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Contents
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About
this issue
The summer issue of Smart Money Matters
focuses on specific ways to save money on major and minor
expenses. We set the tone with As a cooperative, we put
you first, to remind you that Travis Credit Union––a
financial cooperative––exists because of you,
and for you, to provide service and value and to have a positive
influence in your community. Our goal is to help you save
money.
Our commitment to service is possible because
of the time and effort given by our volunteer Board of Directors
and Supervisory Committee. In May, following our annual meeting,
new directors and committee members were elected. We’re
sharing those changes with you along with assurance that these
volunteers are fully committed to the credit union’s
mission of “building lifelong relationships with members
to help them achieve their financial goals.”
Our savings theme continues with Steps
to a healthy financial future, explaining a pyramid model
for thinking about ways to work with your money to make your
savings grow. As gas prices across the nation rise, we also
explain the potential savings that could be yours with one
of the hybrid vehicles that have become popular. But if you’re
not driving long distances this summer and want to Retreat
to your backyard and ENJOY, we have tips about renovating
your backyard as an entertainment space so that you can vacation
right at home.
In terms of long-term saving plans, we’ve
provided some quick tips for managing your 401(k). Finally,
Coping with the rising cost of long-term care presents
practical information that could be helpful for you or plans
for someone you love.
We hope you enjoy this issue of Smart
Money Matters. Please call on us this summer to help
you with your upcoming plans and projects.
Best wishes,
Patsy
Van Ouwerkerk
President and CEO |
Curt
Newland
Board Chair |
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 If
you want to expand your living space, look to your own backyard
and design a party environment outside. Backyard entertaining
has come of age with beautiful decks, patios, landscaping,
and hardscaping that beckon you to the oasis behind your home.
Creative improvements to your backyard can be made using an
amazing array of materials to blend, mix, and match with your
house to add warmth, comfort and value.
Although pools and spas can certainly
be a part of backyard fun, this article focuses on other elements
that make dining and entertaining a pleasure.
Where to start
Take some still photos of your backyard at
different hours of the day so that you can see where and how
the sun hits the areas you want to improve. Then start gathering
ideas for your renovation. Great ideas are available everywhere
from open house visits to online home renovation Web sites.
Stories from your friends and neighbors about their own backyard
planning and construction experiences can be a valuable part
of preliminary research to help you understand what to expect.
If you have a good deal of personal experience
with residential design, structural planning, plumbing, and
electrical layout, you might be able to manage a backyard
renovation on your own. But if this is new territory for you,
bring your priorities and vision to a hand-picked backyard
expert for a result that will make you happy for years to
come.
 Finding
a contractor
Your local contractor’s association
and online contractor referral services can be helpful in
finding the expert that’s right for you. Select a designer/contractor
who specializes in the type of construction you’re
planning, e.g., a roofing specialist may not be the best choice
for laying a patio and a cabinetmaker may not be the best
resource for a built-in grill. Get customer references and
photos from your prospective contractor(s), making sure they
are people you can talk to about the contractor’s dependability,
scheduling, quality, and overall outcomes.
Let your planner know how you want to use
the space and what is most important to you about the renovation.
Depending on where you live, building permits and inspections
will be required. There may also be neighborhood covenants
you must follow about acceptable materials, dimensions, and
exposure to neighbors or the street. It is the professionals’
job to visualize your dream within the rules and calculate
the real cost. So what changes are you considering?
More useable space
Entertainment patios and decks are the anchor
for most backyard activity areas. A 10-by-10-foot concrete
slab was once adequate for backyard entertaining, but most
homeowners today are looking for much larger configurations
that compliment the natural shape of the yard and surrounding
landscape.
 Patios
and decks are usually directly accessible from a kitchen door
out to the backyard to avoid carrying cookout materials into
other parts of the house. Think about planning specific areas
for entertaining, cooking and dining without crowding.
