Frontwave Briefing | Second Quarter 2024

This is Frontwave Credit Union's Member Newsletter for Second Quarter 2024

Briefing Frontwave Credit Union Member Newsletter | Second Quarter 2024

Tackling Debt: Where to Start and How to Prioritize

So, you’ve had a lucrative year and you’re feeling more than comfortable with your savings. You’re ready to start tackling the debt you accrued along the way when you maxed out your credit card swiping your commuter pass aboard the Struggle Bus. But, when you turn to face your debt, it looks daunting, right? You may stop and think to yourself, “Where do I even begin?” When it comes to paying off multiple debts, you have two reliable options at your disposal: the avalanche method or the snowball method . Avalanche Method: Eliminating Your Highest Interest First Should you choose to navigate your debt repayment journey via the avalanche route, you’re looking at an opportunity to save more money in the long run by saving on interest. The avalanche method wants you to address your debt that has the highest interest rate first while continuing to pay at least the minimum payment on all other debts as well. Essentially, let’s say you had $600 extra for the month to go towards debt repayment. Your minimum payment of all debts adds up to $400; that $400 will be used for those minimum payments. The remaining $200 you have will go towards, say, your credit card bill because it has the highest interest rate (a whopping 20% compared to the 6% interest on your auto loan). By paying off the debt with the highest interest rate first, you’re saving all that extra money that doesn’t need to be paid on interest if you can help it. Once that debt is managed, you move on to the next debt with the second-highest interest rate. Snowball Method: Smaller Debts for Small Wins With the snowball method, you are addressing your debts with the smaller balance first (while still paying

minimum payments on all debts, much like the avalanche method). By paying your smaller balances first, you can celebrate small wins before moving on to the bigger debts; this can be more approachable for those feeling extra stressed about their debt and can keep you motivated to continue tackling more and more. Just like you’re packing more snow on that growing snowball. Get it? With the debt avalanche, you’re prioritizing interest rates; with the debt snowball, you’re prioritizing balances. Which you choose to move forward with

simply depends on what your priority is: saving more money in the long run or narrowing down the number of debts you have in a quicker fashion. Debt is daunting. That’s just a fact. But Frontwave can make it easier for you. Another fact. With a team of financial professionals who are as caring as they are dedicated, you can trust that at the end of the day, we got you. Stop by your local branch to chat through your financial planning needs or give our crew a buzz at 800-736-4500.


Second Quarter 2024

In addition to financial counseling, we have a team dedicated to professionals providing classes in personal finance to anyone that will listen, both on the military installations we serve and, in the communities, where we live. In 2023, this team provided personal finance education to more than 51,000 people! We host numerous virtual seminars with professional speakers on a wide variety of topics from how to buy a car to medicare, social security, wills, trusts and home ownership. Let us help you get on the path to financial wellness! It won’t be easy, nothing worthwhile ever is. But getting on that path now will provide incredible future rewards! We strongly recommend that Members actively monitor their accounts via our mobile and online banking platforms. In addition, we strongly recommend that Members establish alerts on their accounts. There are several alerts available, such as balance, cleared check, insufficient funds and debit card purchase easily accessed via our mobile and online banking platforms. Setting account alerts will help keep you informed of activity on your account so you can quickly and easily know when your pre-determined alert thresholds are breached and help you recognize potentially fraudulent activity. There are two pieces of legislation being considered by the California Senate and Assembly that require the inclusion of financial education in high school curriculum. Frontwave Credit Union strongly supports these efforts! In fact, I was in Sacramento last week advocating in favor of these Bills with members of the Senate and Assembly. Numerous other states already have such laws. It’s time for California to do the right thing and provide our children with the tools to help them start off on the right financial footing! Our 2023 Annual Report is now available. The report offers a summary of our 2023 financials and achievements, community involvement, as well as insights from Frontwave’s Chairman of the Board, Treasurer, and Chairman of the Supervisory Committee. Visit our website to get your digital copy, or ask for a copy at your local branch. Annual Report

