Spring 2012 • Greater Toronto Area Edition

what’s inside2 Community youth

2 Meet Rise, Alterna’s newest Micro Finance partner

3 Planning your wealth

5 Alterna Savings congratulates...

6 Improve your dollars and sense with us

Low interest rates and fierce competition among financial institutions have temporarily put consumers in the driver’s seat. Here are some things to consider:•Ifyou’reafirst-timehomebuyer,youmayqualifyfora5%down,high-ratiomortgage,butkeepinmindyou’llbepayingmortgagedefaultinsurancefeesbasedonthepercentageofyourmortgageamountrelativetoyourhome’svalue.Themoreyou’reabletoputasadownpaymenttheloweryourinsurancefee.Forexample,5%downmayrequireyoutopay2.75%ininsurancefees,butifyouput10%down,thosefeesdropto2%.However,ifyourdownpaymentis20%ormoreofthepurchaseprice,it’sconsideredaconventionalmortgage,anddoesn’trequiredefaultinsurance.

Alterna can save you money by helping to cover appraisal and legal costs, which cost hundreds of dollars

•Getpre-approvedforamortgagetoholdthecurrentlowrateforupto90dayswhileyoufindasuitableproperty.

With Alterna’s Fair Rate Pricing, you get our best rate every time, no haggling required

• Investigatepre-paymentmortgageoptionssuchaslumpsumpaymentsoracceleratedbi-weeklyorweeklypaymentstopayofftheprincipalfaster

•Consideravariableratemortgagetotakeadvantageoffluctuatinginterestrates–youcanalwayslockintoafixedrateifitappearsthatrateswillincrease

Federal incentives for first-time homebuyers include:•TheFirst-Time Home Buyers’

(FTHB) Tax Credit,isa$5,000non-refundableincometaxcredittohelpoffsetthecostsassociatedwithpurchasingahome(e.g.legalfees,landtransfertaxes).

•TheHome Buyers’ Plan (HBP)allowsfirst-timehomebuyersorbuyerswhohaven’townedahomeinfiveyearstouseRRSPfundstobuyahome.TheHBPwithdrawallimitis$25,000.Tomaximizeyourtaxsaving,investthemoneyyou’vesavedtowardadownpaymentinanRRSPfor90days(that’sthetimeitmustbeinanRRSPbeforeyoucantakeitouttobuyahome).Bydoingthis,youmaybeabletogetanincometaxrefundthatcanbeusedtopaydownthemortgageattaxtime.Remember,moneyborrowedfromanRRSPaspartoftheHomeBuyers’Planmustberepaidin15equal,annualinstallments,soadjustyourbudgetaccordingly.

ThegovernmentofOntarioalsooffersincentiveprogramsforhomebuyers.Findoutmoreatrev.gov.on.ca.

Making Sense of Mortgage Madness

Continued on page 2.

Buying a house is the biggest purchase most people will make in a lifetime. It’s a decision that can cause even the most confident Canadians to lie awake at night wondering if they’ll be able to make their mortgage payments.

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continued...

Making Sense of Mortgage Madness

In 2011, we donated $4,000 to the Jamestown/Rexdale Youth Community Involvement Award through our Community Grants Program. The award recognizes young people in the Jamestown/Rexdale priority neighbourhoods living in Toronto Community Housing Corporation who are involved in community building activities. Alterna participated on the Selection Review Committee which was made up of representatives from the Neighbourhood Action Partnership Youth Engagement Workshop and two youth from the community. The award winners were presented with a cheque donation on February 24, 2012 at the SOYAT (Somali Youth Association of Toronto) Award and Banquet Night.

Congratulations to the following young people:Abdirahman Mohamoud, founder, Somali Men’s Basketball League, bringing young men between the ages of 16 and 28 together

Arabi Rajeswaran, a young woman working to empower young people in her community through her work creating a pilot youth project called Rexdale Youth Empowerment (RYE)

Keita Mahmoud, an active volunteer in his community assisting with events like the Urban Noise Festival, the Signs of Science event with Dr. Ben Carson and the production of a training video for Toronto Anti-Violence Intervention Strategy (TAVIS), in addition to other community work

Frdowsa Abdi, a young leader of her community involved in the creation and facilitation of children and youth programs in her community, like girls mentoring, afterschool tutoring, and assisting with resumes, scholarships and grant writing

Jeffery Kankam, who’s helped bring positive changes by fundraising to rebuild a weight room in his community that would benefit youth, adults and people with disabilities

Youth in the community

Anyone in the market to purchase a home, or those who are looking to upgrade their existing home should be aware of the thousands of dollars that can be saved both short and long-term by making your mortgage your own.

