsburg
Presented by Tiffanie DeVan, Student Loan
Administrator
RSVP: (800) 283-2328, ext. 6017
Additional seminar dates are posted
on www.members1st.org. Click
“News and Events.”
YOU CAN CONTROL YOUR SPENDING
You might be a person whose money management skills are serving you well. On the other hand, you might have some
concern about your spending habits. Maybe you’re an over spender. Regardless of your spending habits, there are ways to improve
y u current
u
u
d techniques to help you transform your negative habits into positive behaviors:
your
situation.
Here are a few tools and
1) Stay clear of the places where you know you spend lots of money.
2) Take a timeout. Create a policy for yourself in which you might use layaway, put
it on hold, or wait two weeks before you buy it. This will give you time to
an item
think before you make a purchase.
3) Shop with intention. Bring your shopping list along and stick to it.
Most purchases that sabotage a spending plan are impulse buys.
4) Splurge on occasion. You can still spend money, but do it economically
and consciously. If you have an urge to spend, spend, spend, consider
shopping at discount or lower cost stores.
5) Track your dollars and use cash when you make purchases. You’ve
worked hard for that money and sometimes it’s harder to part with hard
cold cash when buying an item.
6) Call a friend. Just talking with a trusted person can reduce the urge to
splurge.
Need additional help? We offer access to money management and financial
e
education
services through GreenPath, a financial management program.
GreenPath
counselors are available Monday through Thursday 8 a.m. to
G
10 p.m., Friday 8 a.m. to 7 p.m. and Saturday from 9 a.m. to 6 p.m. To use
th new service, call (877) 337-3399 or click www.greenpathref.com.
this
Protect Your Data
By Pat Brock, Information Security Officer
Data Privacy Day is an international awareness effort
celebrated across the United States, Canada, Europe and other
countries on January 28th every year. It began in the United
States and Canada in January 2008, as an extension of the
Data Protection Day celebration in Europe. It commemorates
the 1981 signing of Convention 108, the first legally binding
international treaty dealing with privacy and data protection.
In our online world, data is free flowing. All of us - from
home computer users to the largest corporations - need to be
aware of the personal and private data others have entrusted to
us and remain vigilant and proactive about protecting it. Being
a good digital citizen means being a good steward of data. We
are committed to protecting the privacy and security of your
data. Here are some tips to help you protect your data:
Protect your passwords. Don’t reveal them to anyone and
never save your password on sites with financial or personal
information.1
Check website security. All legitimate finance and retail
websites use this SSL (Secure Sockets Layer) encryption to make
it safe to bank or pay online.1 URL’s starting with “https://”
indicate the use of SSL (ex. https://m1online.members1st.org/
OnlineBanking).
Reveal only what is
necessary. Select options that
result in less of your personal
information being shared.1
Manage your cookies.
Cookies track your activity
on a website. Consider
enabling or disabling cookies
on a site-by-site basis.1
Guard against malware. Use antivirus and antispyware and
make sure they are updated regularly to avoid malicious software
that can steal your information while you’re online.1
Our Fraud and Security Center, located in the lower right
corner of every page on www.members1st.org, offers a library of
information from identity theft scams to ways in which you can
become more diligent while online or elsewhere. Visit one of our
branches for additional information on how to keep your data
private.
1
Source: Consumer Action, www.consumer-action.org. All rights reserved.
page
V.me is Here to Protect You
By Jim Heile, AVP Card Services
ANNUAL MEETING
Administrative Headquarters
5000 Louise Drive, Mechanicsburg
To RSVP, call Jill Conway,
Administrative Assistant to EVP,
at (800) 283-2328, ext. 5128.
events
Thursday, April 11
5:30 p.m.
„special
events
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events
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events
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events
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Currently, you have the option
of personalizing your Members
1st VISA debit card, and now
you’ll be able to customize your
Members 1st credit card, too!
