SIU CU Contributes over $10,000 to Southern Illinois Heart Walk

Posted by SIU Credit Union on Oct 5th, 2011 | no comments

Employees spent their Saturday morning walking to support healthy hearts. The credit union contributed over $10,000 to the event.

This weekend, the credit union staff walked in the Southern Illinois Heart Walk at John A. Logan College. The team, along with the credit union, contributed over $10,000.We also served as the official money counters of the event. CEO Dennis Schaefer was the chairman of this year’s heart walk which raised over $160,000.

Donations can still be accepted online at www.southernillinoisheartwalk.org

Credit Union CEO Dennis Schaefer and Chairman of the Southern Illinois Heart Walk speaks to the walkers before the start of the event.

Top Ways Americans Are Slashing Spending

Posted by SIU Credit Union on Jul 14th, 2011 | no comments

Between the beginning of the recession in 2007 up until May 2011, Americans have cut spending by nearly $7,300 compared to what they would’ve otherwise spent if the recession didn’t occur. Looks like the recession had a lingering silver lining. Reported by the Federal Reserve Bank of San Francisco, the report shows that the average consumer spent about $175 less each month than before the recession.

Hats off to all you consumers out there for pinching pennies at the grocery store, clipping coupons, skipping morning lattes, trimming vacations, and whatever small yet significant ways your own household tightened its belt to cope with the recession. It’s healthy to trim the fat from your finances, and imagine what $175 saved each month can go towards—to pad a savings account, build an emergency fund, or hack away at debt.

Consumer spending is inching up since the start of 2011, which is necessary for a recovering economy. However, look for ways to keep up your  smart saving and budgeting; slipping back into pre-recession spending habits could lead to the same over-borrowing on credit that pushed Americans to the brink of recession.

 Need motivation to keep up money-saving habits? 

Try following the crowd! A recent Harris poll found the top 10 ways Americans are cutting back on spending, which can definitely help keep you on the right track for smart spending. 

1)      67% of Americans started purchasing more generic brand goods at the grocery store. 

2)      Almost half of us, at 46%, are brown-bagging lunch from home instead of buying. 

3)      43% are skipping appointments and going to the hairdresser or barber less often.

4)      39% switched from purchasing bottled water to using a refillable water bottle (a wallet and environment friendly move).

5)      31% cancelled one or more magazine subscriptions (also environmentally friendly).

6)      About a quarter of us, at 24%, are cutting down on dry cleaning.

7)      22% cancelled or downgraded television cable.

8)      21% are skipping buying coffee in the morning (and maybe making it at home instead).

9)      Following #5, 18% cancelled a newspaper subscription .

10)   16% cancelled landline phones and are relying on cell phone instead.

Which of these strategies are you already doing, and which new ones can you pick up to add more money-savvy moves to your daily routine?

Justine Rivero is the Credit Advisor and resident Credit Rockstar for Credit Karma, the pro-consumer credit advocate that helps more than 2.6 million consumers realize the everyday cost savings of having great credit health.

THE CURRENT CD QUANDARY: Today’s yields can’t beat inflation.

Posted by SIU Credit Union on Jun 21st, 2011 | no comments

Scott McClatchey, CFP^®
SIU Credit Union Investment Services

CD investors are effectively losing money. According to Market Rates Insight, a research firm tracking bank rates, annualized inflation has surpassed long-term certificate of deposit rates since February. In April, 12-month inflation hit 3.16% while the highest-yielding 5-year callable CD on the market offered a 2.4% interest rate. May’s Consumer Price Index put annualized inflation at 3.6%; as of mid-June, the highest-yielding nationally available 5-year CD was at 3.05% APY.^1,2,3

Still, the Federal Reserve found that almost $9 trillion of American wealth was held in CDs, bank accounts and various FDIC-insured products as of April.⁴

It’s a case of déjà vu. This is the second time in recent history that CD investors have been punished for assuming so little risk. During the period from January-July 2008, the negative yield on 5-year CDs was 1.8% according to MRI.⁵

They might come out ahead … should inflation diminish. As Bankrate.com senior financial analyst Greg McBride reminded Bloomberg, “Investing in a CD isn’t compensating you for last year’s inflation; it’s compensating you for next year’s inflation, which is unknown.” Will inflation ease in the long term? Many analysts aren’t betting on it.

The appeal of CDs remains strong. After all, not many investments are federally insured. MRI vice-president Dan Geller said it best to Bloomberg: “Right now, people are more concerned about the return of their deposits rather than a return on their deposits.”

With 63% of Americans still believing the nation is in a recession (according to a recent Rasmussen Reports poll), there is still plenty of skittishness about equity investment. Even with the Fed’s bond-buying campaign sending yields on short-term Treasuries and CDs toward all-time lows, some investors really aren’t hungry for risk.⁵

Are CDs still worth it? There is no pat answer. Your own answer will depend on your preferred investment style, your risk tolerance and your financial objectives. Many people choose to park some of their invested assets in CDs and other savings instruments as part of a diversification approach. The inflation-adjusted return is dismal at the moment, but knowing that your principal is safe certainly has its appeal.  Note that Surrender charges apply should you attempt to liquidate your CD.  Any guarantees regarding safety of principal are based on the claims paying ability of the issuing financial institution.  Traditional CD’s are NCUA or FDIC insured and offer a fixed rate of return if held to maturity.