Decks and patios that are exposed to the east-west
path of the sun might need a roof or awning system to permit
all-day fun outdoors. Privacy can become a factor when your
patio or deck is elevated or exposed to neighbors, so plan
the space to include adequate screens of foliage or privacy
shrubs.
If your yard is on a slope or hill, you may
require a retaining wall to level out and support the patio
or deck surface, with a railing or wall around the edge to
protect your family and guests from taking a tumble.
 Landscaping
Landscaping is an aspect of backyard renovation
that depends strictly on your lifestyle, budget and personal
tastes. There are endless possibilities in terms of the shape
and use of garden beds and containers, and how you combine
trees, shrubs, annuals, perennials, grasses, herbs and vegetables.
Gardens that surround your home and backyard bring natural
glamour to the functional areas of your yard. They add color,
fragrance and visual texture that can vary beautifully throughout
the year.
If you have small children, perhaps you want
to incorporate lawn in your plan. If you don’t like
yard maintenance, maybe you want groundcover instead. If you
truly love gardening, you may need a greenhouse or tool shed
as part of your plan. In any case, you’ll want to think
about water accessibility, sprinklers and well-planned drainage.
Built-ins
It
is a good idea to have an interesting focal point in the yard,
which is surrounded by everything else. To establish a mood
in your yard, consider building a perpetual waterfall as the
focal point, an intimate fish pond, a meandering pathway with
a foot bridge, or a meditative, Asian stone garden bordered
by a forest of greenery. You are limited only by your imagination
and your budget.
Perhaps
your focal point is more practical. If grilling is your passion,
you might want to make it the focal point of your backyard
activities by building a cabana kitchen with all the amenities
of indoor cooking for an outdoor setting. Brick or tile, stone
or wood, your planner will be able to outline the options
that will make your grilling parties sensational.
 Built-ins
add measurable value to your home and can be your best source
of satisfaction in any backyard renovation.
Getting
it done
Backyard
renovation can mean major construction right outside your
windows for weeks to months at a time. If you can afford to
tackle it over one summer, you’ll have a marvelous time
in the Fall. But if you simply cannot do it all at once, ask
your planner how to accomplish your goal through project stages.
It will take longer, but you can pace your expenses and you’ll
have a cushion of flexibility for changing your mind if you
come across a new idea you want to incorporate.
Gather
’round
When the
construction is completed, and you’re nearly ready to
send out invitations for your first party, select some perfect
outdoor furniture for enjoying long and leisurely conversations
in your backyard oasis. Pop up the umbrella, pour the iced
tea, kick off your sandals, and enjoy the view. You’ve
earned it! •
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 Have
you suddenly realized you might be able to do something
wonderful with your own back yard? If you have imagined
an outdoor space that serenely calls you outside to enjoy
the day, build it now and start counting the years of
pleasure right beyond your own back door.
Our home equity line-of-credit (HELOC)
allows you to use the equity in your home for home improvements
and just about anything else you have in mind. You can
draw money as you need it without paying interest until
you use it. The great advantage of a HELOC is that you
can tackle your projects incrementally or get it done
in a flash because you have the funds available as you
need them.
To find out if you’re already
pre-approved, please visit us online at www.traviscu.org.
You can also apply online and get results in just minutes.
For all the details about TCU home equity loans, call
our friendly real estate lending department at (707)
469-2000 or (888) 698-0000. Let us help you make your
back yard sizzle. •
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Looking
back on our annual meeting
Travis
Credit Union’s annual meeting was held Thursday, May
3, 2007 in the Community Room at the corporate office in Vacaville,
Calif. Board Chair Stuart McIntosh and TCU President &
CEO Patsy Van Ouwerkerk reported on 2006 accomplishments and
financial objectives, and reviewed the products and services
that were introduced in 2006 to support the credit union’s
commitment to meeting the financial needs of its membership.
They also introduced plans for 2007.
Election
results
This year
there were four Board of Directors seats and one Supervisory
Committee seat to be filled. The incumbent candidates all
expressed their interest to the Nominating Committee in being
re-elected. No others expressed interest by letter or petition.
