Frontwave Briefing | Second Quarter 2021

This is Frontwave Credit Union's Member Newsletter for Second Quarter 2021.

Briefing Frontwave Credit Union Member Newsletter | Second Quarter 2021

6 Ways to Save on Your Next Car Purchase

Buying a vehicle is a big investment. And it’s one that doesn’t always come without regrets. Ever leave the car lot high on the excitement of getting your new wheels, only to realize later that you may not exactly have gotten the best deal? Yeah, we’ve been there, too. With lots of sellers offering some pretty tempting deals these days, we wanted to share our top tips for saving on your next car purchase. 1. Do your research. Instead of driving straight to the lot to browse what’s available or contacting a private seller for a showing, do some research first. Check the market value of the vehicle you’re interested in. If it’s a new vehicle, check the wholesale price (what the dealer actually pays). A simple online search for the make and model you’re looking at should bring up helpful results. While you’re at it, see what other dealers or sellers are charging. Prices can vary by hundreds or thousands of dollars, even on new vehicles. 2. Don’t be afraid to negotiate. The sticker price is rarely the best

and final offer a dealer or seller will accept. Use what you’ve learned about the vehicle’s market value to negotiate a price that’s fair for both of you. 3. Consider buying used. On average, vehicles lose 10-20% of their original sales price during the first year of ownership. So you can save big by buying a car that’s one or two years old, while still getting all the bells and whistles you want — and often a few years left on the warranty, too. 4. Get the most for your trade-in. Just like you shop around for your new car, shop around for the best trade-in value on your old one, too. You may be able to get more for it by selling to a private buyer or even another dealer, especially one that specializes in used cars. 5. Shop around for financing. Don’t assume a dealer or big bank will offer the best rates or lowest monthly payments. For example, here at Frontwave Credit Union, we not only offer competitive auto loan rates, we’ll also give you 0.25% off your rate if you sign up for automatic payments. Plus

we offer flexible financing terms up to 6 years (and even longer in some cases), so you can stretch your loan out to make the monthly payment more affordable. 6. Look at the entire cost, not just the purchase price. Remember to factor in things like taxes, insurance, and registration. You’ll pay more for these things on certain vehicles than on others, which can take your monthly payment from affordable to uncomfortable. One place to save may be on insurance. Your current carrier may not always have the best deal, so it’s a good idea to shop around. A quick call to Frontwave Insurance Services can get you a free quote from over 40 insurance carriers, with no obligation to buy. To learn more about how we can help you save, or to get pre-approved for your next auto loan, visit, call 800.736.4500 or swing by your local branch. We look forward to serving you!



Second Quarter 2021

deposit that puts $10 or $20 a paycheck into a special savings account that you don’t touch for anything else. Not sure how to set that up? We’ll help you do it. Anytime you find yourself with some extra cash — say from a tax return or a little leftover from the latest round of stimulus checks — stash it in there. You’d be surprised how your savings can grow when you stay disciplined and keep adding to it little by little. Another way we’re helping Members build that emergency fund is by participating in the America and Military Saves programs. Each year, we leverage these programs to encourage a habit of regular savings by offering special 12-month Saver Certificates at rates that are well above market. You can start with as little as $100 or as much as $500, then deposit between $10 and $500 into your Saver Certificate each month for a year. Then watch your savings rack up with daily dividends and our special, extra high APY. This year’s promotion just launched on April 1 and it runs through April 30, 2021, so there’s plenty of time to get in on the action! Keep in mind, it’s not just good deals on savings and checking accounts we offer to help you save. It’s also our great rates and personalized service on auto, home and solar loans, as well as retirement and insurance services. Did you know that Frontwave Insurance Services saved our Members an average of $540.71 last year? That’s a big chunk of money you could save with one simple phone call! We want to be your one-stop shop for all things financial wellness, and we’ve got something to offer no matter where you are in life. Want to learn about buying a home or creating an estate plan? Check out one of our upcoming webinars. Need help planning for retirement? Give Frontwave Investment Services a call. Need some help figuring out what the next steps are in meeting your financial goals? Swing by a local branch for your free financial checkup. Whatever you need, whenever you need us, we got you. Thanks for your Membership!

