January 2001

 

- Home Equity Loans From Atlantic Federal - Whether you want to add a new room, put in a pool, travel or consolidate your bills, a home equity loan may provide the best combination of flexibility, low rates and other benefits.
- Slaying the Giant Myths of Retirement Planning - If you've been thinking awhile about planning for your retirement future, you're not alone.
- Tips for Organizing Important Papers - Keep tax returns and supporting materials for at least three years, the time the IRS has to begin an audit.
- This Mistake to Avoid - Not taking Full Advantage of Your Employer's 401(k) plan - Longer life spans, more active retirements, rising costs and uncertainty over Social Security make the need for a substantial retirement nest-egg greater than ever.

Atlantic Federal Credit Union’s Rates (effective December 2, 2000)
Savings Account Rates
Loan Rate
Account Type Annual Percentage Yield (APY) Dividend Rate Daily Balance Required to Earn Dividend Annual Percentage Rate (APR) Term of loan in years
Loan Type 3 years 4 years 5 years 6 years
Savings 4.47% 4.40% $100.00 Automobiles 7.60% 7.52% 7.58% 7.62%
Checking 2.12% 2.10% $0.01 Motor Home 7.65% 7.56% 7.62%
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Money Market 6.01% 5.85% $2,500.00 Travel Trailers and Boats
6.27% 6.10% $25,000.00
6.54% 6.35% $50,000.00
IRA Savings 4.49% 4.40% $25.00
The APY Figure assumes the principal and earned dividends remain on deposit until maturity. Fees may reduce earnings. There is a penalty for early withdrawal.
Savings And IRA Certificates
Regular and IRA ($1,000 to $24,999) Junior Jumbo and IRA ($25,000 to $49,999) Jumbo and IRA ($50,000 min.)
Certificate Term, APY Dividend Rate APY Dividend Rate APY Dividend Rate
3 Month 6.04% 5.88% 6.31% 6.13% 6.57% 6.38%
6 Month 5.99% 5.83% 6.25% 6.08% 6.52% 6.33%
1 Year 5.72% 5.58% 5.58% 5.99% 6.25% 6.08%
2 Year 5.41% 5.28% 5.67% 5.53% 5.94% 5.78%
5 Year 5.24% 5.12% 5.50% 5.37% 5.77% 5.62%
All interest rates are shown as Annual Percentage Rate (APR) and are contingent upon approved credit. Interest rates, down payment requirements and financing terms for all loan programs are subject to change without notice. Offers for all loan programs may be withdrawn or extended at any time without prior notification. Amounts to be financed and down payment requirements for all loan programs could affect the length or repayment term contracts. All rates are subject to change without prior notification. Contact an Atlantic Federal Credit Union representative for current rates or for loan types which are not included on this rate sheet at (800) 322-2709, (214) 880-0141 or your local branch office.


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© Copyright 2000 Atlantic Federal Credit Union and The Summit Group

 

   Home Equity Loans From Atlantic Federal
Whether you want to add a new room, put in a pool, travel or consolidate your bills, a home equity loan may provide the best combination of flexibility, low rates and other benefits. If you used a large down payment when buying your home, have paid off much of your mortgage or enjoyed appreciation in the value of your home, you may be surprised how much you may borrow against the equity in your home.

Benefits of home equity loans

  • Interest rates are often lower than those on other loans like credit cards and unsecured loans.
  • You can spread out payments to make them more affordable.
  • You have the flexibility to use the funds for purposes of your choosing.
  • The interest you pay may be tax deductible if you itemize deductions on your tax returns. Most other interest is not deductible. Consult your tax advisor.

It is easy to apply

If you think a home equity loan may be right for you, the rest is simple. Go to our web site, www.atlfcu.org. Navigate to our home equity loan page and use the worksheet to help you estimate how much you can borrow. Then check out our rates and apply online.

Conclusion

Home equity loans can be a wise borrowing choice. You can save money, spread out payments and have flexibility using the money. The interest may even be tax deductible. Use Atlantic Federal to help determine if this type of loan is right for you. You will appreciate our easy application process and our low rates.

 

   Slaying the Giant Myths of Retirement Planning

If you've been thinking awhile about planning for your retirement future, you're not alone. We all know that planning is the key to a solid, secure retirement but why don't we plan? Many of us have misconceptions about the impact investing has on their retirement nest egg. Let's dispel some of the most common myths.

