wwfcu_9ocxxop6 - Wayne Westland Federal Credit Union

Insurance

AAA Homeowners Insurance for Members

February 27, 2011 wwfcu_9ocxxop6

Anyone who owns a home recognizes its importance and substantial value. Homeowners insurance provides security and peace of mind in the event of an unexpected catastrophe.

When evaluating and comparing insurance companies, it is important to understand the numerous coverage and policy options that are available for homeowners. Qualified insurance agents can be helpful in explaining the many different terms, restrictions, and coverage choices.

Homeowners Insurance Policy Structure

A homeowners policy usually contains two essential elements. Property protection provides coverage for the physical home itself, garages, fences, sidewalks, and other detached structures.

Personal liability protection covers claims or lawsuits that result from any injury or property damage suffered by others while on the policyholder’s property. This coverage does not apply to any damages or injuries inflicted in a vehicle. Medical payment coverage is included to reimburse the medical expenses of those injured on the policyholder’s property, no matter who is at fault. Medical payments do not cover members of the policyholder’s family who are injured on the property.

For homeowners, homeowners insurance can be supplemented with additional property coverage and separate endorsements. These insurance products can be purchased to enhance loss protection. Guaranteed replacement costs, inflation security, and second homeowners are examples of supplemental coverage options.

It is important to recognize and understand the restrictions and exclusions contained in the policy. Earthquakes, vermin, mold, flooding, and a variety of other natural disasters are usually not included in basic coverage. These unusual conditions will require separate endorsements, and in some cases coverage may not be available at all.

Benefits of Homeowner Insurance

When considering the benefits of homeowners insurance, one must understand the importance of protecting the home in the event of an unexpected catastrophe. Loss due to theft, fire, frozen plumbing pipes, wind damage, and numerous other forms of structural or personal property loss are all covered through a well designed homeowners plan.

With homeowners insurance, homeowners will receive compensation in the event of a calamity. These funds can be used to repair the home or to replace lost possessions. For every homeowner, professionals can help design a policy that is tailored to provide exceptional coverage with affordable premiums.

Insurance

AAA Auto Insurance for Members

February 23, 2011 wwfcu_9ocxxop6

For every driver, auto insurance is a vital necessity. Since there are so many confusing coverage choices, it can be challenging to find the right car insurance policy. Before purchasing auto insurance, it is important to identify your specific needs and to understand the factors that affect insurance rates.

Important Coverage Considerations

Becoming informed about different insurance options will help an agent design a policy that is suited to your individual needs.

Auto insurance coverage rates and limits are affected by a variety of factors:

Driving Record: The single most important element in establishing auto insurance rates is the record of the driver. The loss of good driver discounts due to a speeding ticket can raise rates by as much as 25%. The consequences of a second ticket can result in an increase as high as 50%.

Policy Consolidation: Many insurers offer significant discounts for customers that carry all of their policies through a single provider. Those who bundle home, life, auto, and health insurance policies with the same company will receive a substantial rate reduction. There are also added advantages such as working with one insurance agent, avoiding redundant payments, and only dealing with a single customer service department.

Vehicle Alarms: To get the best rates on auto insurance, Wayne and Westland residents should consider installing an auto alarm. Where a vehicle is parked at night and whether it is garaged will also affect coverage rates. Vehicles with an upgraded alarm system can qualify for premium discounts up to 10%.

Select Coverage Carefully: Before purchasing a policy, it is critical to assess your driving habits, annual mileage, and driving record. There are numerous services offered by insurers such as roadside assistance and towing that may not be necessary for every driver. As vehicles continue to age, some owners may consider reducing their collision coverage. This may be appropriate in cases where the vehicle has no associated auto loan.

Although raising the insurance deductible can lower rates, the owner should consider the additional out of pocket expenses that will result in the event of an accident.

Competitive Auto Insurance

Talking directly to a local AAA auto insurance representative can offer insight into different policy and coverage options. These professionals work with their customers to design auto insurance plans that combine the best coverage with the lowest possible premiums.

