3rd Quarter - Greater TEXAS Federal Credit Union

NEWSLETTERSUMMER 2016
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Tower Point Branch in College Station
Meet Your Supervisory Committee
Now Open for Business
The Supervisory Committee arranges credit union audits and serves
as a sounding board for member comments and concerns. If you
have any comments or concerns you would like to share, you can
mail them directly to the Supervisory Committee, P.O. Box 9732,
Austin, TX 78766-9900.
Our new facility in College Station, Texas located at 4340
State HWY 6 is now open for business.
This new branch features four drive-thru lanes and a full-service
lobby with remote and traditional teller stations. The branch also
has a 24-hour drive through ATM available to the public and our
members. All of our member services are available in the lobby
including safe deposit boxes. Loan applications for all types of loans
can be initiated at this new facility with a quick response from our
loan department.
This new branch is part of the nationwide shared branch network.
This means any member of one of the participating credit unions
can use this branch to conduct business with their credit union.
As a member of the CO-OP Shared Branch network we are part of
an organization with over 5,000 locations across the nation where
you, our member, can do business.
Supervisory Committee members include (L to R): Norm Godwin,
Member; Sheila L. Bell, Member; Stephen A. Mason, Chairperson; Linda
Lothringer, Secreatry. Not pictured: Robyn K. Johnson, Member.
Privacy Notice
Federal law requires us to tell you how we collect, share, and protect
your personal information. Our privacy policy has not changed
and you may review our policy and practices with respect to your
personal information at www.gtfcu.org/privacy-notices or we will
mail you a free copy upon request if you call us at 800.749.9732.
Stop by and visit our newest location. Jason Nowak, Tower Point
Branch Manager, will be happy to assist you.
www.gtfcu.org
NEWSLETTERSUMMER 2016
Saving for College and Retirement
Tips on trying to meet two great financial goals at once.
Saving for retirement is a must. Saving for
college is certainly a priority. How do you
do both at once?
Capital gains from investment accounts
can qualify as “parent income,” and so can
Roth and traditional IRA distributions.2,3
Saving for retirement should always
come first. After all, retirees cannot apply
for financial aid; college students can. That
said, there are ways to try and accomplish
both objectives within the big picture of
your financial strategy.
Money held inside a qualified retirement
plan, though, is not included in need
analysis formulas. Life insurance cash
values rarely count. Most Coverdell ESAs
and UGMA and UTMA accounts represent
assets owned by the child, and child assets
receive 20% weighting in EFC calculations
(parental income receives up to 47%
weighting). Parental assets, as opposed to
parental income, are weighted at no more
than 5.64% yearly. Cash and brokerage
accounts are considered parental assets;
so are student-owned 529 plans. Even
real estate investments can be defined as
parental assets.3,4
As a first step, whittle down household
debt. True, some debts are not easily
reduced, and some are worth assuming, but
many are byproducts of our wants rather
than our needs. NerdWallet, a personal
finance website, notes that the average
U.S. household now carries credit card
debt of more than $15,000. Less revolving
consumer debt means more money
available to potentially direct toward a
retirement fund and a college fund.1
See if your children have a chance to
qualify for need-based financial aid.
Impossible, you say? You may be surprised.
You can have one million dollars in your IRA
or your workplace retirement plan and not
impact your child’s potential for need-based
financial aid one iota. That is because those
retirement accounts are not considered
parental assets in the calculation of the
Expected Family Contribution (EFC) that
factors into determining a student’s need.2
That “need” is determined through a basic
equation: the cost to attend the school
minus the EFC equals the financial need
of the student. So, in theory, the lower you
can keep your EFC, the more need-based
financial assistance your student deserves.2
The Free Application for Federal Student
Aid (FAFSA) and College Board CSS/
Financial Aid PROFILE use slightly different
calculation methods to determine the EFC.
Both student and parental assets factor
into the calculation. What usually counts
most is the income of the parent(s), minus
some taxes, tax deductions, and allowances.
www.gtfcu.org
The CSS PROFILE form does inquire about
retirement account values and life insurance
cash values, but they are not factored
into the EFC calculation. They may be
considered if a college financial aid officer
needs to make an assessment of the overall
financial health of a household pursuant to
a financial aid decision.2
What if your kids have little or no
chance to receive financial aid? Then
scholarships and grants represent the
primary routes to easing the tuition burden.
