Join Us in Celebrating our 55th Anniversary!

Winter 2010 Financial Solutions You Can Trust!™ Join Us in Celebrating our 55th Anniversary! 55 Ways to Plan for a Better Future PLUS Developing an...
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Winter 2010

Financial Solutions You Can Trust!™

Join Us in Celebrating our 55th Anniversary! 55 Ways to Plan for a Better Future

PLUS Developing and Using a

Wise Borrowing Strategy Evaluating

Mortgage Types Lowering your

Auto Insurance Premium

z

Dear Members

Cover Story:

Evaluating Mortgage Types? Ever ything you need to k now about choosing the best mortgage loan for your budget and plans for the future.

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We would like to wish each of you a very happy and prosperous New Year on behalf of all of us at Pacific Community! 2010 is particularly exciting as it marks the celebration of our Credit Union’s 55th Anniversary. It has been a pleasure having the opportunity to serve you and your families throughout our history, and we are looking forward to 55 more years of loyal service!

Your Family Chatter Finding it hard to talk about finances with your spouse? Here are some great tips to help you discuss the important money matters in your family without turning it into a feud.

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In honor of our anniversary, this issue of Chatter is dedicated to building a better future for all of our members. We have included 55 helpful tips throughout the newsletter Kevin Pendergraft David Simpson that will save you money, protect you against possible disaster and help you plan ahead for your goals.

Your Home Happenings The homebuyer ’s tax credit has been ex tended! Find out more about who qualifies and how you can close the deal before the deadline.

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Your Small Business Many small businesses are struggling, and for more reasons than just a slow economy. Avoid these common start-up problems to give your business a boost.

As always, we are here to assist you with all of your financial needs, so please do not hesitate to contact your Credit Union with any questions or concerns you may have. The New Year is a great time to reevaluate your investments and strategies, and we would love the opportunity to help you find the best financial solutions for you and your family.

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Auto Buying Car insurance is a big expense, but you can cut your costs with these great insurance tips from Pacific Community!

Sincerely,

p.14 Kevin Pendergraft President/CEO

What’s New? Annual Meeting

Pacific Community invites you to join us for our 55th Annual Meeting! The event is free to attend, and food and refreshments will be served. We hope to see you there! Date: Wednesday, March 03, 2010 Time: 5:00pm - 7:30pm Location: Fullerton Elks Lodge, 1451 N. Brea Blvd., Fullerton Please RSVP to Terri Skeen at (714) 626-1455.

David Simpson Chairman of the Board

2 • Pacific Community Chatter

YourCreditUnion.com



Your Retirement Strategies

Over 20,000 Reasons to Make Your 2009 IRA Contributions

Joseph DeMaria, CFP®

Investment & Retirement Center Representative

(800) 656-2328 x1415 License OB21574

Money has been tight for many people this year, and putting off making a contribution to your IRA can be easy, especially when there are many other uses for the funds that may seem more urgent. However, making that $5,000 contribution, and even making it now instead of waiting until April, can make a big difference when you retire.

CFP = Certified Financial Planner

Investing in an IRA brings many benefits: 1 You will be eligible for possible immediate tax deductions. • 2 Your earnings will accrue tax-deferred or tax-free, • allowing your savings to grow faster. 3 Making IRA contributions forces you to save. Saving • more automatically increases the amount you accumulate. Once this saving becomes a habit, you may not even notice you are doing it. 4 By contributing early and often, your IRA balance has • the opportunity to grow even more. 5 Some IRA accounts allow you to use the money you • have accrued toward other important goals besides retirement, such as purchasing your first home or funding your education.

Everyone’s situation is different, there are no guarantees on what you can earn on funds within an IRA and your tax situation may suggest that consulting a qualified tax professional is advisable. However, just looking at this chart should demonstrate that consistently making IRA contributions is a vital part of building a secure financial future. Furthermore, these numbers assume you only make contributions of $5,000 each year. These figures do not include additional contributions to a spouse’s IRA or tax laws, which may very likely provide for increased contributions in the future.