Retirement Planning Tips

February 20, 2011 wwfcu_9ocxxop6

Regardless of age, planning for retirement is an important component of any long-term financial strategy. Through the benefits of modern medicine, people are commonly living
well into their 80s and beyond. Coupled with the continuing uncertainty surrounding social security benefits, careful planning is vital to ensure adequate financial resources are available throughout retirement.

At its most basic, retirement planning revolves around setting aside a certain amount of money that will grow through savings or investments over time. These funds will subsequently
be withdrawn in increments at a later age when the person is no longer working. Complete financial independence is usually the goal of the plan as people define those activities they
would like to participate in after retirement.

The Successful Retirement Plan

When considering retirement planning, one should include several critical elements that will help grow their retirement savings more quickly.

Save Early: There are numerous online financial calculators that confirm the value of starting retirement savings at an early age. As the gains accumulate, additional interest is earned through the benefit of compounding. In essence, this converts small contributions into large proceeds with the benefit of time.

Start a Retirement Account: An individual IRA or a 401k offered through an employer provides substantial tax benefits to the account holder. Since contributions enter the account before they are taxed, interest, dividends, and gains grow more rapidly. Additionally, any accumulated gains in the account grow tax-free until they are withdrawn anytime after 59 1/2. Establishing an IRA or 401K can be the single most important vehicle for ensuring a comfortable retirement.

Asset Allocation: It is important to understand the three major sources of investment income. Stocks, bonds, and regular savings all have their advantages, and a healthy portfolio will include elements of all three. Stocks can offer the greatest appreciation, but they are volatile. Bonds have higher yields than CD’s and lower risk than stocks, but they are very sensitive to inflation and sometimes illiquid. Regular savings and CD’s are very secure, but they often have a yield that is lower than inflation.

While some may be qualified to engage in self-directed retirement planning, one can also consult with a member service representative at the Credit Union for assistance.

Leave Retirement Accounts Alone: Although it is tempting, tapping into a retirement account can result in tax consequences and significant penalties. Retirement funds should only be accessed for medical emergencies and educational expenses when all other options are exhausted.

Be Realistic

Most importantly, retirement objectives must be realistic. For some, this may include part-time work during retirement or relocation to a state with lower expenses. Whatever the individual circumstances may be, the defined goals must be attainable through the available retirement funds.

Investments Savings

Money Market Accounts – Safety and Flexibility

February 17, 2011 wwfcu_9ocxxop6

Credit Union accounts are similar to regular savings accounts, with added features designed to increase yields. Wayne Westland Federal Credit Union money market accounts offer exceptional flexibility and may prove to be the right choice for those who will not need to access their savings on a regular basis

Money Market Features

When considering money market accounts, members should understand the benefits and differences when compared to traditional savings accounts.

Better Interest Rates: Since money market accounts typically have balance thresholds and withdrawal restrictions, they are able to offer consistently higher interest rates compared to traditional savings accounts.

Limited Withdrawals: Many Credit Unions restrict the number of permissible withdrawals on a per/ month basis. This can range from as few as three to as many as six per month.

NCUA Insurance: Money market accounts are eligible for National Credit Union Administration (NCUA) protection. No one has ever lost money in an account insured by the NCUA. This protection is authorized through the United States federal government. Current levels of insurance include $250,000 per account holder through 2013.

Early Withdrawal Fees: While traditional banks often charge early money market withdrawal fees, a Credit Union that does not impose this type of tiered fee structure is preferable. Hidden fees can often negate any advantage gained through higher dividend yields.

Other Considerations

It is important to understand the distinction between a money market account and a money market fund. Since money market funds invest in short term financial instruments, they are really mutual funds that offer no form of FDIC or NCUA protection. It is important to talk to a member service representative with any questions regarding account classifications.

The choice between a traditional savings account and a money market account will depend primarily on how the account will be used. Savings accounts work best for unforeseen emergencies, medical bills, home repairs, and a myriad of other situations that require immediate cash.

