BayWatch A Publication of Bay Federal Credit Union March | 2015 Jumbo Mortgages Rolling Over 457s Money Communication Free Tax Preparation Community Support Jumbo Mortgages Mortgage Products for Changing Housing Trends As the economy continues to heal and rebound from the recent recession, different facets of the national and local markets are growing at varying speeds. The housing market demonstrates a fluctuating economic response, with interest rates remaining at record lows while the cost of real estate quickly rises to pre-recession levels. In December of 2014, Santa Cruz County saw its median home price for a single family home at nearly $700,000, an increase of 68% over the median price in December of 2011.* While it is impossible to predict the future of real estate trends, it is clear that home values have been moving upwards in our area at a fairly rapid rate. To accommodate the need for higher mortgage values, Bay Federal Credit Union is now offering “jumbo” mortgage products. You can now apply for mortgages up to $1,500,000. This new option provides our community local financing on a much greater share of its housing market. Despite the price of housing going up, interest rates have stayed historically low. Locking in a low rate now on a new home purchase or refinancing an existing loan can save thousands of dollars over the life of a loan. With higher loan balances, this can be a tremendous relief. If you have questions about your existing mortgage or are interested in what options you may have for financing a new home, visit www.bayfed.com for information, helpful mortgage calculators, and current interest rates. If you have specific questions, you may also visit any Bay Federal Credit Union branch or call a Bay Federal Mortgage Loan Officer at 831.479.6000 or toll-free at 888.4BAYFED, extension 304. *Real Options Realty, http://www.ror.com/graphs/graph5.htm & California Association of Realtors, http://www.car.org/marketdata/data/countysalesactivity. Figures presented are from the month of December in each calendar year. †Freddie Mac, http://www.freddiemac.com/pmms/pmms30.htm. Figures presented are from the month of December in each calendar year, represent an Annual Percentage Rate with 0.6 points (2014) or 0.7 points (2011, 2012, and 2013) and are used for educational purposes only. Bay Federal would like to welcome our new members from Santa Cruz County Employees Credit Union! We look forward to providing you with exceptional service. Home Loans that Make Dreams a Reality •Purchase, Refinance, and Equity Lines of Credit •Competitive Rates •Loan amounts up to $1,500,000* •Variety of Flexible Mortgage Options Apply today at one of our 7 convenient branches or online at www.bayfed.com *All loans are subject to approval of credit, income verification and property valuation. Bay Federal Credit Union membership required at the time of closing. For more information, visit any Bay Federal Credit Union branch or call a Bay Federal Mortgage Loan Specialist at 831.479.6000 or toll-free at 888.4BAYFED, option 4. You’re Invited! Bay Federal Credit Union’s Annual Meeting Tuesday, March 31, 2015 6 pm - 7 pm At our Capitola Branch 3333 Clares Street Join us for an informational summary of your Credit Union’s financial performance and our successful efforts to serve our members and the community. To R.S.V.P., please call 831.477.8504. Wealth News Presented by Gina Bayer, CFS* Investment Advisor at Bay Federal Credit Union Rolling Over Your 457 Plan Celebrating Our Service Excellence Winners Employees of state or local governments as well as select non-profit organizations may have the option of contributing to their retirement through a tax deferred compensation 457 plan. 457 plans operate much in the same way as other employer-sponsored retirement plans, such as 401(k) plans and 403(b) plans. An important difference is that the contribution limits on 457’s may be met in addition to contributions to other qualified plans. Additionally, investors that perform an early withdrawal on a 457, while being responsible to pay taxes on that withdrawal, may not be subject to the same early withdrawal penalties as a they might with a different type of plan. In the past, employees with a 457 retirement plan were not able to roll their savings over to another plan type. If leaving an employer with a 457 they would need to keep their funds with that same plan, or roll it over into a new 457. Laws that were enacted last decade have altered these rules and opened up options. An employee that is moving from one employer to another or retiring and looking for other investment options now have the opportunity to roll their 457 plan savings into another qualified retirement plan, such as an IRA. This can offer possible benefits to the retirement planner, including: Many IRAs and other qualified retirement accounts may offer more varied and flexible investment options than their previous 457 plan. Directly rolling retirement savings from a 457 to an IRA can help you avoid paying taxes on the funds until you are ready for distributions after retirement. Consolidating your retirement plans can streamline your investments and simplify your retirement planning, particularly as you near or reach retirement age. As with any sort of investment and retirement planning, it is always best to consider all of your available options. Speaking with a CFS* Investment Advisor can help you determine a plan that works to meet your individual goals for retirement. No matter what stage of retirement planning you find yourself, CFS* Investment Advisors Gina Bayer and Sam Solgan are available to assit you in understanding your options and planning for the future. Investment Services CFS* Investment Advisor Investment Services at Bay Federal Credit Union Available through CUSO Financial Services, L.P.