CUSO Financial Services, L.P.At Wright Patt Credit UnionNathaniel StevensSenior Financial Advisor3560 Pentagon BlvdBeavercreek, OH 45431937-912-8722nbstevens@wpcu.coop

December 2019Take This Quiz: The Social SecurityRetirement Earnings Test

For College Savings, 529 Plans Are Hard toBeat

Should I sign up for an identity theft protectionservice?

Protecting Yourself Against Identity Theft

How to Give Like a Billionaire When You Don't Have Billions to Give

See disclaimer on final page

Since Bill andMelinda Gates andWarren Buffettcreated the GivingPledge in 2010,more than 200 of theworld's wealthiestindividuals andcouples havecommitted to givingthe majority of their

wealth to philanthropic or charitable causes.

Although the Giving Pledge only invitesbillionaires to join, "it is inspired by the exampleset by millions of people at all income levelswho give generously — and often at greatpersonal sacrifice — to make the world a betterplace."*

You don't have to be a billionaire to embracethe spirit of the Giving Pledge: When peoplecome together to give, regardless of wealth,they can improve the lives of others.

Decide which causes matter most toyouGiving Pledge billionaires are a diverse group,coming from 23 countries and ranging in agefrom their 30s to their 90s. While they're alldedicated to philanthropy, they support manydifferent causes.

For example, Giving Pledge member SaraBlakely pledged to help empower women toprosper when she signed the pledge in 2013.She has since donated money to build homesfor impoverished families and fundedentrepreneurial programs for girls.

One of the newest signers of the Giving Pledge,Robert F. Smith, focuses on causes thatsupport equality for African Americans. In May2019, he told graduates of Morehouse Collegethat he was paying off their student loans via agrant that is worth an estimated $40 million.

What causes are you passionate about? Whatare your values? Do you want to make animpact locally or globally? Aligning the causesyou support with what's meaningful to you canhelp deepen your long-term commitment togiving back.

Write down why you are givingDirector and producer George Lucas and hiswife Mellody Hobson joined the Giving Pledgein 2010. Like other members, they wrote astatement explaining why they wanted to joinand what they intended to accomplish.

"My pledge is to the process," Lucas wrote; "aslong as I have the resources at my disposal, Iwill seek to raise the bar for future generationsof students of all ages. I am dedicating themajority of my wealth to improving education."*

Lucas fulfilled part of this pledge by creating theGeorge Lucas Educational Foundation totransform education through innovation.

Writing down your own intentions can helpclarify your philanthropic goals and serve as areminder of the impact your gift could have.

Inspire and learn by going publicThe Giving Pledge hopes to "inspireconversations, discussions, and action, not onlyabout how much, but also for what purposes/towhat end."*

Even if you normally prefer to keep yourcharitable work private, being open about thecauses you support might help inspire others togive back.

Other perks of going public include being ableto exchange ideas and lessons learned withothers, and the opportunity to meet people inyour community or around the world who shareyour commitment.

Connect generations through givingA major goal of the Giving Pledge is toencourage long-term family giving that will helpmake the world a better place for generations tocome.

Sharing your passion for helping others withyour children or grandchildren can be especiallyrewarding. Setting family goals, choosingworthy causes, and volunteering together areways that you can help unite generations andmake philanthropy part of your family's legacy.* To learn more about the Giving Pledge and thosewho have signed it, visit givingpledge.org.

Page 1 of 4

Take This Quiz: The Social Security Retirement Earnings TestCan you work and receive Social Securityretirement benefits at the same time? Yes, butthe Social Security Administration (SSA) willapply an earnings test. Part or all of yourmonthly benefit may be withheld if you earn toomuch.

To help avoid surprises, take this quiz to findout what you know — and don't know — aboutSocial Security earnings test rules.

Questions1. The retirement earnings test applies onlyif you are receiving Social Security benefitsand are...

a. Under age 62

b. Under full retirement age

c. Full retirement age or older

d. Age 70 or older

2. Which of the following types of incomecount toward the earnings test?

a. Wages earned as an employee and netself-employment income

b. Pension and retirement plan income

c. Interest and dividends

d. Both a and b

e. All of the above

3. Benefits that are withheld are lost forever.

a. True

b. False

4. The earnings test may affect familymembers who are receiving which types ofbenefits?

a. Disability benefits

b. Spousal benefits

c. Dependent benefits

d. Both b and c

5. What special rule applies to earnings forone year, usually the first year you claimSocial Security retirement benefits?

a. A monthly earnings limit applies to anyearnings after you claim retirement benefits.

b. Earnings during the first year after you claimretirement benefits can't be counted if youretired after 40 years of continuousemployment.

c. Earnings during the first year after you claimretirement benefits will not reduce your SocialSecurity benefit if you retired from agovernment job.