Incumbent
candidates for the open Board of Directors positions were:
Stu McIntosh, Pat Moreno, and Curt Newland. Mary Coburn, previously
chair of the Supervisory Committee, was recommended for election
to fill the three-year term of outgoing board member Andy
Popenoe. Arturo Reyes, the incumbent candidate for the Supervisory
Committee, was also interested in being re-elected; therefore,
the Nominating Committee recommended these incumbents for
re-election and they were duly elected by acclamation at the
meeting.
Mark Dupree,
a member of the Volunteer at Large Training Program, was subsequently
appointed to the Supervisory Committee for a one-year term
to fill Mary Coburn’s open seat.
| New
officers |
| Curt
Newland |
Board
Chair |
| Pat
Moreno |
Board
Vice Chair |
| Jim
Porter |
Board
Secretary |
| Charles
Dawes |
Board
Treasurer |
| Denton
Connor |
Supervisory
Committee Chair |
| Arturo
Reyes |
Supervisory
Committee Secretary |
About our new chair
Newly-elected
Chair Curt Newland is a retired United States Air Force lieutenant
colonel. He earned Bachelor of Science and M.B.A. degrees
in financial management, has taught computer application courses,
and currently teaches banking and finance management courses
at Solano Community College. Curt served both his first and
last tour of duty at Travis Air Force Base and has made Vacaville
his home for the past 30 years. He has been a member of Travis
Credit Union since 1964, has served as a board director since
2005, having also served on the Supervisory Committee from
1998 to 2004, and most recently served as vice chair. •
Curt
Newland
Board Chair |
Charles
Dawes
Board Treasurer |
Tom
Kulinski
Board Director |
Denton
Connor
Supervisory Committee Chair |
Pat
Moreno
Board Vice Chair |
Stu
McIntosh, Board Director
and Immediate Past Chair |
Billy
Perkins
Board Director |
Arturo
Reyes
Supervisory Committee Secretary |
Jim
Porter
Board Secretary |
Mary
Coburn
Board Director |
Tom
Wells
Board Director |
Mark
Dupree
Supervisory Committee Member |
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Interested
in volunteer opportunities?
As a not-for-profit
financial cooperative, our mission is to build lifelong relationships
with our members to help them achieve their financial goals.
Volunteers are vital to helping us identify and serve our
members’ needs and fulfill our service mission.
If you
have a good understanding of financial matters, are currently
in a management position with your company or are actively
involved in your community, we’d love to talk with you
about ways you can make a difference as a Travis Credit Union
volunteer.
We are
currently seeking candidates to serve on our Volunteer at
Large Training Program. The purpose of the Volunteer at Large
Training Program is to provide educational opportunities to
members who would like to learn more about the credit union
so they might volunteer for service as representatives of
the membership. By serving as a volunteer, you’ll have
the satisfaction of contributing to the credit union’s
success, helping the credit union achieve its mission and
possibly starting on the journey of serving on the Board of
Directors or Supervisory Committee.
If you
are a member in good standing, are 18 or older, and have time
to devote to the work of guiding credit union decisions, the
Board of Directors encourages you to express interest in volunteer
opportunities.
Resume
and letter indicating interest should be sent to:
The Board of Directors
Travis Credit Union
One Travis Way
Vacaville, CA 95687 •
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The world
is getting more complex and we are forced to continually adapt.
Technology is transforming the way you live and work. The
Internet has changed the way you shop, learn, and communicate.
But sometimes, the endless options can be overwhelming and
it’s hard to know who to trust when making important
decisions.
Member-owned
credit union cooperatives still operate under the principle
of “people helping people.” Even though Travis
Credit Union has grown over the years, we remain committed
to doing what’s right for you and making it easy to
do business with us at every stage of your life. As a result,
we will soon make it possible to access and open accounts
online, while at the same time adding new branches to provide
even more convenient locations and personal service.
