AVENUES MEMBERS 1ST FEDERAL CREDIT UNION

N OV E M B E R / D E C E M B E R 2 0 1 6

'TIS THE SEASON

Members 1st FCU does not promote, endorse, or ensure the accuracy of information found on any Web site 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: Lisa M. MacDougall, Marketing Specialist MANAGING EDITOR: Lisa Pomeroy Hess, Marketing Team Leader ©2016 Members 1st FCU 5000 Louise Drive Mechanicsburg, PA 17055 Federally insured by NCUA. We do business in accordance with the Federal Fair Housing Law and Equal Credit Opportunity Act.

GET CONNECTED

www.members1st.org www.members1stblog.org

NEW BRANCHES NOW OPEN MORE CONVENIENCE FOR YOU! Shrewsbury – 14601 Mt. Airy Rd Hummelstown – 297 E. Main Street Mount Joy – 815 E. Main Street All branches are full service with drive-thru lanes and a drive-up ATM. For directions, hours, and more information visit: Members1st.org » Contact Us » Member Branches

DIRECTORY TELEBRANCH (CUSTOMER SERVICE): Membership and account inquiries, transactions and account services (800) 237-7288 • [email protected] 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. Do not include any personal information such as your account number, Social Security Number, credit card numbers, electronic services, PINs, passwords or mother’s maiden name in any email correspondence. ADMINISTRATIVE HEADQUARTERS: (800) 283-2328 For additional phone numbers, go to www.members1st.org » Contact Us. 5000 Louise Drive • PO Box 40 Mechanicsburg, PA 17055 Monday-Friday: 9:00 a.m. - 5:00 p.m. ROUTING NUMBER: 231382241

NEED TO SEND US SOMETHING? GENERAL CORRESPONDENCE: Members 1st Federal Credit Union PO Box 40 • Mechanicsburg, PA 17055 LOAN PAYMENTS: Members 1st Federal Credit Union PO Box 2104 • Mechanicsburg, PA 17055-2104 VISA® CREDIT CARD PAYMENTS: Members 1st Federal Credit Union PO Box 2109 • Mechanicsburg, PA 17055-1719 DEPOSITS: Members 1st Federal Credit Union PO Box 2110 • Mechanicsburg, PA 17055-1710 When sending a loan payment or deposit, please include your payment coupon and/or use a deposit or loan payment ticket available at www.members1st.org. BRANCH & ATM LOCATOR Go to www.members1st.org » Locations (top). Zip code or city search available. SURCHARGE FREE ATMS To find a surcharge-free ATM near you go to www.members1st.org » Locations (top). Select: Surcharge Free CO-OP ATMs Surcharge Free CU$ ATMs

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WHAT BOB HAS TO SAY....

‘Tis the season for shopping, baking, and decorating. While we can’t help you with your holiday preparations, we can help you make sound financial decisions and save some money in the process. This issue is full of advice and ideas for saving and borrowing money this holiday season. First, we highly encourage you to watch your credit card interest rates and balances. Department store credit cards typically have a very high interest rate, and they lure you in with a discounted purchase when you open the credit card. On page 5, we highlight our special VISA® Balance Transfer rate. Consider transferring your balances to our lower rate card, so that you aren’t surprised when your bill comes in January. Second, learn all about the differences between Home Equity Loans and Home Equity Lines of Credit. Discover which option is best for you. Having trouble prioritizing and watching your budget during the holiday season? Read our helpful article on page 12 which gives tips and tricks to help you save money and enjoy the season. Finally, our Investment

new Vice Services

President Program

Manager walks you through a list of money habits on page 15 & 16 that may help you become wealthier. Which, of course, is something we all strive to be! Also during this time of year, we outline your slate of candidates and rules of petition for next year’s Board of Directors. See pages 8 and 9 for details. As we wind down 2016 and head into 2017, remember to think of us first for all of your financial needs. I’d like to welcome all of our new members who joined us this year and thank each and every one of you for your continued business. Best wishes to you and yours during this holiday season and beyond.