The cost of missing one IRA contribution Consider what missing just one $5,000 contribution can mean. Of course, what you earn on your IRA is unknown, and if it is a regular IRA, your tax bracket when you take funds out is unknown. However, the cost of delaying just one year can be significant. Starting Age

Accumulated Value at Age 65 and Earning 6% APY*

30 (35 contributions)

$425,820

31 (34 contributions)

$402,483

35 (30 contributions)

$318,762

36 (29 contributions)

$300,035

40 (25 contributions)

$232,853

41 (24 contributions)

$217,826

45 (20 contributions)

$163,916

46 (19 contributions)

$151,857

Don’t have an IRA? Contact the Investment Center at

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Pacific Community at 1-800-656-2328 to find out more about the IRA options available to you. We will help you determine the best retirement plan for your current lifestyle and future goals. Don’t miss the deadline for your 2009 IRA contributions!



IRA Deadline: April 15, 2010 Contribution limits for 2009: Age 49 and under - $5,000 Age 50 and older - $6,000

*APY = Annual Percentage Yield. Savings amounts list are an example only. Actual savings accrued will differ based on interest rates, tax rates, contribution amounts, withdrawal amounts, varying account fees and restrictions and other variables.

1-800-656-2328



Winter 2010 • 3

Your Family Chatter

Did you know “55” is slang for root beer in the restaurant business! Upcoming Events in Southern California January 5 - March 16: Pajama Storytime, West Covina Library. Join us every Tuesday for stories, songs, art projects, and more fun for the whole family. PJs & teddy bears welcome. (626) 962-3541, www.colapublib.org January 15: Casino Night at the Pond, Anaheim. Enjoy casino-style games, a silent auction and drawings for great p r i z e s a l o n g s i d e t h e e n t i r e D u c k s r o s t e r. 877-945-3946, ducks.nhl.com February 12-14: Tet Festival, Garden Grove. This Vietnamese festival is filled with sights, smells and sounds that transport you to another world. 714-890-1418, tetfestival.org February 20-21: Ragamuffins Reggae Festival, Long Beach. Features outstanding musical performances and a large international crafts and food fair. 310-515-3322, www.raggamuffinsfestival.com

Tips for Discussing Finances with Your Spouse Finances are one of the top three stress factors in marriage. Learning how to effectively talk about your financial situation is essential to maintaining a healthy family and strong relationship with your spouse. Financial discussions do not have to be stressful and frustrating. Here are a few tips to help you talk about money in a relaxed, productive manner: 7

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over financial issues with your spouse. Make a commitment to not haggle over money issues the rest of the month. 9

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Designate a specific day to talk over finances. Have

one day a month when you talk

Develop a financial system that works for your home.

There are many strategies out there, and most likely, you and your spouse naturally come by different methods of dealing with finances. Try different techniques, and be willing to change your current habits to find what works best for both of you. 11

Late March: Italian Cultural Festival, Santa Ana. A day of Italian fun with a Bocce ball tournament, Italian food and live music. 714-567-3600, bowers.org

Stick to the topic at hand. Know what you

need to discuss before the conversation starts. Make a list of important topics and stick to it. If things get off track, take a short break to refocus.

Understand your own weaknesses and strengths.

How do you waste money? Are you defensive when discussing bills? Which of your financial techniques work well? No one is perfect. If you take the time to evaluate your own habits, you will be more understanding of your partner’s weaknesses and strengths. Then together, you will be able to select areas that need work.

M a r c h 1 5 : S i l v e r a d o C h i l d r e n ’s C e n t e r Chili Cook-Off, Ir vine Lake. Sample chili, enjoy family games, prizes and live music. 714-649-2214, silveradochildrenscenter.com

Identify your financial goals. Create a list of your

top financial goals and ask your spouse to do the same. Compare the two lists to see which items you share. These are great goals that

4 • Pacific Community Chatter

you can start working towards together. 12

Celebrate your successes. Make a list of

small goals to help you reach your big goals, and celebrate together when you reach them.