Myth # 1
“Low risk investments help protect my retirement fund from the fluctuations of the market.”		 Reality #1
The goals for most investors starting to save for their retirement should be maximizing growth and managing the risk of their portfolio.
Myth # 2
“I hear that most stock market investors get wiped out at least once during their lifetime.”		 Reality # 2
The stock market has proven to be a successful way to invest and has shown steady growth over the past 50 years, despite occasional setbacks.
Myth #3
“I think that picking just the right stock is more important than keeping current with a lot of different investments. I don't see a need to diversify.” 		Reality # 3
It's better to choose a handful of steady mutual funds and other carefully selected investments. Remember the old saying "Don't put all your eggs in one basket.
Myth #4
“I'm not going to need that much to retire comfortably.”		 Reality # 4
Most predictions of what you may need for a comfortable retirement can be very misleading in many cases. Everyone's spending habits are different, even in retirement.
Myth #5
“In the end, how well-off I am in my retirement years depends on luck.”		 Reality # 5 Savings that don't keep up with inflation, good intentions acted on too late and using yesterday's rules to plan for tomorrow can result in a financial shortfall when retirees can least afford it.

Get Started. No matter what your age or how little you've saved so far, talk to our professional financial representative, Dan Harshfield, at AFCU Financial Services, Inc. Dan can provide you with solid, informed choices and help you determine the right investments for you - all based on your risk tolerance and investment objectives. Call AFCU Investment Services, Inc. at 800-322-2709 extension 1014 to schedule your free consultation.

 

   Tips for Organizing Important Papers
Keep tax returns and supporting materials for at least three years, the time the IRS has to begin an audit. However, the IRS can begin an audit within six years if there has been substantial income omitted. There is no IRS time limit for fraud.

Information on investments should be kept for as long as you own the investment, plus the three years it's needed to support the tax return on which it is reported.

Safe deposit boxes are the best places to keep items that are valuable. This includes jewelry, cash, stamp and coin collections and negotiable instruments like stock certificates and bonds. They are also good places to keep items that are not replaceable or that have sentimental value. A household inventory (video taped or written), appraisals, listings of insurance policies and credit card numbers should also be kept in a safe deposit box.

Wills should be kept in an easily accessible place. Copies of wills should be kept in your safe deposit box and by your attorney. Note the location of your original will on any copies.

 

   This Mistake to Avoid

   Not taking Full Advantage of Your Employer's 401(k) plan

Longer life spans, more active retirements, rising costs and uncertainty over Social Security make the need for a substantial retirement nest-egg greater than ever. Luckily, many corporate retirement plans offer employees control over building that nest egg.

Benefits of 401(k) Plans

  • Convenient Saving. Contributions each pay period make it easier to accumulate significant amounts over time.
  • Employer Contributions. In most plans, the employer also "matches" some portion of the employee amount each period. Some employers also make contributions based on financial results.
  • Tax Deferral. Employees are not taxed on the portion of their wages they contribute. Funds in a 401(k) plan are not taxed until withdrawn.
  • Investment Flexibility. Plans often provide extensive investment options including mutual funds, company stock and other fixed income choices.

Making the most of your 401(k) plan
 Retirement plan benefits will probably be one of your greatest sources of retirement income. Getting the maximum benefit from your plan is simple.

  1. Participate in the plan. As simple as this sounds, some studies have found that many choose not to participate. Even minimal participation makes sense.
  2. Contribute as much as you can. Your plan may have limits on the portion of your wages you may contribute. There is also an annual limit of $10,500 for employee contributions. Determine what you can afford and make the largest contribution you can.
  3. Get the entire employer's match. Review your plan to understand how the employer's contributions are made and allocated. Your Human Resources department should be able to help you.
  4. Use a sensible investment strategy. Choose a combination of investment options that match your time horizon and risk tolerance. Generally, the longer time horizons and greater risk tolerance dictate a more aggressive investment strategy with greater use of equity investment choices.

Atlantic Federal Credit Union
Your retirement plan should be an integral part of your overall financial strategy. The investment professionals at AFCU Investment Services, Inc. can help you create your financial strategy and make sure your 401(k) plan fits into it.