IRA Accounts: A Great Retirement Option

Posted by SIU Credit Union on Jan 6th, 2010 | View Comments

 Are you thinking about retirement?  It is never too early to begin planning for your retirement.  Recent statistics show that most individuals will need to rely on their personal savings for up to 60% of their retirement income (www.ssa.gov).  This can be an overwhelming statistic when you begin to think about it.   

An IRA account is a great way to save for those retirement years.  You may make contributions to an IRA in addition to the contributions that you make to a 401K program at your place of employment.  The SIU Credit Union offers Traditional, Roth, and SEP IRA accounts.  You may choose to invest in an IRA share account or an IRA certificate of deposit.  This allows you the flexibility you need when it comes time to access your funds.  All IRA accounts are insured for $250,000 through the National Credit Union Administration.

 If you currently have an IRA at another institution, or would like to start one, please contact me at 618-457-3957.  I would love to help you ensure that your road to retirement is smooth.

 Erica Pankey, SIU Credit Union IRA Specialist  

Keep us posted on your financial health

Posted by SIU Credit Union on Dec 30th, 2009 | View Comments

Financial Trouble?

Unemployed? Spend too much over the holidays?  Just having trouble making it this month? 

If you can answer yes to any of these questions, I would urge you to call your creditors.

It is so much easier to work with someone having financial problems if they call in when they first realize that it’s going to be tough to make their payments.  If you wait until the collector has sent out several notices, made numerous phone calls and you have ruined your credit, it may be too late to help you.  If you call or visit your collector early on in your financial low, he or she usually has more options available to help you overcome your financial problems.

 Here at SIU Credit Union, we want to help you.  We want you to call us and keep us informed of your financial situations and we want to work with you to overcome your problems.

Give us a call today at 618-457-3595 to discuss your financial situation.

 -Lisa Winthrop

How To Get A Business Loan

Posted by SIU Credit Union on Dec 4th, 2009 | View Comments

When you apply for a business loan, you’ve got to complete a lot of paperwork. And that’s only the beginning. After you complete the application package, it goes to the lending institution’s loan committee. Follow the 5 Cs of business credit to get your application noticed:

1.   Character: This includes your personal history, reputation, and (often) your relationship with the lender.

2.   Capacity: This refers to the cash flow, liquidity, asset/liability structure, and net worth of the borrower and guarantors.

3.   Collateral: Your loan should be adequately secured by collateral that is acceptable to the bank, at an acceptable margin.

4.   Capital: Lenders want to see a proper capital structure that doesn’t leave the bank with undue risk exposure.

5.   Conditions: You should be able to demonstrate a thorough understanding of relevant industries, the economy, and any other related conditions.

The five Cs are the elements loan committees evaluate in order to mitigate their risk.  They don’t ensure that all the loans institutions take on are 100 percent risk-free. Rather, they help to identify where the risks are, to determine if risks are layered with other risks, and to spot areas of strength that can reduce risks that may be present.

There are three steps you can take to encourage a favorable review of your application:

1.           Communicate your business plan clearly.

2.           Make it evident that you have a solid plan for using the funds.

3.           Provide high-quality, current financial information.

Having a detailed, complete application is also important. Many committees look for seven basic elements during reviews. These elements are straightforward but often overlooked by potential borrowers:

1.   Be specific about how you plan to use the funds. “Working capital” is not an adequate explanation.

2.   Show a well-defined source of cash repayment, supported by documented performance.

3.   Define two or three alternate sources of repayment that do not involve liquidation of the pledged collateral.

4.   Provide an analysis of collateral throughout the term of the loan, in terms of value and liquidity.

5.   Include a solid, objective analysis of all risk factors, including a believable “worst-case scenario.”

6.   Summarize the qualifications of the guarantor, including relevant risk analysis, to demonstrate that the guarantor is a willing and capable source of repayment.

7.   Anticipate questions from the committee and provide concise, credible answers.

SIU Credit Union is here to help you along the way. Contact Angela Williams-Barke at 618-457-3595.

Rules For Shopping At Home For The Holidays

Posted by SIU Credit Union on Nov 20th, 2009 | View Comments

Does the thought of making your way through crowded malls and shopping at 20 different stores only to wait in long check-out lines have you feeling like the Grinch? Shopping online during the holiday season can save time and minimize stress, but know a few simple rules before you dive into the world of online purchasing.

1. Only buy from familiar companies. Confirm the seller’s contact information in case you have questions or problems in the future. Know exactly what you’re buying. Carefully read the product description. Remember–if it seems too good to be true, it probably is.

