Free Up Cash & Increase Your Financial Cushion

As a nation, America is not great at saving. More than 55% of American households have less than one month worth of income in liquid savings (cash, or savings or checking account). Are you one of them? Even taking into consideration retirement accounts and investments, the average family can only replace four months of income in the case of an emergency. Here are a few tips for increasing your savings and curbing your spending:

Consolidate Debt: By consolidating credit cards or loans, you can often save on interest and lower your total monthly payment, not to mention simplifying it, by just having one payment to make. The key to consolidation is to cut up those old cards, then, or close them all together. Consolidating won’t help you at all if you turn around and run up even more debt again!

Refinance Your Mortgage and Vehicle Loans: You may qualify for lower rates if you refinance. Mortgage rates are still low, so if you haven’t refinanced in the last five years or so, check your rate and compare it to offered rates in your area. If you had a mortgage loan with private mortgage insurance (PMI) see if you have paid your balance down enough to remove that coverage. If it makes sense for you, you could also extend the term of your loans to decrease your monthly payment.

Go Green: Many companies offer a discounted loan rate for borrowers who set up automatic payments for their loans. Check to see if this is offered at your financial institution. Using automatic payments can also help prevent late fees by making your payment for you, on time, every month.

Review Insurance Coverage: When is the last time you really reviewed your insurance policies? Check the rates that you’re paying and compare your rates to those of other companies on the National Association of Insurance Commissioners website. You could save money on your monthly premiums if you raise your deductible. Make sure you’re covered for what you need, but not paying for things you don’t need. You may be able to get rate reductions or discounts if you have vehicles you only use seasonally, if you have children off at college who are not typically driving, or if you have a high school student getting good grades.

At Horizon Community Credit Union, our loan officers would be glad to review your current debt and look for ways to save you money. We have great, low rates on mortgage loans and vehicle loans. You can get loan interest rate rebates for having a checking account with HCCU, for having direct deposit and automatic payments, or for being a Gold or Platinum SunDrops member. Finally, we also have partnerships with insurance companies including Liberty Mutual and TruStage. If you don’t have a savings cushion, don’t wait for a financial setback, start taking steps today to keep more money in your pockets each month!

Image courtesy of iosphere at FreeDigitalPhotos.net

Post by: Erin S. 

POA & POD - What you should know!

Before I started working at Horizon Community Credit Union, I was employed as a caregiver for seniors. I assisted with daily living needs, but over time I became aware of the type of financial responsibilities seniors have. One of the things that seniors must establish later in life is a financial power of attorney, often called POA’s.

A Power of Attorney for Finances is a person to whom you have granted the right to handle your finances and property. There are a few important things to know about a POA for Finances. First, establishing a financial POA does not mean you relinquish control of your finances and property. You still have the power over your finances and property, but in the case that you cannot act, your financial POA can act for you. Even if you are able to act, your POA can conduct that action for you.  Second, financial POA is durable. This means that, unless you specify otherwise, the POA is still active even if you become incapacitated. Third, you can change your POA at any time. You simply need to revoke the current POA form and complete another one. Lastly, and most importantly, the financial POA has no power over your finances and property after your passing.

There is a form made available by the state of Wisconsin that establishes POA for Finances, and the link for that will be available at the bottom of this post. You need to meet with your lawyer to complete this form. Horizon Community Credit Union requires legal documentation such as the form available thorough the link. I encourage you to look through the form, as there is so much information regarding POA of Finances that I would have to write a short book instead of a blog post.  It is also important to note that this particular POA is for Finances only. If you wish to establish a POA for your healthcare decisions, that is a separate process.

Another term you may hear is POD, which means Payable on Death. In laymen’s terms, anyone you establish as a POD becomes a beneficiary of your account upon your passing. A POD does not have any powers over finances or property.

What I’ve explained only just touches on the subject of POA/POD. If you have legal questions, certainly consult your lawyer. If you have the paperwork required to establish a POA or you have questions about what paperwork the credit union requires to establish a POA, you can stop by the paperwork or call with questions any Horizon Community Credit Union branch during normal business hours. If you would like to set up a beneficiary POD, stop by either of the Horizon Community Credit Union branch during normal business hours. You need to know your POD beneficiary’s information (SSN and the like) or you can bring the person you wish to assign as a POD beneficiary with you.

POA and POD can seem complicated, and sometimes they are. At Horizon Community Credit Union we’re here to help you understand. Though your legal questions should be directed to an attorney, the Member Service Representatives at either Horizon Community Credit Union branch can help clarify any remaining questions.

State of Wisconsin Department of Health Services: Power of Attorney for Finances Form

Post by: Breanna B.

The Perfect Gift

Photo Courtesy of digitalart at freedigitalphotos.net

Paper or Plastic?   Replace those paper gift certificates with plastic VISA® gift cards today!  Gift cards are the perfect gift for any occasion or time of the year … birthdays, graduations, showers, weddings, and all holidays.  Buying a gift card is easy and requires very little thought or time.  Shopping for gifts can be a real dilemma.  Just what do you get your significant other, your child, or your co-worker?  Gift cards may be the answer: one size fits all, and the receivers can get exactly what they want.  Our prepaid VISA® cards range from $10 to $500 and can be purchased for $2.50 at both Horizon locations.  So come in today & pick up that perfect gift!  

Post by: Beth B

Individual Retirement Accounts available at HCCU!

What is an IRA?
IRA stands for Individual Retirement Account.  One member owns it, it helps the member to save for retirement or education. It is an account, not an investment.

What types of IRA accounts does HCCU offer?

ROTH IRA: With a Roth IRA, you make after-tax contributions, so withdrawals are tax-free in retirement

TRADITIONAL IRA: With a Traditional IRA, your contributions may be tax-deductible, and you'll pay taxes when you make withdrawals in retirement.

COVERDELL IRA: With a Coverdell Education Savings Account you save for future education of your child/children.

All of the above IRAs are available as a regular share account or share certificate.  IRAs at Horizon Community Credit Union are not part of the stock market. You cannot lose value in your account.  

If something happens to me, who gets that money if no one else is on the account?

You can will any of the above accounts to loved ones in the event of your death.

What if I have other questions?

Ask any one of our MSRs for details. We have informational pamphlets available to everyone, and we would be glad to answer any questions you have and help you find an option works for you.

Remember: We are a financial institution, not financial advisors. We are not able to give any tax advice to our members or evaluate members’ savings strategy for retirement.

Post by: Lori S