You can pick a personal photo
(must meet pre-established
criteria) or select from a list
of gallery backgrounds. For
enhanced security, you can also
choose to place a small photo
of yourself in the upper right
corner of the card. Sign onto
Members 1st Online (Home
Banking) and click on the VISA
tab to get started. Click on
“Credit Card Personalization
– Consumer” to begin the
process. We hope you enjoy this
new feature!
„special
CREDIT CARD
PERSONALIZATION
IS HERE!
events
To learn more about various
special events, check out
your statement inserts,
www.members1st.org, or connect
with us on Facebook and Twitter.
„special
events
As a result of a legal settlement to resolve claims brought by a group of U.S. merchants, merchants in the U.S. and U.S. territories
may add a surcharge to certain credit card transactions starting after January 27, 2013. A surcharge, also known as a checkout fee, is an
additional fee that a merchant can add to a consumer’s bill when he or she uses a credit card for payment. U.S. merchants that surcharge are
required to limit the surcharging to credit cards only (they cannot surcharge debit and prepaid cards) and limit the amount of the surcharge
to the applicable merchant discount rate for the credit card transaction surcharged. A cap of 4% is currently in place, but that may vary.
Companies must also disclose the actual dollar amount of the surcharge on every receipt and disclose the fact that they assess a surcharge at
the point of store entry and at the point of sale. Most likely, you will not see this change until February because of the 30-day notification
and registration process that is required.
Wondering how you’ll know if a business charges the surcharge? When you’re in a store, check for signs or postings that warn you
of the merchant’s fee. They’ll most likely be posted where you enter the store and at the cash register. If you see the notification, you may
want to use your Members 1st VISA Debit Card or a Members 1st Pre-paid VISA card instead (available at all branches). Merchants cannot
charge this fee on debit cards or pre-paid cards, even if you choose “credit” when you’re paying at the cash register. You may also want
to “send a message” to merchants who charge this fee by choosing to take your business to merchants who choose not to implement the
surcharge.
If you suspect you’ve been charged excessive surcharges or that your debit/pre-paid card was charged, you can visit www.visa.com/
checkoutfees and complete the Report a Merchant Violation form. Alleged surcharging violations will be investigated. Currently, 10
U.S. states have surcharging restrictions including California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York,
Oklahoma and Texas. Consumers who are subjected to checkout fees in states where those fees are prohibited by law may want to discuss
this with the retailer or report the retailer to their state attorney general’s office. For more information about payment card surcharging,
visit www.visa.com/checkoutfees. The Card Services Group at Members 1st is also willing to assist you with complaints.
It’s important to remember that Members 1st is not the entity who charges this surcharge. Any surcharge assessed to your
Members 1st VISA or (other credit card) is a fee charged directly by the merchant.
Join us in this international effort
to empower people to protect their
privacy, control their digital footprint
and escalate the protection of privacy
and data as everyone’s priority. Visit
your local branch to pick up additional
information and more.
events
Be Aware of Credit Card Surcharges
Monday, January 28
„special
HERE’S AN EXAMPLE OF HOW V.ME HAS HELPED ONE OF
OUR MEMBERS. When the member learned about the new service, she
went to Members 1st Online, clicked on the VISA V.me link under the
VISA tab, watched the video overview and began the simple registration
process. She realized the online/ecommerce security value rather quickly,
trying transactions at Buy.com and Shoebuy.com, but she didn’t think
the Alert Management system would pay even greater dividends so soon.
By establishing the VISA V.me alerts to her cell phone, she received a
text message alerting her that her credit card was authorized without her
knowledge. She contacted the Card Services Team, identified it as fraud,
and closed the card immediately. The Card Services Team was able to
open a new card and have a replacement card to her within five minutes.
The total time lapse of this process was less than 20 minutes. Once the
card was closed, someone attempted to use her card three more times.
If she hadn’t utilized VISA V.me, she would have lost nearly $1,000 and
would have had to try to manage the loss through the normal fraud
affidavit process. In her own words, “I’m a believer in the value of VISA
V.me!”