The
legacy of credit unions and how we serve
When Travis
Credit Union was formed in 1951 by a small group of volunteers
from Travis Air Force Base, the credit union movement was
not yet 20 years old. Yet, across the nation, millions of
co-worker groups pooled their income in newly formed credit
unions to save for the future and to make borrowing money
easier and affordable. Because it was, and remains, a grassroots
effort that really mattered to the nation, the federal government
has always permitted not-for-profit status for financial cooperatives.
Financial
cooperatives remain a vital solution for the times. They provide
higher rates on deposits, lower rates on loans, lower fees
on services, convenient access and friendly service, while
working to ensure there will always be a not-for-profit alternative
in the financial market place.
Your credit
union Board of Directors, Supervisory Committee, and senior
management are careful stewards of the resources you’ve
put in their care. They believe in the genuine, personal way
credit unions do business that sets financial cooperatives,
and Travis Credit Union in particular, apart from other financial
institutions.
 You’ve
come to know our employees in our branches. They are your
friends and neighbors. You see each other in church, at the
mall, and at soccer games. You see them representing you
at community events, youth programs, non-profit organizations,
and in local schools. Financial cooperatives like Travis Credit
Union help shape communities by making a difference in the
lives of individuals and their families because we are from
these communities ourselves.
Thanks
to you—our member-owners—we are able
to bring credit union membership to even more consumers. We
keep you at the center of our mission by providing the latest,
most secure technology, convenient branches with free, nationwide
ATM access, and a full array of personal and business financial
products and services.
We are
committed to creating financial literacy and celebrating the
communities we serve by donating to causes that meet social
needs. And we reach out to underserved populations to acquaint
them with the credit union philosophy of people helping people.
Now, as
a community credit union that was built on the foundation
of our Air Force origins, Travis Credit Union invites your
friends and family to join us so we can help them achieve
their financial goals. We do it by keeping up with changes
in technology, maintaining our solid infrastructure, saving
on costs, and ensuring financial choices are available to
meet your needs. It’s our privilege to be of service
in this way—the cooperative way. •
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Is
a hybrid in your future?
Since
May 2006, California fuel prices have gone up about 14 cents
per gallon, echoing price hikes across the nation of 24 cents
on the East Coast, 56 cents in the Midwest, 33 cents down
around the Gulf, and 45 cents in the Rockies.1 The Annual
Energy Outlook for 2007 predicts that by 2030, liquid fuel
sources will be up 6.2 billion barrels per day, with 73 percent
of that use in the transportation sector.2 It looks like fuel
prices won’t be going down significantly anytime soon.
Given
the rising price of independence on the road today and the
positive hype about fuel efficient hybrid vehicles, have you
wondered if your next car should be a hybrid? Hybrids have
a higher sticker price than comparable gas-only models, so
the question becomes, Does the fuel efficiency, federal tax
credit, and “green” profile of hybrids offset
their higher cost and rising fuel prices? What are the real
costs of owning a hybrid?
What
is a hybrid?
In
response to a zero-emission mandate from the California Air
Resources Board in September 1990, there was an intense, 10-year
push for developing electric vehicles for the new millennium.
But the all-electric, no-emission, experimental models introduced
by major auto producers during the ’90s couldn’t
go very far without needing hours of recharging.
By
adding gas back into the solution to power the car and recharge
the battery, which creates fuel efficiency, the first gas-electric
hybrid was introduced to the market in 2000—the Honda®
Insight. It has since gone out of production, but today there
are about 10 hybrid models available for purchase, with nearly
a dozen more expected in the next few years.3
Hybrids
are the most fuel efficient, low-emission vehicles on the
road and Americans like them. Sales in 2005 were up more than
140 percent over 2004 figures, although sales slowed in the
last quarter of 2006 as a new wave of buyers waits to see
what the market will produce.
There
are a lot of attractive reasons to go hybrid, but maybe fuel
efficiency isn’t a deal-maker for you. There are other
factors to consider.
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Hybrids have been around
only seven years,
so the jury is still out on costs versus benefits.
