Central Connection, Summer 2009

SUMMER 2009
Connection
Central One
Federal Credit Union
A NEWSLETTER
714 Main Street
Shrewsbury, MA 01545
Family Day Wrap Up
(508) 842-7400
(800) 527-1017
Tel Talk (508) 841-0875
(800) 527-1011
visit us online at
www.centralfcu.com
IN THIS
ISSUE:
• Legal Counsel
• Credit Union League
Essay Contest Winner
• Scholarship Awarded
• Did You Know…
• Take a Summer
Staycation
• Tax Talk
• Going Green Auto Loans
• Money Matters
• Discounted Six Flags
Tickets
• Annual Meeting Update
• Westborough Branch
Update
• Holiday Closings
• Hours and Locations
FOR
MEMBERS
OF
CENTRAL ONE FEDERAL CREDIT UNION
2009 marked our 10th Annual Family Day event. Mother Nature was gracious
enough to keep the rain away for us once again. Over 1,000 members enjoyed
the fun-filled day with magic shows, pony rides, games, prizes, music, and of
course, food.
We awarded some great prizes through the raffle and the winners were:
· Patty Minton: Central One sweatshirt
· Eileen Langevin: Elsa’s Eatery gift certificate
· Amy Iris: Dean Park gift certificate
· Dylan Costas: Six Flags tickets
· Rick Puleo: Movie night basket
· Frances DeGabrielle: Tee’s Deli of Auburn gift certificate
· Daniel Abdolrahim: Longaberger Basket (donated by Beth Johnson)
· Birdie Siciliano: Richard’s Car Wash Gift Certificate
· Frank Fiorentino: Spencer Rental Center Gift Certificate
· Christina Puleo: L.L.Bean tote and Stonewall Kitchen breakfast basket
(donated by Synergent Print & Creative Services)
Our Affiliated Professionals—Andrew Fornari of Oak Tree Insurance, Mike
Canfield of WF Financial Services, Pauline Hammer, CPA and Attorney Mike
Abodeely—also awarded some prizes. Heather Augustus won a $100
American Express Gift Cheque, Carli Harris and Diane Lindberg each won
an American Express gift cheque for $50.
Thank you to all of the local businesses that donated prizes for our raffle.
And thank you to the members who attended our Family Day event this year.
We look forward to seeing all of you again next year for another great event!
Stimulus Package Explained
Here are some of the ways the 2009 Stimulus Plan can put money in your pocket this year and beyond.
Your Paycheck: The IRS has changed the rate of withholding, so you will have a slightly larger paycheck (about
$45 dollars per month for single workers and $65 for married couples). Self-employed workers have reduced
quarterly estimated tax payments when filing 1040-ES forms. To qualify, your modified adjusted gross income
must be less than $95,000 if you are single and less than $190,000 if you are married filing a joint return. Note:
Married couples with both spouses working will have to pay some of the money back when they file their 2009 tax
return, so you might want to think about adjusting your W-4 form with your employer if you don’t want to end
up owing money next year.
New Vehicle Savings: When you buy a new vehicle you can claim the state and local sales tax and excise taxes as
a deduction on your 2009 tax return. To qualify, buy a new vehicle between February 17, 2009 and December 31,
2009.
Home Buyer Savings: You can get a tax credit for buying a first home (or any home if you haven’t owned one
three years or more). The credit is 10% of the purchase price, up to $8,000, for homes purchased between
(continued on page 4)
Legal
Counsel
Attorney
Michael N. Abodeely, Jr.
34 Mechanic Street
Worcester, MA 01608
508-791-1199 ext. 229
Ways to Accidentally Disinherit Your Children
It is hard to imagine that someone could accidentally disinherit their own children, but it happens all the
time to people who do not regularly update their estate plan.
It is important to update your estate plan with a professional every few years or whenever there is a
significant change in your circumstances or in the tax laws. The following are five examples:
• Mr. Jones wrote a will leaving his house and business to his children and anything leftover to his
nephew. Years later he sold the house and business. When he died, his children got nothing and
100% of his assets went to his nephew.
• When Mr. and Mrs. Smith got married, they each had children from a prior marriage. When Mr.