Citations.

1 – bloomberg.com/news/2011-05-23/savers-lose-as-long-term-cd-yields-fall-below-inflation.html [5/23/11]

2 – bls.gov/news.release/cpi.nr0.htm [6/15/11]

3 – depositaccounts.com/blog/2011/06/highest-5year-cd-rate-in-the-nation-at-fort-knox-federal-credit-union.html [6/17/11]

4 – articles.philly.com/2011-06-13/news/29653033_1_inflation-rate-mutual-funds-stock-market/2 [6/13/11]

5 – online.wsj.com/article/BT-CO-20110523-712255.html [5/23/11]

6 – montoyaregistry.com/Financial-Market.aspx?financial-market=roth-ira-rules-and-regulations&category=1 [6/19/11]

Scott McClatchey provides investment and retirement planning services to SIU Credit Union members through a partnership with Alliance Investment Planning Group.  A CERTIFIED FINANCIAL PLANNER™, Scott keeps regular office hours from 9:00 to 1:00 on Tuesdays at the Carbondale East branch and is also available by appointment.  Call 618-549-8632 to set up an appointment with Scott.

2011 Undie Run

Posted by Joshua English on Mar 28th, 2011 | no comments

SIU Credit Union is a big supporter of the American Cancer Society.  On Saturday March 26th, three SIUCU employees, Joshua English, Tonya Smith, & Amanda Lowery participated in the 2011 Undy Run for Relay for Life.  The event was designed to help draw attention to the need for preventative screenings.

SIU Credit Union Staff Volunteers at Lifesavers Fundraiser

Posted by SIU Credit Union on Mar 23rd, 2011 | no comments

LifeSavers is a peer-support suicide and crisis-prevention program designed to help teenagers cope healthfully with the challenges of drugs and alcohol, peer and family relationships, sexual issues, academic problems, aggression, anxiety, and suicide. LifeSavers is a recognized student organization in 27 high schools in Southern Illinois which have chosen to be pro-active in caring for their student population. LifeSavers trains selected students from 9th through 12th grades to be skilled listeners who can responsibly help other students deal with the emotional and situational crises of adolescence.

SIUCU employees Trent Wheeler andJamie Perryman volunteered at the Murder-Mystery Fundraiser for the regional Lifesavers group on February 26th, each donated about 30 hours of their time for the event.  Also, Jana Ledbetter and Brian Maurizio donated 5 hour of time to be bartenders for the event.

In addition to staff participation, the credit union sponsored a table at the event and a member of our board of directors performed as a cast member in the murder-mystery play. The play was directed by Terri Addison, SIU Credit Union’s Director of Information Technology.

Seven scams targeting small businesses

Posted by SIU Credit Union on Jan 10th, 2011 | no comments

MADISON, Wis. (1/10/11 CUNA)–Small businesses should note seven scams, according to the Better Business Bureau (BBB).”Small-business fraud can come from internal threats, such as employee fraud, or from external full-time scammers,” said Alison Southwick, BBB spokeswoman. “Because small-business owners often lack the time and resources to fight fraud, they are a popular mark for any number of different scams” (LoneStar Leaguer Jan. 5).Credit unions can warn their business members about these scams: 

• Directory Scams–Usually the scammer will call a business to “update” the company’s entry in an online directory, or the scammer might lie about being with the Yellow Pages. The business is later billed hundreds of dollars for listing services it didn’t agree to or for ads which it thought would be in the Yellow Pages.
• Office Supply Scams–Some scammers prey on small-business owners and hope they won’t notice a bill for office supplies–such as toner or paper–that the company never ordered.
•  Overpayment Scams–Businesses should be cautious if a customer overpays using a check or credit card and then asks the business to wire the extra money back to them or to a third party. Overpayment scams often target catering businesses, manufacturers, wholesalers and even sellers on sites like eBay, Craigslist and Etsy.
•  Data Breaches–No matter how vigilant a company is, a data breach can still happen. Whether it’s the result of hackers, negligence or a disgruntled employee, a data breach can have a severe impact on the level of trust customers have in a business.
•  Vanity Awards–While it’s flattering to be recognized for hard work, some awards are just money-making schemes and have no actual merit. If approached about receiving a business or leadership award, research the opportunity carefully and be wary if asked to pay money.
• Stolen Identity–Scammers often will pose as legitimate company to rip off consumers. A company whose identity is stolen doesn’t necessarily lose money, but its reputation is potentially tarnished when angry customers ripped off by the scammers think the real company is responsible.
• Phishing e-mails–Some phishing e-mails specifically target small-business owners with the goal of hacking into their computer or network. Common examples include e-mails pretending to be from the Internal Revenue Service that claim the company is being audited, or phony e-mails from the BBB saying the company has received a complaint. Companies receiving a suspicious e-mail from a government agency or the BBB should not click on the links or open attachments. Contact the agency or the BBB directly to confirm the legitimacy of the e-mail.