Express yourself
Some
hybrid models have such a distinctive look that simply owning
one can make a personal statement. People who like the thought
of air improvement efforts often buy hybrids to put their
money where their heart is. Other hybrid owners like having
association with the technological elite who ride the cutting
edge of any innovation. Other drivers just like knowing that
technology is doing something new under the hood. Cars have
always helped people communicate something personal on the
road. Hybrids are more about balance than muscle, speed or
flash.
Fuel economy
Escalating prices at the gas pump have driven
up hybrid sales to some extent in the past, particularly among
commuters with models that are tagged with the best mileage
estimates. But fuel economy has not created pivotal change
in the mindset of most drivers. When gas prices drop, so do
hybrid sales, followed by renewed interest in larger gasoline-driven
models. Clearly, not all drivers who are attracted to hybrid
innovation worry about overall pricing.
The extra you pay for a hybrid can be made
up at the gas pump in time, but it can take anywhere from
3 to 15 years to reach the break-even point through fuel efficiency,
depending on the vehicle’s size, price, and how you
drive.4 Long-distance commuters have a better chance of reaching
the break-even point at the gas pump than local drivers.
Whether you’re local or long-distance,
MPG estimates are about to get real. In February 2007, the
Environmental Protection Agency announced that a new, two-phase
standard for mileage estimates in new cars would apply to
all 2008-year models.5 The current standard, developed in
the 1970s, never took into account new automotive technology
or driving habits, and consumers’ concerns about actual
mileage, compared with advertised mileage estimates, have
reached the federal level. Hybrid drivers are among those
who have spoken out.
The first-phase adjustment will include the
impact of air-conditioning and high-tech features on mileage.
Phase two begins with the 2011 model-year and will focus on
emissions, as well as mileage.
The new standards will apply to all makes
and models, so mileage estimates across the industry will
show a proportional, downward adjustment of between 13 and
20 percent. You can expect that Hybrids will continue to outpace
gas-only vehicles in terms of MPG performance against their
sister models and like-competitors.
Tax credit
Hybrids cost between $2,500 and $3,500 more
than comparably equipped gas-only vehicles so, as an incentive
to buy hybrids from 2000 to 2005, this cost was offset by
a standard deduction. Since 2006, the Internal Revenue Service
(IRS) changed the deduction to a credit formula that owners
must work out on their tax return, based on the model, its
popularity, and when it was purchased (not leased).
In some cases, the federal tax credit covers
the difference in cost between luxury model, gas-only vehicles
and their hybrid sister models, but closing the pricing gap
depends on the make and model. Interestingly, the credit is
available to only the first 60,000 people who buy hybrids
from each auto manufacturer each year.
You should talk to your tax advisor about
the impact of a hybrid credit on your tax return. For some
buyers, the credit allows a break-even tax scenario.
Going green
Drivers who care deeply about greenhouse gas
emissions can feel good about the decision to go hybrid because
they can reduce their own auto emissions by up to 40 percent
over similar, gas-only models.
Insurance
Many variables influence the premium on any
car, but there is some evidence that hybrid drivers are a
better insurance risk than drivers of gas-only vehicles. Consequently,
some insurance providers offer a 5 to 10 percent discount
to hybrid drivers, which could help in the overall cost of
hybrid ownership.6
Maintenance
Manufacturers are covering hybrid-specific
components under 8-year/100,000 or 10-year/150,000 warranties,
depending on the state of residence, probably because these
parts and systems generally last the life of the car. The
braking system in hybrids is actually easier on brake pads
because the electric motor captures and reuses energy that
would be lost while coasting in gas-only vehicles. The air
filter needs to be changed more often than in gas-only vehicles,
but hybrid oil changes are typical of conventional vehicles—every
5,000 to 10,000 miles. Major repairs are rare.
Ready to switch?
Hybrids have been around only seven years,
so the jury is still out on costs versus benefits. So much
depends on individual driving habits and proper maintenance;
only you can determine if a federal tax credit and fuel economy
will offset a higher sticker price in your case. If you’re
a long-distance driver, you may save money over a gas- only
vehicle.