Smith died, he left everything to Mrs. Smith. When Mrs. Smith died, she left everything to her
children. Mr. Smith’s children got nothing from his estate.
• Ellen figured a do-it-yourself will she found online was good enough. She wanted to leave certain
assets to certain children and give more to one child. The will was not valid under her state’s law,
so nothing she wrote had any meaning.
• Peggy got divorced but neglected to update her will. She also never changed her beneficiary on her
life insurance, IRA and 401(K) plan. When she died in an accident, her ex-husband got everything
instead of her children. He used her assets to benefit his new family, instead of his children with
Peggy.
• After Bill’s wife died, he named his son as his survivor on his bank and brokerage accounts. Bill later
remarried and had more children. He rewrote his will to benefit all children equally, but never
changed the financial accounts. When Bill died, all the funds in the financial accounts went only to
the first child.
It is important to update your estate plan with an attorney on a regular basis. Please feel free to contact my
office with any questions.
Jeanelle Wheeler receives her plaque and certificate for her winning essay.
Pictured left to right: Jason Hinkle of the Massachusetts Share Insurance
Corporation (MSIC), essay writer Jeanelle Wheeler, Dan Murphy and Mike
Hanson, also from MSIC, who co-sponsored the contest.
Credit Union League Essay
Contest Winner
Jeanelle Wheeler of Auburn was selected as a runner-up in the
2009 Massachusetts Credit Union League Annual Essay Contest.
Each year, the League sponsors an essay contest open to all 7th and
8th graders. Individual credit unions contact the middle schools to
participate. This year, over 1,850 essays were submitted on the
topic: “What kind of program would you create in your community to help those less fortunate in the year ahead?” Jeanelle
wrote her essay about a kind of “Adopt-A-Family” type program
and received a $250 savings bond, a tour and luncheon at the
State House.
David L’Ecuyer, President/CEO (left) and April Healey, VP Retail Service
(far right) present Elaine Xie with her scholarship.
Scholarship Awarded
The Annual William G. Whitten Award was awarded to Elaine
Xie of Shrewsbury, Massachusetts. Elaine will be attending McGill
University this fall, where she is majoring in Biomedics and Life
Sciences.
Elaine became eligible for this award through her participation in
the Massachusetts Credit Union League’s scholarship program, and
was awarded the scholarship for her academic excellence while
attending Shrewsbury High School in Shrewsbury. Congratulations
Elaine!
Information about the 2010 Massachusetts Credit Union League
scholarship will be included in an upcoming issue of Central Connection.
Insurance
Info
Oak Tree Insurance Agency, LLC
Located at Central One Federal Credit Union
(508) 841-0515
1-800-527-1017 x 515
fax (508) 842-6092
Did You Know…
… there are many benefits to using a local
insurance agent like Oak Tree Insurance Agency?
Independent insurance agents are licensed professionals trained to assist in determining the products best suited for our clients. It is
our responsibility to assess your insurance needs and inform you of your options. We are also responsible for making sure we represent
reputable carriers that have competitive rates to give you the best coverage for the best price.
In recent years, many new internet based “do it yourself” insurance carriers have entered into the insurance market in Massachusetts.
While on the surface these carriers seem attractive based on price and ease of use, they are often not providing you with the valuable
advice or coverage that one really needs, often times leading to lack of coverage and even extreme financial disaster.
There are many advantages in using a professional independent insurance agent, such as Oak Tree Insurance Agency, some of which
include:
•
•
•
•
Being able to talk to the same person each time you call with a question or need to change something in your insurance policy.
Balanced coverage and competitive pricing based upon your individual needs.
Local advice that only someone who lives and works in your area would know about.
Supporting your community by supporting a local community based business.
For Central One Members, Oak Tree Insurance Agency provides all of these benefits as well as the convenience of being located inside
of Central One. We share the same culture and philosophy of Central One and we strive to provide all members with World Class
Service. We also have discounts available to members only as well as some of the most competitive rates in Massachusetts. Don’t be
sucked into the “do it yourself” world of insurance. Rely on your local independent insurance agent and know that you will be covered
when you need it most! That’s what we are here for. Call us today at (508) 841-0515 for more information. We would love to help you
with your insurance needs.
