Summer 2018

Ninety-Day Notes

(800) 924-0022 | westconsincu.org

Our MissionWe are committed to helping our members achieve financial success.

Altoona .................. (715) 930-1675 Amery ................... (715) 268-8127 Baldwin ............(715) 684-3333 Barron ...................... (715) 537-5661 Chippewa Falls ....(715) 723-2216 Eau Claire ...........(715) 833-8035 Ellsworth ......... (715) 273-4238 Hudson ................... (715) 386-2300 Menomonie ........ (715) 235-3403 New Richmond ..(715) 246-2068 Prescott ..........(715) 262-4600 River Falls ................ (715) 425-8113 Spring Valley ..... (715) 778-5644 High School Offices in Amery, Menomonie and New Richmond90 Day Notes is a quarterly newsletter published by WESTconsin Credit Union to inform and educate its member-owners about the credit union and other financial matters.

What’s Inside!

2017-2018 Scholarship Winner Announcements

Employee Announcements

Kindness Counts at WESTconsin

Member Notices

WESTconsin Investment Advisors

WESTconsin Realty— Real Realty Tips

WESTconsin Travel Club Opportunities

Board of Directors Election ResultsWESTconsin Credit Union held its 78th Annual Membership Meeting on March 27, 2018 at the Menomonie High School Auditorium. A complimentary meal was served prior to the meeting and The Menomonie Mustang Chorale provided the evening’s entertainment.

At the meeting, Board Chairperson Dave Maves provided a review of the Board activities and highlights for 2017. Lora Benrud, Chief Executive Officer, reviewed the financial statement and annual report. Rita Lunderville provided the Audit Committee Report and Todd Leipnitz conducted the Board election.

Members in attendance participated in the election process of two Board of Directors’ positions. Dave Maves and Rita Lunderville were re-elected to the Board for another three-year term. The following individuals have been elected as Board Officers:

Chairperson—Dave Maves

Vice Chairperson—Jerry Wolf

Secretary—Colleen Mensing

Treasurer—Rita Lunderville

Additional Board members include:

Lynn Brantner

Dale Dahlke

Todd Leipnitz

CURewards Magic Minute Campaign PSCU, WESTconsin’s Platinum Visa Credit Card vendor, is holding their annual Credit Union Magic Minute campaign June 4—September 9, 2018 available to cardholders. Members can enter a drawing for a three-day/two-night trip for two to Chicago to shop at warehouse when they use their card three times a week during this campaign. Seven lucky winners from PSCU will be chosen. For more information, and how to register, visit CURewards.com.

Employee AnnouncementsCongratulations!We are pleased to recognize the following individuals who have recently began working in new capacities or positions within the credit union.

Stephanie Rasmussen, Chief Experience Officer—Menomonie–East Office

Stephanie has worked at WESTconsin since 2016 as Vice President—Member Experience. In her new role, she is responsible

for planning, organizing, directing the company’s overall member experience and marketing, while managing WESTconsin’s brand and end-to-end member experience through all delivery channels. Stephanie holds a Bachelor of Arts degree in Public Relations and English Literature from University of Wisconsin–Eau Claire. She is a member of the Women’s Giving Circle of Dunn County, Dunn County Community Foundation–Grants Committee and longtime volunteer with Junior Achievement.

Retiree Farewell Wishes!WESTconsin Credit Union congratulates and thanks employees in their retirement. Thank you for your many-year commitment to the credit union and our members!

Craig Nelson | 8 years of service Mortgage Loan Originator — Barron

Holiday HoursOffices and Service Center will be CLOSED on:

Independence Day Wednesday, July 4Labor Day Monday, September 3

westconsincu.org

Travel Club OpportunitiesMinnesota State Fair | August 23Cost is $38/person; includes transportation and fair entrance. Leaving Menomonie at 7:30 a.m., with stops in Baldwin at 8 a.m. and Hudson at 8:20 a.m.