If you love the idea of the technology or
driving a vehicle with a “green” profile warms
your heart, then you should check out the hybrids. They aren’t
all two- or five-seaters anymore. There are trucks, SUVs,
sedans with luxury styling, and features you’d expect
from any other car you’d want to own. •
1 U.S. Retail Gasoline Prices www.eia.doe.gov
2 Annual Energy Outlook 2007 with Projections to 2030 www.eia.doe.gov/oiaf/aeo/gas.html
3 Guide to today’s hybrid cars and SUVs www.consumerreports.org
4 Edmunds Study: Do hybrids make financial sense yet? www.edmunds.com
5 EPA mileage tests to be updated www.consumeraffairs.com
6 The real cost of owning a hybrid www.edmunds.com
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Most of
us are feeling the squeeze of rising gas prices this year;
maybe you’re feeling it enough to want to make a switch
to a smaller car. Or perhaps it’s just time for a different
vehicle and you want to look around for a great deal before
the 2008-year models hit the floor.
Right
now, our fixed-rate, seven-year home equity loan rate can
be as low as 5.99% APR. Compare that with other rates for
conventional vehicle loans and it will be hard to beat! You’ll
receive the funds in-full when your loan is funded—that’s
everything you need for bargaining clout on the showroom floor.
 Another
great advantage of buying a new or used vehicle with the equity
in your home is that it might be a tax-deductible expense.
Your tax advisor can tell you for certain.
To find
out if you’re already pre-approved for a home equity
loan or a TCU vehicle loan, please visit us online at www.traviscu.org.
You can also apply online and get results in just minutes.
For all the details about TCU home equity loans, call our
friendly real estate lending department at (707) 469-2000
or (888) 698-0000. Hit the road smiling. •
*APR=Annual
percentage rate as low as 5.99% as of July 1, 2007, is for
7 years based on 80% loan-to-value (LTV) or less, credit history,
and second lien position. Representative payment example:
$14.60 per $1,000 borrowed, per month. In most cases, loans
have no fees at closing, no annual fees. However, if loan
is paid-off within 3 years, a $350 early-closure fee applies.
Rates and loan amounts vary depending upon credit history,
lien position, and LTV. Rate subject to change. Financing
available for second liens on owner-occupied California primary
residence properties only. Property insurance required. Some
restrictions may apply. Consult your tax advisor concerning
tax deductibility. Cannot be combined with other promotional
offers.
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Steps
to a healthy financial future
A very
simple model for mastering your personal finances is a “financial
pyramid,” much like the food pyramid we’re familiar
with for teaching us about eating in a healthy way. The difference
is that the financial pyramid is a plan for mastering specific
aspects of your finances, starting at the bottom and working
your way to the top. By mastering these four steps up the
financial pyramid, you can do a lot to ensure that your financial
life becomes and remains healthy.
Step
1: Create your budget
“Living
within your means” is at the base of the financial pyramid.
Are you like a lot of people who wonder where your money goes?
Then it might be helpful to start keeping a financial diary.
Log your spending daily and at the end of the month you’ll
be able to see where it all went. You can then divide up your
expenses into categories of wants or needs.
NEEDS
are essential items. They are the things needed in order to
live safely and comfortably; items like housing, utilities,
food, and clothing.
WANTS
are non-essential items. They are things you don’t absolutely
need day to day. These expenses could range from meals in
restaurants to an MP3 player, and from magazine subscriptions
to designer shoes.
You can
find extra dollars every month by cutting back on the things
you simply want. Once you are living within your budget, the
next step up the financial pyramid awaits you.
Step
2: Build an emergency fund
After
dividing your expenses into wants and needs, you’ll
add a new and important item to your needs: saving for emergencies.