At Alterna, we’ll work with you to understand your needs and provide you with the best home ownership solution, so consider your options:

• Fixedorvariablerates

• Termsfromsixmonthsto 10 years

• Amortizationperiodsup to 30 years

• Paymentschedulesto fit your cash flow

• Flexiblealternatives such as the Alterna Multi-Option Mortgage

No matter what stage you’re at, your Alterna mortgage professional is here to help. Talk to us today.

Alterna Savings has partnered with Rise Asset Development, with the support of Rotman School of Management and the Centre for Addiction and Mental Health (CAMH), to provide micro financing loans up to $25,000 to men and women living with mental illness and addictions who have an interest in pursuing self-employment. The program will also provide mentoring and development training through community partners.

A new community partner for Alterna’s Micro Finance Program

Susan Henry & Abdirahman Mohamoud

Arabi Rajeswaran & Susan Henry

AccordingtoHealthCanada,1in5Ontarianswillexperienceaseriousmentalillnessorsubstanceabuseintheirlifetime.In2007-08,Ontariospentmorethan$2.5billiononmentalhealthandaddictionservices.

SimilartoAlterna’sownin-houseCommunityMicroFinanceProgram,RiseAssetDevelopmentwillhelpachieve:

•Stronger,healthiercommunities

•Jobcreation

•Reducedrelianceongovernmentassistance

•Thecreationofsustainablebusinessandbusinessgrowth

•Rebuildingcredithistory

•Reducedstigmaatthepersonal,familyandcommunitylevelsthrougheducationandoutreach

AlternaSavingshasalonghistoryofhelpingcommunityloanfundsfulfilltheirgoalsbyreachingdiversecommunities.We’reproudtolendourexpertiseinmicrofinancetohelptheseindividualsreachtheirgoals.

FormoreinformationaboutAlterna’sCommunityMicroFinanceProgram,pleasecontactSusanHenry,susan.henry@alterna.ca.Or,tolearnmoreaboutRiseAssetDevelopment,visitriseasset.com.

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Securities and securities related financial planning services are offered through Qtrade Advisor, a division of Qtrade Securities Inc., Member of the Canadian Investor Protection Fund. Mutual funds and securities related financial planning services are also offered through Qtrade Asset Management Inc., Member MFDA. Qtrade Advisor and Qtrade Asset Management do not provide and this article should not be interpreted as tax, legal or accounting advice.

Your WealthThe Power of PlanningIntheFall2011editionoffresh!,youmayrecallreadingthearticle,“How a Personal Investment Plan keeps you on track”.Inthatarticle,wehighlightedmanyvaluablebenefitsofhavingaprofessionallypreparedfinancialplan.Aswe’veseen,greateronuswillbeputonindividualstopreparefortheirown’goldenyears’,yetonly35%ofCanadianshavefinancialplans.

Arecentreport,“The Future of Retirement”,revealedthatthosewithafinancialplanforthefutureenjoyseveralbenefitsoverthosewhodonot,referredtoasthe ‘planning premium’.Thesebenefitsareboth‘hard’and‘soft’,includingnotonlygreaterandmorediverseretirementsavings,butalsoamorepositiveoutlookandfewerworriesaboutlaterlife.Thestudyshowedthatrespondentswhoundertookfinancialplanningweremorelikelythannon-plannerstoassociateretirementwithpositiveideassuchasfreedom,andlesslikelytoassociateitwithnegativeonessuchasfinancialhardship.Inanutshell,thosewithaplanhavefewersourcesofworryandstress.

Whentheylookedattheretirementsavingsandinvestmentlevelsoftheirrespondents,theysawthatthosewithfinancialplansforthefuturehaveoverthreetimes(318%)theassetsofnon-planners.Thisshowsthatthere’sastrongplanningpremiuminCanadaintermsofmaterialfinancialbenefits.

