This is Frontwave Credit Union's Member Newsletter for Third Quarter 2024.
Briefing Frontwave Credit Union Member Newsletter | Third Quarter 2024
Importance of Financial Education
In high school, we learn geography, algebra, and social studies, but did you ever have a course on how to finance a car or navigate student loans? As adults, many of us learn to manage our money based on first hand experience, or learning as we go. That doesn’t necessarily need to be the case. At its core, financial education teaches fundamental concepts such as budgeting, saving, investing, and managing debt. These skills are essential for personal financial stability and long-term wealth accumulation. Understanding how to create and adhere to a budget, for instance, helps individuals allocate their income effectively, and prioritize expenses. Having this knowledge can simplify the process of home purchase or help determine which debt repayment path is right for you. Frontwave takes pride in offering practical personal financial education and training to thousands of Marines and community members. At Frontwave, our Military Relations tirelessly in the field, assisting Marines and their families in learning, growing, and achieving their financial goals. Whether they’re just starting in boot camp or transitioning into civilian life, our team provides guidance and training in individual budgeting, financial planning, and Unit-level financial workshops on base. team, who are all Certified Financial Counselors, work
In 2023 alone, our Military Relations team dedicated a total of 34,405 hours to providing financial education to 34,340 Recruits. Additionally, they delivered 3,165 conducted community training sessions totaling 1,035 hours, benefiting 960 participants. In addition to our Military Relations team, every Frontwave branch hours of instruction to 2,610 Marines in Unit Training and location is staffed with a Certified Financial Counselor. These financial counselors are proud to provide practical financial education to every member. They can assist in any aspect of financial education, from debt consolidation to expense planning, or an auto loan purchase.
The credit union is also staffed with an Investment Services team that will work with you to determine your investment path, create an investment timeline, and set long- term goals. Regardless of where you are in life, the end result will be a strategy designed with the goal to preserve, build and use your assets in the most advantageous way. A good financial education is a vital tool for empowering individuals to achieve financial well-being. Wherever your priority lies, being proactive in seeking the knowledge that can move you closer to your end goals can change the path of your financial future. We are here to help make that path easier. We got you!
1/6
Third Quarter 2024
frontwavecu.com
Notes from the CE0 Bill Birnie, President/CEO
plan. That’s like getting a 5% raise – for free! And it all goes into your retirement plan – tax deferred. If you’re serving in the military,
“I wish I knew then what I know now.” Remember those lyrics from an old song. There’s so much truth in those simple nine words. As we grow older we learn stuff… And we regret. We regret that, out of fear of denial, we didn’t ask that person we really liked to the high school prom. We regret that we didn’t apply for that job. We regret that we made a poor choice in an expensive purchase. We regret the times we opted to fulfill our desires as opposed to our needs. And, we regret that we didn’t embrace a life-long habit of saving money. I get it! It’s hard to think about retirement when you’re young. It’s hard to remember that when it comes to accumulating wealth, time is truly our best friend. According to an AARP survey, 20% of adults over the age of 50 have NO retirement savings and 61% are afraid they will not have enough money to support their families in retirement. Forbes reports that in a nationwide survey of working age Americans, 79% agree that the nation is facing a retirement savings crisis. So it begs the question… How can you avoid becoming a victim of this crisis? Start early and often! Not tomorrow. Not next week. Start NOW! If you start when you’re young over time that savings will grow. Think about this… If you’re able to save $1,000 a year (that’s less than $84.00 a month) for 30 years you will have contributed $31,000 and, through the magic of compounding interest on average of 5% per year, your savings will have grown to $74,083! Don’t stop there! Every time you get a pay raise or promotion, add a part of that raise to your savings! If your employer offers a 401K retirement plan, you should participate in that plan enough so that you’re maximizing the employer’s match. If your employer offers a 5% match, you should be putting, at a minimum, 5% of your income into the
the Blended Retirement System (BRS) is available to you. It’s even better! You automatically receive a contribution of 1% of your pay to your Thrift Savings Plan (TSP) account from the Department of Defense AND, if you choose to contribute 5% of your pay they will match another 4%. That’s a total of 10% of your pay going into your TSP account every pay day! What’s best for you? It depends. There are several options available to you and it can be a bit overwhelming trying to sort out what is the best way for you to save. WE CAN HELP! Frontwave’s certified financial counselors will work with you to understand your financial posture, help you build a budget and walk you through the various savings options and retirement plans that are available to you. They know the BRS, inside and out! Investing in lottery tickets is not a viable retirement plan! Remember, time is your friend and PLEASE – when it comes to savings - START EARLY AND OFTEN!! Remember those lyrics… “I wish I knew then what I know now.”
2/6
Third Quarter 2024
frontwavecu.com
Calling all leaders. Our Annual Meeting and election for the Board of Directors will be held on March 26, 2025. The following Volunteer opportunities are available: Three Board Positions with 3-year terms. Two Supervisory Committee Positions with 2-year terms Apply for nomination by September 27, 2024 at frontwavecu.com/board.
switch up a gear.
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 frontwavecu.com/insurance or calling 844.788.0820 . • Auto Insurance • Motorcycle Insurance Looking to Save on Your Insurance?