Why? Because you could become disabled. You could lose your
job. Your home and/or personal property could become severely
damaged by a natural disaster. These things happen to people
like you every day and without adequate savings you’ll
struggle to get back on your feet. Put this item near the
top of your list of needs. When you have a healthy emergency
fund, generally suggested to be three to six months of living
expenses, you can start saving for other financial goals.
Step
3: Contribute to your retirement
If your
company offers a retirement savings plan (e.g., 401(k), 403(b),
or 457), use it. You should contribute at least enough to
receive the company match. For example, if your company matches
100 percent of your contributions up to 3 percent of your
income, you should contribute at least 3 percent. But remember,
any amount you contribute will help. If you don’t have
access to a company-sponsored retirement plan, contribute
to a Roth or Traditional IRA.
 Step
4: Establish credit
Credit
is the very top of the pyramid, but use credit wisely. You
can start by applying for a savings-secured credit card with
a credit limit for an amount that is secured by your savings.
As you use your credit card, try to pay off the balance each
month and minimize purchases that could be made later with
cash. Understand the true cost of credit (i.e., interest rate),
and know what your grace period is so you can avoid late payment
fees.
Congratulations!
You now are well on your way to establishing a healthy financial
future. •
Unbiased
financial information provided by Financial Finesse.
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Sign up
online to receive 11 free budget-building lessons by e-mail
that can help you gain financial control over your life. If
you feel committed to changing how you manage your money,
these tutorials can pave the way to a secure, stronger, financial
future. We call the program MoneyMail.
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Lesson
1 |
Introduction |
| Lesson
2 |
Plan
your goals and dreams |
| Lesson
3 |
Create
a spending plan |
| Lesson
4 |
Find
extra money in your budget |
| Lesson
5 |
Set
up an automatic savings program |
| Lesson
6 |
Get
a handle on your debt |
| Lesson
7 |
Pay
off your debt faster |
| Lesson
8 |
Save
for emergencies |
| Lesson
9 |
Check
your credit report |
| Lesson
10 |
Improve
your credit |
| Lesson
11 |
Create
a personalized action plan to achieve your goals |
•
Learn to set financial goals
• Reduce your expenses
• Develop a savings plan
• Get out of debt, and improve your
credit score!
The beauty
of MoneyMail is that it is completely self-paced. You can
receive the lessons monthly, weekly, or all at once—it’s
your choice.
By the
time you’ve worked through the tenth lesson you’ll
probably be ready to commit—in writing—to a plan
that you design to help you reach your financial goals.
To
sign up
Go to
www.traviscu.org,
click on the Education Center link (on the left), access the
menu, and select MoneyMail. Key in your e-mail address and
create a password in the MoneyMail text windows. You can immediately
request your first lesson.
We know
that financial success begins with a plan so we offer you
free MoneyMail to help begin to plan. It’s part of our
commitment to giving you tools that can help you reach your
financial goals. •
Unbiased
financial lessons by Financial Finesse.
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 Get
a nickel for what you buy
Have you
ever wished you had a nickel for “every time I did that!”
At Travis Credit Union, we’ll pay you a nickel every
time you make a retail or online purchase with our VISA Check
Card—that’s five cents for each Check Card purchase—no
matter how many times you use the card.* Think of the convenience
and savings! Less check writing means more time for other
things, and you’ll save with fewer check reorders. What’s
more, you can use your check card wherever the VISA debit
logo is displayed, so you don’t have to carry around
a lot of cash.
If you
already have a TCU checking account and a VISA Check Card,
visit www.traviscu.org
to enroll in our rewards program. To learn how you can get
started earning a nickel for every debit purchase you make,
visit any branch or contact our friendly member service center
at (707) 449-4000 or (800) 877-8328. •
*To
receive the semi-annual payout, member must be enrolled and
have an open checking and savings account in good standing.
ATM withdrawals are excluded from Cash-back Rewards program.
Cash-back rewards cannot be earned by using any TCU credit
card or ATM card.