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Keep learning together. Read

financial books and listen to financial talks as a couple. You will have great topics to discuss in a positive way, and you will be improving your financial situation. Most importantly, stay calm when talking about finances. Take the time to relax with your spouse before discussing stressful topics, and always keep the lines of communication open. 14 Ask our Financial Consultants! If you and your spouse

are having difficulty deciding the best financial route to take, a Financial Consultant can be a big help in weighing your options. Call Pacific Community at 1-800-656-2328 to schedule an appointment.

YourCreditUnion.com

REMELY LOW T X M OR E TGAGE RATES ARE

Whether you want to buy a new home or refinance your existing mortgage loan, get the best rates at Pacific Community Credit Union!

e g a g t r o M d e 15-Year Fix le: p m a x E e t a R

4 . 2 5% APeR t % i s b 9 e w 9 r u 3 o t . i s i 4 v r o ! l l e t Ca a r w o l for today’s

*

es properti ts of en California ccupied0 monthly paym er based -o er n w e 18 or low ans: O Deed Lo15-year loan: Makmay be highermary due l 1st Trust sto ates for 09. For altative Example t with 1 point. RCommunity’s cu 1/ /2 12 f resen loan amoun ct to Pacific es as o ly. bje Rate. Ratithout notice. Rep may app ,000 on $350 ll loans su nditions w rcentage nnual Pebject to change APR. APR basedcollateral type. Aer terms and co A = R P *A 4.399% type or tion. Oth es are su only. Rat7 each month at edit score, loanand documenta l $2,632.9 o-value (LT V ), cr approva it ed cr , -t on loan , underwriting diligence

Lynn Campbell

Orange Branch Office [email protected] 714-626-1467 1-800-656-2328 x1503

Marissa Manalo Imperial Promenade Branch Office marissa.manalo @yourcreditunion.com 714-626-1458 1-800-656-2328 x1458

Gilbert Del Real

West Covina Branch Office [email protected] 714-626-1418 1-800-656-2328 x1418

YourCreditUnion.com All loans subject to Pacific Community Credit Union’s customary due diligence, underwriting, credit approval and documentation

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Winter 2010 • 5

Winter 2010 • 5

Your Money Management

Developing and Using a Wise Borrowing Strategy Debt is often part of a sound financial strategy. It enables us to enjoy things that otherwise are beyond our current reach. But debt can also have an ugly side. Too much, too expensive or the wrong kinds of debt can make life miserable. It is important to have a smart understanding of the types of loans available and how they will affect your finances, so that you can control your debt rather than allowing your debt to control you.

• • • • • • •

Prioritize borrowing based on long-term value College educations Housing True necessities Autos Major Furniture purchases Vacations Expensive jewelry rarely worn

Consider all the terms

The Basics Borrowing costs money, and that’s not necessarily bad. It just means that when you pay it back, you have to pay more than you borrowed. The components of a good debt strategy are quite simple:  • 15

Choose when to borrow and reasons for borrowing carefully. 

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Find the best interest rate and terms, based on your needs and wants. 

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Live up to your repayment responsibilities.

Comparing credit cards’ interest rates, fees and rewards can confusing. Choose a card that reflects how you use it. If you pay the full balance every month, the interest rate is of little concern. Focus on no annual fees and benefits such as airline miles or cash back features. If you carry over balances, focus on finding a card with lower interest rates. 

The “right mortgage” for you should also match your needs. Adjustable rate mortgages usually have lower rates than fixed rate mortgages, • Periodically review your debt. Refinancing your mortgage or an auto loan 18 but your payments could rise. If you expect to stay in your home only may to reevaluate reevaluateyour yourloan loan a few years, an adjustable rate mortgage may be best. If an increase maysave saveyou youmoney. January money. January is is aa great time to in monthly payments would be too painful, look at a fixed rate options asas part ofof your financial planning forfor the year. options part your financial planning the year. mortgage or an adjustable one with rate adjustment limits.

Common sense borrowing habits

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Never borrow what you cannot repay.

20 •

Never borrow for a luxury if you can’t afford the necessities. 

21 •

Prioritize your borrowing based on the long-term value of what you are buying. 22 • Reserve some borrowing capacity for emergencies.