You Smell Barn | September 18From the basement to the barn, your beloved Church Basement Ladies are back and getting busy with life outside the kitchen. After the last hotdish is served, and the coffee pot is drained, these steadfast women head to their homesteads, peel off their good girdles, and get down to the business of picking eggs and dusting their knickknacks. YOU SMELL BARN celebrates rural life in the 1950’s with plenty of crazy antics, loads of fresh laughs, and spanking new original songs! Cost is $75/person; includes transportation, lunch and show ticket.

Noah’s Ark | October 7-12Join us as we travel to visit Noah’s Ark Encounter, the Creation Museum, the Wright Patterson Airforce Museum, Churchill Downs and many other stops along the way. We will be traveling with One-On-One Tours and Greg Preusse. Cost is $780 based on double occupancy, or $1,040 single; includes transportation, overnight accommodations, itinerary attractions, five breakfasts and four lunches. Trip is full | Names are being added to a waiting list!

Elf | December 6-7Travel with us to Fort Atkinson for the Christmas musical featuring the play Elf! As always, we will enjoy the fabulous signature Thursday night buffet. More information coming soon.

Alaskan Tour | June 14-29, 2019Join us as we travel to Alaska and enjoy cruising along the inside passage including stops at Ketchikan, Juneau, Skagway Glacier Bay and College Fjord. During the second week we will tour by bus and train visiting the Kenai Peninsula, Dehali National Park and Fairbanks. Prices begin at $3,315/person.

Travel Shows• Tuesday, July 17

Eau Claire Office @ 2 p.m. Menomonie—East Office @ 7 p.m.

• Wednesday, July 18 Hudson Office @ 7 p.m.

Passion Play | June 25—July 5, 2020We are in the early stages of planning a trip to the Passion Play in Germany. The trip starts in Germany; we will also tour Bavaria visiting beautiful and historic towns along the way. More information will be available soon!

For reservations or more information, please contact Sharron Buss, Travel Club Coordinator, at your local office, ext. 7733 or visit westconsincu.org.

Have you really thought of everything?There are many pieces to a well-built financial plan

such as savings, insurance and investments.Have you ever thought about your end-of-life expenses?

Today, more people are pre-funding their final expenses to avoid a financial burden to their survivors.

For a no-obligation explanation, contact:WESTconsin Investment Advisors

at your local WESTconsin Credit Union office

or (800) 924-0022 ext. 6939

westconsininvestments.com

School Supply Drive—August 1–11WESTconsin Credit Union will again be collecting school supplies and monetary donations for families in need from August 1 through August 11. Donations can be made at your local WESTconsin office location. Proceeds will be delivered by the credit union to local schools and organizations for distribution. All items will be accepted along with monetary donations.

This year marks the tenth annual school supply drive in which the credit union has been involved.

For a complete listing of our community involvements, visit our online Events Calendar found at westconsincu.org.

Visit 'Kindness Counts' at westconsincu.org to learn more about our Kindness Counts initiative.

Member NoticesEasy Equity Loans… What Are Those?

Have you heard of a home equity line of credit and wonder how it works? Did you wonder why it may be a good option for you? WESTconsin Credit Union offers Easy Equity loans (otherwise known as a HELOC loan) for our members that own a home

and are looking for an open line of credit that they can tap into whenever they want for whatever they want. Sounds like something you might be interested in? Great! Here are some common questions we would like to help you with right away.

What is an Easy Equity line of credit? An Easy Equity line of credit is a loan that puts the equity in your home to use. An Easy Equity line of credit (also known as a HELOC) is a line of credit secured by your home that gives you a revolving credit line.

What determines the amount of my line of credit?The amount of equity you have built up in your home and your credit history determines what your credit line will be.

What is the monthly payment?Your monthly payment is based off the amount of the credit line that you use. The lower your amount of funds used, the lower your payment.

What can the line of credit be used for?You can quite simply use these funds for anything you choose. You can use it for home improvements, medical bills, tuition, weddings, and high interest credit cards. You decide when and how you use the funds.