Alongsidetheplanningpremium,theyalsofoundthatthosewithafinancialplaninplaceandseekprofessionaladvicearethebestofffinancially.Thisgrouphasthe

mostretirementassetsoutofalltheiridentifiedconsumertypes,demonstratingafurtherbenefitforthosewhocombineplanningwithprofessionaladvice,or‘the advice advantage’.

Canadians on the whole are relatively upbeat about retirement, with large numbers associating it with a new chapter in life and a time of freedom from worries, financial and otherwise. Yet at the same time, there are concerns about whether they’ll be able to afford the sort of retirement currently being enjoyed by their parents’ generation. An ageing population, a less generous government contribution and low levels of savings are all seen as taking their toll on the future quality of life for Canada’s elderly.

These concerns are well-founded, and many Canadians have yet to fully comprehend the shortfalls to come, especially younger men (according to the study, men aged 30-39 are more optimistic, with only 26% associating retirement with financial hardship). However, those who have taken steps to plan for the future are reaping the benefits from one of the strongest planning premiums of any of the countries in their survey. This should serve as a powerful incentive to plan, and the additional advice advantage strongly suggests that supplementing planning with professional advice produces the best results of all.

Reproduced with permission from The Future of Retirement, published in 2011 by HSBC Insurance Holdings Limited, London.

For individuals and households who want to take action now to improve their financial well-being, we’d be pleased to help you prepare, review, or revise your Personal Investment Plan. We’ll work with you to ensure it reflects the realities of your financial life, your goals, and your investment thinking, and adjust it as the future unfolds.

Together we’ll develop and maintain a detailed, written roadmap of your investment future, dramatically increasing the potential for achieving your financial goals.

Talk to an Alterna Investment Specialist today about a Personal Investment Plan.

Your Vote Made a Difference! To commemorate International Year of the Cooperative, Alterna Savings had committed to donate $1 to the Cooperative Young Leaders Program for each vote cast for your Board of Directors. Thanks to you, we raised $1,221 from member votes, and corporately we committed to top up the donation for a total contribution of $5,000 – enough to send 5 kids to CYL Camp this summer! For more information about CYL, visit ontario.coop

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Securities and securities related financial planning services are offered through Qtrade Advisor, a division of Qtrade Securities Inc., Member of the Canadian Investor Protection Fund. Mutual funds and securities related financial planning services are also offered through Qtrade Asset Management Inc., Member MFDA. Qtrade Advisor and Qtrade Asset Management do not provide and this article should not be interpreted as tax, legal or accounting advice.

Tax and Estate Planning New CPP rulesSomegoodnewsaboutCanadaPensionPlan(CPP)benefits:asofJanuary1,2012,younolongerhavetostopworkingtodrawCPP-theoldrulesstipulatingthatyouhadtostopworkingtocollectearlyCPPbenefitsnolongerapply.YoucansimultaneouslyreceiveandaccrueCPPbenefitsbetweentheagesof60and70,increasingthepotentialtoimproveyourretirementfinances.

Ifyou’rebetween60and65,employeeandemployercontributionstoCPPwillstillberequired.However,ifyouworkbetweentheagesof65and70,contributionswillbeoptional.IfyouwanttocontinuetocontributetoCPPasanemployee,youremployermustalsocontinuetocontribute.

ForresidentsofQuebec,similarrulesapplyundertheQuebecPensionPlan(QPP).QPPallowsfor“phased”retirementbetweentheagesof60and65.TocollectQPPbeforeage65,yourestimatedemploymentearningsforthefirst12monthsduringwhichapensionispaidmustnotexceed$12,075in2011.Youwillcontinuetocontributetotheplan,whichwillprovideyouwitharetirementpensionsupplementthefollowingyear.

TalktousbeforemakinganydecisionsaboutearlyretirementandcollectingCPP/QPPbenefits.Wecanhelpyoumakethechoicesthatwillworkbestforyourfinancialfuture.

Family caregiver tax credit AsmoreCanadiansfindthemselvesprovidingcareforrelatives,it’sgoodtoknowthatincreasedtaxreliefisavailabletohelpoffsettheoftenconsiderableexpensescaregiversface.

EffectiveJanuary2012,anewfamilycaregivertaxcreditprovidesa15%non-refundableincometaxcreditonexpendituresofupto$2,000.Thisprovidesupto$300inannualtaxreliefforcaregiversofinfirmdependentrelatives,includingspouses,common-lawpartners,andminorchildren.

