BayWatch, March 2015 - Bay Federal Credit Union

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 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, & California Association of Realtors, Figures
presented are from the month of December in each calendar year.
†Freddie Mac, 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
*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:
ƒƒ Many IRAs and other qualified retirement accounts may offer more varied
and flexible investment options than their previous 457 plan.
ƒƒ 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
ƒƒ 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
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
You can
find your
ƒƒ 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
union, and may involve investment risk including possibleat
of principal.
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.
ƒƒ On the bottom of your
checks (after the zeros).
ƒƒ When you login to
BayFedOnline at – 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,
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 for
additional information and to find hours
and locations for free tax preparation
throughout Santa Cruz County.
A Complimentary
Financial Education Workshop
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
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
[email protected]
Information at
Information at
Boys & Girls Club of Santa Cruz
For more information about upcoming 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
Watsonville Branch
1481 Main Street
Freedom Branch
2028 Freedom Boulevard
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
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
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
Lobby and Phone Hours: 10 am-5 pm
Join us on
March 20 for
Bay Federal Night
at the Warriors!
Get your tickets today:
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.
Aptos Branch
105 Post Office Drive
Sheila Joyce Kellerman
Vice Chairperson: Dennis Osmer
Jim Phillips
Kathleen Lawler Bodmer
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.
*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