How do I access the funds?Having an Easy Equity loan provides you with quick and convenient access to available funds anytime or anywhere you might need them. You can access them through our mobile app, online banking, or even through text banking. If you would rather stop into one of our offices or call our service center one of our friendly team members would be happy to assist you with pulling money for your Easy Equity account.

How do I apply for an Easy Equity loan?You can apply online through our online mortgage loan application. Have more questions? One of our knowledgeable and friendly mortgage loan originators are happy to assist you through this process. Please give our service center a call and ask to speak to your local Mortgage Loan Originator for assistance.

New Business Account Changes for Beneficial Ownership

WESTconsin Credit Union strives to provide top service to our business members. We comply with State and Federal regulators to make sure your account is properly set up. The new Federal Bank Secrecy Act rule requires that we obtain additional

information from our business members. When we open a new business account or make changes/add a service to an existing business account, we are required to verify the identification of all owners who own 25% or more of the business. These owners are called Beneficial Owners. We also will ask to verify this information on an individual who has significant responsibility for managing the business such as CEO, CFO, Office Manager, Treasurer, etc. The following information on Beneficial Owners and the individual with significant responsibility will need to be collected at account opening or when a change is made to your current business account:

• Name

• Address

• Date of Birth

• Social Security Number

• Copy of Driver’s License or Passport

For a complete list of what other documentation is needed when opening a new business account, please visit Account Opening Checklist at westconsincu.org.If you have questions, please contact your local WESTconsin Credit Union office. We appreciate your membership and look forward to continuing to serve you and your business!

Cross–Account AccessWe are pleased to share that cross-account access for members that have linked accounts within online banking is now available! This feature enables members to view all of your linked accounts under one unique online banking user

name and password. Members can also edit account names to set up nicknames, making account identification even easier.

Content developed by CUNA Brokerage Services, provided by Tim Carlson, Alex Burian and Bob Dillon, WESTconsin Investment Advisors.

72(t) DistributionsSometimes you can take penalty-free early withdrawals from retirement accounts.Do you need to access your retirement money early? Maybe you just want to retire before you turn 60 and plan a lifelong income stream from the money you have saved and invested. You may be surprised to know that the Internal Revenue Service allows you a way to do this, provided you do it carefully.

Usually, anyone who takes money out of an IRA or a retirement plan prior to age 59½ faces a 10% early withdrawal penalty on the distribution. That isn’t always the case, however. You may be able to avoid the requisite penalty by taking distributions compliant with Internal Revenue Code Section 72(t)(2).1

While any money you take out of the plan will amount to taxable income, you can position yourself to avoid that extra 10% tax hit by breaking that early IRA or retirement plan distribution down into a series of substantially equal periodic payments (SEPPs). These periodic withdrawals must occur at least once a year, and they must continue for at least 5 full years or until you turn 59½, whichever period is longer. (Optionally, you can make SEPP withdrawals every six months or on a quarterly or monthly basis.)1,2

How do you figure out the SEPPs? They must be calculated before you can take them, using one of three I.R.S. methods. Some people assume they can just divide the balance of their IRA or 401(k) by five and withdraw that amount per year – but that is not the way to determine them.2

You should calculate your potential SEPPs by each of the three methods. When the math is complete, you can schedule your SEPPs in the way that makes the most sense for you.

The Required Minimum Distribution (RMD) method calculates the SEPP amount by dividing your IRA or retirement plan balance at the end of the previous year by the life expectancy factor from the I.R.S. Single Life Expectancy Table, the Joint Life and Last Survivor Expectancy Table, or the Uniform Lifetime Table.1,2

The Fixed Amortization method amortizes your retirement account balance into SEPPs based on your life expectancy. A variation on this, the Fixed Annuitization method, calculates SEPPs using your current age and the mortality table in Appendix B of Rev. Ruling 2002-62.1,2

If you use the Fixed Amortization or Fixed Annuitization method, you are also required to use a reasonable interest rate in calculating the withdrawals. That interest rate can’t exceed more than 120% of the federal midterm rate announced periodically by the I.R.S.1,3

A lot to absorb? It certainly is. The financial professional you know can help you figure all this out, and online calculators also come in handy (Bankrate.com has a good one).