6 • Pacific Community Chatter

If you need help getting out of debt, call 1-800-656-2328 to speak with a knowledgeable loan officer at Pacific Community. You can talk over your current loan account and what options you have for lowering your rates and reducing your monthly payments.

YourCreditUnion.com



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1-800-656-2328



Winter 2010 • 7

Evaluating Mortgage Types Finding the right mortgage can be a strenuous process. Not only are there hundreds of institutions offering mortgages, it can seem as though there are dozens of different types. Different interest rates, lengths and other features can be confusing. We’ve put together an overview of the different options you may encounter as you shop for a mortgage to help give you a better idea of what you need to look for and which questions you need to ask. 23

As you review your mortgage options, keep two key thoughts in mind: How long do you expect to live in the home? What is your tolerance for monthly payments increasing?

Fixed Rate Mortgages

As the name implies, with a fixed rate mortgage, the interest rate is set at the time you take out the mortgage and remains constant over the life of the mortgage. The monthly payment level also remains constant. Knowing what your payment will be can be reassuring. Each monthly payment is comprised of interest and principal with early year payments being primarily interest and payments toward the end of the mortgage being mostly principal. Most of the mortgage pay down comes late in the mortgage period. Most institutions offer fixed rate mortgages of 30 years and 15 years. The benefit of the shorter 15-year mortgage is that after 15 years you will have paid off the mortgage loan and you own your home free and clear. You will also pay less interest over the life of the mortgage, so the overall cost of your home will be lower. The negative is that your monthly payments will be higher.

Tip: Lower your payments 25

If you are hoping to secure lower monthly payments on your mortgage, the easiest way to do it is to simply borrow less money. Increasing your down payment will reduce the amount of interest you have to pay, help you qualify for a lower rate and improve your changes of getting your mortgage approved.

Comparing a 15-year mortgage and a 30-year mortgage with equal interest rates

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15-year mortgage

30-year mortgage

Mortgage amount Interest rate Monthly payments Total monthly payments over the term of the mortgage Total principal paid over the term of the mortgage Total interest paid over the term of the mortgage

$350,000 5% $2,767.78

$350,000 5% $1,878.88

$498,200.40

$676,396.80

$350,000.00

$ 350,000.00

$148,200.40

$326,396.80

Choosing the term of a fixed rate mortgage is usually a function of what level of monthly payments you can afford and how anxious you are to pay off the entire mortgage.

8 • Pacific Community Chatter

YourCreditUnion.com

Adjustable Rate Mortgages (ARMs) With an adjustable rate mortgage, the interest rate and monthly payments can change as interest rates change. The rate is fixed initially and is subject to being reset based on changes in an interest rate benchmark. The big benefit to the borrower is that usually ARMs have interest rates (at least initially) that are lower than the rates on fixed rate mortgages. Sometimes it can even be 1.5 to 2.5% less. There are several features of ARMs that you should evaluate if you are considering this type of mortgage. 26 1. Initial

rate - Be careful if the initial rate seems really low. It could be a “teaser” rate that only lasts for a short time and then the rate is adjusted upward. At minimum, ask what the rate would be adjusted to if the initial rate ended today.

Other Issues 30

Negative amortization - Amortization refers to the process of paying down a mortgage. Some lenders offer mortgages with lower monthly payments than what is needed to pay interest and ultimately pay off the mortgage. This means the amount due on your mortgage increases over time. Avoid this type of mortgage.

27 2. Benchmark the ARM is pegged to - ARM rates are

usually tied to a “published” index that reflects the general interest rate market. Usually the ARM rate is adjusted to that benchmark plus some level of margin. Ask the lender how this works and try to get an understanding of how the benchmark rate has changed recently.

28 3. The

cap - Most ARMs have limits on how much the rate can rise in any one year and some ARMs have a limit to what the rate can rise to over the course of the mortgage. Understanding how the caps work will let you know “how bad it can get” if rates rise substantially.

