kinecta news

fall 2019

Estate Planning & Trusts…Not Only for the WealthyA Message from Keith Sultemeier, President & CEO, Kinecta Federal Credit Union

Estate planning is one of the most commonly overlooked areas of personal finance. It’s perhaps understandable, as few consider the inevitability of their demise to be a particularly popular subject. Many also mistakenly believe that estate planning is something needed by only the wealthiest among us. Survey after survey finds that most Americans don’t have even the most basic estate planning documents, namely a will or a trust.

Failing to prepare properly can have significant consequences, and these can vary widely by state. When someone without a valid will passes, his or her property goes to their beneficiaries through intestate succession. This process, based on state law, means the state “writes” the will and decides how assets are distributed. Even those with a valid will may be subject to probate, the legal process of distributing assets that can take anywhere from six months to more than two years to complete.

Trusts offer many advantages over wills alone that you may not be aware of:

• Trusts are private, whereas wills are considered part of the public record; for example, in California, the courts grant public access to wills in probate. With trusts, the courts have no role.

• Trusts avoid probate altogether much of the time because the assets placed in a trust are no longer owned by the decedent. The trust owns the assets. Avoiding probate can save time and money on both legal fees and estate taxes.

• A trust is active during the trust creator’s life, providing the ability to determine how, when and to whom assets are distributed both during life and after death.

The two most common types of trusts are revocable and irrevocable trusts. The creator of a revocable trust can change or dissolve the trust at any time, such as following a divorce or the acquisition of new assets, allowing for flexibility. The disadvantage of a revocable trust is that IRAs, jointly owned assets and retirement plans cannot be included. By contrast, the terms of an irrevocable trust cannot be amended or revoked, offering a safe haven for assets if beneficiaries or creditors make claims against the trust holder. However, an irrevocable trust holder cannot access these assets in the event of financial difficulty.

Other common types of trusts include blind, charitable, credit shelter, dynasty, irrevocable life insurance, qualified terminable interest property and special needs trusts. Your circumstances and wishes would determine which type of trust(s) would best fit your needs. Most of us are not experts in estate planning, so it’s important that you find an advisor with the proper knowledge and skills to patiently guide you through this process. Estate planning documents that are inappropriate or improperly drafted can create more problems than they solve.

Though estate planning can be complex and confusing, your Credit Union is here to help. Kinecta offers free workshops on trusts and estate planning available to all members, their friends and families. For information on upcoming programs, please visit kinecta.org/kvm-workshops.

As always, we appreciate and thank you for your loyal membership!

Keith Sultemeier President and CEO Kinecta Federal Credit Union

kinecta.org

The information contained in this communication (the “Content”) is provided for informational and educational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any particular purpose. The Content is not intended to be and does not constitute legal, financial, investment, tax or accounting advice or a solicitation to buy or sell securities. The Content is necessarily general in nature and is not specific to you or anyone else. YOU SHOULD CONSULT YOUR OWN ATTORNEY ESTATE PLANNER, INVESTMENT, TAX OR ACCOUNTING ADVISORS BEFORE IMPLEMENTING ANY ADVICE INCLUDED IN THE CONTENT. By viewing or utilizing the Content, you agree that you will not hold Kinecta Federal Credit Union or their affiliates, employees, or agents responsible for loss or damages resulting from the Content and/or the use of such Content.

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Prolonged exposure to extreme conditions can harm both your skin and your finances. If you’re traveling to a cold-weather climate this winter, it’s easy to add fleece gloves, a knit scarf, and a cozy beanie to your packing list. But how can you insulate your wallet from a chilly season of clever cyber-thieves, enticing last-minute sales, and a growing holiday gift list? Here are three tips to protect your wallet and leave financial regret out in the cold.

how to avoid financial frostbite this holiday season

1kinecta.org/security-center2Subject to credit approval. Rates as low as 9.24% Annual Percentage Rate (APR). Rate includes a 0.25% automatic payment (autopay) discount. Loan amounts as high as $25,000. Repayment term is dependent on amount borrowed. Terms and conditions are subject to change at any time.