So save for retirement as well as you can
and save for college in a way that promotes
the best after-tax return on your investment.
Feel free to max out your workplace
retirement plan contribution (and get the
match from your employer). If you do so, the
impact on your child’s eligibility for college
aid would be negligible. If you have a Roth
IRA or permanent life insurance policy,
think about the ways they can be used
in college planning as well as retirement
and estate planning. You may be able to
tap a life insurance policy’s cash value to
pay some college costs, and distributions
from a Roth IRA occurring before age 59½
are exempt from the standard 10% early
withdrawal penalty if they are used for
qualified educational expenses.5
Even if your household is high-income,
look at the American Opportunity Tax
Credit. The AOTC is a federal tax credit of
up to $2,500 per year that can be applied
toward qualified higher education expenses.
It is better than a federal tax deduction, as
it lowers your federal income tax dollar-fordollar. If you are married and you and your
spouse file jointly, you are eligible to claim
the AOTC if your modified adjusted gross
incomes total $180,000 or less. If you are a
single filer, you are eligible if your modified
adjusted gross income is $90,000 or less.
Phase-out ranges do kick in at $160,000 for
joint filers and $80,000 for single filers.6
For all your investment needs, contact
Sallie Harborth, Financial Advisor
with SWBC Investment Services at
210.376.3562 or [email protected]!
This material was prepared by MarketingPro, Inc., and does
not necessarily represent the views of the presenting party, nor
their affiliates. This information has been derived from sources
believed to be accurate. Please note - investing involves risk,
and past performance is no guarantee of future results. The
publisher is not engaged in rendering legal, accounting or
other professional services. If assistance is needed, the reader
is advised to engage the services of a competent professional.
This information should not be construed as investment, tax
or legal advice and may not be relied on for the purpose of
avoiding any Federal tax penalty. This is neither a solicitation
nor recommendation to purchase or sell any investment or
insurance product or service, and should not be relied upon as
such. All indices are unmanaged and are not illustrative of any
particular investment.
Citations.
1. dailyfinance.com/2016/03/23/8-financial-decisions-youll-regret-forever/ [3/23/16]
2. forbes.com/sites/troyonink/2016/02/29/balancing-act-strategically-saving-for-college-and-retirement/ [2/29/16]
3. money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/articles/2016-03-18/strategies-to-maximize-college-savings-and-financial-aid
[3/18/16]
4. finaid.org/savings/accountownership.phtml [4/6/16]
5. irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Tax-on-Early-Distributions [2/22/16]
6 - irs.gov/Individuals/AOTC [12/8/15]
NEWSLETTERSUMMER 2016
Shop the Smart Way:
Start at Greater Texas Federal/Aggieland Credit Union
So, you’ve decided it’s time for your next vehicle. When it comes
to shopping for a car, you have a lot of choices to make. With all
the excellent new models available today, where do you begin?
We can help.
Defy Expectations, Drive Your Style
Who says a cowboy wants to drive a truck?
Your car is a unique reflection of you.
Y
Defy all expectations and drive your style with a new or used auto
loan from Greater Texas Federal/Aggieland Credit Union. Let us
guide you through the car buying process with personalized service
and an easy online loan application.
With rates as low as 1.99% APR1 and no payments for 90 days you’ll
be styling the savings.
We have numerous ways we can accessorize your new auto loan:
Start your search at your credit union. Our dynamic auto shopping
site has all of the tools you need to guide you through the entire
process; saving you time and helping you make an informed buying
decision.
With GTFCU’s auto shopping website, you can shop for any make
and model of vehicle from the comfort of your home. No more time
spent going from dealer to dealer or website to website to locate
the car you’re interested in. Instead, you’re in the driver’s seat.
• Research all makes and models from the comfort of your home
• Learn about features, ratings, rebates and reviews
• Browse a vast selection of over 1.6 million vehicles
• One year FREE membership to Member’s Roadside Advantage
• Compare cars side-by-side
• Extended Warranty - SAVE up to 50% off dealer pricing
• Find local dealers
• GAP Insurance – SAVE almost 40% off dealer pricing
• Estimate payments and much more
• Auto Insurance (SAVE over $519.52 per year on car insurance)
2
Do you have an auto loan with another lender? Are you paying a
higher rate? Let us refinance your current auto loan for even greater
savings.