Visit for more info or log onto your mobile banking page to set up the alerts and help protect your money and assets. . 1. Login, navigate to settings, and select Alerts. 2.Customize your settings & delivery method. 3. Save your preferences. Stay in Touch In and out of our branches, we love rubbing elbows with our Members. Whether it’s connecting over how we are supporting our communities or saying thank you for your Membership with special giveaways, you’ll want in on the latest news and happenings. Join our social media communities for financial education tips, chances to win, event announcements, and more. Set up is easy as 1… 2… 3... Mobile banking alerts are highly customizable and can help you monitor your finances, avoid fees, and protect you from fraud. Here are some alerts you may consider switching on. 1. Low Balance Alert 2. Insufficient Funds 3. Automatic Deposits or Withdrawals 4.Loan Payment Due 5. Debit/Credit Card Purchase Alerts Tips and Tricks To Help Protect Your Money

Bill Birnie, President/CEO Just about everyone is talking about the impact of inflation on the cost of living and the challenges of living in Southern California. Our Members are not immune from these challenges. 40% of our nearly 124,000 Members are under the age of 24 and 44% earn less than $50,000 a year. I remember where I was at the age of 22… I hate to admit it but, I’ve been there, and I’ve done that! WE CAN HELP! We are absolutely passionate about helping you attain financial wellness. If you’re facing these challenges and struggling to get from paycheck to paycheck, I implore you to contact any one of our Frontwave Certified Financial Counselors or you can work with our partner Greenpath. Greenpath is a professional financial counseling service that is absolutely free for Frontwave Credit Union Members. Notes from the CE0


Second Quarter 2024

1. Choose Investment Style: Investment styles further affect how you diversify your portfolios, so be sure to find one that works for you. Some of the most common options include small-cap versus large-cap, sector vs. industry, growth vs. value and domestic vs. foreign. 2. Determine Asset Allocation: Deciding how much of your capital to invest in each category depends on a number of factors, such as your personal ability to tolerate risk and how soon you may need to liquidate investments. As an example, younger people may want more risk exposure, while people closer to retirement may want to err on the side of caution. Overall, your general appetite for risk determines how best to diversify your investments. Contact LPL Financial for more information on how to strike the right portfolio balance. Kathy or Niko may be reached at 760.439.6960, Looking to Save on Your Insurance? Do your insurance premiums keep going up every year? Frontwave Insurance Services can help! A one-stop shop for all of your insurance needs, Frontwave Insurance Services can find the best insurance for you at the best price. Get a free, no-obligation insurance quote by visiting insurance or calling 844.788.0820. • Auto Insurance • Motorcycle Insurance or

Managing Risk With Diversification

Provided by Kathy Chesney, ChFC, CLU and Niko Pandeleos, Associate Financial Advisor When you first considered investing, it probably seemed like a good idea to focus heavily on what worked best for you from the beginning. If stocks from a particular company brought you high yields, why not double up on your original investment? The answer is diversification. It may seem counterintuitive, but diversification is a fundamental aspect of risk management, and plays a critical role in building an investment portfolio. Effective diversification requires

This covers three main asset classes: stocks, bonds and cash. Some financial advisors consider this separate from diversification. Even so, the fundamental principle is the same and can be used in tandem with company-specific or industry-specific diversification. While asset allocation may help to manage market risk, it does not provide a guarantee against market losses. It seeks to provide a cushion against market volatility. Diversify Within Asset Categories When it comes to diversifying within asset categories, financial advisors focus on spreading out stock among different types of companies. There are also different types of bonds to consider. Yes, the portfolio may, at times, yield lower returns than those from investors who decide to specialize. Putting These Concepts to Work So, what steps can you follow to manage risk? Here are a few tips to consider:

more than just purchasing a random bundle of investments. Otherwise, your investment may all move in the same direction in both up and down markets. Instead, investors might want to consider selecting securities that do not all move in correlation to each other. The U.S. Securities and Exchange Commission advises investors to diversify by asset category and within the asset category. Diversify by Asset Categories Asset allocation is the practice of dividing up your investment capital among different asset categories.