Bob Marquette, President & CEO

‘TIS THE SEASON FOR INCLEMENT WEATHER We will announce any delays or early closings on your local radio stations, television stations, and on our website immediately after a decision is made. Be sure to look at our Inclement Weather List on our website for more detailed information. The safety of our members and associates is important to us! November/December 2016 | 3

DATES TO REMEMBER HOLIDAY CLOSINGS

Thursday, November 24, 2016 (Thanksgiving Day) Administrative Headquarters and all branch locations including our In-Store Giant Branches will be closed.

Monday, January 2 (New Year’s Day Observance) Administrative Headquarters and Branch locations closed, excluding In-Store Giant Branches

Saturday, December 24 (Christmas Eve) Administrative Headquarters and all branch locations including our In-Store Giant Branches will close at 12 p.m.

Monday, January 16 (Martin Luther King, Jr. Day) Administrative Headquarters and Branch locations closed, excluding In-Store Giant Branches

Sunday, December 25 (Christmas Day) In-Store Giant Branches closed

FREE SEMINARS

Monday, December 26 (Christmas Day Observance) Administrative Headquarters and Branch locations closed, excluding In-Store Giant Branches Saturday, December 31 (New Year’s Eve) Administrative Headquarters and all branch locations including our In-Store giant Branches will close at 12 p.m. Sunday, January 1 (New Year’s Day) In-Store Giant Branches closed

Seminars are held in the David L. Foreman community room at our Administrative Headquarters located at 5000 Louise Drive, Mechanicsburg. Park around the rear of the building and enter through the back door. Directions: www.members1st.org » Locations HOMEBUYER'S SEMINAR Wednesday, January 11, 2016 • 6-8 p.m. RSVP: (800) 283-2328, ext. 6026 HOME CONSTRUCTION LOAN SEMINAR Wednesday, January 18, 2016 • 6-8 p.m. RSVP: (800) 283-2328, ext. 6026

YOU’RE INVITED TO OUR MEMBER APPRECIATION EVENT! Wednesday, November 30, 2016 • Noon to 9 p.m. The Antique Automobile Club of America Museum • 161 Museum Drive, Hershey Present the coupon you received in your October statement to receive your free admission. Watch members1st.org for details about our free Medicare and Investment Services seminars to be held at our Member Appreciation Event. For information about current exhibits and events, visit www.aacamuseum.org. 4 | AVENUES

% 1.90 VISA® BALANCE TRANSFER

APR* for up to 6 months

No Balance Transfer Fees! Lighten Your Load!

If you find yourself carrying too much plastic in your wallet, consider ways to get those high interest balances under control and make your budgeting process less complicated. Consolidating does simplify your payments. Consider transferring your balances to a lower rate card such our VISA® Platinum Rewards Credit Card. *The 1.90% Annual Percentage Rate (APR) on Balance Transfers using the specific form or online submission is a “Discounted” rate that will be in effect from the time of the posting of the balance transfer to your card account for six consecutive billing cycles afterwards, which will be considered the promotional period expiration date of that specific balance transfer. After the expiration of your “Discounted” rate the remaining unpaid portion of the original balance transfer request will be subject to your normal APR as outlined on your monthly statement based on the specific Members 1st FCU credit card selected. Current rates range from 8.50% APR to 18% APR. Consumer Cards (Business Cards and Secured Cards are ineligible) may have up to 10 individual balance transfers open at any given time period. If you default through becoming 60 days or more delinquent we may increase your APR on the balance transfer and other balance amounts as defined within the cardholder agreement and disclosure, which is provided upon card issuance and available online at www.members1st. org. All payments received on your account in excess of your minimum payment requirement will be applied first to the highest rate balances, secondly to the lowest rate balances and finally to new purchases. All rates are effective as of October 1, 2016 and this offer may be withdrawn at any time. Other restrictions or conditions may apply. You may not pay off your current Members 1st loans or lines of credit by using this balance transfer option. For current rates, fees and other cost information, please reference the Visa Balance Transfer disclosure or contact the Members 1st FCU Card Services Group at (800) 283-2328, ext. 6035. Offer expires March 31, 2017. We do business in accordance with the Federal Fair Housing Law and Equal Credit Opportunity Act.