2020 Annual Report

Our 2020 Annual Report is now available. The report offers a summary of our 2020 financials and achievements, as well as insights from the Chairman of the Board of Directors, the Treasurer, and the Chairman of the Supervisory Committee. Click here to view it online, or ask for a copy at your local branch. You Spoke. We Listened! When we say we want to do everything we can to make your Frontwave experience great, we mean it. We value the feedback you give us, and take action to make improvements. Thanks to your input: • We’ve added our routing # to the Account Details tab inside online banking for each of your deposit accounts to make it easier to find. Don’t feel like logging into online banking? No problem — our routing # can also be found in the upper left corner of just about every page on our website. • We removed your birth date from your User Profile within online banking to enhance your security in the event someone were to gain unauthorized access to your account. Got any other feedback for us? We want to hear it! The next time you give us a call or complete a transaction, you may get a survey asking how we did. We really appreciate you taking a few minutes to tell us how you feel. Thanks for your Membership!

Notes from the CE0

Bill Birnie, President/CEO A year after the world practically shut down, it feels like we’re finally starting to see the light at the end of the tunnel. Cases of COVID-19 are steadily decreasing, vaccinations are on the rise, and many businesses are returning to more normal operations. Churchill once said, “If you’re going through hell, keep going.” I have to admit that it really feels good to see this long march through the pandemic is finally offering some optimism that we’re coming through the other side. One of the many lessons we learned over the past year is just how important it is to have a personal safety net in the form of an emergency fund. If you’re one of the millions of Americans who was furloughed or laid off last year, or had to reduce your hours to provide childcare or oversee virtual schooling, you may have had to tap into this pot of savings — or even exhausted it. If you didn’t have a fund to begin with, you now know just how important it really is. Whatever your situation, we’re here to help! The easiest way to begin building (or rebuilding) your emergency fund is to start small. Set up an automatic



Second Quarter 2021

The New Inherited IRA Rules

Do you know what has changed for IRA beneficiaries? Provided by Kathy L Chesney, CLU ChFC and Leslie Myers CWS, CRC New inherited IRA rules took effect on January 1, 2020. The Setting Every Community Up for Retirement Enhancement (SECURE) Act became law on that day, altering the regulations on inherited Individual Retirement Account (IRA) distributions. The big change: the introduction of the 10-year rule for beneficiaries . Most people who inherit an IRA now have to empty that IRA of assets within ten years of the original owner’s death. You can do this as you wish; you can withdraw the whole IRA balance at once, or take incremental distributions on the way to meeting the 10-year deadline. 1 Remember that tax rules constantly change. There is no guarantee that the tax treatment of Roth and Traditional IRAs will remain what it is now. This article is for informational purposes only. If you have inherited or expect to inherit a traditional or Roth IRA, be sure to consult a financial professional for real-world advice. Are there exceptions to this rule? Yes. If the deceased IRA owner was your spouse, you can treat the inherited IRA like an IRA of your own. If it is a traditional IRA, you generally must take required minimum distributions (RMDs) from it once you reach age 72. The IRS taxes those distributions as regular income, and if you take any distributions before age 59½, they may be subject to a 10% federal income tax penalty. If it is a Roth IRA, you

Our Privacy Policy has been updated. For the latest copy, visit become tax-free distributions regardless of when the original owner opened the Roth IRA. 1 If you are a Roth IRA beneficiary, be aware of the 5-year rule pertaining to Roth IRAs . If you inherit a Roth IRA that is less than five years old at the time of the original owner’s death, any earnings taken from it will count as taxable income. If the Roth IRA is more than five years old, you can take tax-free distributions from the earnings. Assets representing the original owner’s Roth IRA contributions can aren’t required to take RMDs. (You may continue to contribute to a Traditional IRA past age 72 as long as you meet the earned-income requirement.) 1 Certain non-spousal IRA beneficiaries still have the chance to “stretch” inherited IRA distributions over their remaining lifetimes, using Internal Revenue Service formulas (a choice available to most IRA beneficiaries before 2020). You may choose this option if you are less than ten years younger than the original IRA owner. You can also elect to do this if you meet the SECURE Act’s definition of a “disabled” or “chronically ill” individual (you have a life-altering physical or mental impairment or require extended care) .1,2 Lastly, if a child inherits an IRA, they can take distributions based on the child’s life expectancy until the age of 18, at which point the aforementioned 10-year rule applies. 1 What’s the big takeaway from all this? Suppose you are relatively young and anticipate a large IRA inheritance, and that big IRA is a traditional IRA. In