For longer-term savings, Credit Union members may be better served through money market accounts. Wayne Westland Federal Credit Union members who only have a periodic need to access their funds will enjoy the benefit of higher interest rates and the same NCUA protection that is provided to regular savings accounts.

Financial Wellness Investments

IRA – The Reliable Retirement Investment Vehicle

February 15, 2011 wwfcu_9ocxxop6

With the long-term solvency of social security still in question, it is becoming increasingly important to plan for self-sufficiency in retirement. Regardless of age, IRA’s are a valuable tool provided to enhance retirement savings. IRA and 401k Rollover services are available through Wayne Westland Federal Credit Union.

IRA’s present substantial tax benefits compared to regular savings since the interest earned on contributions grows tax-free over the life of the account. Taxes on the actual contributions also have significant advantages but differ depending on which type of IRA the account holder chooses.

There are two different IRA account classifications, and both have their distinct advantages. When choosing between a traditional IRA and a Roth IRA, account holders should carefully consider their current financial circumstances as well as their long-term retirement goals and objectives.

Comparing a traditional IRA to a Roth IRA

The primary benefit of a traditional IRA is the ability to make contributions on a pre-tax basis. This is a significant advantage when compared to a Roth IRA, where contributions are credited to the account after federal and state taxes have been deducted. The deposit limits for both types of IRA’s currently stand at $5000 per account holder.

The real value of a Roth IRA lies in its unique flexibility. Since contributions are made with after tax dollars, accumulated principal and earnings can be withdrawn tax free if taken after the age of 59 ½. Whether this feature proves to be advantageous will depend largely on the income tax rate that is in place when the account holder begins to receive disbursements. With a Roth IRA, members will not have to worry about the uncertainty of future tax rates when they begin to withdraw retirement funds.

Non-penalized distributions for traditional IRA’s also begin at 59 ½, and mandatory withdrawals must be taken at 70 ½. Early withdrawals are subject to current tax rates as well as substantial penalties. This differs significantly from a Roth IRA, where contributions can be withdrawn at any point with no associated penalty. All withdrawals from a traditional IRA after 59 ½ are subject to the current tax rates.

Other Considerations

There is no single IRA solution that fits every circumstance. IRA accounts should only be created when tax consequences and retirement goals have been established. Wayne
Westland Federal Credit Union member service representatives can help sort through the different plan options that are available for you.

Financial Wellness Savings

Financial Counseling – Understanding Money Management Basics

February 13, 2011 wwfcu_9ocxxop6

Understanding how to properly manage money can be complex and often intimidating. Financial counseling provides insight into many strategies that will help to reduce debt, raise credit scores, and increase savings.

Usually offered through local Credit Unions, financial counseling introduces members to qualified, friendly people that are trained in a variety of financial disciplines. In addition to saving and budgeting, this includes areas such as bankruptcy and home foreclosure avoidance.

The Financial Counseling Process

During the initial stages of the financial counseling process, the adviser works with the client to identify comprehensive financial goals. This can include debt reduction, college tuition planning, preparing for retirement, and/or saving for a home. The counselor will help the member develop a budget that considers income, debt, assets, and liabilities. For members at Wayne Westland Federal Credit Union, financial counseling provides insight into monthly budget reporting and tracking, as well as discipline training to stay on track.

Benefits of Financial Counseling

There are numerous benefits provided through comprehensive financial counseling. Wayne Westland Federal Credit Union members will emerge from the process more aware of how they spend money and educated about a variety strategies designed to help them reach their financial goals.

Understanding a Credit Report: Credit report scores play a significant role in the loan qualification process. Knowing how to interpret a credit report, what factors affect credit quality, and applying that knowledge will help members improve their overall credit rating.

Debt Reduction: Families burdened with unmanageable debt understand the stress and despair associated with serious financial problems. Upon completion of financial counseling, members will have a thorough understanding of how to reduce their debts and properly manage money.

Build Savings: Financial trainers will assist each member in creating a plan that is tailored to each of their specific goals. Whether an early retirement, a vacation home, or college tuition, a well-crafted plan will help members accomplish their savings objective sooner and more efficiently.