There are some common blunders that can wreck a 72(t) distribution. You should be aware of them if you want to schedule SEPPs.

If you are taking SEPPs from a qualified workplace retirement plan instead of an IRA, you must separate from service (that is, quit working for that employer) before you take them. If you are 51 when you quit and start taking SEPPs from your retirement plan, and you change your mind at 53 and decide you want to keep working, you still have this retirement account that you are obligated to draw down through age 56 – not a good scenario.1

Once you start taking SEPPs, you are locked into them for five consecutive years or until you reach age 59½. If you break that commitment or deviate from the SEPP schedule or calculation method you have set, a 10% early withdrawal penalty could apply to all the SEPPs you have already made, with interest. (Some individuals can claim exceptions to this penalty under I.R.S. rules.)3,4

The I.R.S. does permit you to make a one-time change to your distribution method without penalty: if you start with the Fixed Amortization or Fixed Annuitization method, you can opt to switch to the RMD method. You can’t switch out of the RMD method to either the Fixed Amortization or Fixed Annuitization method, however.2

If you want or need to take 72(t) distributions, ask for help. A financial professional can help you plan to do it right. There's no charge or obligation to sit down and talk. Call your local WESTconsin Credit Union office or (800) 924-0022 ext. 6939. Also you may visit us online at westconsininvestments.com. We look forward to meeting with you soon!

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note—investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.1 irs.gov/Retirement-Plans/Retirement-Plans-FAQs-regarding-Substantially-Equal-Periodic-Payments [12/19/17] 2 fool.com/retirement/2017/05/19/use-your-retirement-savings-early-with-substantial.aspx [5/19/17]3 thebalance.com/how-to-use-72-t-payments-for-early-ira-withdrawals-2388257 [9/20/17]4 military.com/money/retirement/second-retirement/early-retirement-options.html [5/7/18]

Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC , a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC Insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CBSI is a registered broker/dealer in all fifty states of United States of America. The representative may also be financial Institution employee that accepts deposits on behalf of the financial institution. 05162018-WR-2496

TIM CARLSON

Content developed by CUNA Brokerage Services, provided by Tim Carlson, Alex Burian and Bob Dillon, WESTconsin Investment Advisors.

ALEX BURIAN BOB DILLON

Presented by:Jim Moe, REALTOR®, CRSWESTconsin Realty, LLC New RichmondOfficejimmoe@westconsinrealty.comCell: (715) 781-0387

Choose Renovation Projects WiselyThe more you spend on your home renovations, the more you'll get back at resale, right? Unfortunately, not all remodeling projects are created equal. A minor remodel may cost $2,500, but a major overhaul could cost upward of $25,000. Choose renovation projects wisely to ensure you'll get the most money back as possible at resale, and think twice before pursuing the following remodeling endeavors.

Luxury Upgrades A bigger renovation isn't necessarily a better renovation. Buyers will always appreciate a newly remodeled kitchen or bathroom and will pay more for those updates. But they won't necessarily pay more because you've installed top-of-the-line features. You'll add more value to the kitchen by opening up the layout and adding storage, not by installing the most expensive countertops and appliances. Check out the listings in your area to determine standard features, and then plan a renovation that matches or slightly exceeds your competition.

Home Office If you work from home, creating a dedicated home office is essential. You need a separate work space where you can put in your hours uninterrupted. However, overhauling an existing home space and transforming it into an office is unlikely to payoff. Converting a living room, bedroom, or garage into an office so it can no longer be used for its original purpose will often turn off potential buyers. If you do make permanent upgrades to an office space, choose versatile elements such as a built-in bookcase. Save the rest of your home-office budget for pieces you'll be able to take with you such as a mahogany desk or ergonomic chair.

High-End Landscaping Many potential buyers look at high-end landscaping and just see a headache. Water features and upscale landscaping boost curb appeal but don't offer a high return on investment. Even if buyers don't mind a big landscaping commitment, their gardening preferences may not match yours. Stick to simple, classic landscaping that looks great all year round without having to spend hours in the yard each week.