• Home Insurance • Renters Insurance • Life Insurance • Pet Insurance • And More!

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. This material was prepared by LPL Financial, LLC. Securities and advisory services are offered through LPL Financial (LPL) , a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Frontwave Credit Union and Frontwave Investment Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Frontwave Investment Services, and may also be employees of Frontwave Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Frontwave Credit Union or Frontwave Investment Services. Securities and insurance offered through LPL or its affiliates are:

Insurance products are offered through Frontwave Insurance Services, LLC, a subsidiary of Frontwave Credit Union. Insurance offered is not a deposit and is not federally insured or issued by or guaranteed by Frontwave. Insurance may be required as a condition of credit for some Frontwave loans and may be purchased from an agent or insurance company of the member’s choice.

Not Insured by NCUA or Any Other Government Agency

Not Credit Union Guaranteed

Not Credit Union Deposits or Obligations

May Lose Value

Your credit Union (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for advisory services.


Second Quarter 2024

What’s better than free financial education? Getting it from the comfort of your couch! Simply visit to register for any of our no-cost, no-obligation virtual workshops. Upcoming Financial Workshops Social Security and Retirement Regardless of when you plan to retire, Social Security will likely be an important part of the road ahead. Determining when to begin benefits could be one of the biggest financial decisions you face, and there are key issues to consider. Join us to learn more about your Social Security benefits and discuss the role they play when setting a clear direction for your financial future. • Wednesday, June 19 @ 6:00pm PST Women and Investing The road to financial success can be bumpy, but women face unique barriers that make it more difficult to achieve. Whether you are launching a new business, having children, or starting a new job, understanding the financial landscape will help every woman take control of their financial future. • Wednesday, May 22 @ 6:00pm PST

Road to Retirement Are you ready to retire? You might be prepared for the financial transition, but you’ll experience lifestyle and emotional transitions as well. We can help you understand these upcoming changes and provide the information you need to better prepare for this exciting season of your life. In this session, you will learn the answers to your questions, including: • How do I get the most from my pension and Social Security? • How should I invest to generate income during my retirement? • How can I make sure that I can meet my health care needs? • What sources of income should I draw upon and when? • Wednesday, May 1 @ 6:00pm PST

How to Navigate a Bear Market Markets are cyclical and continuously fluctuate. Most experts agree that we will soon be in the midst of a bear market. It may be weeks or months, but the signs are there. You should know how to handle these hard financial times and navigating depends on where you are in your financial journey. Someone in their 20’s and has just started saving will have a much different strategy than some who is just about to retire. Bear markets are concerning, but they can also lead to financial opportunities if you know where to look. In this webinar you will learn how to survive and possibly benefit from a bear market regardless of your stage in life.

• Wednesday, June 5 @ 6:00pm PST



STATISTICAL REPORT As of March 31, 2024 Members: 123,240 Assets: $1,538,519,726 Total Shares: $1,208,107,394 Loans Outstanding: $929,905,059

Frontwave will be closed in observance of the following holidays this quarter:

Express Line 800.829.7676 Member Solution Center 760.631.8700 or 800.736.4500 Mon-Fri: 7am – 6pm, Sat: 9am – 4pm Autoland 800.234.6999 Enterprise Car Sales 800.CAR.SALES GreenPath Financial Wellness 877.337.3399 Frontwave Investment Services 760.439.6960 Frontwave Insurance Services, LLC 844.788.0820

Memorial Day Monday, May 27, 2024 Juneteenth Wednesday, June 19, 2024

As always, Express Line, Online Banking, Mobile Banking, and ATM services are available to you 24/7.


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