Tax time is stressful for everyone—will you have to pay? Are you getting all the deductions you’re entitled to? Another benefit of GHCU membership is access to the stress-reducing tax-preparation software TurboTax free or at a reduced price. TurboTax can help you do your taxes quickly and accurately, and with eFiling, you can have your tax return in your account in as little as a week.

To access TurboTax, you must be signed on to online banking. If you have not yet opted for online banking, call GHCU to get started: 800-562-5515 (206-298-9394 locally). From your online banking page, choose the “My TurboTax” tab and enjoy a less stressful tax season!

Filed under: GHCU News by Shannon
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Tax records, old credit card statements, pay stubs: how long should you keep them? It’s important to keep paper records in case of disputes, but unnecessary paper, if stolen, could be used to commit identity fraud. Here are some tips from the Washington State Attorney General’s office on identifying shredables:

• Tax records: Keep for seven years, then shred.
• Pay stubs: Shred after you’ve done your taxes for that year.
• Credit Union/Bank statements: Shred after one year, unless they have information that could affect taxes.
• Medical records: Keep at least one year, possibly as long as five if there’s the possibility of a dispute over reimbursement.
• Phone/Utility bills: Shred once paid, unless you need them for tax purposes.
• Home improvement/sales/purchase: Keep for six years after you sell; some expenses may lower your capital gains tax after the sale of your home.

Other good ways to avoid identity fraud are to opt for eStatements instead of paper and pay bills online rather than through the mail.

If you sign up for eStatements at GHCU, your statements are available for up to a year online, or you can download them to your computer. Additionally, with the GHCU online bill payer, your bills are available for you to look at for at least one year, often longer. Call GHCU for help signing up for online banking and bill pay: 800-562-5515 (206-298-9394 locally).

Filed under: Money management tips by Shannon
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For those fully vested in an employer 401(k) program, adding an IRA to the mix may seem like retirement-readiness overkill. But markets are volatile, and many working folks have seen their 401(k)s decrease in value and their employers cut back on contributions. Having multiple savings vehicles can help ensure a more financially stable retirement. Some things to keep in mind when considering an IRA:

• Tax benefits. Contributions to a traditional IRA now can reduce your taxable income for 2009. Qualified earnings from a Roth IRA are tax-free when you begin taking distributions.
• If you are under 50 in 2010, you can contribute up to $5000 or the amount of your taxable compensation for 2010, whichever is smaller.
• If you are 50 or older in 2010, you can contribute up to $6000 or the amount of your taxable compensation for 2010, whichever is smaller.
• The maximum amount you can contribute to a Roth IRA may be reduced, depending on your Modified Adjusted Gross Income (MAGI).
• How much of your traditional-IRA contribution is tax deductible depends on your MAGI and if you are covered by a retirement plan through your employer. Consult with your tax advisor.

Filed under: Money management tips by Shannon
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 (Celebration and Shredathon address: 11023 8th Avenue NE, Seattle, 98125)

If you’ve visited the Northgate branch lately, you’ve no doubt noticed a few changes. Gone are the imposing teller desk and view-blocking columns, replaced with more open space, low desks and a friendlier feel. Says Ella Agcamaran, Assistant Manager of the Northgate branch, “Our members definitely love the newly remodeled branch, and everybody in the branch seems happier!” Branch Manager Matthew Hensley agrees: “I think the renovated space looks and feels fantastic! I truly believe that the changes  create a more welcoming and positive member experience. Members love it and are blown away by how nice it looks: they walk in, and their jaws drop, and they say ‘wow.’”

 It took a few months of rather cramped conditions, but the response from staff and members has been overwhelmingly positive. In fact, according to Bryan Corning, Senior PFR at Northgate, “We’ve done more sales here in a week than in six weeks at the temporary location!”

 If you haven’t had a chance to check out Northgate’s new look, we have just the occasion for you: our Renovation Celebration and Shredathon! On Friday, April 23, please join us for a small celebration in honor of our beautiful new branch, and we hope you’ll come back on Saturday the 24^th with up to two bags’ worth of shredables for our shred trucks! Let GHCU and Shred-It help you empty your file drawers and guard your identity by securely shredding old documents. Not sure what to shred? Visit our blog for more information!

Filed under: Community Highlights, GHCU Events by Shannon
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In his 34 years as a geophysicist for Texaco, Richard Maywald lived just about everywhere: Africa, the Middle East, Asia, Europe, even—occasionally—in the United States.

Energetic, highly adaptable and insatiably curious, Mr. Maywald has always been well-suited for a life outside his country of origin. He attributes his ease with living abroad to a pair of eccentric aunts who taught him there’s a lot of life beyond the family farm in Minnesota. “They were inquisitive and they loved to collect things. I inherited both of those qualities from my aunts,” says Mr. Maywald.

Indeed, Mr. Maywald’s house is full of beautiful objects gathered during his many years overseas: elegant bronzes cast by the Benin people of Nigeria and ancient ceramics from China are some of his favorite pieces. “I’m interested in art that has historical value. I enjoy the art more when I know how the work reflects the culture,” he says. Take the Nigerian bronzes, for example: not only does he appreciate the statues for their beauty, he takes the time to learn how the bronzes are cast and what the symbols etched on the figure represent.