Answers1. b. If you have not yet reached full retirementage (66 to 67, depending on your year of birth),your Social Security retirement benefit may bereduced if you earn more than a certain annualamount.

In 2020, $1 in benefits will be deducted forevery $2 you earn above $18,240. In thecalendar year in which you reach your fullretirement age, a higher limit applies. In 2020,$1 in benefits will be deducted for every $3 youearn above $48,600. Once you reach fullretirement age, your earnings will not affectyour Social Security benefit.

The SSA may withhold benefits as soon as itdetermines that your earnings are on track tosurpass the annual limit. The estimated amountwill typically be deducted from your monthlybenefit in full, so you might not receive benefitsfor one or more months before they resume.

2. a. Only earned income, such as wages froman employer and net self-employment income,count toward the earnings limit. Unearnedincome — such as other government benefits,investment earnings, interest, pension andretirement plan distributions, annuities, andcapital gains — doesn't count.

3. b. Benefits that are withheld are not reallylost. Your benefit will be recalculated at fullretirement age to account for the monthsbenefits were withheld. You'll receive the higherbenefit for the rest of your life, so assuming youlive long enough, you'll eventually recoup thetotal amount you previously "lost."

4. d. Benefits paid to family members (such asyour spouse or dependent children) based onyour earnings record may also be reduced ifyou're subject to the earnings test. Theearnings test does not apply to disabilityinsurance benefits.

5. a. Many people retire mid-year and havealready earned more than the earnings limit. Soin the first year you claim retirement benefits, amonthly earnings test may apply, regardless ofyour annual earnings.

For example, let's say that you claim benefits atage 62 on September 30, 2020 and havealready earned more than the 2020 earningslimit of $18,240. Then, you take a part-time jobthat pays you $1,000 per month for the rest ofthe year. You'll still receive a Social Securitybenefit for October, November, and Decemberbecause your earnings are less than $1,520,the monthly limit that applies in 2020.

This quiz covers only somebasic rules. For moreinformation about otherretirement earnings test rules,visit the Social SecurityAdministration website,ssa.gov.

Page 2 of 4, see disclaimer on final page

For College Savings, 529 Plans Are Hard to BeatRaising kids is hard enough, so why not makethings easier for yourself when it comes tosaving for college? Ideally, you want a savingsvehicle that doesn't impose arbitrary incomelimits on eligibility; lets you contribute a little ora lot, depending on what else happens to begoing on financially in your life at the moment;lets you set up automatic, recurringcontributions from your checking account soyou can put your savings effort on autopilot;and offers the potential to stay ahead of collegeinflation, which has been averaging 3% to 4%per year.1 Oh, and some tax benefits would bereally nice, too, so all your available dollars cango to college and not Uncle Sam. Can you findall of these things in one college savingsoption? Yes, you can: in a 529 plan.

Benefits529 college savings plans offer a uniquecombination of features that are hard to beatwhen it comes to saving for college, so it's nosurprise why assets in these plans have grownsteadily since their creation over 20 years ago.

Eligibility. People of all income levels cancontribute to a 529 plan — there are norestrictions based on income (unlike Coverdellaccounts, U.S. savings bonds, and Roth IRAs).

Ease of opening and managing account. It'srelatively easy to open a 529 account, set upautomatic monthly contributions, and manageyour account online. For example, you canincrease or decrease the amount andfrequency of your contributions (e.g., monthly,quarterly), change the beneficiary, change yourinvestment options, and track your investmentreturns and overall progress online with theclick of a mouse.

Contributions. 529 plans have high lifetimecontribution limits, generally $350,000 and up.(529 plans are offered by individual states, andthe exact limit depends on the state.) Also, 529plans offer a unique gifting feature that allowslump-sum gifts up to five times the annual gifttax exclusion — in 2020, this amount is up to$75,000 for individual gifts and up to $150,000for joint gifts — with the potential to avoid gift taxif certain requirements are met. This can be avery useful estate planning tool forgrandparents who want to help pay for theirgrandchildren's college education in atax-efficient manner.

Tax benefits. The main benefit of 529 plans isthe tax treatment of contributions. First, as yousave money in a 529 college savings plan(hopefully every month!), any earnings are taxdeferred, which means you don't pay taxes onthe earnings each year as you would with aregular investment account. Then, at college

time, any funds used to pay the beneficiary'squalified education expenses — including tuition,fees, room, board, books, and a computer — arecompletely tax-free at the federal level. Thismeans every dollar is available for college.States generally follow this tax treatment, andmany states also offer an income tax deductionfor 529 plan contributions.

DrawbacksBut 529 plans have some potential drawbacks.