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Balloon mortgages - Balloon mortgages are similar to fixed rate mortgages with steady monthly payments using a 15- or 30-year amortization. However, with a balloon, the mortgage comes due before the full 15- or 30-year amortization. Most balloon mortgages are for 3 to 7 years. They usually offer lower interest rates than the traditional 15- or 30-year fixed rate mortgage. But, remember that with a balloon, your mortgage will be due on a given date and you will have to either pay the balance in full or secure new financing, which may be at a higher interest rate.

29 4. Length

of the rate periods - When you look at ARMs you may find there are terms like 10/1, 7/1, 4/1 and the like. These refer to how long the initial rate lasts and how often the rate is adjusted after that.

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It’s important to review your credit report before applying for a mortgage. Your credit score plays a big role is the rate you will receive on your loan, so make sure everything on your credit report is accurate.

Adjustable rate mortgages are attractive because of their lower initial rate. Your risk is that your rate and monthly payment will rise in the future. If you are comfortable with accepting an increased payment or if you think you will be moving in a relatively short time, the savings with an ARM can be substantial.

1-800-656-2328

Tip: Check your credit score



Winter 2010 • 9

Your Small Business Today

Avoid Common Small Business Start-Up Problems If your new business is struggling in this economy, you are not alone. In fact, hundreds of new businesses are started every day and more than half of them fail within their first two years. Some businesses fail because the original business concept was ill conceived, and others fail because of external factors, such as a deteriorating economy. However, a slow economy is not the worst situation for starting a company. In fact, some business strategists say it’s a great opportunity to start up since all new businesses start slow anyway. Plus, the timing allows you to naturally build your company as the economy picks up. While you can’t control many of the external factors surrounding your business, you can control the decisions you make as the business owner. Poor business decisions are actually the primary reason most businesses fail, so we have put together a list of common pitfalls that you should try to avoid as you build your company’s foundation. 33 Not anticipating start-up issues. Starting a business is difficult, time consuming and expensive. The exhaustive list of tasks involved, from choosing a name to getting supplies and staffing, all takes time and effort. Most tasks will take at least twice as long as you expect, and everything costs money. So be prepared to work hard, make decisions and spend down your savings.

11 • Pacific Community Chatter

34 Inadequate consideration of financial issues. You will have a gap between the time you make the

decision to start a business and when revenues start coming in. Be sure you have enough funds to pay all the start-up costs and cover your normal living expenses through these difficult months, without relying on credit cards. If you have a retail business, getting an initial inventory and keeping it up can be costly. Many vendors may require payment in advance or upon delivery. Negotiate terms with your vendors early. If you have a service business, do not forget to consider how long it may take for your customers to pay you. Thirty to sixty days after an invoice is sent is not uncommon. 35 Poor marketing. While you have a passion about your product or service, do not be blind to the reality that others may not share that passion. You must have a marketing plan that identifies potential customers, lays out the benefits of your product and determines how to motivate customers to make a purchase decision. Create a formal marketing plan early, constantly adapt it to what you learn in the marketplace and consistently execute your plan.

Poor location. It should go without saying that customers must be able to find your location and visit it easily, especially in regards to retail. It may be tempting to commit 36

YourCreditUnion.com



Small Business Services to a long-term lease, but traffic patterns can change, competitors may move close by and your needs may change. Consider these factors before you sign a lease. Also, never underestimate the need for a top-notch website - your online location. These days, most purchases are at least researched online first. Having a strong web presence is vital to success in today’s marketplace.

Not listening to good advice. It’s important that

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you realize that you do not have all the answers. Professionals like attorneys and accountants are wonderful for helping you deal with some of the technical aspects of your business. For operations insight, look to your customers, employees, other business people and even competitors. It is surprising how often a casual conversation can lead to useful ideas.

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Need a Loan for your Business?

Pacific Community is an approved SBA lender! We can help you secure the business financing you need with payments you can afford.



Members Say it Best! I greatly appreciated the help and guidance of Pacific Community on our SBA loan. Vince Wilson was able to work with me to establish our goals and needs for the loan. The system of SBA was more complicated than I had expected, so it was good to have experienced people to work with during the process.