The key to being successful in another culture, says Mr. Maywald, is conversation, taking the time to really listen, not just make idle chatter. “That’s how you learn about traditions and cultural rules. I always want to dive in and develop friendships among the indigenous people: I learn the culture, pick up some of the language.” His respectful curiosity has made him a welcome guest all over the world.

Seventy-eight years young, Mr. Maywald still travels, no doubt charming the natives everywhere he goes. In the last two years, he’s been to India and Romania, and he’s planning a month-long trip to Nicaragua in 2010.

When Mr. Maywald decided to “settle” in Washington State, a friend from Grinnell College days, now working for Group Health Cooperative, suggested he consider becoming a member of GHCU. In 2003, Mr. Maywald became a member of the credit union and now says he “wouldn’t trade it for anything.” For our part, the team at GHCU is very glad Mr. Maywald landed here.

Filed under: GHCU Members by Shannon
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GHCU is thrilled to announce two brand-new certificates! Lower opening balances make it easier for everyone to start their savings programs and earn dividends on their investments.

Choice Certificate

• Minimum opening balance of only $500
• You may make additional deposits at any time over the term of the certificate
• 6-month term
• See our Rates page for rate information
• Not eligible for PurplePoints rate increase

Youth Certificate (must be 17 or younger at opening to be eligible)

• $100 minimum opening balance
• You may make additional deposits at any time over the term of the certificate
• 24-month term
• See our Rates page for rate information
• Not eligible for PurplePoints rate increase

Start with a lower minimum opening balance, add cash as you go, and work your way towards a financially stable future. The Youth certificate is a great way for kids to earn dividends and learn the savings habit.

To open your certificate, stop by a GHCU branch or give us a call at 800-562-5515 or 206-298-9394.

Filed under: GHCU News, Your Money/Your Kids by Shannon
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Can you put a firewall around your mailbox? Probably not, but there are some steps you can take to reduce your risk of identity theft. This month our experts take on Identity Theft and answer the question, “What can I do to protect myself?”

From Matthew Hensley, Branch Sales Manager at our Northgate branch:

1. Protect your Social Security Number (SSN)–Don’t carry your card in your wallet and never write it down on a check or other negotiable instruments. Give your SSN only when absolutely necessary; if at all possible, use other identifiers. If your SSN is used on your State’s Driver’s License or Medical Insurance Card, ask if you are able to substitute another number.
2. Treat your garbage and mail carefully–Thieves have no problems digging in your trash or mailbox if it means they can get your credit card number or other information to use your identity fraudulently. I highly recommend paying bills online and receiving paperless statements via online/email. If you must mail sensitive information, use the post office—not a blue drop box but an actual United States Post Office. Despite all the reports of database theft, the most common method thieves use to steal our personal information is through traditional rather than electronic channels. The Justice Department (2006) found that in the cases where the method was known, 68.2% of information was obtained off-line vs. only 11.6% obtained online.
3. Use complex passwords–put passwords on all credit cards, bank accounts and phone accounts. When selecting passwords for these and your online accounts, avoid using anniversary or birthdates, mother’s maiden name or the last four digits of your SSN. I would even go as far as to not use your pet’s name because you never know who is listening when you are walking your dog or calling your cat to come in. The strongest passwords are combinations of letters and numbers or special characters.

 A great reference for tips for Identity Theft Protection or a resource for victims of Identity Theft is provided by the Federal Trade Commission.

From Drew Baker, Risk Specialist,

Tips to avoid ID theft: ID theft can involve plastic card fraud and check washing. If someone uses your plastic card or check, they are assuming your identity. Here are a few ways to try to avoid these frauds.

1. Avoid check washing by switching to online billpay: that’s the quickest and easiest solution. It’s also better for the environment and uses less paper and fuel to drive your paper where it is going. If you still must write paper checks, use the Uniball 207 Gel Pen, as it is touted as an anti-check washing pen. Don’t put personal checks in your outgoing mail if your mailbox is unsecured.  Avoid giving unknown individuals checks for payment. If you must pay someone that you don’t know for goods or services, use cash, money order or a cashier’s check.
2. Avoid plastic card fraud. Skimming devices are increasingly being used to copy cards and PINs which are then used to make counterfeit cards. These skimming devices are usually placed as an overlay onto an ATM machine or pay-at-the-pump gas station kiosk. You should always visually inspect any card reader that you put your card into. If you see that the plastic overlay is loose, off-colored or comes off in your hand, don’t use it and report this to the police. Run your hands over the card reader and key pad to make sure they are not fake ones placed on top of the real thing. The crooks are also placing fake speakers, brochure holders or other devices with cameras pointed at the key pad to capture the pin numbers. Use an ATM that you are familiar with, so you know what it looks like. Watch your account activity carefully: crooks will “test” a stolen card number to make sure it works by sending through a small authorization first (iTunes for $1.00, for example) so you may not notice or care. The big transactions will show up later; count on it!