DATA PRIVACY DAY
events
Services. Click on the V.me link to get
started. We are always thinking about
how we can improve your transaction
security, and we anticipate that you’ll
hear more about this new technology as
payment options continue to expand. If
you have questions about V.me, please
contact our Card Services Group at (800)
283-2328, ext. 6035. Make sure to set it
up today!
5
„special
Buying online has never been easier or more secure! We are
proud to inform you that we’re an early adopter of VISA’s new
digital wallet solution called V.me. The concept of the digital wallet
has been growing. In fact, many industries and organizations such
as Google, PayPal, and Starbucks utilize it in order to speed up and
secure their e-commerce or online transactions. VISA has built an
open digital wallet solution which allows you to use any credit card
type (VISA, MasterCard, Discover, etc.) within your profile, while
offering a seamless transaction process. There is no payment type
or product conversion, and the transaction is not pushed to direct
debit or ACH solutions because of different long-term initiatives.
VISA can secure your online e-commerce transaction in a “simple
and safe” solution that maintains the integrity of the transaction,
provides quick checkout within your shopping cart, and delivers
fully live cardholder alert programs that offer members enhanced
security and transaction knowledge when your cards are being
used.
VISA V.me is simple to setup, utilize and implement. Imagine
not having to enter your secure cardholder data when shopping
online! Just click on the V.me by VISA link at the checkout
page and enter your User ID. VISA takes care of the financial
transaction settlement between the participating merchant and
Members 1st without entering your cardholder data. Plus, you can
even set it up to send you an email or text message indicating when
a transaction has been completed. This option is an extremely
valuable risk management tool, since it helps you track how and
where you card is being used. You’ll be better protected from fraud
and will know immediately what is going on with your VISA card.
To set up your own V.me by VISA digital wallet solution, go
to Members 1st Online, sign into your account and select Card
Special Events
page
814 W. High Street
Carlisle, PA 17013
Applicants must have an account at Members 1st, be attending a local college, university, or technical school and be
enrolled as a full-time undergraduate student.
BRANCH & ATM LOCATOR
You’ll find it right on our home page
at www.members1st.org. You can
search by zip code or city to find a
branch near you.
Interested applicants may contact Sara Firestone, Financial Education Coordinator at (800) 283-2328, ext. 5433 or
firestones@members1st.org.
To find a surcharge-free ATM near
you or while traveling:
www.members1st.org > Locations >
More Surcharge-Free ATMs*
Look for these logos on ATMs:
Openings
Store your valuables, important papers safely
„Branch
Openings
„Branch
Openings
Award details are available at www.members1st.org under the news section on the home page. Applications must be
postmarked by March 15, 2013.
SURCHARGE FREE ATMs
When you use one of our ATMs
in the CO-OP or CU$ ATM
Network, you may avoid paying
surcharge fees.
GET OUR
MOBILE APP!
„Branch
WANT TO EARN MONEY FOR COLLEGE?
HOW WOULD YOU LIKE TO HAVE A PROFESSIONAL WORK EXPERIENCE AT MEMBERS 1ST DURING
THE SUMMER OF 2013 AND EARN MONEY FOR COLLEGE? APPLY TODAY FOR THE MEMBERS 1ST
EDUCATION AWARD!
*Please note other fees may apply.
Openings
ARE YOU CURRENTLY AN UNDERGRADUATE STUDENT?
COMING SOON!
Another Carlisle location will be
opening to serve you. Watch for
Grand Opening details:
„Branch
Openings
„Branch
Openings
„Branch
Openings
„Branch
Openings
„Branch
Openings
6
Branch Openings
Did you know that we have a Mobile
Banking App for your Internetenabled device? Our app is extremely
user friendly and allows you to check
your account balances, transfer funds,
view transaction history, schedule
payments via our Bill Payer service or
deposit checks into your account with
Deposit Anytime Anywhere. Our app
is free to download, but you will want
to check with your service provider
for the details of your data plan.
Search your app store for
“Members 1st FCU.”