2. Protect your privacy. Read and understand the company’s online privacy policy and keep any personal information, passwords, or PINs (personal identification numbers) private. Look for these signals indicating that you have entered a secure Web page:
* A screen notice that says you’re visiting a secure site
* A closed lock or unbroken key in the bottom corner of your screen
* The first letters of the Internet address you are viewing change from “http” to “https”

3. Pay safely. After you review all terms of the sale, such as cost for shipping, delivery date, and return policy, you are ready to buy. Credit or charge card payments offer consumers the most protection. Finally, print all transaction records and any other useful information pertaining to your purchase.

Although online shopping allows you to virtually load your sleigh with just a few mouse clicks, practice safe browsing this holiday season.

Pending Legislation on Overdraft Protection Needs Your Input

Posted by SIU Credit Union on Nov 6th, 2009 | View Comments

Dear Member:

You are one of our best members, and we thank you for the trust you have placed in our financial institution.

When you have used our overdraft program, it has enabled us to cover your unexpected expense or help you avoid embarrassment due to an error in your recordkeeping.  This meant you were able to pay for something at the grocery store, fill up your gas tank or unexpectedly purchase a prescription for a sick family member.  These are the reasons you used this safety net – and the reasons it should remain available to you and your family.

As you know, there is a cost for not having overdraft services.

• The returned check charge from the grocery store (averaging $38.50 in our city)
• The damage to your credit from bouncing a check.
• The embarrassment of having your purchase declined with your neighbors watching from the back of the line.
• The inconvenience of having to return to the merchant to ‘pick up your bad check’ and pay a ransom for it in CASH!

Unfortunately, Washington thinks you need their help to manage your checking account.

We believe that you should know how decisions being made in Congress could affect your financial freedom .

Senator Chris Dodd (D-CT) has proposed the “FAIR Overdraft Coverage Act of 2009″ that will dramatically restrict overdraft services on your account.  Instead of your local branch giving you the benefit of our relationship, Senator Dodd wants us to return your checks.  All but six of them a year!  Six overdrafts a year may be fine for the Senator’s household – but what about yours?

Washington doesn’t understand how important this is to you.  They need to hear from you!

Tell them about your personal use of our overdraft program and what it will mean to you if they take away this option.  We want to help so we have prepared a simple form for you to complete.  If you will complete it, mail or drop it back to us, we will deliver it to Congress for you!

Or, if you come into the branch, we have copies there you can complete.  At that time, we would be happy to answer any questions you have, but we want your voice to be heard!

Washington is moving quickly.  The time for your action is NOW!

Sincerely,
Dennis Schaefer President/CEO SIU Credit Union

My Credit Union Story

Posted by SIU Credit Union on Nov 6th, 2009 | View Comments

For the past couple of days, a good friend and co-worker has been continually reminding me that I have yet to turn in an article for our blog.  Since I finally realized his persistence is both shameless and tireless, I decided I better get started.  “This won’t be hard,” I thought to myself.  After all, I oversee compliance for the credit union, so I could just choose one of the hundreds of regulatory changes currently affecting the financial sector, write a short blurb, and be done with it.  However, let’s face it…there are only a few of us nerds out there who actually enjoy reading the minute details of upcoming lending mandates or interchange legislation.  So I thought I would start off with telling my story about what I have learned first-hand about credit unions.

When I interviewed for this position just one year ago, CEO Dennis Schaefer asked me if I knew the difference between credit unions and banks.  I confessed that I did not (somehow I was still hired).  I soon learned that one of the main surface-level differences is that where banks are for profit, credit unions are not for profit, member-owned cooperative networks.  The underlying premise upon formation for all credit unions includes a desire to promote thrift and to provide credit to individuals who may otherwise be unable to obtain it.  When I learned this, I thought to myself, “that is a great story, and I’m sure that was the idea a hundred years ago, but in today’s society, that kind of desire and commitment to help your neighbor just doesn’t exist.”  I was immediately proven wrong.

Throughout this past year I have been amazed at not only SIU Credit Union’s desire and commitment to serve and help its members, but at the entire industry’s dedication to service.  I have attended several conferences and meetings with officers and executives from credit unions nationwide, and everywhere I go, the overall atmosphere can be summed up into one simple theme:  help your neighbor; serve the underserved.  This is evident on a daily basis from here at SIU Credit Union in Southern Illinois, to Washington, D.C. where credit union lobbyists are continually fighting for the best interest of the entire credit union movement.  As cliché as it may sound, I feel like I have become a part of a family here at SIU Credit Union.  I find it very refreshing to be a part of something that, in spite of these tough economic times, still manages to put people first and to go the extra mile.

Tell us your credit union story. We’d love to hear it.

– Amy Ragan, Internal Auditor and Compliance Officer