With Same Day ACH debits, members will now be able to authorize a payment due the same day it comes out of your credit union account.  In the past, those payments may have taken a day or two to clear your account.  The conversion will enable faster crediting when moving money among transactions at different financial institutions. Similarly, business to business payments will process more quickly – providing faster processing of invoices and payments.

Currently credit transactions are posted multiple times per day while debit transactions are posted to accounts only once per day. As of September 2017, debit transactions will also be processed multiple times per day.

To avoid any overdraft fees, ensure your account has sufficient funds to cover any Same Day Debits that you may have authorized to be posted to your account. You may want to review authorizations for current pre-authorized drafts to ensure the desired debit date is provided to the biller/retailer.

If you have any questions or need more information on Same Day ACH Debits, please talk to a Member Service Representative.

Frequently Asked Questions
All consumers, businesses, government entities and financial institutions that use the ACH Network to move money between bank accounts will benefit from the option to move ACH payments faster.
What’s changing?
Currently credit transactions are posted multiple times per day while debit transactions are posted to accounts only once per day. As of September 2017, debit transactions will also be processed multiple times per day.
How does this affect me?
Previously, you may have seen debits posted to your LG&W Federal Credit Union checking/share draft or savings account once per day. Going forward, transactions such as check clearing (only checks to ACH), and bill payments will post multiple times throughout the business day.
What are the benefits of same day ACH debits?
The conversion to ‘same day ACH debits’ will enable you to make easier on-time bill payments as well as faster crediting when you are moving money among transactions that you own at different financial institutions. Similarly, business to business payments will process more quickly – providing faster processing of invoices and payments.
Will my direct deposit be affected?
No. Your direct deposit will continue to be credited to your account on the correct posting date.

Your membership is important to us!  As your credit union, we want to ensure that we are offering premier customer service, products, benefits, and member experience.  Your input in this short survey will help us continue to improve and add value to your membership.  

As a thank you, members participating in the survey who provide their name will be entered into a drawing to receive a $200 Visa Gift Card!  Responses must be submitted by August 28, 2017.  This survey is for LG&W Federal Credit Union members only.

Back to school clothes, computers, and other expenses can add up in a hurry.  Results from a study conducted by the Rubicon Project’s Back-To-School Consumer Pulse Survey found that parents will spend an average of $917 per child gearing up for school this year.  Use the following planning and budgeting tips to help stretch those back to school dollars:

Start with a list of needs.  Make a list for each child that includes what they need, not want, for school, and add up those expenses to compare to your budget. Remember to include school fees, lunches, Comb through closets, drawers and last year’s backpack to inventory what you already have to avoid duplicate purchases.  You may be surprised at the amount of school supplies left over from last year. 

Get the kids involved in budgeting.  Don’t shy away from including your children in your back to school budget process.  Show them what the budget is versus what the expenses are so that they understand spending limitations.  As an incentive, you may want to offer to split the savings with them if you come under budget.

Go coupon clipping online.  Consolidation websites post downloadable coupons and sale codes for online retailers, including: CouponCabin.com, CouponCode.com, CouponCraze.com, Dailyedeals.com, DealCoupon.com, DealHunting.com, Dealnews.com and MyBargainBuddy.com.

Buy only the clothes you need for now.  Kids grow and fashion changes quickly, so purchasing a lot of clothes at once may not be your best strategy.  Spread out your clothing budget throughout the year and take advantage of sales that pop up each season.

Pool resources.  Talk with other parents about buying supplies in bulk together and splitting costs, setting up carpools, and swapping gently used clothing, uniforms and unused supplies.

Rent versus buy.  For musical instruments and sports equipment, renting is a much more affordable option than buying.  As your child’s interest change, they may decide they don’t want to play trombone or lacrosse.

Have you ever heard the term “yield curve”? If you haven’t, you’re not alone. But you might be interested to know that the yield curve is an important tool for investors.
Why the Treasury Market
Although a yield curve can be determined for the spreads between maturities of bonds for any sector, the term “yield curve” is most often used to refer to the curve determined by the U.S. Treasury Bill market. Risk-free discount rates can be derived from Treasuries to match most maturities. This information can be used as a benchmark to determine the value of other investments, and whether or not their returns are worth their risks.
Yields
Treasury securities are debt instruments that have a face value, market price and maturity date. Upon maturity, the bond pays the holder the face value. Longer-term bonds also have a coupon value and pay interest over the life of the bond. To put it simply, the sum of the interest payments and the final face value payment, divided by the price, make up an investor’s return or yield.
Although Treasury securities have fixed face values, maturities and coupon rates, their prices may vary because they are actively traded. Price changes may occur for a number of reasons. As the price changes, so does the yield.
The Yield Curve
The U.S. Treasury offers bonds with many maturities, varying from one year (a T-Bill) to 30 years. The yield curve plots the maturities and yields for all of these securities. Generally, the longer the time until maturity, the more risk a security holder bears, and therefore, the higher a return they expect. However, as market forces adjust the price for various securities, this may not be the case.
What the Shapes Mean
The yield curve’s slope or “shape” always fits one of three descriptions:

• Normal: A normal slope is positive (lower on the left, higher on the right). This shape shows that longer-term securities have a higher yield than short-term securities, as is generally expected. This shape generally indicates that investors expect the economy to grow.
• Flat: A flat yield curve means that there isn’t much of a reward for holding longer-term securities. Common interpretations of a flat yield curve include investors expecting a rise in short-term interest rates, or a decrease in inflation.
• Inverted: When long-term bonds are in high demand, raising their price and lowering their yield, it can cause an inverted yield curve (higher on the left than on the right). Inverted yield curves have often preceded major recessions by months or years and are frequently viewed as a serious economic warning indicator.