The Basics of Money: Learning basic debt reduction and cash management techniques will help create a healthier personal financial environment. Financial consultants will thoroughly explain money dynamics and offer insight into taking full control over financial matters.

Better Money Management

For those interested in learning more about financial counseling, Wayne Westland Federal Credit Union member service representatives can provide information that will explain the many benefits that financial consulting services can offer.

Financial Wellness Savings

Certificate of Deposit – The Financial Safe Haven

February 10, 2011 wwfcu_9ocxxop6

A certificate of deposit is an extremely safe financial instrument designed to provide a higher yield than traditional savings accounts. CD’s can be an attractive savings alternative if the account holder does not need immediate access to the funds.

Understanding CD’s

Unlike stocks, bonds, and mutual funds, CD’s are not subject to daily market fluctuations. They provide a reliable and predictable flow of interest income over the life of the CD. Credit Union members can purchase CD’s in nearly any denomination over a variety of time periods. The interest rates that are offered on CD’s are determined by a number of factors, including the prevailing federal funds rate, the amount of the deposit, and the term of the CD.

Since higher rates of interest are paid on CD’s, account holders should understand that their money will be unavailable for withdrawal without penalty throughout the entire investment period. CD terms can vary from 3 months to 5 years or more, and early withdrawal can result in substantial penalties. Upon completion of the term, the depositor will see their entire principal returned in full.

CD Strategies

Since CD’s usually pay interest on a monthly basis, they remain a preferred investment tool for retirees looking to receive a predictable income. To address the potential for inflation, which can rob a CD of earnings value, many depositors choose a “laddering” strategy, where they purchase a variety of CD’s with different maturity dates. This helps smooth out the variations in interest rates since expiring CD’s are continually reinvested.

Safety

In addition to paying higher interest rates than savings or money market accounts, CD’s do not have the volatility of stocks, bonds, or mutual funds. For every CD, the National Credit Union Administration (NCUA) insures Wayne Westland Federal Credit Union members up to $250,000 per account holder.

Other Considerations

It is important to understand the rules and restrictions prior to investing in a certificate of deposit. Particularly with issues relating to maturities and tax consequences, investors are encouraged to seek further information from a member service representative at the Credit Union.

A certificate of deposit is a stress-free investment vehicle that will provide a superior rate of return.

Credit Unions Home Banking

Benefits of Online Banking

February 8, 2011 wwfcu_9ocxxop6

To take advantage of the convenience provided by the internet, many Credit Unions are structuring their websites to accommodate interactive banking. For many members of Wayne Westland Federal Credit Union, online banking offers exceptional ease of use and a variety of services that save time and reduce banking related expenses.

While some people may feel intimidated by the prospect of doing some of their banking through the internet, the process for signing up is simple, and help is always available from friendly Credit Union member services representatives.

Online Services

Banking online continues to grow in popularity as new services are frequently introduced. Besides basic functions like the ability to check account balances and recent activity, there are many features designed to make the interactive banking experience more complete.

E-Statements: Online statements can be viewed and printed from any remote location.

Transaction History: Recent transactions are tracked in real time for accurate and up-to-date balance and account details.

Transfer Funds: Wayne Westland Federal Credit Union online banking members can instantly transfer funds between different accounts located at the Credit Union.

Automatic Bill and Loan Payments: Automated payment schedules can be set up to ensure that bills and loans are routinely paid on the appropriate day of each month.

Stop Payment Service: Specific checks can be instantly identified for stop payment. This eliminates the potential for a check clearing before a visit to the Credit Union is arranged.

Check Reorder: Delivery of new checks is expedited through online ordering. This eliminates the delay and potential loss associated with traditional mail.

Online Banking Benefits

With online banking, a member is not restricted to regular lobby hours since account access is available 24/7. Drive time and waiting in lines is also eliminated. Banking can be conducted from literally any location that has a connection to the internet. Freedom and convenience are two of the most appealing aspects of online banking.

Costs are reduced as more people sign up for online banking. This will also help you save time, money, and the environment.