Swimming Pool A pool may be a lot of fun, but it's also an immense amount of work and money. You'll spend a lot more time cleaning the pool, checking the pH level, and cleaning up the backyard than you'll spend lounging on the deck with a cool drink in your hand. Pools also present a safety risk, which will deter many potential buyers with small pets and young children. Unless you live in an area where pools are considered a standard feature, you simply won't recoup the money of the renovation.

Specialized Spaces Many homeowners have always dreamed of having some type of specialized space such as a wine cellar or home theater. Typically, specialized spaces are costly and only serve one purpose. There might be another homeowner out there with the same dream as you, but you'll have a difficult time finding that buyer when it's time to sell. A specialized space does add character to a home and will serve as a talking point both while you own the home and when you're ready to sell the home; however, most buyers won't want to pay a premium for the space.

Remodeling is a personal choice. If you'll get immense enjoyment out of your remodel, most likely it's worth doing, even if it doesn't add to the resale value of the home. Just be honest with yourself about the money you're spending, and don't expect to recoup those expenses when you sell the house.

If you are thinking about selling your home and are on the fence about whether or not you should dive in and spend the money remodeling or upgrading prior to listing, please contact your local WESTconsin Realty professional for a free market analysis and to discuss your different options. We are always here to help you every step of the way! Full-time, full-service real estate agents are located at each WESTconsin office throughout western Wisconsin. To contact an agent in your area and search listings, visit westconsinrealty.com.

$10,000 Awarded to Area High School Graduates WESTconsin Credit Union, an advocate for education, has recently awarded ten $1,000 scholarships as part of the WESTconsin Scholarship Program. Over the past 20 years, the credit union has distributed $271,000 in scholarship awards to area students. The goal of the program is to award one scholarship to a graduating high school senior from each community that is served by a local WESTconsin office.

Recipients were selected in April by a panel of WESTconsin Credit Union volunteers and staff. Selection was based on a variety of criteria including community and school involvement, academic progress, financial need, career plans and goals. For more information, visit the $MART Financial Literacy section of our website.

Congratulations 2018 Scholarship Recipients!

Isabelle BarrRiver Falls High School

River Falls AreaAugsburg University

Social Work & Spanish

Julia MillerNew Richmond

High SchoolNew Richmond AreaU of Colorado–BoulderEnvironmental Studies

Kelsey LeachMenomonie High School

Gustavus Adolphus College

Biochemistry & Pre-Medicine

Haley BirdBoyceville High School

Menomonie AreaUW–Stevens Point

Communication Sciences and Disorders

Jaydon CrimHudson High School

Hudson AreaNorth Central University

Psychology

Olivia MatzekEllsworth High School

Ellsworth/Prescott AreaWinona State University

Nursing

Emily PintensBarron High School

Barron AreaUW–River FallsAnimal Science

Collin NelsonSt. Croix Central

High SchoolBaldwin/Spring Valley

AreaUW–MadisonEngineering

Collin PrillChippewa Falls

High SchoolAltoona/Chippewa Falls/

Eau Claire AreaUM–Twin Cities

Biochemistry

Camden SmithAmery High School

Amery AreaUM–Duluth

Chemical Engineering

Preparing for CollegePrivate Student Loan Program Helps Cover CostsAre you starting your first year of college this fall? Perhaps you are a returning student who is still short on paying tuition even after FAFSA, federal loans and other financial aid? WESTconsin Credit Union’s private student loan program helps fill the gaps by helping you affordably borrow up to the cost of your education, minus other financial aid, to achieve your educational goals.

Prepaid Visa Cards Encourage your college bound student with a disciplined approach to spending by providing them with a prepaid Visa card from WESTconsin. They are conveniently available at your local WESTconsin office.

Discover the many benefits!

• Reloadable

• Immediate access to funds

• Safe way to manage money

• Promotes self-sufficient budgeting and spending