* Investment Services Filing Your Taxes? Use Your 8-digit Account Number for Faster, More Accurate Service When you file your taxes or set up an electronic check payment, use your 8-digit account number instead of your member number to speed up the process and ensure proper placement of your refund. You can find your 8-digit account number: On your monthly account statement or eStatement. To schedule a complimentary appointment, at Bay Federal Credit Union call 831.479.6000, option 7. Gina Bayer Susan, Carrie Birkhofer (CEO), & Felisa Once a year, Bay Federal employees have the chance to nominate one of their peers in recognition of their exemplary service to our members and other employees. This year’s winners, Susan and Felisa, were honored at our annual Employee Appreciation Party. Congratulations, Susan and Felisa, and thank you for your continued service to Bay Federal Credit Union and our members! Sam Solgan CFS* Associate Investment Advisor *Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit Federal Credit Union union, and may involve investment risk including possibleat lossBay of principal. Investment Representatives are registered through CFS. Bay Federal Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. Before deciding whether to retain assets in an employer sponsored plan or roll over to an IRA an investor should consider various factors including, but not limited to: investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock. On the bottom of your checks (after the zeros). When you login to BayFedOnline at www.bayfed.com – just click “Detail” next to your account to get the account number. Financial Education Helpful Tools and Ideas Money Communication Why We Don’t Talk About Money – and How to Start When was the last time you sat down with your children to pay bills, had a budget meeting with your fiancé, or checked in with your parents about their retirement plans and expenses? Do you ever talk about sensitive money issues with the people you love? And if not, why not? Why People Don’t Talk About Money Money can be a sensitive, emotionally-charged topic. Parents often avoid money discussions with children because they are fearful about finances and don’t want their kids to worry. Adult children may not want to offend their parents by asking about finances. Spouses and partners may have clashing money habits that cause conflict. Fear, worry, embarrassment, conflict – it’s no wonder we don’t talk about money! But dodging financial conversations will not make things any better, and prolonged avoidance can make money issues worse. If you have trouble talking to your loved ones about about money, here are some ideas that may help: Choose a Time Wealth psychology expert Kathleen Burns Kingsbury* suggests people “choose a time when life is relatively calm and set up a specific time to have a financial meeting. You may get moans and groans from your loved ones, but once they experience money as a topic that can be discussed openly, the next conversation will be that much easier.” Play Games Playing money management games like Monopoly, Payday, and Life can diffuse the difficult emotions surrounding money issues and provide learning opportunities for both children and adults. Calmly State the Facts and Ask for Help If your husband buys a car with the rent money, yelling will not solve the problem. Approach the issue in a way that does not ignite anger or hurt feelings, but does get the point across. For example, you might say, “honey, I’m concerned about having enough money to pay our bills. I think it’s important for us to work together on a budget. Will you help me?” Practice Teamwork Invite your children, partner, or spouse to participate in budgeting and bill paying. Involving others in money decisions will help them understand the financial issues you are facing, which may lead to more supportive behavior. * Kingsbury, Kathleen Burns: “Why Parents Don’t Talk With Their Adult Children About Money,” October 26, 2012, http://www.kbkwealthconnection.com Free Tax Preparation For households that earned under $53,000 in 2014, the United Way of Santa Cruz County has partnered with Goodwill Industries to provide a free tax preparation service. The Volunteer Income Tax Assistance Program (VITA) aims to help community members file and claim their full tax refund. “A tax refund can be a great way to start a savings plan that builds future financial stability. United Way is proud to partner with Goodwill Industries and Bay Federal Credit Union in offering tax assistance services our families in need,” said Keisha Frost, Director of Community Giving – United