Stewart A Davis, owner of Sinter Source Group Need help too? Contact Vince Wilson!

and Save Time and Stress

We’ve put together a simple checklist to help you organize your small business finances and information for tax filing. Take care of these things first, and filing your taxes will go smoother and quicker:  Collect your data. Gather your sales, purchase and expenses along with personal data, such as investments.  Collect your family’s data. If you are married and/or have children, you will need their information as well.  Make a list of deductible expenses, such as business travel, contractor expenses, etc.  Collect your mortgage or rent statements. If you are receiving or making payments on any real estate properties, such as your place of business or your business vehicle, gather those account statements to give to your CPA.  Invest surplus money. Rather than paying higher taxes on any surplus money you may have, ask your tax professional about investing it in ways that will shelter it from taxes.  Keep extra money on hand. Be prepared with extra funds on hand to pay your taxes, in case you haven’t paid enough during the year.

Vince Wilso n

Business Deve

lopment Officer

401 E. Imperia l Hwy P.O. Box 3400 3 Fullerton, CA 92834-94

It’s Tax Season – Get Organized

FINANCIAL SOLUTION

S YOU

 Check your exemptions. Ask your CPA about which tax exemptions may apply to you and how you can maximize your exemptions.

CAN TRUST!™

03 Phone (714 ) 626-1447 (800 ) 656-2328 ex t. 1447 Fax (714 ) 626-1447 email vince .wilson@yourcr editunion.com www. yourcredituni on.com

1-800-656-2328

Above all, make tax planning a priority. Ensure your tax returns are always filed on time and your payments are made before deadlines. Don’t give the IRS any reason to doubt your intention to pay your taxes.



Winter 2010 • 11

Small Business

 FREE Business Checking Account  Business Platinum Checking  Business Platinum Savings  Business Loans  SBA Loans  Business Line-of-Credit  Business Equipment Financing  Remote Deposit  Business Platinum Visa® Debit Card  Payroll Services  Merchant Bankcard/Credit & Debit Card Acceptance

Checking

 FREE Checking Account  Convenience Plus Checking Account  Money Market Checking Account  Pacific Platinum Checking Account

Savings

 Regular Savings Account  Money Market Savings Account  Pacific Platinum Savings Account  Holiday Club Account  Vacation Club Account  Pacific Kids Club Account  Flexible-Term Certificate  Bump-Up Share Certificate  Individual Retirement Account (IRAs)  Health Savings Account (HSAs)

Loans

 New and Used Automobile Loans  Auto Equity  Motorcycles and Personal Watercraft Loans  Boat and RV Loans  Personal Loans  Loans Secured by Savings  Stock Secured Loans  First Mortgage Loans  Fixed Rate Home Equity Loans  Home Equity Line-of-Credit  Reverse Mortgage Loans

Account Access

 Visa® Debit Card  Tellerfone-24 (Telephone Banking Service)  Pacific Xpress (Internet Banking Service)  E-Statements  Xpress Bill Pay  E-Alerts (E-mail Notifications)  CO-OP Network (28,000+ Available ATMs)  Direct Deposit  Automatic Loan Payments  Visa® Gift Cards / Prepaid Visa® Debit Cards  CU Service Centers

Investment Services*  Annuities*  Mutual Funds*  Stocks and Bonds*  Financial Planning*

*Investments are not insured, not a deposit of or guaranteed by Pacific Community Credit Union and may lose value.

I’m interested—send me more information! To receive more information, check your areas of interest and return this form to:

Name: Company:

P.O. Box 34003 Fullerton, CA 92834

Address: City:

State:

Zip:

1-800-656-2328

Phone: Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government

NCUA

e-mail: 12 • Pacific Community Chatter

National Credit Union Administration, a U.S. Government Agency

YourCreditUnion.com

Your Home

Tim’s Delicious Recipe

Happenings

Easy Crock Pot Beef Stew 2 lbs. beef, cut in 1” cubes 1/4 c. flour 1 tsp. salt Several dashes of pepper 1 1/2 c. beef broth 1 tsp. Worcestershire sauce 1 chopped onion 1 bay leaf 1 tsp. paprika 4 sliced carrots 3 diced potatoes 1 stalk celery, diced Put meat in crock pot. Mix flour, salt and pepper and add to meat and stir to coat meat. Add remaining ingredients and stir to mix. Cover and cook on Low for 10 to 12 hours or on High for 4 to 6 hours. Stir well before serving.