1 | keep an eye out for the latest consumer shopping scamsFraudsters love the holiday season as much as you do. It’s often their most lucrative time of year. Don’t be their next victim. Visit Kinecta’s Security Center1, where we highlight some of the most common ways thieves try to separate you from your money both in-store and online.2 | stick to a budgetA holiday spending plan can keep you from depleting your available funds while ensuring you don’t forget a gift for Great Aunt Edna. Planning also helps you avoid impulse buys, which can quickly derail an already lean budget. Use a mobile app or pencil and paper to track your spending in real time. Without a tracking system, it’s easy to arrive home after a day of shopping to find you’ve exceeded your budget, even though there’s still more shopping to do.

savings options that match your financial goals

Follow these tips so you’ll have the peace of mind to snuggle by the fireplace and enjoy a warm cup of hot chocolate while everyone else stresses over their holiday shopping.

The answer may influence which savings solution is the best for you at this point in your financial life. For example, older adults nearing retirement age might be better suited to utilize short-term savings vehicles that provide liquidity they can utilize to pay bills in retirement. Meanwhile, younger workers focused on increasing their income could be more apt to put money into a longer-term option that can help them save for a down payment on a home or build an emergency fund. For example, older adults nearing retirement age might be better suited to utilize short-term savings options to support financial goals such as upcoming travel or holiday gift giving.However, age isn’t the only determinant, as your goals may differ from your peers depending on your income, prior savings, and other financial factors. So, regardless of your calendar age, acknowledging where you are in your financial life can help determine the best savings solutions to meet your objectives.

1 Liquid Certificates allow for penalty-free withdrawals of up to 50% of the start of day balance as of 12:00 AM on a daily basis. Early withdrawal penalties may apply. Withdrawals exceeding 50% of the start of day balance are subject to penalties. Fees and other conditions may reduce earnings. Terms and conditions apply; please visit our website, kinecta.org, or a branch for additional information.

Regular and Jumbo Certificates offer attractive interest rates compared to traditional savings accounts. In exchange for higher rates, you may have to make a larger minimum account deposit, but we offer a range of options that can help you reach your savings destination faster, based on your current finances and future objectives. In addition to different account types, consider certificates with a range of maturity dates — typically 90 days to five years. We recommend that savers aiming to receive the guaranteed certificate rate wait to withdraw dividends or principal until the maturity date. You may also want access to the money when you need it, penalty-free. Until recently, this left many savers with limited options for accounts that offer competitive yields and liquidity. For example, while money market accounts can offer liquidity and competitive rates, the yield on money market accounts often lags that of certificates. So while certificates and money market accounts are viable options for some savers, they don’t always align with everyone’s goals. But what if you could have the best of both worlds in terms of access to your funds and attractive interest rates? Enter Liquid Certificates. With these 12-month certificates, savers can make unlimited deposits and access up to half of their balances penalty-free1. Whatever your savings goals, we’re here to help you find the perfect solution. To learn more about your options, visit us online, or open an account today by visiting a Kinecta branch.

3 | spend wisely Avoid a post-holiday headache by shopping early using a low-interest-rate Kinecta Signature Loan instead of a high-interest-rate, short-term payday loan. Qualified borrowers can use proceeds to pay for gifts, travel, or other holiday expenses. Unlike other borrowing options, a Signature Loan allows borrowers to lock in a low, fixed interest rate and take up to 60 months to repay the loan in full2.

Would you describe yourself as a mature saver or a millennial moneymaker?

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is it time for an insurance review?

kinecta news

fall 2019

Life changes quickly; that’s why it’s important to periodically evaluate your financial and life insurance needs.