Would it be helpful to you to have a secure space to store valuable items and important papers? Consider renting a Safe
Deposit Box or Storage Box from us. It’s easy to do and you’ll have peace of mind that your items are securely locked away.
The availability of our Safe Deposit Boxes and Storage Boxes
vary by branch location. Monthly fees are based on box type
and size. Our Platinum and Titanium Member Loyalty Rewards
members receive a 10% and 20% discount, respectively, off of
our box rental fees.
TO FIND OUT WHICH BOX TYPE IS AVAILABLE AT A BRANCH
NEAR YOU:
www.members1st.org>locations
FOR RENTAL FEES:
www.members1st.org>products & services>other services>safe
deposit and storage boxes
Please note that the NCUA does not insure the contents in Safe
Deposit Boxes or Storage Boxes.
Bus Trips
By Barry Bieler | Vice President | Investment Services Program
club trips
„travel
club trips
„travel
Cancellation/Refund Policy: Cancellations must
be made prior to the payment deadline in order to
receive a full refund. Refunds will not be given after
the payment deadline. Sorry, NO exceptions.
„travel
Trip confirmation:
You will receive a trip confirmation letter
approximately one to two weeks prior to the date
of the trip.
club trips
Departure/Return:
All trips depart from and return to our
Administrative Headquarters, 5000 Louise Drive,
Mechanicsburg. Please arrive no later than 15
minutes prior to departure time. Trips will depart on
schedule. Parking is available in the lot behind our
building.
„travel
Payments:
Trips must be paid in full in advance of the trip.
Payments must be made by personal check or
money order. Payments will not be accepted on the
day of the trip. Mail check payable to Members 1st
FCU to: Keith Fogel, Marketing Department/
Bus Trip, 5000 Louise Drive, Mechanicsburg, PA
17055.
club trips
Reservations will not be confirmed until we
receive your payment in FULL.
„travel
IMPORTANT DETAILS
Reservations. (800) 283-2328, ext. 5430
We must have the following information when you
make your reservation:
1. Your first and last name
2. Your day and evening phone number
3. The first and last name(s) of your guest(s)
4. Day and evening phone number of all guests in
your party
club trips
Spend the day in our nation’s capital! Do some
sightseeing, visit museums or scope out some unique
shops and cafes.
„travel
BENEFITS OF TAX DIVERSIFICATION
Investors who have all three types of accounts – a taxable
brokerage account, a tax-deferred retirement account and a taxfree Roth IRA – have more control over the taxes they pay as a
retiree.
In their early retirement years, investors may wish to take
income from taxable accounts, paying taxes only on capital gains
WASHINGTON D.C.
“A Day on Your Own”
Saturday, April 13
$32/person
Payment deadline: Monday, April 1
Depart: 7 a.m.
Bus leaves D.C.: 6 p.m.
club trips
Tax-Free Accounts
While contributions do not reduce taxable income, the Roth
IRA offers tax-free withdrawal of funds starting at age 59 ½ or
when you retire, as long as certain requirements are met. The
Roth has no required minimum withdrawals over the lifetime of
the original account owner.
Disclaimer: INVEST Financial Corporation is not affiliated with Members
1st Investment Services. This information is general in nature and should not be
construed as tax or legal advice. INVEST Financial Corporation does not provide
tax or legal advice. Please consult your tax and/or legal adviser for guidance on your
particular situation. The information in this report has been obtained from sources
considered to be reliable but we do not guarantee that the forgoing material is accurate
or complete. This article is not an offer to sell or a solicitation of an offer to buy any
security, and may not be reproduced or made available to other persons without the
express consent of INVEST Financial Corporation. Securities, advisory services and
insurance products offered through INVEST Financial Corporation, member FINRA,
SIPC, a Registered Broker Dealer and Federally Registered Investment Adviser, and
affiliated insurance agencies.
Enjoy a day in Atlantic City. Take in the boardwalk
atmosphere – it’s completely up to you!