Correction: Please note that the PIN change phone number listed on Page 7 of the September/October 2016 issues of Avenues is incorrect. To change your VISA® Credit Card PIN, please call (866) 297-3408 and follow the prompts. We apologize for any inconvenience this may have caused. November/December 2016 | 5

MEDICARE OPEN ENROLLMENT ENDS DECEMBER 7

If you are on Medicare, be sure to enroll by December 7 in order to make changes to your Medicare Advantage (Medicare Part C) or Medicare Prescription Drug Coverage Plan (Medicare Part D). We’ll also determine if we can offer you a better rate on a Medicare supplement. Need some guidance? Contact Ben Lausch, Health Benefits Specialist, at (800) 283-2328, ext. 6853 or lauschb@members 1st.org. You can also reserve a date and time at members1st.org » Products & Services » Insurance Services » Medicare.

Call Members 1st Insurance Services today for a FREE quote! PERSONAL INSURANCE:*

(Auto, Homeowners, Personal Umbrella, Travel, etc.) Members may qualify for discounts.* Ask us how. (800) 283-2328, ext. 5218 or 5245

MEDICARE, LONG-TERM CARE, GROUP OR INDIVIDUAL HEALTH INSURANCE: (800) 283-2328, ext. 6269

PETPLAN® PET INSURANCE: (866) 467-3875

For an instant quote, visit members1st.org » Products & Service » Insurance Services or ask at a branch for our Insurance Services brochure! *Personal insurance services available to PA and MD residents only. Member discounts apply to personal lines only.

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BE IN THE

KNOW

WHERE CAN YOU FIND YOUR INTEREST STATEMENT?

BUSINESS OWNERS: WE OFFER PAYROLL SERVICES!

Your interest statement (IRS Form 1099) can be found on Members 1st Online. Simply click on the Services tab, click Other Services, then click eDocuments.

We have partnered with Inova Payroll to assist you with the complexities of payroll and tax filing.

Don’t have Members 1st Online? Sign up today at myonline.members1st.org. Or call TeleBranch at (800) 283-2328 for assistance.

For more information, visit members1st.org » Business Services » Payroll Services. Or call TeleBranch at (800) 283-2328.

VISITING FAMILY OR TRAVELING THIS SEASON? SET UP YOUR TRAVEL ALERTS NOW! Go to Members 1st Online » Card Services » Travel Services. Select the Travel Services box. Follow the prompts to select the cards you will be using and then choose dates and destinations.

HELPFUL MOBILE DEPOSIT TRACKING ON BACK OF CHECKS Our check processor has added a convenient check box and dateline to the back of the checks to help you more easily track your mobile deposits. This helps you recognize a previously deposited check, prevents accidental redepositing of checks, and allows you to see the deposit date at a glance. Re-orders of checks will contain this new tracking section on the back as check stock is updated.

NEED TO TRANSFER MONEY? Use Members 1st Online or our Mobile App. Transfer to: • Another member’s account • Between your accounts and loans • To another financial institution

Learn how by watching our video at Members1st.tv/videos/how-to-transfer-money November/December 2016 | 7

SLATE OF BOARD CAND

The Nominating Committee of our Board of Directors is presenting the following Directors in 2017. For the 2017 election year, there are four individuals running fo Karen Mashinski, CPA, CPCU, Incumbant – three-year term nominee Karen is a 20-plus year member of our Credit Union and currently serves on our Board as Second Vice Chairman. She graduated from The Pennsylvania State University with a Bachelor of Science degree in Accounting. She began her career as an external auditor for a major international accounting firm and later became an internal auditor with a medical malpractice insurance company. Currently, she is the Vice President and CFO at Harford Mutual Insurance Company. Previously she served as Chief Financial Officer/Treasurer for Millers Mutual Group, Inc. Karen holds a CPA license and a CPCU (Chartered Property Casualty Underwriter) designation. She is on the planning committee of the YMCA Harrisburg Mile. Karen is also an active member of PAMIC (Pennsylvania Association of Mutual Insurance Companies) where she has served as Chairman of the Financial Management Committee. Jon D. Kirssin, Incumbant – three-year term nominee Jon is a life-long central PA native, currently residing in Mechanicsburg, and has been a member for 40-plus years. He currently serves as First Vice Chairman of our Board. He is a graduate of York College of PA and is an experienced insurance executive with nearly 20 years at PMA Insurance, retiring as an officer and shareholder. He owns and operates a specialty insurance consulting firm with clients located throughout the country. He is active in the local community, serving on various boards. He has been an active volunteer and previously served on our Supervisory Committee. Chuck Russell – three-year term nominee Born in Central Pennsylvania, Chuck Russell is a technology entrepreneur. He is cofounder and serves as Senior Partner of Collective Intelligence Inc., an information technology consulting firm located in Harrisburg. Prior to Collective Intelligence, he co-founded Infobuild Networks, an internet research and collaboration company. He also co-founded Peak Technologies, an internet browser utility and internet research company. Prior to working at Peak Technologies, he founded Innovative Desktop, a technology company acquired by Peak Technologies. Throughout his career he has consulted with clients in the financial services and healthcare industries. Chuck also

