Recent newspaper articles and internet posts are educating consumers about the safety of their financial institution.  Non-performing loans, poor investments and low net worth ratios all combine for real concerns about the financial services sector. 

KaiPerm’s Board of Directors and management want to assure its members that your credit union is doing well.  Sure, there are challenges in this economy.  And,  in some ways, KaiPerm mirrors what our members are doing to survive this difficult economy. The credit union is watching expenses, limiting capital expenditures to a minimum and keeping excess cash working with a conservative and prudent investment strategy.  At the same time, KaiPerm is making loans.  In fact, our philosophy has always been to look for ways to make loans to our members.

How safe is KaiPerm NW Federal Credit Union

KaiPerm is a well capitalized federally insured credit union.  Your funds are safe and insured up to $250,000 for individuals by an agency of the federal government, the National Credit Union Administration.  Deposits can be structured to be federally insured up to $1 million for a family of four.  In addition, your retirement funds are also federally insured to up $250,000.

Why are some credit unions discouraging deposits?

A recent Oregonian newspaper article cited a local credit union which asked members to take “investment money” elsewhere. Why would any financial institution do such a thing?  Some credit unions are employing a “withdrawal strategy” to reduce the amount of deposits.  Frequently, higher paying certificate of deposits are used to fund loan requests.  In a turbulent environment, demand for loans is low – so there is not a need to keep high paying certificates or other member deposits to fund loans.

Another primary reason for reducing deposits is to improve the financial institution’s net worth ratio.  Net worth is the ratio of reserves (numerator) to assets (denominator).  By lowering assets, the financial institution improves its net worth ratio. Net worth is a key ratio used by bank and credit union regulators to determine the soundness of a financial institution.

Is KaiPerm making loans?

Yes, the credit union is actively making loans.  That’s what we do (along with taking in member deposits).  KaiPerm’s loan service levels are excellent.  The credit union has not had to cut back employee hours, furlough employees or lay off anyone.  Loan rates are very competitive and we provide one-day service for consumer loans and two week service for real estate transactions.

Another benefit of KaiPerm membership is that our loans are priced the same for all members for Direct Advantage (DA) members.  There are no “risk rated” interest rates because of a low credit score!  Your credit union is a not-for-profit financial cooperative so members all receive the value of low rate loans.

It's already tax time again!

Wow, where did the year go? KaiPerm can help you start preparing for the 2009 tax season. There is good news and some tax breaks to consider for 2009. Check these suggestions out. And, of course, talk with an advisor first before making any tax related decisions.

• First time homebuyers - The first time homeowner tax credit has been extended. Just keep your new home (primary residence) for three years and the credit does not have to be repaid. Talk with your tax preparer for specifics. Note: See KaiPerm for your home loan. Your credit union has competitive rates and super service. With home prices low, it may be a good time for you to buy.

• Unemployment benefits - If you received unemployment benefits in 2009, the first $2,400 is exempt from federal taxes.

• Use your KaiPerm credit card to make a charitable donation in 2009 even if you don't pay the bill until 2010.

• Medical expenses are deductible if they exceed 7.5% of your adjusted gross income. If you are close to the 7.5% threshold, consider scheduling and paying for the necessary medical procedure before December 31, 2009.

• Cash gifts - You can give up to $13,000 per person to any number of individuals in 2009 without having to file a gift tax return. The limit is $26,000 if you are married and the gift is from you and your spouse. Talk with your tax advisor to make sure you do it right. Note: Why not use a credit union account to set up the gift deposit?

• College expenses - Are you a parent with college students? You can claim up to $2,500 a year to cover higher-education expenses. Note: Now is a great time to open a checking account for your college student.

401K tax tips - don't cash out

• It has been reported that forty six percent of workers who changed or lost their jobs took cash from their 401K plans. An employee who cashes out a $5,000 retirement balance at age 25 would receive a check for $3,500 after taxes and penalties. If left in the account, the $5,000 may grow to $75,000 at normal retirement over 40 years at 7%. A recent study stated that 17% of workers who changed jobs and took money from their 401K spent it on items like cars, boats or everyday expenses.

Bank overdrafts . . . .
another good reason for doing business with KaiPerm.

Overdraft programs are a standard product offered by all financial institutions. Several major banks (Bank of America, Chase, US Bank, Wells Fargo), however, are being pressured by Congress to change the way they charge customers for overdraft items. Consumers have had enough!

These banks are now limiting the amount they'll charge you and how they pay overdrafts. Well, it's about time. But why do business with a financial institution which program is still COSTLY and that has been overcharging you for years?

Overdrafts occur when a checking account is accidentally overdrawn . . . . it happens. Not all overdraft programs are bad. You just need to know the difference between overdraft programs. After all, no one wants to be embarrassed at the check register when their check or debit card is not honored.