The Homebuyer’s Tax Credit Has Been Extended! President Obama has approved the extension of the first-time homebuyer’s tax credit until April 30, 2010. Homebuyers who are purchasing their first home are eligible to receive an $8,000 tax credit, and the program has also expanded to offer a $6,500 tax credit to homeowners who have lived in their current home for at least five years and are looking to relocate. The tax credit is refundable, meaning if you only owe $1,000 in taxes and you qualify for the $8,000 tax credit, you will receive a check in the mail for $7,000.

43 Tip: Simply cooking 1 extra meal at home per

week rather than dining out can save your family over $600 per person every year!*

*Calculations based on spending an average of $8 per meal per person to eat at home versus $20 per meal to eat at a restaurant (including tax and tip).

Purchasing a home can take time, so if you are hoping to take advantage of the tax refund before the cutoff date, here are a few things you can do to move the home-buying process along: 39 Get preapproved for your home loan. This will give you 1.

an idea of how much you have to spend, and you won’t have to worry about waiting for paperwork to go through once you find the home you love. 40 Narrow down your search. Make a list of the most 2.

important things to you, along with your price range, and give them to a realtor who can help you find what you are looking for. The list will keep you focused in your search. 41 Beware of short sales. Despite the name, short sales are 3.

rarely a quick purchase. A short sale means the amount owed against the home is more than the home is worth. Because the lender is losing money on the deal, you need to have the lender’s approval on your offer as well, not just the homeowner’s. This can potentially cause the process to drag on for many months.

1-800-656-2328



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Hoping to save even more on your home? Get a home loan from Pacific Community! Our competitive rates will help you get lower monthly payments and save thousands of dollars over the course of your loan. Call the Mortgage Place at 1-800-656-2328 today to find out how much you can save! Winter 2010 • 11

Auto Buying:

Lower Your Auto Insurance Premium!

Many factors go into determining which insurance cost you a lot of money per incident. Having a safe coverage is right for you, but an affordable premium driving record means fewer claims and lower risk. is definitely one of the primary issues. Here are some Insurers will reward you for these good habits. tips to help you lower your premium payments and 48 Invest in safety add-ons. Insurers get a better deal on your auto insurance: are likely to offer a discount if your vehicle uses 44 Increase your deductible. By offering air bags, seatbelts, safety-harnesses, anti-lock to pay more in the event of an accident, you can brakes or running lights. In addition, you may reduce the amount you pay for a premium. It may also receive a discount if you use a car alarm or other seem counterintuitive -- paying more when you anti-theft device. want the insurer to bear the risk of loss, but what you really want to insure is the risk of a large, catastrophic 49 Reduce your mileage. The more miles loss. By paying a lower premium you can put more you drive per year, the more of a risk you have money in savings to use for any unexpected bill you of getting in an accident. So, some insurers offer discounts if you limit the number of miles you drive may have, including an automobile accident. or use alternative transportation to get to work. 45 Lower unnecessary coverage. Some auto insurance such as collision or comprehensive 50 Combine insurance policies. If you coverage is aimed at protecting your vehicle and have more than one vehicle in your household, providing for medical expenses. If you have health putting multiple vehicles on one policy will insurance coverage and your insured vehicle is not typically reduce the cost to insure both vehicles. very valuable, you may not need the extra coverage. In other words, being responsible with your money, 46 Trade your vehicle for one with your vehicle and your life choices will help you cut low theft loss and accident history. your insurances costs. Take safety precautions, drive carefully and reduce your chances of theft, and Insurance companies charge more to insure vehicles insurance companies will reward you. of higher risk. Check with the Insurance Institute for Highway Safety (IIHS/HLDI) for theft loss and 51 TIP: Check out an insurance company’s accident statistics of your vehicle. financial stability and history of consumer complaints before purchasing a policy. A low 47 Protect your driving record. Driving safely helps you to avoid accidents and tickets, premium won’t matter if your insurer isn’t two key factors that increase your premiums and trustworthy to pay your claims. 14 • Pacific Community Chatter

YourCreditUnion.com

Tech News You Can Use: How Are You Backing Up Your Important Files? Losing the files on your computer is devastating, and you don’t realize how much is actually on there until it is gone. Whether it’s your business’ financial files from last year or your family photos from your trip to Europe, you don’t need to take the risk of losing them forever.