RULES OF PETITION FOR BOARD NO In addition to the five candidates presented by our Nominating Committee, any member may submit a petition for nomination to the Board of Directors. Petitions are available at all Members 1st branches. The following rules apply to all petitions: 1. A member is that individual whose name appears first on the credit union monthly/quarterly account statement. Joint owners are not entitled to hold office or vote unless they have their own credit union regular savings account and meet the additional requirements stated in this notice. 2. The petition must bear the signatures of 500 members with each signature accompanied by their printed name and address. 3. The petition must bear signed certification. 4. The petition must be accompanied by or bear a statement of the individual’s qualifications and experience and 8 | AVENUES

include a brief biography and a signed certificate of his/ her willingness to serve if elected and a statement as to the total number of signatures obtained. 5. The petitioner must not have been convicted of any crime involving dishonesty or breach of trust. 6. The petition must be mailed directly to the Supervisory Committee and received by midnight December 16, 2016. The mailing address is: Supervisory Committee, Members 1st Federal Credit Union, P.O. Box 3036, Shiremanstown, PA 17011-3036. 7.  If both procedures, the Nominating Committee and petitions, produce more than one eligible candidate for any vacancy, either an electronic or paper ballot will be sent to each eligible voter no later than February 10, 2017. The ballot will contain the names, qualifications and

NDIDATES ANNOUNCED

wing individuals as candidates for election to the Credit Union’s Board of g for three-year terms and one individual running for a two-year term.

works with many early stage technology companies within the region. He serves as the president & CEO of the Technology Council of Central Pennsylvania and is a member of the board of directors of the Big 33 Foundation. Chuck studied economics and mathematics at Indiana University of Pennsylvania. He currently lives in Camp Hill, Pennsylvania, with his wife Tara and their four children. Denise E. Mullen – three-year term nominee Denise is currently the Vice President/Portfolio Lead of Direct Store Delivery with Ahold USA. Ahold USA has approximately 800+ supermarkets spanning from Massachusetts to Virginia under the banners of Stop & Shop, Giant and Martin’s. She has held leadership positions in various departments including: Store Operations, Human Resources, Training, Merchandising/Sales, Merchandising Services, and Corporate Brands. She manages a team of Ahold USA associates as well as in-house vendors both in Carlisle, PA and Quincy, Mass. The areas under her responsibility include Soda, Water, Bread, Cookies, Crackers, Salty Snacks, Beer and Wine. Denise is a graduate of West Virginia University with a B.S. degree in Business/Marketing and an A.A. degree in Computer Programming and has spent her 29-year career with Ahold USA. She lives in Carlisle and has two daughters, Delaney, age 15 and Kennedy, age 11. Harry F. Scheid II – two-year term nominee Harry is President & CEO of Horst Construction. In his role, he provides leadership to Horst’s multi-disciplinary teams throughout all phases of a project from preconstruction to completion. Harry brings substantial experience and creativity to the table when working with design teams regarding value engineering, evaluating plans for constructability, analyzing project schedules, and reviewing cost reports. He ensures that the construction team delivers projects on schedule and within budget. He also manages his team to maintain professional/ethical business practices that align with their core values. Harry has extensive experience constructing healthcare, senior living, higher education and other large-scale commercial and industrial pro-jects. With over 32 years of experience, Harry is a community leader, client advocate, and provider of exceptional buildings. Harry serves on the Board of Directors, Horst Group; Key Leadership Team, Horst Group; and on the Occupational Advisory Committee for the Lancaster County Career & Technology Center. He is a resident of Lititz, PA and is a Corporation Member at Lancaster Bible College.