Take A Summer “Staycation”
Finding Fun in Your Own Backyard Has Its Own Rewards
Recent years have brought a dramatic shift in how most of us spend summer vacation. The days of
loading up the family station wagon and taking a two-week summer vacation are a distant memory,
thanks mostly to work schedules, kid’s activities and other factors. Yet, multi-day trips to visit
relatives were still within reach of most families until the recent economic downturn. Now frugal
families are discovering a new trend, known as “staycations,” mini-vacations based from or near the
home that feature day trips to local attractions or events. Here are some tips for filling day trips close
to home with a sense of fun and discovery.
Keep it Free: Summertime is filled with festivals, fairs and other free or near free events, which are
as easy to find as an Internet search.
Keep it Active: When’s the last time you spent a day at a local park having a picnic and playing
games? Weekdays are a great time to visit, because you’re much more likely to find the prime spot.
Keep it Creative: Take turns having family members put together their dream day. Maybe you go to the beach one day, fly kites the next and
the museums the one after that. (Checking the forecast can help you determine the best way to sequence your Staycation days.)
Dine at Home: Keep the vacation flavor going by grabbing take out on the way home, having a backyard barbeque or planning a theme night
meal, maybe one that ties in with a rented movie you plan to watch together that night.
Work in a Camping Overnight: Most people are within a short drive of a state or national park. Consider packing up your camping gear (or
borrowing some) for an overnight trip. Nothing lends a spirit of adventure like a family expedition, even if it’s only for a night. You may
discover a new favorite destination right in your own backyard.
Don’t Forget to Document It: Create your own family documentary of your staycation to enjoy again and again. Keep a journal or shoot a
movie of your local adventures, just as you would a trip to the Grand Canyon. It may be the most fun you’ve ever had.
Tax
Talk
New Restrictions on Home Sale Exclusion
“The American Housing Rescue and Foreclosure Prevention Act of 2008”—the Housing Act—was signed
into law by the President on July 30, 2008. The Housing Act provided for the first-time homebuyers credit,
the property tax deduction for non-itemizers and other measures designed to help the ailing housing market.
One of the provisions in the Housing Act is the reduced homesale exclusion for some sellers. Under the old
law, if an individual owned and lived in their home for 2 out of 5 years from the date of sale he/she could
exclude from taxation up to $250,000 ($500,000 if married filing a joint return) of gain. Even if the
property was previously rented, as long as the house was used as a principal residence for two out of five
years, the exclusion would apply. A 25% tax would be imposed on the depreciation taken, but the balance of
the gain up to the above amounts would be excluded from tax.
For property sales that occur after 2008, some homesellers who don’t use their properties as principal
residences for their entire ownership period may end up paying some tax on a portion of their gain. The
prime example is a vacation home that is turned into a principal residence by its owners. The new rule also
can affect individuals who use a property as a main home for a while, rent it out for a period of time, and
then move back in. The homesale exclusion will be reduced proportionately for the period of time a home
wasn’t used as a principal residence (period of nonqualified use) after 2008.
Pauline Hammer
382 Boston Turnpike
Shrewsbury, MA
508-842-3882
Here’s how it works. Let’s say you’re a single taxpayer and you’ve owned and used your home as your
principal residence since January, 2001. In January 2009, you decide to move into your vacation home and
rent out your principal residence. You rent the home for 2009 and 2010. In January, 2011 you sell the home.
You can still qualify for the $250,000 gain exclusion because you owned and used the house as your principal
residence for two out of the five years from the date of sale. However, because you rented the house after
2008, you must now allocate part of the gain to the period of “nonqualified use” and pay tax on that portion
of the gain.
In the example above, two out of the 10 years of ownership is considered a period of “nonqualified use” and
therefore 2 ⁄ 10 of the gain would be subject to tax. If your gain is $200,000, you could exclude $160,000 of
the gain from tax and $40,000 ($200,000 x 2 ⁄ 10) would be subject to tax.
The housing Act of 2008 represents another tax-planning complication for those who own multiple
dwellings and hope to maximize their use of the home-sale exclusion. Now, part of the gain may be
ineligible for the exclusion.