Security is also enhanced through the use of online banking. Wayne Westland Federal Credit Union members can be assured that all data is securely encrypted and inaccessible to anyone with malicious intent. Instances of identity theft and other crimes are also reduced since transaction history can be checked frequently.

Home Banking

Mobile Banking Apps – Provides Consumer Flexibility

January 17, 2011 wwfcu_9ocxxop6

Mobile banking apps provide consumers with remarkable flexibility in conducting financial transactions remotely. Unlike online banking that requires an internet or Wi-Fi connection from a specific location, mobile banking allows a member to access a variety of banking functions from a cellular connected device. As more Credit Unions adopt mobile banking formats that can be accessed through different apps, we are seeing mobile phones, laptop computers and tablet PC’s becoming instant banking centers.

How Mobile Banking Apps Work

Many Credit Unions such as Wayne Westland utilize the Mobile Finance Manager, which is a fully featured banking mobile app. This small program can be downloaded directly to any compatible smart phone, where it provides nearly all of the same features that are available through online banking.

Mobile Finance Manager is currently available for a number of platforms, including Windows Mobile, Blackberry, Palm Treo, and Java. Within the context of each operating system, there are literally hundreds of phones that are compatible with the app.

Popular Features

Popular mobile banking applications offer a number of useful features and functions that are simple to access and navigate. Among these are the following:

All account balances can be viewed simultaneously.

Access to all available functions 24/7.

Graphic Reports enable the account holder to easily track assets.

Online bill pay with repeat pay options ensures payments are made on time.

Funds can be seamlessly transferred between accounts in real time.

Secure encryption of transmitted data prevents unwanted intrusion.

User ID and password are identical to the online log-in that members use at home.

The Latest in App Development

Advanced apps include a branch and ATM finder that taps into the phone’s GPS capabilities. Users can also access all available branch information including hours of operation, contact details, and available services.

As mobile banking apps continue to develop, expect to see Credit Unions offering applications that provide a fully functional banking environment that can be accessed through any remotely connected device.

Financial Wellness Loans

Saving Money through Loan Refinancing

December 29, 2010 wwfcu_9ocxxop6

Refinancing can provide relief from unmanageable payments and can add additional revenue to meet other monthly obligations. Refinancing can be utilized for an individual loan, or several loans can be consolidated into a single monthly payment.

The actual process of refinancing a loan consists of securing a second loan and applying those funds to pay off the balance on the original loan. The goal is to secure a better interest rate, resulting in reduced monthly payments and lower interest costs over the life of the new loan.

Loans that are Eligible for Refinance

Nearly every loan is eligible for a refinancing program, including auto loans and personal loans. Although some with lower credit scores may still qualify, lenders tend to avoid refinancing debt that has a consistent history of delinquency. Even if a lender is willing to refinance a delinquent loan, lower interest rates are often not offered. Debts that are in collections or part of a bankruptcy are generally not eligible for refinance.

How Refinancing Loans Saves Money

There are several strategies to refinance loans that will lower monthly payments and substantially reduce interest costs. If payment reduction is the primary objective, lowering the interest rate and extending the term of the loan can be effective strategies. For maximum comprehensive savings, reducing the interest rate as well as the length of the loan may not substantially change the monthly payment, but the loan will be paid off sooner and the interest savings will increase.

There are circumstances where refinanced loans can include an additional amount above the original loan balance. In this case, the extra money from the refinanced loan can be used to pay off high interest credit cards or other installment loans.

Loan consolidation is another refinancing strategy often used to lower payments and overall interest charges. In most cases, the single payment will be substantially less than the combined payments of the existing outstanding loans. The savings in interest on the consolidated loan can be significant.

When to Refinance

A loan should be considered for refinancing whenever the rate of interest in the original loan is higher than current interest rates. This may be the result of an overall interest rate reduction or an improvement in the credit rating of the borrower.

Talking to a qualified Member Service Representative can provide answers relating to specific savings in the refinancing process.