NOMINATIONS 2017 biographies of the nominees and petitioner(s) with explicit instructions for casting the vote. The candidates with the largest number of votes will get the three-year term and the candidate with the fifth largest number of votes will get the two-year term. Sixteen years of age by December 1, 2016 is the minimum age for members to vote in an election. Eighteen years of age by April 4, 2017 is the minimum age for holding an elected or appointed office. To be eligible to vote in the 2017 election, the voter must be a member of Members 1st FCU as of December 1, 2016. 8. If there is only one nominee for each position to be filled, the election will not be conducted by ballot and no nominations will be accepted from the floor at the Annual Meeting.

ANNUAL MEETING SAVE THE DATE: Tuesday, April 4, 2017 4 p.m. Administrative Headquarters 5000 Louise Drive, Mechanicsburg David L. Foreman Community Room Reservations are required. Please contact Jill Conway at (717) 795-5128 or [email protected] to RSVP. November/December 2016 | 9

BORROWING YOUR HOME'S EQUITY Home Equity Loans and Home Equity Lines of Credit – which option is best? Both options allow you to use the equity in your BY KAREN CHRISTIAN SVP and Chief home in order to pay for home improvements, Lending Officer college tuition, debt consolidation, and more. Most lenders allow you to borrow up to 80 or For more information, visit members1st.org » loans 90 percent of the value of your home minus or call us at (800) 283-2328, ext. 6040. whatever you owe on your first mortgage.

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HOME EQUITY LOANS These are typically five to twenty year terms and have a fixed rate of interest. That means the payments stay the same each month – very similar to a Fixed Rate First Mortgage payment. Home Equity Loans are a good option if you have a specific purchase or project that can be paid for in one or two payments soon after you obtain the funds. Maybe you need $10,000 to pay for a new roof or to purchase kitchen appliances and you don’t anticipate any other large borrowing needs in the near future – a Home Equity Loan might be your best choice. Here are the pros and cons of a Home Equity Loan: Pros Cons A fixed rate – no chance of your rate • It may take up to 3 or 4 weeks to process the • increasing loan and obtain your funds due to regulatory • A fixed payment requirements • Loan will be paid in full at the end of the term • The proceeds of the loan are in a lump sum and • Interest is generally tax deductible (Please begin accruing interest as soon as the loan is funded consult your tax advisor.) • Once you receive the funds you cannot borrow further from the loan HOME EQUITY LINE OF CREDIT This is a revolving line that works very similar to a credit card. You will have a credit limit based on the equity in your home and you may borrow up to that limit. Your interest rate is variable and may change over the life of the loan, but you are only charged interest on the amount you have outstanding. This option is good if you have several payments due over a period of time. You could use the line to pay for your child’s college tuition this year and then as tuition comes due again the following year – you can use the same line to borrow additional funds for the new school year. The line allows you to continue to borrow and pay down the balance – usually for a period of five to ten years. After the borrowing period ends, the loans typically amortize over the remainder of the term and you begin to pay the balance in full. The pros and cons of a Home Equity Line of Credit are: Pros • Interest only accrues on your outstanding balance • You have the ability to use and reuse the funds as you pay down the line – up to your predetermined limit The unused funds are available for • unexpected financial emergencies • Interest is generally tax deductible (Please consult your tax advisor.)

Cons The rate is variable and could potentially • increase over the life of the loan • The payment is subject to change each month based on the outstanding balance and current interest rate • Your payment may increase significantly when the draw period ends and the amortization period begins

HOW IS YOUR EQUITY DETERMINED SO YOU KNOW WHAT YOU CAN BORROW? Typically lenders will request an appraisal to determine your home’s value. Once the value has been established – the calculation is simple. Multiply the value of the home by the loan to value limit set by your lender - lenders typically allow you to borrow, 80%, 90%, and sometimes up to 100% of your home’s equity. Then subtract the first mortgage balance – this is the maximum amount you can borrow with a Home Equity Loan or Line of Credit. See our example below: Home value based on appraisal:

$200,000

Current First Mortgage Balance:

$100,000

Calculation: $200,000 (Home Value) x 90% (Loan to value allowed by lender) = $180,000 $180,000 - $100,000 ( First Mortgage Balance) = $80,000 (maximum loan or line amount) So whether you’re in the market for a Home Equity Loan or Line of Credit both are good options to meet your borrowing needs. At Members 1st, we offer both Home Equity Loans and Home Equity Lines of Credit at very competitive terms and rates. November/December 2016 | 11

HOLIDAY SPENDING

Survival Guide

Are you crazy for the holidays, spending thousands of dollars on holiday gifts, lights, entertaining, food and decorations each year? If so, you’re not alone. Many Americans feel the sting of holiday spending well into the new year. If you love to celebrate the holidays but don’t love the financial pinch you experience afterward, there are several great tricks for giving and celebrating, without breaking the bank.