„travel
Tax-deferred Accounts
Contributing to a traditional retirement account, like an
IRA or 401(k), can help investors reduce taxable income during
their working years. Contributions made with pre-tax dollars
have the potential to grow tax-deferred until retirement (or
beginning at age 59 ½). Funds withdrawn are taxed as ordinary
income, reducing your available spending dollars. At age 70 ½,
you must begin making a required minimum withdrawal (RMD)
annually or pay a sizable penalty.
Sources: 1) Lynn Asinof, “Diversify to Minimize Taxes after Retirement,” The
Boston Globe, March 6, 2011. 2) Fidelity Viewpoints, “4 Tax-Savvy Strategies in
Retirement,” Fidelity.com.
ATLANTIC CITY
“A Day on Your Own”
Saturday, March 9
$34/person
Payment deadline: Thursday, February 28
Depart: 8 a.m.
Bus leaves Atlantic City: 6 p.m.
club trips
TAX TREATMENT OF RETIREMENT ACCOUNTS
Taxable Brokerage Accounts
Since any monies invested in the markets have already been
taxed as income, investors pay capital gains taxes only on any
appreciation. If you hold the investment for longer than a year,
when you liquidate assets you’ll be taxed at long-term capital
gain rates, which have historically been significantly lower than
ordinary income tax rates.
– leaving tax-advantaged accounts
untouched with the potential for
continued tax-deferred growth.
When investors reach age 70 ½
and must begin taking RMD from
tax-deferred retirement accounts, any
withdrawals are taxed as ordinary
income. Collecting Social Security
benefits can also increase tax liability
since the government considers up to
85% of your Social Security benefits to
be taxable.2
Tapping funds in your tax-free Roth IRA last can have some
advantages. Should you have a serious health issue later in life,
you can draw money from a Roth to pay medical bills with no
tax worries.
Balancing withdrawals from all three accounts after
retirement may potentially keep you at a lower marginal tax
rate and help manage income to reduce taxes on Social Security
benefits.2 Ask your tax professional and financial advisor if tax
diversification may be beneficial in your personal situation.
„travel
During our working and wealth-building years, most
investors are focused on minimizing the taxes they pay on their
hard-earned assets. But how much do we consider the impact
that taxes may have on our savings once we enter retirement?
You may fall into a lower tax bracket once you stop working
full-time, but you could still receive a significant amount of
taxable income from portfolio withdrawals, pension payments,
Social Security benefits, or part-time wages.
If you’re not careful, taxes could wind up taking a big bite
out of your nest egg – just at the time you need it the most.
While paying taxes is a certainty, what will happen with
our current tax laws is anyone’s guess. With concerns mounting
over our nation’s federal deficits and debt, an overhaul of our tax
system could mean higher tax rates in the future.
The uncertainty about what changes may be coming raises
some important questions. When should you pay taxes on the
money you’re tucking away in your nest egg - now or when you
reach retirement? What will your tax rate be when it comes time
to start tapping into your retirement savings?
One way to address these unknowns is to diversify your
investments, with a focus on how specific types of accounts in
your portfolio are taxed.
A tax diversification strategy can give investors more options
to help manage their tax liability and stretch precious resources
through their retirement years.1
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PLANNING FOR TAXES AT RETIREMENT
club
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Mechanicsburg, PA 17055
DISCOUNTED
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As a valued member, we’re offering TurboTax®
Federal Free Edition this tax filing season. Members
1st members receive a $15 discount on various
TurboTax® Federal products. TurboTax® makes
doing your taxes easy!
AVENUES
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at 814 West High Street! Stay tuned for details.
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Members 1st FCU does not promote, endorse, or ensure the accuracy of information found
on any Website or publications referenced in this publication. This newsletter is intended
to be informative in nature and should not be construed as legal or financial advice.
Editor: Kimberly Brenner-Zirkle, Marketing Specialist
Managing Editor: Lisa Pomeroy, Marketing Specialist
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JANUARY 2013
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