Way of Santa Cruz County. Visit www.unitedwaysc.org/vita for additional information and to find hours and locations for free tax preparation throughout Santa Cruz County. A Complimentary Financial Education Workshop Family Money Night For Parents, Kids, and Teens Saturday, March 21 5:30 pm - 7:30 pm At Bay Federal Credit Union 3333 Clares Street, Capitola Parents and children will learn about how to make smart financial choices, set goals, develop wise spending and saving habits, and talk openly about money issues. Registration is required. Register today at 831.477.8414 or [email protected] Children must be at least 8 years old and accompanied by a parent or legal guardian. Community Support Events, Accomplishments, Awards, and More! Holiday Observances & BRANCH Closures May 25 Memorial Day July 4 Independence Day Activities Calendar CONTACT INFORMATION Mailing Address 3333 Clares Street, Capitola, CA, 95010 Supporting Local Events and Organizations Santa Cruz Chamber of Commerce Membership Services and BayPhone 831.479.6000 or 888.4BAYFED Survivors Healing Center 2015 Santa Cruz Business Fair Wednesday, March 18 4:00 pm to 7:00 pm Cocoanut Grove, Santa Cruz Walk to Stop the Silence Saturday, April 11 Registration from 9:45 am to 10:30 am Watsonville Plaza Santa Cruz’s largest business event and premier opportunity to connect businesses, organizations, and the Santa Cruz County community face-to-face. Featuring more than 100 businesses and nonprofit organizations. Come show your support! The Survivors Healing Center provides group therapy to young and adult survivors of child sexual abuse and builds public awareness to strengthen prevention efforts throughout Santa Cruz County. Website and Online Banking www.bayfed.com Email [email protected] Information at www.santacruzchamber.org Information at fsa-cc.org/walk-to-stop-the-silence Boys & Girls Club of Santa Cruz For more information about upcoming events, visit www.bayfed.com/go/events 2015 Youth of the Year Awards Banquet Saturday, March 28 5:30 pm to 7:30 pm Holy Cross Church, Santa Cruz Come enjoy a delicious catered dinner and wonderful presentations. Tickets are $50 a seat, or $500 for an 8-person table plus sponsorship of a deserving family. Tickets and information at www.boysandgirlsclub.info Watsonville Branch 1481 Main Street Freedom Branch 2028 Freedom Boulevard BUSINESS HOURS Ben Lomond Branch Hours Monday through Friday: 1 pm -5 pm Board of Directors Congratulations to Nancee, Laura, and Krista, this month’s BayBuck Award Winners! “Your pride and dedication continues to inspire me.” Nancee has a long tradition at Bay Federal of going above and beyond for our members. Recently her supervisor recounted three exemplary and varied acts that she tackled in a single day...”all before lunch!” Federally Insured by NCUA. Equal Housing Lender. Capitola Branch 3333 Clares Street Saturday Lobby and Phone Hours: 9 am -3 pm Making a Real Difference Every Day Bay Federal employees are recognized by their peers for “above and beyond” service to Credit Union members, each other, and our community. Their efforts make Bay Federal a great place to work and bank. Scotts Valley Branch 255 Mt. Hermon Road Friday Lobby Hours: 9 am-6 pm • Phone Hours: 8 am-6 pm BayBuck Winners “Great job making the process more efficient.” Soon after taking on a new roll in the Credit Union, Krista was tasked with overhauling our VISA cash advance processes. Krista efficiently assisted our branch staff and back office processors in implementing and adopting the improved system easily. Ben Lomond Branch 9440 Mill Street Wednesday Lobby and Phone Hours: 10 am-5 pm Join us on March 20 for Bay Federal Night at the Warriors! Get your tickets today: santacruzbasketball.com Nancee Santa Cruz Branch 420 River Street Monday, Tuesday, and Thursday Lobby Hours: 9 am-5 pm • Phone Hours: 8 am-5 pm We Support the Santa Cruz Warriors! “Laura saved our life!” While not literally performing life-saving functions, Laura was an invaluable resource during the merger of Bay Federal Credit Union and Santa Cruz County Employees Credit Union, and even provided home-made fudge to her project team members. Locations* Aptos Branch 105 Post Office Drive Laura Chairperson: Sheila Joyce Kellerman Vice Chairperson: Dennis Osmer Treasurer: Jim Phillips Secretary: Kathleen Lawler Bodmer Directors: Taylor Bateman Bob Bugalski Jessica Dixon Ivonne J. Guzman Michael Leung Associate Directors:Jordan Ciliberto Julie Haff Piret Harmon Danny Keith Director Emeritus: H. Duane Smith President and CEO: Carrie L. Birkhofer The articles and opinions in this publication are for advertisement purposes only and are not intended to provide specific advice or recommendations. We suggest you consult your accountant, financial, or tax advisor with regard to individual situations. Krista *Please contact us for information on specific branch offices providing investment services offered through CUSO Financial Services, L.P. (“CFS”). Investment Services may be available by appointment only at certain branch locations referenced above. Para obtener una copia de BayWatch en español, visite su sucursal más cercana o por Internet en www.bayfed.com.
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