Financial Wellness

Understanding Your Credit Score

December 23, 2010 wwfcu_9ocxxop6

A credit report is a reflection of an individual’s ability to manage money and debt. It serves as a tool for creditors to evaluate the credit worthiness of those seeking loans for a variety of purposes, including mortgages, vehicle loans, and revolving credit facilities. The combined record of activity in a person’s credit report results in a cumulative score that is used to establish thresholds for credit qualification.

The Credit Reporting Agencies

There are three main credit reporting agencies: Equifax, Experian, and TransUnion. A 2003 federal credit law included a provision that entitles every consumer to obtain a free credit report from each of the reporting agencies once every calendar year. The reports can be ordered through www.annualcreditreport.com. Reports obtained from any other entity may include a fee and be difficult to read.

Reading a Credit Report

Credit reports contain four separate categories of information. They include personal data, a summary of the person’s past and current credit accounts, public information such as bankruptcies or tax liens, and recent credit inquiries

Reporting agencies isolate positive credit accounts from negative ones. This allows for easier interpretation should questions arise regarding the scoring. Negative items can include delinquent accounts, past due payments, collection agency actions, and any court related judgments. These items will show up as “charge offs,” “bad debts,” or “placed in collections” on the credit report.

Improving a Credit Score

It is important to remember that there are no standards for determining credit worthiness. Every lender interprets credit data differently, and the criteria for extending credit will vary by lender.

The most significant improvement to a credit score can be obtained thorough examination of the credit report and subsequently disputing inaccurate information. In fact, erroneous delinquent credit reporting happens quite frequently. The credit reporting agencies provide a form for filing disputes on credit related items.

It is self-evident that maintaining current payments on outstanding loans is an important aspect of raising your credit score. Other improvement methods include preserving older credit accounts to continue displaying their prompt payment history, avoiding opening unnecessary accounts, maintaining low or zero account balances, and contacting creditors with problems prior to missing a payment.

Home Banking

Mobile Banking Advantages

December 14, 2010 wwfcu_9ocxxop6

In the continuing evolution of the banking industry, consumers are replacing some functions of online banking and ATM’s with mobile banking applications. Mobile banking provides the ability to obtain account information and to complete certain financial transactions using a cellular connected device. With an increasing number of institutions providing banking apps, mobile phones and tablet PC’s are being transformed into portable banking centers.

Mobile Banking Services

There is a variety of common services provided through mobile banking, including:

Transfer of Funds.
Accessing current account balances and/or historical account information.
Identification of branch and ATM locations.
Secure bill payments via pre established payment protocols.
Verification of transactions.
Important alerts such as overdrafts, questionable activities, and promotions.

Security

Some concerns for those considering mobile banking are the security of the connection and personal account information. Since mobile banking is implemented on a wide variety of platforms across numerous devices, it is difficult to compromise security on an individual basis. It is also worth noting that current limitations on the type of transactions available with mobile banking nearly eliminate the chances for a malicious attack.

Advantages of Mobile Banking

For members of Wayne Westland Federal Credit Union, mobile banking can offer numerous advantages in terms of convenience and banking options. The most important benefit of mobile banking is the ability to establish connectivity from virtually any area of the country. Compared to traditional online banking that requires an internet connection, the versatility of mobile banking is unparalleled.

Members who engage in mobile banking appreciate the time-critical response of the format. While receiving SMS text messages relating to transactions and upcoming financial obligations, account holders can avoid late payments and service charges and can make time-critical transfers virtually anywhere at anytime.

In situations where immediate alerts are critical, mobile banking affords almost instantaneous transmission of vital information. This can be especially important in a suspected identity theft or unauthorized use of a credit card. Members also benefit from learning about the latest Credit Union promotions, interest rate changes, and other information without having to log onto the Internet or wait for traditional mail.

As more members subscribe to mobile banking, mobile banking account holders may see some banking fees reduced. Credit Unions and their members benefit from mobile banking through diminished operational expenses as a result of reducing work that requires human interaction.

It is evident mobile banking has become a time saver and convenience for all Credit Union members. As mobile devices continue to grow in popularity, the applications and functionality will continue to evolve.

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