Frontwave Briefing | Second Quarter 2023

Check out Frontwave Credit Union's Member Newsletter for the Second Quarter 2023.

Briefing Frontwave Credit Union Member Newsletter | Second Quarter 2023

How to Build Wealth and Step up Your Savings Game

Saving isn’t always easy. From managing your day-to-day finances to shelling out money for unexpected medical bills, a broken water heater, or even a loss of income, it may seem there’s never enough left to put towards your future. If you feel you’re not saving enough, you’re not alone. According to a recent study, 56% of Americans have less than $1,000 set aside in their emergency fund. The great news is that you can make small changes to your saving strategy, making your money work for you with the power of compound interest. Have you ever heard “the more you save, the more you earn?” That old adage is the principle behind compound interest. Simply put, compound interest is interest you earn on interest. It has the power to grow your money exponentially even if you don’t add another penny to your initial investment. If you’re like many Americans who have the bulk of your money tucked away in an account earning a dividend less than 1% annually, you’re missing out on some easy, low to no risk tools to put your money to work. Here are a few quick tips to help grow your money and reach your saving goals. Certificate Accounts If you’re saving for a big purchase like a vacation or a home, certificates often offer higher dividend rates than traditional

savings accounts. By agreeing to put your money aside for the term of the investment, you’ll receive a guaranteed return. Here at Frontwave, we offer industry- leading rates on Share Certificates and Saver Certificates. Both offer flexible terms from 6 months to 5 years to help you work towards your short-term and long-term savings goals. The key differences between these two types of accounts are: 1. Share Certificates require a minimum deposit of $1,000 whereas our Saver Certificates only require a $100 deposit to get started. 2. Saver Certificates require a monthly contribution between $10 and $500 for the term of the investment. This

is a great way to get in the habit of saving which will help you earn more interest over time. Monthly Contributions to Your Retirement Account There are many ways to fund your retirement from 401(k)s and 403(b)s to IRAs and TSPs. And making regular contributions as opposed to investing lump sums can help set you up for success. What’s more, this investment strategy allows you to take full advantage of compounded interest, helping grow your money over time. Consistent contributions also help reduce the impact of dips and swings in the stock market and over time, cut the average cost of your investment.*

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*The information included in this article is for educational purposes and is not intended to be taken as investment advice. Diversification and asset allocation do not ensure a profit or guarantee against loss. Investing involves risk, including risk of loss. Investments are not insured, and past performance is no guarantee of future results. Frontwave is not providing recommendation or endorsement of any specific investment or strategy.


Second Quarter 2023

Our Online Banking Portal and Mobile App offer cutting-edge technology with a variety of built-in security features. From eStatements that provide a safer, faster, and easier way to review your finances, to security alerts that notify you of suspicious activity or transactions; your security is our top priority. And if you’re looking for more financial education and security tips, check out the Frontwave blog and follow @frontwavecu on Facebook, Instagram, and Twitter. As an innovative credit union, we understand not only the value and power of technology, but also the importance of a human touch. We’re equally committed to providing you the very best in-branch experience. I’m excited to share, our new School of Infantry branch on Camp Pendleton is now open! The branch got a big upgrade recently with a great, convenient location, state-of-the-art equipment, full-service banking, and added privacy. If you’re on base, stop by and check out our new digs! Today and every day, we’re here to help you achieve your financial dreams! If you have questions or need help planning for your future, the Frontwave crew is standing by. As always, THANKS FOR YOUR MEMBERSHIP! Get Your Copy of the 2022 Annual Report! Our 2022 Annual Report is now available. The report offers a summary of our 2022 financials and achievements, community involvement, as well as insights from Frontwave’s Chairman of the Board, Treasurer, and Chairman of the Supervisory Committee. Click here to get your digital copy, or ask for a copy at your local branch. New SOI Branch Now Open! If you’re in the neighborhood, stop by and check out our new digs! MCX SOI (School of Infantry) 520409 Basilone Road #119 Camp Pendleton North, CA 92055

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 your feedback, when it comes to your digital banking experience, we heard you loud and clear! That’s why we’ve rolled out a new enhancements to the Frontwave app and Online Banking including: •

Notes from the CE0

Instant Account Verification to safely, quickly, and easily add accounts for transfer or reoccurring payments. “Remember Me” feature added to Snapshot experience to give you an at-a-glance view of all of your account balances without the need to login.

Bill Birnie, President/CEO As we close the books on Q1, you may be feeling some uncertainty brought on by Silicon Valley Bank and Signature Bank going belly-up, the looming threat of a recession, and continued high inflation. It’s a lot! I know. But I also know what’s not uncertain. Frontwave Credit Union and the banking industry at-large continue to be SAFE AND SOUND! You may be familiar with our tagline, “Dream Big. We Got You.” We encourage you to “dream big” because we have the tools to help make those financial dreams come true! In 2022 alone, we helped nearly 300 families get into a new home with our low-cost mortgages. We financed loans for nearly 10,000 families, helping them realize their own financial dreams. And, we helped nearly 4,000 families build their credit and increase their purchasing power with a new Frontwave Credit Card. When we say “we got you” we mean we’re 100% committed to protecting your assets. We’ve been in business for over 70 years and our financials are strong! As we shared in a recent communication, we are classified as “well-capitalized,” the highest possible designation given by NCUA, with a net worth ratio above 9%. We have a diversified asset base and have ABSOLUTELY NO INVESTMENTS in high-risk markets like cryptocurrency or NFTs. We are completely transparent about our financial outlook and share our records openly on our website and in our Annual Report. Speaking of protecting your assets, we have a lot of security tools in place to keep your money and your personal information safe. We’ve invested in a digital-first strategy to ensure we’re empowering you with a convenient, easy, and seamless banking experience so you can manage your finances whenever you want and wherever you are.