Filed under: Ask GHCU, Captain Safety! by Shannon
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With rates for mortgages still dipping into historically low territory, many homeowners are wondering if the time is right for a refinance. Refinancing to a lower rate could potentially save thousands of dollars in interest, shorten the time left on a loan or both. How do you know when a refinance is worth the work?

If you’re considering refinancing, ask yourself the following:

• Do you owe more than the house is worth? If what you owe on your home (including any home equity loans or lines of credit) is more than 105% of the home’s value, you may qualify for the federal Home Affordable Refinance Program (HARP) or the Home Affordable Modification Program (HAMP).  If you feel you may be eligible for HARP or HAMP, contact your mortgage servicer for assistance.
• Will you save at least one point on the Annual Percentage Rate (APR)? If your current mortgage rate is 6.25% APR, a rate of 5.25% APR or lower may well save you some money.
• What will your closing costs be? Shop around for a lender with low closing costs—you don’t want to have the savings from your reduced monthly payment eaten up by fees.
• Will you be extending the terms of your loan? If you’re 10 years from paying off your mortgage, then refinancing out another 30 years may not make sense for you. Of course, you can always make additional principle payments. Check that your lender has no prepayment penalty.
• Can you shorten the term of your loan? Perhaps, with a reduced interest rate, you can shift from a 30-year mortgage to a 15-year and save yourself some interest.
• Is your credit score ready? If you believe a refi is in your future, be sure you qualify for the best rate possible by checking and cleaning up your credit histories (you can get these free at annualcreditreport.com).

If you think this might be the right time to refinance, the Personal Finance Representatives at Group Health Credit Union have worksheets and calculators to help you know for sure. Visit one of our branches to get started. But don’t delay! Most financial experts predict a sharp rise in mortgage interest rates in time for the high demands of spring and summer.

Filed under: Ask GHCU, Financial News and You, Money management tips by Shannon
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There’s never a bad time to begin or boost your retirement savings, but tax season is a particularly good time to consider your IRA options.

What are the choices?

A traditional IRA allows you to make contributions for immediate tax savings. The earnings of the IRA grow tax-deferred until you begin making withdrawals in retirement. The amount of your contribution which you are able to deduct from taxable income may depend on participation in an employer 401(k) and income level.

A Roth IRA doesn’t give you the immediate tax savings,  but withdrawals are tax-free in retirement. There are income limitations that determine who can contribute and how much; consult with a tax advisor for information on eligibility.

Who is eligible to invest?

Anyone under age 70 ½ who is still earning an income can invest in a traditional IRA. For both types of IRA, if you’re under 50, you can invest up to $5,000 a year; those 50 and over can invest up to $6,000, depending on your Adjusted Gross Income (AGI).

Which IRA is better?

Which IRA you choose depends on your needs. Here are some questions that may help you determine which IRA will work better for you:

• Is your first priority to reduce your taxable income for 2009? A traditional IRA may reduce your taxable income when you make your contributions.
• Are you in a stronger position to take the tax hit now than you will be in retirement? The earnings of a Roth IRA are tax-free rather than tax-deferred like a traditional IRA; you pay the tax now rather than later.
• Does participation in your employer 401(k) plan plus your income make you ineligible for the tax benefit of a traditional IRA? You can still enjoy the tax-free, qualified withdrawals from a Roth IRA down the road.
• Are you concerned about the tax burden on your heirs? Roth IRAs don’t require minimum distributions after age 70 1/2, so your earnings continue to grow, and your heirs will be able to take out that money without paying income tax.

Some experts predict that Americans will need as much as 85% of our working income in retirement. That requires a great deal of careful thought and prudent investing. But it’s never too early or too late to begin, so consult with a financial expert to determine your goals and begin working toward a secure retirement. For more information on retirement plans and IRAs, you can visit the IRS.gov website.

Filed under: Ask GHCU, Financial News and You, Money management tips by Shannon
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No matter how you give, you want to be certain your money goes to the intended recipient. With the advent of charitable giving via text message, there are even more ways for thieves to cash in on your good intentions. Here are some tips to be sure your money goes where you meant it to:

• Never respond to an email or text message solicitation, even if it appears to be from a reputable organization. Go directly to that organization’s website to donate or send them a check in the mail.
• Be wary of any email claiming to contain photographs of victims or the earthquake scene. These emails may contain viruses and should be deleted immediately.
• When using text messaging to donate, be certain you’ve got the right number. The American Red Cross is receiving donations via text, and their number is on their website. Numbers forwarded by well-intentioned friends may still contain incorrect and even fraudulent information.
• Regard with suspicion anyone soliciting contributions by phone or at your front door, particularly if you’ve never heard of the organization they represent and if you didn’t initiate the conversation. Never give your credit card number or account information to anyone whose affiliation you can’t completely verify.
• When donating online, be certain the webpage where you give your information has “https” in the URL and a lock icon somewhere on the page. These indicate a secure site.
• The Better Business Bureau provides a list of charities that have been vetted by the Bureau.

Filed under: GHCU Events, GHCU News by Shannon
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