Please keep in mind this is a general description of the new homesale exclusion provisions. There are always
exceptions to the rule.
Stimulus Package Explained
(continued from page 1)
January 1 and November 30, 2009. It never needs to be paid back. File using
form 5405. To qualify, your modified adjusted gross income must be less
than $95,000 if you are single, or less than 170,000 for married filing
jointly.
COBRA Health Insurance: The federal government will pay 65% of
COBRA coverage for up to nine months. If you were laid off between
September 1, 2008 and December 31, 2009 you may qualify, if your income
is below $140,000 for a single return or $290,000 for married couples filing
jointly. If you receive the benefit and then your income exceeds these
amounts, you will have to pay it back. If you receive the benefit and your
income ends up exceeding $125,000 for singles or $250,000 for married
folks, you will have to repay part of the benefit.
Retired Workers: Those who are collecting a pension will receive a one-time
payment of $250, to be paid by June 17. Those who qualify include Social
Security recipients, those who receive Railroad Retirement benefits,
Supplemental Security Income recipients and veterans receiving pensions.
Retired government employees who do not receive social security also qualify.
Unemployment Benefits: Unemployed workers will have $25 per week
added to their unemployment checks. In addition, unemployment payments
up to $2,400 will be tax free. There is also an extended period of eligibility
for unemployment for 2009.
Going Green Auto Loans
Central One now offers a 1⁄4% discount off the regular auto
loan rate for vehicles that get a COMBINED 30 mpg or
more. Fuel economy values are determined by the fuel
standards listed at www.fueleconomy.gov/feg/findacar.htm.
Find your year, make and model on the website listed
above. If your combined mpg is 30mpg or more, you are
eligible for a 1⁄4% discount on your auto loan rate!
Money
Matters
Being Proactive During Challenging Financial Times
Whether you are starting to build a nest egg, or are close to retirement, your investments have likely been
impacted by negative market performance. As a result, you may be feeling confused, stressed, or afraid—and
that’s okay. We are humans, not machines, and humans react emotionally to circumstances beyond (and even
within) our control.
The tricky thing with emotional responses is that they may result in ill-advised action—or worse, inaction.
It’s nearly impossible to make a sound decision when you are responding out of fear or anxiety. Once you’ve
acknowledged your own emotions, however, you can take proactive action and take back control of your
financial life.
Consider what’s important to you and why
You know certain things are important to you, but you may not spend a lot of time thinking about why they
are. For example, having money may be important. But the reason why it is important to you is likely different
from why it’s important to someone else. Reasons may include:
•
•
•
•
Michael J. Canfield
W.F. Financial Services
Located at Central One’s
Main Office
at 714 Main Street
in Shrewsbury
508-842-7400
800-527-1017 ext. 560
Retiring early
Buying a second home (or a first home)
Sending a child to college
Purchasing a new car
When you explore why things matter to you, what you’re really doing is thinking in terms of concrete goals
rather than broad concepts. This is a great way to start taking charge of your finances and what you want to
accomplish. The goals that you identify are too important to leave up to chance, emotional decisions, or inertia.
For a complementary financial evaluation to discuss your goals, please call Michael J. Canfield of W. F.
Financial Services at 508-841-0560.
Securities Offered Through Commonwealth Financial Network, Member FINRA/SIPC. Securities are not NCUA insured deposits,
are not obligations of or guaranteed by Central One Federal CU and are subject to risk, including the possible loss of principal.
©2009 Commomwealth Financial Network
Annual Meeting Update
Our 57th Annual Business meeting was held on Monday,
May 11. Three incumbents were re-elected: Robert
Zeveska of Auburn, James Chalke of Lancaster and
Michael Cavanaugh of Three Rivers.
At a special board meeting that followed, Robert Zeveska
of Auburn was re-elected as Chairman of the Board,
James Chalke of Lancaster was re-elected as ViceChairman and Jeffrey Pond of Auburn was re-elected as
Secretary.
The remaining Directors are Roland Carlson of
Worcester, Diane Collins of Westborough, Thomas Davey
of Milford, Carl Masshardt of Auburn and Robert Scarfo
of Milford.