Now is a good time to move your accounts to KaiPerm. You become an owner so you know you will be treated fairly. And you can talk with a real person who will provide you a host of options if you are having financial challenges.

Make the move to KaiPerm today. Do business with a full service financial institution that treats its members right the first time!

Women in the work force; where do you stand in retirement?

     The US Census Bureau provides some interesting facts;

• There are approximately $154 million people (16 and over) employed in the US; approximately 82 million men and 72 million women.
• 7.5 million women hold down two jobs.
• 22 million female workers are employed in educational services, health care or social assistance.
• Approximately 70% of workers have access to medical care.

So what does this mean to female employees in the workforce and planning for retirement;

Here are some suggestions to get you started or improve your situation;

• Plan for retirement now. Set you goals and stick with a fixed percentage of your pay into an IRA, 401K or savings plan at the credit union.
• Get rid of your debt, especially credit cards. The average middle aged woman (45-59 years old) had nearly $12,000 in credit card debt. Yikes!! KaiPerm can assist you with a bill consolidation loan.
• Nearly 20% of women 65 years and older live in poverty. In addition to retirement funds, you need to budget for a rainy day savings account.
• Know your financial situation. If you are married, it is imperative that you know where the money is and where it goes. Talk to your spouse and make sure the two of you are on the same page financially.
• If you are divorced, then set up a plan immediately and take an inventory of assets and debts. Talk with a close friend about your plans and goals; ask for feedback.
• Setup a simple spreadsheet or fact sheet with names and account numbers. There are several software programs you can use to budget and keep track of assets (things you own) and liabilities (debt you owe). Set annual goals.

More help;

Go to these websites

• www.SMARTMONEY.com. This is a great website to get started. It will increase your financial literacy.
• www.WIFE.org The Women's Institute for Financial Education is the oldest non-profit organization dedicated to providing financial education to women in their quest for financial independence.
• www.Miserlymoms.com . This will help you control spending and show you how to shop for bargins.
• www.Mymoney.gov. More good information to help you manage your money. Your credit union has several options that you may not be aware of.

Need financial counseling? Call KaiPerm. We can you get started, set up a plan and help you reach your financial goals.

Good luck!

We've all laughed at the saying "I'm from the government and here to help you". But in the case of the Social Security Administration, it is true.  And for women, there is especially great news.  The agency has a separate website just for you!

First of all, you need to have a basic understanding of what this federal agency can do for you.  Social security has provided a great handbook titled "Social Security: What Every Woman Should Know".  It is a good primer with back to basics information.  Go to the Social Security Administration website www.socialsecurity.gov/pubs/10127.html to print a copy.   Or go to your nearest social security office to pickup a copy of the 23 page booklet.  It is extremely helpful.

Did you know . . . .

• Nearly 60% of the people receiving Social Security benefits are women
• If you are 25 years old and working you receive an annual Social Security Statement
• If you are a victim of family abuse, Social Security may be able to help
• Most people need 10 years (or 40 quarters) of work to qualify for benefits
• If you have not worked or do not have enough Social Security credits and you are married, you many be eligible for benefits as a result of your husband's work
• If you are a caregiver, have limited income, your husband is deceased, you are divorced, or you don't have enough social security credits, Social Security may be able to help.
• Women are more affected than men by certain aspects including death of a spouse, changing your name for marriage or divorce purposes
• Because women live longer than men, you are more likely to receive survivor's benefits.

More information . . . . Social Security for Women

Go to:  www.socialsecurity.gov/women

Articles include:

 Don't outlive your retirement savings

• Celebrate your marriage
• Plan your retirement
• Pros and Cons on when to retire

In light of recent headlines, I get a lot of questions about sub-prime mortgages. Let me start by stating that your board of directors and management do not believe in risking the member's money on sub-prime loans. That said, there are still some members who may have fallen into the trap of an ARM (Adjustable Rate Mortgage) when the economy was good and are now having trouble making payments. Maybe they're trying to sell their home with no luck.

My advice is this: Try to refinance with us. If your credit is clean, there's a good chance we can help you reduce your payments and get you out of trouble. If that's not an option, then we may be able to introduce you to a reputable lender that helps families with tarnished credit. But whatever you choose, be sure to call or stop by the branch soon. We'll be ready with other home loan alternatives and counseling options that may help you get ahead financially.

One of our more frequently asked questions is: who at Kaiser Permanente can I talk to about the credit union? It just so happens we have a small army of enthusiastic KaiPerm representatives who also work at Kaiser Permanente. If you work for Kaiser, one of your peers has the paperwork and answers you need. To find the KaiPerm rep near you, visit the Credit Union Reps/Kaiser Reps page on our site.