Initslastbudget,thefederalgovernmentalsoliftedaprevious$10,000caponthemedicalexpensetaxcredit,whichallowstaxpayerstoclaimmedicalanddisability-relatedexpensesincurredbyfinanciallydependentrelatives.Caregiverswhoincurextraordinarymedicalanddisability-relatedexpenseswillbenefitbeginninginthe2011taxyear.

Less probate means more for your beneficiariesDependingonwhereyouliveandthevalueofyourassets,probatefeesortaxescouldreducethevalueofyourestatebythousandsofdollars.That’swhyit’simportanttobeawareofthefeesthatmayapplytoyourestateandtakestepstoreducethem.Theresultcouldmeanmoreinheritanceforyourlovedones,andalesscomplicatedtransferofwealth.

Probateistheprocessofhavingyourwilllegallyapproved.Mostprovinceschargeafeeforthisprocess(inQuebeccertaintypesofwillsaren’tsubjecttoprobate).Ontarioisthemostexpensive,withafeeof$5per$1,000onthefirst

$50,000ofanestateand$15per$1,000ontherestover$50,000.Fortunately,therearestepsyoucantaketoexemptmanyassetsfromprobate.Forexample,designatingdirectbeneficiariesforyourregisteredplans(RRSP,RRIF)andlifeinsurancewillexemptthemfromprobate.Owningahomejointly(withrightofsurvivorship)withyourspouseoranotherpersonwillallowittopassdirectlytotheotherownerwithoutprobate.Youcanalsoholdassetsintrust,sothey’redealtwithunderthetermsofthetrustratherthanyourestate,orgivethemawayduringyourlifetime.

Someofthesestrategieswillaffectotherareasofyourfinancialplanning,soconsidereachpossibilitycarefully.Ifprobateisaconcernforyou,talktousaboutwaysyoucanreduceit.

The Alterna Savings Grants Committee, comprised of Directors, members, and staff, distributed more than $62,500 to worthy causes in 2011. Individual awards ranged from $500 to $5,000. All funds are made available through corporate donations and the money collected from you, our members, through the Spare Change Program. To learn about the recipient organizations, visit alterna.ca.

Community GrantsWant to contribute, but not sure where to start? Sign up for Alterna’s Spare Change Program

Everymonththe‘change’inyouraccountwillbesweptoutandpooledwithfundsfromother

memberstosupportcommunityorganizationsorinitiativesrelatedtochildpoverty,theenvironment,orhomelessness—it’syourchoice.Itonlycostsanaverageof50centspermonth,andnevermorethan99cents.Youcanhelpoutforlessthanthepriceofacupofcoffee!

If you are involved with a community organization for which a modest donation can have a big impact, please submit a Community Grant Application form, which can be found at alterna.ca under the Community tab.

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Gerald Fortin, winner of Alterna’s 2011 Member Survey drawEvery year, Alterna sends out a survey to gather information from our members about what we’re doing right, and what may need improvement. For 2011, members who completed and returned the survey were entered into a draw for a $500 Alterna term deposit.

Your next chance to win with the Annual Member Survey will be late 2012!

On April 20th, Guido Chezzi was presented with the 2012 Gary Gillam Award. Guidohasdedicatedmorethan5decadesasasteadfastambassador,continuallypromotingthebenefitsandvaluesofCreditUnions,includingtheircommitmenttobeingsociallyresponsibleorganizations.

Guidohasheldvariouspositions

withintheCreditUnionsystem,suchastheleadfoundingmemberofConistonCommunityCreditUnion,aswellasTreasurerandpart-timevolunteerManager,PresidentoftheSudburyandDistrictCreditUnionChapter,andmemberofCentral’sformerCEOAdvisoryCommittee.HehasservedasDirectoronTheCUMISGroupLimited,CUMISLifeInsuranceCompanyaswellasnumerousotherCommitteesofthoseorganizations.Since1990,GuidohasactivelyservedasaDirectorontheBoardoftheOntarioCreditUnionCharitableFoundation(OCUCF).

We’redelightedtoawardGuidothe2012GaryGillamAwardforhisyearsofaccomplishmentsandcontributionstotheCooperativeandCreditUnionmovement.Congratulations!