Consider questions such as: When was the last time you looked at your life insurance policies? How long ago were they purchased? Have there been any changes in your life or financial plans that might affect the amount of insurance coverage you desire? Moreover, conducting a thorough insurance review can help you make sure your policies fit your current goals and financial plans. Your family’s financial future is too important to leave to chance, so consider areas such as:

banking done different

If you answered “yes” to any of these questions, contact your local Kinecta Wealth Management LPL Financial Advisor for a no-obligation financial review today.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Kinecta Federal Credit Union and Kinecta Wealth Management are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Kinecta Wealth Management, and may also be employees of Kinecta Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Kinecta Federal Credit Union or Kinecta Wealth Management. Securities and insurance offered through LPL or its affiliates are:

Not Insured by NCUA or Any Other Government Agency Not Credit Union Guaranteed Not Credit Union Deposits or Obligations May Lose Value

1 | changes in beneficiaries• Recent marriage or divorce?• New child or dependent?• Children grown and out of the house?• Death of spouse or dependent?

2 | new debt• Purchased a home?• Started or own a business?• Need to fund higher

education?

3 | changes in your financial responsibilities• Change in employment status or salary?• Need to plan for retirement?• Need to support anyone with special needs or an

elderly family member?• Received an inheritance?

Kinecta is recognizing acts of kindness throughout our community with #KinectaKindness awards. But it’s a collaborative effort and we need your help!Nominate a caring friend, neighbor, or someone in your community for their acts of goodwill to receive a #KinectaKindness award and we’ll donate $250 to the nonprofit of their choice.Awards will be made on a weekly basis and will be announced via Facebook. The Kinecta Kindness Team will coordinate with the winner and nominee to visit the nonprofit to present the donation with a “big check.”To nominate someone, fill out the short application. Spread the word via social media, using #KinectaKindness, to encourage more goodwill!

kindness is contagiouskinecta kindness stay in touchMember Contact Center

800.854.9846 310.643.5400

Online kinecta.org

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For questions or more information about these upcoming events, please contact us at volunteercorps@kinecta.org.

completed events

upcoming events

July 14 | Chili Cook-Off

In July, the company celebrated community service in the South Bay with the 7th Annual Community Celebration and Chili Cook- Off. This event featured food, giveaways, raffles for valuable prizes and fun activities for the whole family! Event attendees purchased raffles tickets to help us raise awareness and money for the Richstone Family Center and Mychal’s Learning Place. We also extended special recognition to local police and fire departments for their service and dedication.

August | Back to School Backpack DriveIn August, employees, members and community partners made the first day of school a little easier for Watts and Compton area students with the donation of nearly 600 backpacks, which were filled with supplies and distributed during the Back-to-School Community Luncheon.

September 11 | Miracle Jeans CampaignDuring the month of September, employees sold paper icons and wore blue jeans to raise funds in support of Children’s Miracle Network (CMN) Hospitals. Proceeds benefited CMN Hospitals in Los Angeles, Orange County and Santa Barbara.

Oct. 28 - Nov. 23 | Holiday Food DriveOct. 28 through Nov. 23 we will be collecting donations at all Kinecta locations for our Annual Holiday Food Drive.

October 28 | Skechers Pier-to-Pier Friendship WalkJoin us in helping to enhance the lives of children and young adults with special needs by supporting the 9th Annual Skechers Pier-to-Pier Friendship Walk on Sunday, October 28. Receive a free Kinecta Volunteer Corps shirt when you join the Kinecta team or donate $10 to the team page online. Visit SkechersFriendshipWalk.com and search for "Team Kinecta" to participate.

November 10 | Veteran’s Day - VetFest In honor of our Veterans, Kinecta and the Manhattan Beach Rotary present a Craft Beer, Wine, Cornhole and Western Style Barbecue Event on Sunday, November 10 from 1:00 pm – 6:00 pm at the Kinecta Main Office, 1440 Rosecrans Ave., Manhattan Beach (must be 21 or over to attend). Veterans, active duty service members, and first responders admitted free of charge. Full event information and tickets can be purchased at kinecta.org/VetFest – General Admission tickets are $35.

Nov. 25 - Dec. 14 | Holiday Toy Drive Help make the holidays a little brighter for a hospitalized child. All Kinecta locations will be collecting new, unwrapped toys to benefit Children’s Miracle Network Hospitals.

Kinecta employees are teaming up to raise awareness and funds for pediatric care, children and adults with special needs, and helping others for the holiday season. You can help, too! Go to kinecta.org and click on the “Kinecta Community” box to help us make a difference.