Earn up to $350* a new auto loan at Frontwave.
• Home Insurance • Renters Insurance • Life Insurance
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.
*Visit frontwavecu.com for more information.
3/6
Third Quarter 2024
frontwavecu.com
MAXIMIZING RETIREMENT INCOME
Provided by Kathy Chesney, ChFC, CLU and Niko Pandeleos, Associate Financial Advisor Not sure how to start saving for retimrenent? Or maybe you are trying to make more money post retirment. Check out these tips. Know How Your Retirement Savings Accounts Are Taxed Withdrawals from traditional generally means it is made after a five-year waiting period and the account owner is 59½ years or older. As for your nonretirement accounts, bond income and some of the dividends you receive from stocks and mutual funds may be taxed at your
deferred. But, depending on the circumstances, this order may not be right for every person. If most of your investment gains are from long-term assets held outside of a traditional 401(k), IRA or other similar tax deferred accounts, you’ll likely pay long- term capital gains taxes, which are generally lower than what you pay on distributions taxed as ordinary income from your tax-deferred retirement accounts. You’ll also need to consider the impact of your retirement savings on your taxes once you reach age 73 (or age 75 after 2032). It’s prudent to consult with a financial advisor or tax professional regarding retirement income and tax planning strategies.
federal ordinary income rate, but qualified dividends and long-term investment gains are generally taxed at lower long-term capital gains rates. State and local tax treatment may vary. Develop a Thoughtful Distribution Strategy For some people, it will make sense to consider tapping taxable accounts first, then tax
401(k) plan accounts and certain other employer-sponsored plans, as well as traditional individual retirement accounts (IRAs), will generally be subject to federal and state ordinary income taxes upon withdrawal. On the other hand, contributions to a designated Roth 401(k) account or Roth IRA are federally tax-free when you withdraw those funds, as are the earnings, assuming the withdrawal is a qualified distribution, which
cont. on page 5
4/6
Third Quarter 2024
frontwavecu.com
Maximizing Retirement cont.
Call Kathy or Niko at 760.439.6960, or contact by email at kathy.chesney@lpl.com niko.z.pandeleos@lpl.com. retirement, you can manage the amount of taxable income you receive and make adjustments when necessary. You can also pay for qualified medical expenses during retirement with any health savings account savings you may have. Those qualified withdrawals are tax-free and won’t affect your taxable income. Avoid Moves That Could Put You in a Higher Tax Bracket RMDs and other changes that bump up your income can result in what’s called “bracket creep,” which is unintentionally slipping into a higher tax bracket. For example, you might receive an inheritance or sell some real estate. A higher income can also affect the taxability of your Social Security benefits and increase your Medicare premiums. This is one reason you may want to consider funding different kinds of retirement accounts during your working years. For instance, you could diversify your retirement contributions and split them between a Roth and traditional (pretax) allocation. During
Not Insured by NCUA or Any Other Government Agency
Not Credit Union Guaranteed
Not Credit Union Deposits or Obligations
May Lose Value
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: 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.
5/6
Third Quarter 2024
frontwavecu.com
What’s better than free financial education? Getting it from the comfort of your couch! Simply visit frontwavecu.com/workshops to register for any of our no-cost, no-obligation virtual workshops Road to Retirement Are you ready to retire? 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? • Wednesday, July 9 @ 6:00pm PST • Wednesday, July 23 @ 6:00pm PST 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.
Upcoming Financial Workshops
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, Aug. 20 @ 6:00pm PST Understanding Medicare Healthcare after retirement is important, but can be tricky to navigate. In this webinar we go over the Medicare basics and the differences between Parts A, B, C and D. We will also give you tips for choosing your coverage and enrolling in Medicare.
Three Transitions to Retirement Many job-hoppers may have a
401(k) retirement plan with a former employer and chaning the 401(k) might not be the first thing on your mind during the change. Or maybe you are retiring and wondering how to handle your retirement plan moving forward. Here we discus four major options when changing jobs or retiring. • Wednesday, Sept. 10 @ 6:00pm PST Understanding Your Rollover Options You generally don’t pay tax on a retirement plan until you withdraw it from the new plan, so rolling it over is a good thing. We will go over how a rollover works, and all the pros and cons for the options.
• Wednesday, Aug. 27 @ 6:00pm PST
• Wednesday, Sept. 17 @ 6:00pm PST
UPCOMING HOLIDAYS
CONTACT US
STATISTICAL REPORT
Frontwave will be closed in observance of the following holidays this quarter:
Member Solution Center 760.631.8700 or 800.736.4500 Mon-Fri: 7am – 6pm, Sat: 9am – 4pm GreenPath Financial Wellness 877.337.3399 Frontwave Investment Services 760.439.6960 Frontwave Insurance Services, LLC 844.788.0820
As of May 31, 2024 Members: 123,240 Assets: $1,523,564,498 Total Shares: $1,199,325,891 Loans Outstanding: $936,759,690
4th of July Thursday, July 4, 2024 Labor Day Monday September 2, 2024
As always, Express Line, Online Banking, Mobile Banking, and ATM services are available to you 24/7.
4/4
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6Made with FlippingBook - professional solution for displaying marketing and sales documents online