Sponsored by Central 1 and Alterna Savings, The Gary Gillam Award recognizes and honours individuals in the Ontario and British Columbia credit union movement who demonstrate exemplary achievements in promoting social responsibility and/or sustainability in credit unions, and as a socially responsible investment alternative.

Are we

enough?

We want to hear from youYou could win an iPod…Tell us what you think of our fresh! newsletter – visit alterna.ca to fill out a short survey about what you’d like to see in upcoming issues, regular features, and more. You could win an iPod just for sharing your thoughts!

Guido Chezzi, 2012 Gary Gillam Award Winner

Congratulations!

Couldn’t attend this year’s AGM? No worries – check out the 2011 Annual Summary online at alterna.ca for the consolidated financials and accountability details

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Toll Free: 1.866.560.0120

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Alterna refers to Alterna Savings and Credit Union Limited (“Alterna Savings”) and its wholly owned subsidiary CS Alterna Bank (“Alterna Bank”). Together, Alterna Savings and Alterna Bank form the Alterna Financial Group.

Breaking the fear barrier: how fear destroys companies from the inside out and what to do about it Date: September 25, 2012 Time: 6pm – 8:30pm Location: Alterna Boardroom, CSI Spadina

The Centre for Social Innovation 215 Spadina Avenue, Suite 400 Toronto On M5T 2C7

Thisbooktakesusthroughajourneyofhowfearoflossprogressivelycreatesbarriersandbureaucracythatinevitablycausecompaniestofail,andwhatleadersneedstodotoovercometheseseeminglyimpenetrablewalls.

“Courageisresistancetofear,masteryoffear,notabsenceoffear.” – Mark Twain, as quoted in Breaking the Fear Barrier

Avoidingfearisgoingagainsthumannature.Havingthecouragetofaceyourfearandmasterit—notonlyyours,butothers—isimperativeforthefuturesuccessesoftheorganization.Becominga“courageenabler”,asdescribedbyTom,isallaboutremovingbarriersandfosteringencouragement,energy,andcommitmenttotrynewthings.

RSVP by September 24, 2012

Looking for fresh e-news?This newsletter is printed on 100% post-consumer recycled paper using FSC-certified sustainable methods like vegetable-based inks and renewable energy sources. Take a look at how fresh helps improve our environmental footprint.

When you’re done reading this newsletter, please recycle it (or share it with a friend).

Please RSVP to Jean Barrett jean.barrett@alterna.ca

Networking Café:Book Talk

Want to go paperless altogether? Sign up for the e-version of fresh by writing fresh-infofraiche@alterna.ca. Be sure to include your name and mailing address.

Marketing Your Vision Date: May 16, 2012Time: 7pm – 8:00pm Speaker: Marc Gordon MarcistheauthorofTheEdgeFactor:TenProvenMarketingToolstoHelpYourBusinessGetItAndKeepIt.HisarticleshaveappearedinhundredsoftradeandconsumerpublicationsacrossNorthAmerica.Heisalsoaregularcontributortoretailwire.com,businessknowhow.com,biznik.comandevancarmichael.com.

Onthesurface,beingabletoattractmoreclientsandsellmoreproductsthanyourcompetitorscouldbeviewedasjustofferingawiderselectionofproductsatbetterprices.However,whenyouexaminethemarketingprogramsofsuccessfulbusinesses,itbecomesapparentpriceisnotalwaysthebiggestfactor.We’lltalkaboutsomekeymarketingideas,strategiesandtacticsyoucanutilizeinyourbusinesstohelpyougettheresultsyou’relookingfor.

Sowhatexactlyismarketing?MostpeopletendtothinkofYellowPageads,mailings,andoutdoorsignage.Butasofrightnow,starttothinkofmarketingasthis:Marketingisthesimpleactofcommunicating,directlyorindirectly,withyourcurrentorpotentialmarketinawaythatbuildsonandreinforcesyour,oryourcompany’s,distinctqualities.

We’llhaveaspiriteddiscussiononhowtomakeyourmessageconsistent,totargettherightmarketandusemarketingtacticsthatcutthroughtheclutter!

RSVP by May 15, 2012

Tele- Classes (Session will also be available as a Podcast)

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