We’re not the only ones excited about this latest update. Check out some of the feedback we’ve received in our Member survey:

Frontwave app is great! Best Credit Union!!!

Convenient banking, charge free access and great communication!

Got any other feedback for us? The next time you get a survey from us, we really appreciate you telling us how you feel.


Second Quarter 2023

Annual Election Frontwave Insurance Services. A one- stop shop for all your insurance needs, Frontwave Insurance Services can Looking to Save on Your Insurance? Make sure you’re getting the best deal with a fresh new quote from make sure you have the right insurance for your needs at the best price. Get a free, no obligation insurance quote by visiting or calling 844.788.0820. and thereafter must repay interest and the principal over the next, say, 15 or 20 years. Your Home Equity Line of Credit (HELOC) rate can adjust monthly or quarterly. So, if you have an outstanding balance, your payments will likely go up when the Fed implements a rate hike. HIKING TIP: If you have a HELOC, budget for higher payments. You can also pay down your HELOC balance to reduce the interest you pay, or talk to your lender about options, such as refinancing. 4. Auto Loans It’s already more expensive to buy a new or used car, as their prices have increased dramatically over the last two years. This is due to a number of reasons that have resulted in supply not keeping up with demand. Unfortunately, if you’re planning on financing the purchase of a vehicle in the near future, you’ll need to add in the higher cost of borrowing. HIKING TIP: Make a down payment of at least 20% of the purchase of a new car, and no less than 10% for a used car. A sizable down payment will lower your monthly payments and could help secure a lower interest rate. Kathy may be reached at 760.439.6960 or

Taking a Hike 4 Ways Interest Rate Hikes Can Affect Your Finances

nless you live on another planet, you are fully aware of this thing called called inflation — whether you’re at the grocery store, a gas station, buying clothes online, hiring a contractor or doing almost any other thing that requires spending money for something. Earlier this year, the Federal Reserve started raising interest rates to rein in inflation, which reached another 40- year high in June. By raising rates, the Fed hopes to slow the economy and inflation. That’s because as borrowing becomes more expensive, consumers tend to reduce spending. The drop in demand for goods eventually leads to lower prices. Provided by Kathy Chesney, ChFC, CLU U The Fed doesn’t set interest rates on credit cards, mortgages, auto loans, and savings accounts, but its actions influence those rates. Here are four ways interest-rate hikes can affect your finances and how to deal with the impact: 1. Credit Cards Most cards charge a variable rate that’s tied to the bank’s prime rate — the rate banks charge their best customers (many consumers pay an additional rate on top of prime, based on their credit

profile.) Banks typically raise their prime rate quickly after the Fed boosts its key rate. HIKING TIP: It may take a couple of statements before you notice the impact of a rate increase. Start paying down any balance before rates get much higher, focusing on the card with the highest rate first. 2. Mortgages If you have a fixed-rate mortgage, your monthly payments will stay the same. If you refinanced over the last few years and locked in a rate in the 2% to 3% range, that was really good timing. However, if you have an adjustable- rate mortgage (ARM), you may be faced with having to make larger payments, depending on the terms of your loan. HIKING TIP: If you have an ARM, budget for higher payments. Or, if you anticipate buying a home within the next year or two, take steps to improve your credit score so you can secure a lower interest rate. 3. Home Equity Line of Credit This allows you to borrow against the equity in your home as needed, usually at a variable interest rate. Borrowers typically pay only interest on the amount borrowed for the first 10 years,

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:

• Auto Insurance • Motorcycle Insurance • Home Insurance • And more!

Annual Election 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 2023

What’s better than free financial education? Getting it from the comfort of your couch! Register for one of our virtual workshops today at Navigating Auto Buying Buying (and financing) a car can be one of the biggest financial decisions you can make. Although most people go years between vehicle purchases, it’s not always a fun process. No one wants to pay too much for a car. There are many things to be aware of to ensure you are getting a good deal and can trust the dealer or individual you are buying from. • Wednesday, April 5 @ 10:00 am First-Time 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. Upcoming Financial Workshops

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.

Stay in Touch We love connecting with our Members, sharing how we’re supporting our communities, and saying thank you for your Membership with special giveaways! Join our social media communities to get the latest on Frontwave news and happenings, financial education tips, chances to win great prizes, and more.

• Tuesday, April 18 @ 6:30 pm • Tuesday, June 20 @ 6:30 pm

Military Home Buying You serve your country proudly and 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. • Tuesday, May 9 @ 6:30 pm Understanding Credit Reports & Scores Are you interested in better understanding credit reports, credit scores, and how they work together? Millions of people are unaware they have errors on their credit report. We can point you in the direction to find out if you are one of them and equip you to take action to correct inaccuracies. We will also discuss the factors impacting a credit score, how to build or improve your score, and debunk common credit myths. • Wednesday, May 10 @ 12:00 pm

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, We’ve got you covered coast-to-coast!

call 888.748.3266 or visit

• Tuesday, April 11 @ 6:30 pm • Tuesday, June 13 @ 6:30 pm




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

As of February 28, 2023 Members: 123,017 Assets: $ 1,437,008,841 Total Shares: $ 1,184,238,596 Loans Outstanding: $ 932,493,516

Memorial Day Monday, May 29, 2023 Juneteenth Monday, June 19, 2023

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


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