Discounted Six Flags Tickets
Only $27 for Central One members! Save almost $15 off the cost of
admission at the gate. Tickets can be purchased during regular branch
hours and used anytime during Six Flags regular 2009 season. Meal
vouchers are also available for $10, which offer several meal choices
throughout the park. Tickets and meal vouchers will be sold through
August 31 for the 2009 season. Tickets are available at our Main Office in
Shrewsbury, our Auburn branch and our Northborough branch at 148
Main Street.
Direct Deposit · Online Banking
eStatements
Save time, money and the environment.
Westborough Branch Update
Construction is moving along in Westborough. The foundation is in place
and the walls are beginning to go up. We expect the branch to be complete
this Fall.
714 Main Street • Shrewsbury, MA 01545-3018 • www.centralfcu.com
508-842-7400 or 1-800-527-1017
Tel-Talk Numbers: 508-841-0875 or 1-800-527-1011
Branch Hours:
Shrewsbury Main Office - 508-842-7400
Monday and Thursday...........................................................................7:00 a.m. to 6:00 p.m.
Tuesday and Wednesday......................................................................7:00 a.m. to 4:30 p.m.
Friday ....................................................................................................7:00 a.m. to 5:00 p.m.
Saturday ..................................................................................................8:30 a.m. 12:30 p.m.
Northborough - 148 Main Street - 508-393-8112
Monday and Thursday...........................................................................7:00 a.m. to 6:00 p.m.
Tuesday, Wednesday and Friday..........................................................7:00 a.m. to 4:30 p.m.
Saturday .......................................................................................................8:30 a.m. to noon
Auburn - 63 Southbridge Street - 508-832-2100
Monday and Thursday...........................................................................7:00 a.m. to 6:00 p.m.
Tuesday, Wednesday and Friday..........................................................7:00 a.m. to 4:30 p.m.
Saturday .......................................................................................................8:30 a.m. to noon
* Westborough - 50 Otis Street (AstraZeneca)
Monday..................................................................................................7:00 a.m. to 2:00 p.m.
Tuesday and Thursday........................................................................11:00 a.m. to 3:30 p.m.
Wednesday ................................................................................................................CLOSED
Friday ....................................................................................................7:00 a.m. to 3:00 p.m.
*Northborough - 55 Bearfoot Road (National Grid)
Monday and Friday .............................................................................12:00 p.m. to 4:00 p.m.
Tuesday and Thursday..........................................................................9:00 a.m. to 1:00 p.m.
Wednesday ................................................................................................................CLOSED
*Salem - 24 Fort Avenue
Tuesday.................................................................................................9:00 a.m. to 1:00 p.m.
Friday ................................................................................................... 8:30 a.m. to 1:30 p.m.
*Westborough - 25 Research Drive (National Grid)
Monday and Friday .............................................................................8:00 a.m. to 12:00 p.m.
*Waltham - 201 Jones Road
Monday through Friday .........................................................................8:30 a.m. to 2:30 p.m.
BOARD OF DIRECTORS
Robert A. Zeveska - Chairman of the Board
Jeffrey M. Pond- Secretary
Roland G. Carlson
Michael J. Cavanaugh
Diane L. Collins
Monday, September 7 . . . . . . . . . . . . . . . . . . . . . . Labor Day
Monday. October 12 . . . . . . . . . . . . . . . . . . . Columbus Day
Wednesday, November 11 . . . . . . . . . . . . . . . . Veterans’ Day
Thomas E. Davey
Carl W. Masshardt
Robert Scarfo
MANAGEMENT
David A. L'Ecuyer - President/CEO
Michael P. Rooney - CFO
Thomas D. Clancy - VP of Operations & Information Systems
April B. Healey - VP of Retail Services
Craig S. Madonia - Senior VP of Lending
Wendy B. Morin - VP of Human Resources & Administration
Jeffrey A. Dunn - Assistant VP of Lending
Paul A. Ravina - Assistant VP of Database Administration
*Bank at work locations
714 Main Street
Shrewsbury, MA 01545-3018
www.centralfcu.com
The Credit Union will be closed:
James S. Chalke - Vice Chairman