So when you’re out battling the holiday crowds and heading to social commitments with family and friends, consider your wallet and protect your budget with these simple tips: 1. Know your limit. Sit down and plan out your holiday budget before you head to the malls this year. Gifts, large or small, can really add up, leaving you with a hefty bill at the end of the season. Estimate how much you plan to spend on presents and keep track of your spending as you shop. 2. Plan ahead. You’ve done your budget and you’re ready to tackle the crowds. Here are a few ways to save on shopping, whether online or in the stores: •  Look for special “savings days” at your favorite retail stores. • Use coupons from your newspaper, online, text message, or in-store. •  Take advantage of free shipping with online purchases. •  Buy gifts throughout the year, not just during the peak season. 3. Trim your list. Do you really need to exchange gifts with everyone in your family? Consider cutting your list back this year. Or suggest giving a group gift to certain members of your family rather than individual gifts. A popular family gift is giving an "experience" gift such as tickets to a show or sports game. Just because you had a long gift list last year 12 | AVENUES

doesn’t mean you need to repeat it this year. You may find that other members of your family love the idea. 4.  Reduce your stress. The holiday season is stressful enough with demands from family and friends, not to mention social commitments for work or other groups. Try to plan ahead as much as possible, avoiding last-minute buys will impact your budget. Also remember to maintain your daily routines to keep stress levels low. If you usually take a walk or go to the gym every day, take the time to continue the habit during the hectic holiday months. 5. Enjoy the season. In the end, the holidays are all about enjoying friends and family. Staying focused on time with loved ones and other joys of the season can help you to keep stress in perspective. Rather than feeling obligated to host an event every year, suggest a rotation for who will host holiday gatherings. Remember that it’s much better to keep spending down and stick to your budget. It’s a great feeling to start off the new year on the right financial foot. Source: practicalmoneyskills.com

SPECIAL

1.45

25-Month Certificate

%

APY*

Minimum balance required to open and earn the advertised APY is $500

Applies to Traditional Certificates, IRA Certificates and Roth IRA Certificates *APY – Annual Percentage Yield. APY is accurate as of October 1, 2016. APY is subject to change without notice. For this 25-month certificate, members in the Titanium Member Loyalty Rewards level receive 1.45% APY. Members in the Platinum Member Loyalty Rewards level receive 1.40% APY. All others will receive 1.35 % APY. The 25-month term certificate will automatically renew as a 24-month term share certificate. Penalty for early withdrawal. For all certificate rates and terms, certain restrictions may apply. Certain products and rates are not available for public funds accounts, financial institutions or other institutional investors. Ask an associate for details. Federally insured by NCUA.

Member Loyalty Rewards REALLY PAY OFF! The more products and services you use, the more you benefit: • Fewer Fees • More FREE services •R  educed consumer loan rates • Bonus certificate rates • And more! For more details visit: members1st.org » membership-benefits » member-loyalty-rewards November/December 2016 | 13

MONEY HABITS THAT MAY HELP YOU BECOME WEALTHIER Financially speaking, what do some households do right? Why do some households tread water financially while others make progress? Does it come down to habits? Sometimes the difference starts there. A household that prioritizes paying itself first may end up in much better financial shape in the long run than other households.