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Mailing P.O. Box 34003 Fullerton, CA 92834-9403

Data backup is easy, and it doesn’t have to be expensive to be effective. Here are the top three ways you can easily back up your important information:

Member Service Telephone Center 1-800-656-2328 Mon - Fri / 8 - 6

External hard drive. Usually as simple as a USB connection to your

Online YourCreditUnion.com

computer, these are very easy to install. Plus, the prices keep getting better on even larger drives. You can find deals on a terabyte of extra space for around $100. 53

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TIP: If you have more than one computer, look for a networkable external hard drive. It will cost a bit more and may be more difficult to set up, but you will be able to conveniently share information across all your units .

USB flash drives.

So small and convenient, you can stick it in your pocket, but with enough memory that it can serve as a backup drive. They require no extra software to use and are very affordable. A 32GB backup drive will cost around $75 - $125. Just be careful not to lose it. USB flash drives can be easily lost or stolen due to their compact size.

Online services. Storing your data online adds an extra layer of protection since it is stored outside your home or office. In case of theft, fire or some other catastrophe, your backup data will remain safe. Plus, you can access the data from any Internet connection. Online backup sites are very secure and easy to use, however they can be rather slow. You can find a broad selection of price ranges, but about $50 per year will get you unlimited backup.

To Locate Nearest ATM 1-888-748-3266 or Text address/zip to MYCOOP

To Locate Nearest CU Service Center cuswirl.com 1-888-CU-SWIRL

HolidayObservations Martin Luther King Jr.’s Birthday – Monday, January 18th President’s Day ­– Monday, February 15th

BranchLocations Imperial Promenade - La Habra 1202 S. Idaho Ste. H La Habra, CA 90631 Mon - Fri / 10 - 6 Sat / 9 - 1 Irvine - Allergan 18600 Von Karman Irvine, CA 92612 Mon - Fri / 9 - 4:30 Wed / 10 - 4:30 (closed for lunch 1 - 2) Orange 1111 E. Katella Ave., Ste. 100 Orange, CA 92867 Mon - Fri / 10 - 6 Sat / 9 - 1 West Covina 1002 West Covina Pkwy. West Covina, CA 91790 Mon - Fri / 10 - 6 Sat / 9 - 1

1-800-656-2328



Winter 2010 • 11

Borrow Smart.

Buy Smart. ®

We’ll make your first payment up to $350!1 January 1 - March 31, 2010 Call 1 (800) 656-2328 to get pre-approved from Pacific Community Credit Union today!

Call 1(800) CAR-SALES for the nearest Enterprise location to you!

1 Vehicles must be financed using standard financing terms through Pacific Community Credit Union to qualify for payment offer. We will make the first payment on the payment due date up to $350 on Member’s behalf after vehicle is financed through Pacific Community Credit Union. Member is responsible for any difference due over $350. Offer void if 7-Day Repurchase Agreement is activated. Offer valid from 1/1/10 - 3/31/10. No cash advances. Offer not valid for previous Enterprise purchases. Used vehicles were previously part of Enterprise short-term rental, lease fleet or purchased by Enterprise from other sources including auto auctions, with previous use possibly short-term rental lease or other. The “e” logo, Enterprise, “Borrow Smart. Buy Smart.”, and “Haggle-free

buying. Worry-free ownership.” are trademarks of Enterprise Rent-A-Car. All other trademarks are the property of their respective owners. ©2009 Enterprise Rent-A-Car.

Preview a great selection of late-model used vehicles at cuautodeals.com.