that case, you can anticipate greater income taxes during the 10-year window when you take those inherited IRA distributions. By the way, the new rules do not apply to inherited IRAs whose initial owners died prior to 2020. If you are a beneficiary of such an IRA, then you may still attempt to “stretch” the inherited IRA assets according to IRS life expectancy formulas and take RMDs as required by the old rules. 3 Kathy Chesney and Leslie Myers may be reached at 760-439-6960 or and 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. NerdWallet, November 25, 2020; 2. FedWeek, March 3, 2020; 3. Forbes, October 28, 2020 Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America. 03012021-LA-3599



Second Quarter 2021

What’s better than free financial education? Getting it from the comfort of your couch! Register for one of our virtual workshops today at Upcoming Financial Workshops Military Home Buying You serve your country proudly and

Co-Op ATMs & Branches

When online banking won’t do and your usual branch or ATM is too far away, remember Frontwave Members have access to more than 5,600 CO-OP Credit Union “Shared” branches within the U.S. and nearly 30,000 surcharge- free ATMs worldwide. To find a nearby location, call 888.748.3266 or visit

Estate Planning No one wants to think about it, but we should all be prepared for the inevitable. In this free virtual workshop, Attorney Benjamin Diederich will teach you the basics of wills, trusts and estate planning to properly ensure your legacy for the future. • Wednesday, May 19 @ 6:30 pm seniors, signs of financial abuse to look out for, and ways you can help protect yourself and your loved ones from falling victim. • Wednesday, April 28 @ 6:30 pm Preventing Elder Abuse Our older generations are especially vulnerable to financial fraud and abuse. In this free virtual workshop, Frontwave Sr. Fraud Investigator, Pat Beaty, will share the latest scams targeting

we’re proud to serve you. Let us expertly walk you through the VA program and all that it offers home buyers in this free virtual workshop. We will give you tips and tricks to make your buying process as easy as possible. • Wednesday, June 9 @ 6:30 pm Home Buying What financial dream is bigger than owning your own home? We want to help prepare you for what it will take and how to make the process easier. In this free virtual workshop, our real estate and mortgage experts will walk you through the steps it takes to become a homeowner. • Wednesday, June 16 @ 6:30 pm

Looking to Save on Your Insurance? Do your insurance premiums keep going up every year? Has it been a while since you’ve shopped around for quotes? 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

today by calling 844.788.0820. • Auto & Motorcycle Insurance • Home & Renters Insurance

Follow us on Facebook, Instagram and Twitter for all the latest credit union news, contests, workshops and more! Stay Connected Interested in investing and planning for retirement? We’ve got workshops for that, too! Visit for more info.

• Life Insurance • Pet Insurance • And More!

UPCOMING HOLIDAYS Frontwave will be closed in observance of the following holidays this quarter: New Year’s Day Wednesday, January 1 Martin Luther King Jr. Day Monday, January 20 President’s Day Monday, February 17 Express Line, Online Banking, Mobile Banking, and ATM service Fr t ave ill e cl se i observance of the following holidays this quarter: Express Line, Online Banking, Mobil Banking, and ATM service will be available as usual. Memorial Day Monday, May 31

CONTACT US 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 Expre s Line 8 0.829.7676 Member Solution Center 760.631.87 0 or 8 0.736.45 0 Mon-Fri: 7am – 6pm, Sat: 9am – 4pm Autoland 8 0.234.6 9 Enterprise Car Sales 8 0.CAR.SALES Gr enPath Financial Wellne s 8 7. 37. 3 9 Frontwave Investment Services 760.439.6960 Frontwave Insurance Services, LC 8 4.7 8.0820

STATISTICAL REPORT As of November 30, 2019 Members: 91,614 Assets: $890,891,398 Total Shares: $757,133,421 Loans Outstanding: $603,949,171 As of February 28 ,2021 Me bers: 113,056 Assets: $1,114,569,276 Total Shares: $967,250,170 Loans Outstanding: $632,295,202

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