Get started today! Apply online at gtfcu.org.
See what others have said about the GTFCU auto loan process:
“Ever since I was approved for my first car loan my experience
has been the best! I went back for my second car loan and
like always GTFCU has made my visits extraordinary. I love
GTFCU.”
In addition, you can access this auto shopping resource from your
mobile device or tablet and learn about the advantages of financing
your next vehicle right here, with GTFCU.
Whether you’re interested in new or used, cars or SUVs, roof racks
or trailer hitches, we can help you find the car that’s right for
you. Connect with the most powerful credit union auto shopping
tool, and empower yourself with the information you need when
purchasing your next car.
Start today! Visit us online at gtfcu.cudlautosmart.com.
– Aris from Austin, Texas
“Have been a member for over 20 years. I purchased a
Toyota pickup, their loan process is very quick and they have
always given me the best interest rates. Staff at GTFCU are
the TOPS.”
– Roxy from San Benito, Texas
1APR=Annual Percentage Rate. Terms and conditions apply. Rate is for loan terms up to six years,
72 monthly payments of $14.75 per $1,000 borrowed. Rate is based on credit approval and
subject to change. Additional discounts do not apply. Promotion applies to new money loans for
purchase or competitor refinance only.2Figure reflects average national savings for customers
who switched to the TruStage Auto Insurance Program. Based on data collected between
9/1/2012 and 8/31/2013. Individual premiums and savings will vary.
www.gtfcu.org
NEWSLETTERSUMMER 2016
EOQ
Congratulations to John Janik, the 2nd quarter 2016
Employee of the Quarter. John is a Member Service
Representative at our Northgate Branch. He was nominated
for EOQ because he is very loyal, conscientious, dependable
and hardworking. John routinely helps with duties that are
not in his job description to ensure the branch runs smoothly
and efficiently. He is a vital part of the Northgate team.
Way to go, John!
Holiday
CLOSINGS
Monday, July 4
in observance of Independence Day
Monday, September 5
in observance of Labor Day
Monday, October 10
in observance of Columbus Day
Paying for College:
Where to find free money and how loans can help.
Searching for money for school can be a daunting task. Take relief
in knowing you have options.
There are many ways to pay for college! There are also many
websites that provide links to free scholarships, federal and state
aid. Now there is Red Kite (myredkite.com) our partner in college
financing. Red Kite is a free service provided through GTFCU that
will help you find all the different types of free money for school on
one website in just minutes.
Learning and understanding the financial aid process will be well
worth it and will lead you to the next steps toward your future.
Remember to study hard! A college degree is something you earn no matter how you finance it!
Visit MyRedKite.com to download a free copy of Financial Aid 101:
The Basics of Financing Your Education
When searching for free money for school, you should consider
timing so that you know which financial aid to pursue first. Always
look into applying for scholarships and grants along with federal aid
and state aid.
If you have tapped every possible source of FREE money but you still
need more financial aid in order to afford your education, then you
and your parents may need an education loan. GTFCU can assist you
with student loans, which offer multiple repayment options. Loans
have to be paid back along with interest so be wise and borrow only
what you need.
Online Loan Applications
Internet Access
Apply for a loan 24/7 by visiting our website.
www.gtfcu.org
www.aggielandcu.org or
www.freecuatms.org
for many more FREE or NO-FEE ATM locations. You can use your
ATM card at PLUS machines worldwide, but if you use machines
other than the ones listed above, the first five transactions per
month (seven per month for Golden Star members) are free, and
you will be charged $2 for every transaction after that.
Mobile App
All of the same great features of online banking now available on
your Apple or Android mobile devices. Download our free mobile
app at the Apple Store or Google Play.
GTCall 24 - hour Account Access
Automated voice response system lets you check your balance,
transfer money, even apply for a loan, all over the phone, from
anywhere in the world, 24 hours a day, 7 days a week, free!
Austin: (512) 451-5195
Nationwide toll-free: 1-800-749-0179
Federally Insured
by the NCUA