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In
the next 20 years, 78.2 million baby boomers will retire,
according to 2005 data from the U.S. Census. And boomers are
living longer, which means they’ll have a greater chance
of needing long-term care. In fact, 70 percent of Americans
who are 65 or older today will need some form of care, based
on testimony before the U.S. Special Committee on Aging in
2004.
It’s
wise to understand some of the considerations for affording
home-health services, adult-care centers, or assisted living
facilities for yourself or someone you love to minimize depletion
of your overall family assets.
For most
loved ones in nursing homes today, Medicaid pays about half
of all stays, with long-term-care insurance picking up about
10 percent, and families paying the rest. The reality is that
Medicaid often doesn’t kick in until family assets have
been depleted, sometimes to desperate levels, usually after
about six months of facility care.
Right
now, the average daily rate for a private room in a nursing
home is $206, or about $75,200 annually, according to a 2006
Metropolitan Life Insurance Company survey. Costs are expected
to rise almost six percent per year over the next five years,
so if you’re wondering about a long-term-care plan that
is adequate for when you need it, this is the right time to
start understanding the issues.
 How
to pick a long-term-care policy
If you
can afford it and want a policy, here are some pointers to
consider:
When
should you consider buying?
Even though
plans will cost less while you’re younger, premiums
escalate as you age and can be raised even more by the company
to pay for claims that may be larger than projected. The average
age for entering long-term care facilities is 83, so carefully
consider your reasons for buying a policy before the likelihood
of needing it. You might want to save that money now, while
you have your health. Consumer Reports’ Web
site suggests that seniors who want long-term care coverage
should consider evaluating policies at about age 65. If you
wait too long, it will be more expensive and you may not pass
the physical, depending on your health.
Pick
the right company
If you’re
researching insurers now for future needs, you want a company
that has a solid financial rating of B+ or better from insurance
rating companies. You can research insurers online for free
at www.ambest.com;
www.moodys.com;
and www.standardandpoors.com.
There are other online services that are available for a fee
and those companies ask a higher fee for help by phone. Pick
an insurer that has received the same grade or better from
at least two rating companies for some assurance that the
company will still be solvent when the benefits are needed.
Buy
a policy with options
Insurers
will require that your loved one be unable to perform a certain
number of daily activities to qualify for the benefits, such
as bathing, dressing, walking, eating, etc. Try to select
an insurer that requires only bathing and one other activity.
(According to the U.S. Department of Health and Human Resources,
94 percent of those in nursing homes require bathing assistance.)
The policy should cover nursing homes as well as assisted-living
facilities, and home-care should include adult day care, hospice
services and temporary overnight care. All care facilities
are not necessarily covered by the policy you purchase. Some
may have specific staffing requirements to release the benefits.
Cover
projected costs
Consider
a policy that increases the daily benefit as the price of
care goes up in the region in which you live, or expect to
live when you may need the benefits. Although this feature
will increase your premium, a five percent per year compounding
option still falls short of the projected annual increases
in long-term-care costs for the nation.
A
four-year plan may be adequate
The average
stay in a nursing home for those who enter over age 65 is
less than 5 years, with 36 months being about the average.
A four-year policy would cover most average needs;
however, if your loved one required more than four years of
care you would need an alternative form of payment.
Long-term-care
coverage is a critical area that should be explored, and it
can be complicated. Consult an insurance expert for specifics
about options that may be right for you. If a long-term-care
insurance policy is in your future, your selection could have
significant long-term impact on preserving your overall finances
and welfare. •
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Free
Seminar
What to know about long-term-care insurance
Please
join us for a presentation about the things you should
know when buying a long-term-care insurance policy.
• Reasons for buying
• When to buy
• Assessing policy coverage
• How to compare coverage
• Protecting your family assets
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Mark
your calendars
Thursday, September 6, 2007
10 a.m. or 6 p.m.
Travis Credit Union Community Room
One Travis Way, in Vacaville
Refreshments will be served.
Prize drawing follows seminar.
To RSVP, please call (707) 469-1817. •
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2007
SCHOLARSHIP WINNERS NAMED