These shapes and their interpretations are further explored by: the Expectations Theory, Liquidity Preference Hypothesis and the Segmented Market Hypothesis. Proper treatments of these concepts is beyond the scope of this article, but can be easily found with a few quick internet searches.

As you plan your portfolio, remember to keep an eye on the yield curve and the spread between short- and long-term Treasury securities. If the spread has been flattening for months, it might be a good idea to shift your allocation to steadier investments. If it’s growing, that’s generally a sign that you can feel good about equity investments. Just remember, all indicators should be taken with a grain of salt!

Haggling is near the top of the list of skills that no adult should be without. To the uninitiated, it may feel uncomfortable or rude. Indeed, applied improperly or in the wrong situations, it very well may be. But for those in the know, haggling isn’t just a way to save money and reach a fair price: for these lucky few, haggling can be a great deal of fun!
What is Haggling?
Haggling is the art of negotiating a favorable price or deal. It differs from negotiation in that it is usually a very informal process. Haggling involves body language, facial expressions and, occasionally, even storytelling. Sometimes, a haggling session may result in bonus items rather than price a adjustment. Never buy a new suit without trying to get a tie thrown in for free!
When Should You Haggle?
In the right setting, haggling is not only okay, it is expected! Here are some examples to help you feel out when to haggle and when not to.
Situations good for haggling:

• Antique malls
• Art galleries (if items haven’t sold for years)
• When buying an off-the-rack suit
• Whenever you’re dealing with someone trained in the art of selling

Bad times to haggle:

• Black Friday sales
• Anywhere with standardized pricing for common items, such as a grocery store or department store
• Any time a price has already been verbally or contractually agreed upon
• A professional’s hourly rate
• When eating at a restaurant

How To Haggle
Haggling is best initiated by asking, directly or indirectly, how flexible a marked price is. This will be followed by the salesperson either offering a discount or asking you what you’re willing to pay. Common practice is to go back-and-forth a few times, so you should always start 20-30% below sticker price. If you think the piece has been sitting on the shelf for a long time and the salesperson is desperate to move it, you could try going as low as 40 to 50%. Anything lower than that is unrealistic, and you’ll risk insulting your haggling partner.
Advanced Haggling
As any economist will tell you, prices are determined by supply and demand. If it’s clear that you can’t walk away from a deal, you won’t have any bargaining power to push down the price. When you see an item you like, inspect it to make sure it’s the genuine article. Once you’ve determined its authenticity and that you’d like to purchase it, set it back down and walk away (unless you absolutely must have it, no matter the price). After perusing the rest of the shop, return for the item and approach the salesperson to make an offer.
Sometimes an item may not be marked, or you may be inclined to purchase something that doesn’t seem like it’s for sale. Doing so is often possible, but requires delicacy and tact. For example, maybe a piece of décor at a local restaurant has caught your eye. Open up by asking if the owner would be willing to part with it for a certain price. If you don’t like the price quoted, but have something in mind within 20-30%, don’t name your price immediately. Be polite by saying something like, “Oh I thought it might be just a little less expensive.” If your counterparty is willing to entertain a lower offer, they’ll then invite you to name a price and from there you can haggle as usual. Otherwise, the negotiation is over.
You should haggle a little whenever it’s appropriate. As long as you don’t push too hard, you’ll always leave your transactions feeling satisfied that you reached a good deal.

If you’re faced with a layoff, here are some things you can do to prepare:

• Prepare a written budget. This clarifies your cash-flow situation and helps you with the following strategies.
• Dump debt. Extra debt beyond the home mortgage and perhaps car payments—especially high-interest credit card debt—can weigh very heavy if you are laid off. Pay off as much debt as you can while you still have a job.
• Build a cash reserve. Ideally, you already have an emergency fund in place for just this sort of possibility, preferably with at least three to six months of cash to cover bare-bones expenses. If you don’t have such a fund, or it’s not well funded, put cash in it now while you can afford to.
• Cut expenses. To free up cash to pay off that extra debt, feed the emergency fund and perhaps even to test run a bare-bones budget in the event you are laid off, tighten your financial hatches as much as possible. Look at what expenses you could do without or reduce if you were to become unemployed, such as entertainment, clothing, and meals out. Surprisingly, many unemployed workers try to maintain their employment lifestyle, often by piling up credit card debt, dipping into retirement savings, or running through their lump-sum severance package.
• Start scouting for jobs. This includes not only outside firms, but positions that may be available inside the company. As odd as it may seem, even though the company may be laying off workers in some departments, it may be hiring in others—often from the inside first. Keep looking for work once you are laid off. Amazingly, it’s common for unemployed workers sitting on top of generous severance packages or lump-sum retirement payouts to postpone looking for work for months. Take your layoff as a good opportunity to upgrade your marketable skills.
• Negotiate an exit package. If the pink slip arrives, you may be eligible for a substantial exit package. You may have options, such as taking a lump sum or taking a salary continuation package that might include company funding of a health care plan or your retirement account for a while beyond severance. You also may be in a position to negotiate a stronger exit package than initially offered. Review any exit package options with your CERTIFIED FINANCIAL PLANNER™ practitioner.
• Continue health insurance. Don’t go without! If the company’s exit package doesn’t continue your group health insurance, consider continuing the coverage under COBRA. This is a federal law that requires many employers to allow unemployed workers to continue group coverage, usually for up to 18 months, as long as the worker pays the premiums.
• Don’t count on unemployment insurance. It won’t begin to make up for your lost wages, though every little bit helps. Keep in mind when calculating your post-layoff income that unemployment insurance income is taxable and it’s short term.
• Don’t touch your retirement funds. Try to avoid borrowing or withdrawing funds from your retirement accounts, or spending lump-sum retirement payouts from your former employer. The layoff probably will be temporary, but retirement isn’t. Pulling funds out early could cost a lot in taxes, penalties, and lost growth opportunities.

This article was submitted by the Financial Planning Association, the membership organization for the financial planning community. FPA members are dedicated to supporting the financial planning process in order to help people achieve their goals and dreams. Submission of this article does not imply an endorsement or recommendation of the Financial Resource Center site

Most people aspire to become financially independent, but few actually think about or take the actions necessary to reach independence.

Financial independence means having sufficient financial resources to comfortably choose whether to work or not work, or perhaps work in a highly desirable job that otherwise couldn’t support your standard of living. It means being able to withstand the inevitable financial storms along the way. But what key steps does it take to achieve financial independence?
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1. Set specific goals. Goals define what financial independence will look like for each of us. Goals, particularly specific goals written out with timetables, can motivate us to initiate and stick with the other keys to financial independence.
2. Consistently spend less than you earn. Yes, your mother probably taught you this when you were receiving an allowance as a youngster, but so many of us forget this basic principle. Unless you spend less than you earn, it’s impossible to become financially independent — short of winning the lottery. Consistent saving is even more important than the investment rate you might earn with that savings. Aim for saving at least ten percent of your pre-tax income. If you’re unable to save ten percent now, saving a smaller percentage will help you—especially if you start saving while you’re younger and can let the power of compounding work for you.
3. Create a spending plan. The key to spending less than you earn is to create and follow a spending plan. In general, if you subtract your expenses from your earnings, the amount left should be your savings. Another way to view your savings, though, is to treat savings as an expense item and put it at the top of your budget. Simply have the money deducted from your paycheck and deposited into your savings account. You won’t miss it, and you won’t be tempted to spend it.
4. Invest. To build financial independence, you’ll need to earn a reasonable return on your savings. A savings account alone is not enough. Invest in stocks, bonds, and other assets that involve an acceptable level of risk. Yes, there’s the risk of some loss of principal, but understand that investing is for long-term goals that are at least five years away. When you are closer to reaching your goals, shift the invested funds into those lower-earning but less risky savings accounts and money markets.
5. Stay invested. One of the big mistakes many investors make is waiting to invest until the market is really strong and then bailing out when it sinks. In short, they buy high and sell low. Get in and stay in—and make adjustments if necessary. Keep in mind that the bulk of the returns of a bull market tend to come early in the upswing, and people often miss out on them because they’re waiting for the market to turn “hot.”
6. Diversify. It’s important to diversify your assets. Overloading on company stock, on stock in the industry in which you work, or on other higher-risk investments is an open invitation to trouble. By spreading your investment money among several asset categories, you minimize the impact of the downturns of a particular segment.
7. Use tax-favored accounts. Retirement plans and individual retirement accounts are the most efficient way to build toward financial independence because you get more bang for each invested buck, especially if your employer matches your contributions.
8. Bulletproof your independence. As you accumulate money for financial independence, you need to protect it. The primary way is insurance—not just life, health, auto and homeowner’s insurance—but disability and liability coverage. Disability insurance helps offset the loss of income if you can no longer work due to a disability, and liability coverage is a cushion against lawsuits. Another form of insurance is a cash-reserve emergency fund where dollars are kept in a savings or money market account to see you through emergencies or a stretch of unemployment, so you don’t have to dip into retirement accounts or other investments.

This article was submitted by the Financial Planning Association, the membership organization for the financial planning community. FPA members are dedicated to supporting the financial planning process in order to help people achieve their goals and dreams. Submission of this article does not imply an endorsement or recommendation of the Financial Resource Center site.