Tax implications for funds not used forqualified expenses. If you use 529 plans fundsfor any reason other than the beneficiary'squalified education expenses, earnings aresubject to income tax (at your rate) and a 10%federal penalty tax.

Restricted ability to change investmentoptions on existing contributions. When youopen a 529 college savings plan account,you're limited to the investment options offeredby the plan. Most plans offer a range of staticand age-based portfolios (where the underlyinginvestments automatically become moreconservative as the beneficiary gets closer tocollege) with different levels of risk, fees, andmanagement objectives. If you're unhappy withthe market performance of the option(s) you'vechosen, you can generally change theinvestment options for your future contributionsat any time. But under federal law, you canchange the options for your existingcontributions only twice per year. This rule mayrestrict your ability to respond to changingmarket conditions, so you'll need to considerany investment changes carefully.

Getting started529 college savings plans are offered byindividual states (but managed by financialinstitutions selected by the state), and you canjoin any state's plan. To open an account,select a plan and complete an application,where you will name an account owner(typically a parent or grandparent) andbeneficiary (there can be only one); chooseyour investment options; and set up automaticcontributions if you choose. You are then readyto go. It's common to open an account with yourown state's 529 plan, but there may be reasonsto consider another state's plan; for example,the reputation of the financial institutionmanaging the plan, the plan's investmentoptions, historical investment performance,fees, customer service, website usability, andso on. You can research state plans at theCollege Savings Plans Network.1 College Board, Trends in College Pricing,2014-2018

529 plan assets reach $353billion

As of June 2019, assets in 529plans reached $353 billion —$328 billion (93%) in collegesavings plans and $25 billion(7%) in prepaid tuition plans.

Source: Strategic Insight, 529Data Highlights, 2Q 2019

Note: Investors shouldconsider the investmentobjectives, risks, charges, andexpenses associated with 529plans before investing. Moreinformation is available in eachissuer's official statement andapplicable prospectuses, whichcontain this and otherinformation about theinvestment options, underlyinginvestments, and investmentcompany, and should be readcarefully before investing. Alsoconsider whether your stateoffers a 529 plan that providesresidents with favorable statetax benefits and other benefits,such as financial aid,scholarship funds, andprotection from creditors. Aswith other investments, thereare generally fees andexpenses associated withparticipation in a 529 plan.There is also the risk that theinvestments may lose moneyor not perform well enough tocover college costs asanticipated.

Page 3 of 4, see disclaimer on final page

CUSO FinancialServices, L.P.At Wright Patt Credit UnionNathaniel StevensSenior Financial Advisor3560 Pentagon BlvdBeavercreek, OH 45431937-912-8722nbstevens@wpcu.coop

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019

Non-deposit investment productsand services are offered throughCUSO Financial Services, LP(“CFS”) a registered broker-dealer(Member FINRA/SIPC) and SECRegistered Investment Advisor.Products offered through CFS: arenot NCUA/NCUSIF or otherwisefederally insured, are notguarantees or obligations of thecredit union, and may involveinvestment risk includingpossible loss of principal.Investment Representatives areregistered through CFS. The CreditUnion has contracted with CFS forinvestment services.

Should I sign up for an identity theft protection service?Unfortunately, data breachesare now normal, everydayoccurrences in our society. Asa result, many companies areoffering services to help you

protect your personal information. If you wantan extra layer of protection, an identity theftprotection service is a good option. However,the term "identity theft protection service" canbe misleading. The reality is that no one servicecan safeguard all of your personal informationfrom identity theft. What most of thesecompanies actually provide are identity theftmonitoring and recovery services.

A monitoring service will watch for signs that anidentity thief may be using your personalinformation. This typically includes tracking yourcredit reports for suspicious activity and alertingyou whenever your personal information (e.g.,Social Security number) is being used. Therecovery portion of the service usually helpsyou deal with the consequences of identitytheft. This often involves working with a casemanager to help resolve identity theft issues(e.g., dealing with creditors or placing a freezeon your credit report). And depending on thelevel of protection you choose, the service may

also provide reimbursement for out-of-pocketexpenses directly associated with identity theft(e.g., postage, notary fees) and any fundsstolen as a result of the identity theft (up to planlimits). Identity theft protection services usuallycharge a monthly fee. Entry-level plans thatprovide basic protection (e.g., Social Securitynumber and credit alerts) can cost as little as$10 a month, while plans that offer moreadvanced features (e.g., investment accountmonitoring) will cost more.

Keep in mind there are steps you can take onyour own to help protect yourself againstidentity theft, such as:

• Check your credit report at least once a yearfor errors

• Periodically review your bank and debit/creditcard accounts for suspicious charges/activity

• Obtain a fraud alert or credit freeze ifnecessary

• Have strong passwords, use two-stepauthentication, minimize information sharing,and be careful when shopping online

Page 4 of 4