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E

Some families see themselves as savers, others as spenders. The spenders may enjoy affluence now, but they also may be setting themselves up for financial struggles down the road. The savers better position themselves for financial emergencies and the creation of wealth. How does a family build up its savings? Well, money not spent can be money saved. That should be obvious, but some households take a long time to grasp this truth. In the psychology of spenders, money unspent is money unappreciated. Less spending means less fun. Being a saver does not mean being a miser, however. It simply means dedicating a percentage of household income to future goals and needs rather than current wants. You could argue that it is harder than ever for households to save consistently today; yet, it happens. As of May, U.S. households were saving 5.3% of their disposal personal income, up from 4.8% a year earlier.1 Budgeting is a great habit. What percentage of U.S. households maintain a budget? Pollsters really ought to ask that question more often. In 2013, Gallup posed that question to Americans and found that the answer was 32%. Only 39% of households earning more than $75,000 a year bothered to budget. (Another interesting factoid from that survey: just 30% of Americans had a long-run financial plan.)2

to employer-sponsored retirement accounts, IRAs, and other options that allow you a chance to grow your savings through equity investing are great habits to develop. Smart households invest with diversification. They recognize that directing most of their invested assets into one or two investment classes heightens their exposure to risk. They invest in such a way that their portfolio includes both conservative and opportunistic investment vehicles. Taxes and fees can eat into investment returns over time, so watchful families study what they can do to reduce those negatives and effectively improve portfolio yields. Long-term planning is a good habit. Many people invest with the goal of making money, but they never define what the money they make will be used to accomplish. Wise households consult with financial professionals to set long-range objectives – they want to accumulate X amount of dollars for retirement, for eldercare, for college educations. The very presence of such long-term goals reinforces their long-term commitment to saving and investing. Every household would do well to adopt these money habits. They are vital for families that want more control over their money. When money issues threaten to control a family, a change in financial behavior is due.

BY KUMI SMALANSKAS

So often, budgeting begins in response to a financial crisis. Ideally, budgeting is proactive, not reactive. Instead of being about damage control, it can be about monthly progress.

Vice President, Investment Services Program Manager

Budgeting also includes planning for major purchases. A household that creates a plan to buy a big-ticket item may approach that purchase with less ambiguity – and less potential for a financial surprise. Keeping consumer debt low is a good habit. A household that uses credit cards “like cash” may find itself living “on margin” – that is, living on the edge of financial instability. When people habitually use other people’s money to buy things, they run into three problems. One, they start carrying a great deal of revolving consumer debt, which may take years to eliminate. Two, they set themselves up to live paycheck to paycheck. Three, they hurt their potential to build equity. No one chooses to be poor, but living this way is as close to a “choice” as a household can make. Investing for retirement is a good habit. Speaking of equity, automatically contributing

To find an INVEST representative at a branch near you, call (800) 283-2328 or visit www.Members1stInvestments.com.

YOUR RETIREMENT PLANNING PROFESSIONALS Registered Representative of INVEST Financial Corporation, member FINRA/SIPC. INVEST and its affiliated insurance agencies offer securities, advisory services and certain insurance products and are not affiliated with Members 1st Investment Services or Members 1st Federal Credit Union. Products offered are: • Not NCUA insured • Not a deposit or other obligation of or guaranteed by any credit union • May lose value including the possible loss of principal amount invested. INVEST does not offer tax or legal advice. 1 2

ycharts.com/indicators/personal_saving_rate [6/29/16] gallup.com/poll/162872/one-three-americans-preparedetailed-household-budget.aspx [6/3/13] November/December 2016 | 15

TurboTax® has free calculators that can help you estimate your refund, discover deductions and credits, and save money all year long. And when TurboTax for 2016 is available, we’ll offer it right from our web site. Watch for details.

• TurboTax translates taxes into simple questions about your life and puts everything in the right forms for you. • TurboTax searches over 350 deductions and credits, so you won’t miss a thing. • TurboTax runs error checks and a final review to help make sure your taxes are done right.

With tax season around the corner, it’s not too early to start thinking about filing your taxes. As a member, you’ll be able to save up to $15 on TurboTax® online and downloadable products. When you do your taxes with TurboTax®, you’ll get your taxes done right, get your biggest possible refund, and save on filing!

Coming Soon – Members Can Save Up To $15 on TurboTax®

Help us to support our local Children’s Miracle Network. All proceeds with directly benefit the children and family who receive services at Penn State Hershey Children's Hospital. They are for sale at any of our branches for $20 each.

Get your Hummingbird ornament before Black Friday, November 25!

We are an Equal Opportunity Employer.

Visit m1st.careers for details and job openings.

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