Don’t Let Your Holiday Debt Last Longer than it needs to:

With holiday spending over, our debt recovery time may just be starting. Our credit card bills will start arriving in the mail soon. Recent stats by the National Retail Federation show that the 2007 holiday season got off to a record start with “Black Friday” sales by US shoppers rising 8.3% to a record $10.3 billion. Figures for the following “Cyber Monday” shopping holiday, the Monday following Thanksgiving, also showed a healthy increase with a new one-day record of over $700 million in total purchases.

It is too bad that most of the record consumer spending was paid through the use of credit cards. Most consumers, including me, don’t hesitate to place $300 in goods on a credit card but certainly would think twice if they were forced to purchase the same amount of goods solely with cash? Because of this it is no surprise that the average credit card debt per US household is expected to rise again in 2008 as it has every year since the early 1990’s.

What will this increased spending mean for the New Year? According to John Silva, chief economist for Wachovia, “(Consumers) will still be spending money (in 2008) but it will be on credit card interest and minimum payments, not on apparel or eating out.”

So what’s the average consumer with thousands of dollars in credit card debt to do in 2008? Consider these five suggestions to get your debt under control in the New Year:

1. Reduce your card interest rate - Hawthorne members can now qualify for great rates and Reward points when they transfer balances between February 1 and March 31, 2008.

Visa Platinum Reward Cardholders receive 2,500 bonus points on balance transfers .**
Visa Platinum Savers credit card - 3.99% APR* for 9 months on balance transfers.
Visa Classic credit card – 6.99% APR* for 9 months on balance transfers.

Click here for more information.

2. Stop Using the Cards - seems simple enough? Stop using the cards now and stop accumulating more debt on top of the debt you couldn’t afford in the first place.

3. Pay more then the minimum – For example if you have $5,000 in credit card debt with a 16% interest rate and a minimum monthly payment of $110. Did you know that just paying the minimum means it takes 25 years to pay off your debt and that $5000 debt will end up costing you $12,000 in total? This total includes an extra $7,000 that you will have to pay in interest. A good alternative would be to DOUBLE your minimum payment to $210 and pay off the card in 28 months, which will save you about $6,100 in interest.

4. Consider a Debt Management Program - If you have over $5,000 in debt then a debt management program may be for you. Hawthorne’s Balance Financial Fitness debt management program can help.

*APR=Annual Percentage Rate. **Minimum balance transfer of $1,000.00. Also offering 1 bonus point per dollar of balance transfer up to a maximum of $10,000.00.

Bright Idea, Big Dilemma

The day came earlier than I expected - my first energy efficient light bulb burned out. You know the kind everyone is encouraging you to swap out -the curly bulbs that use less energy and are supposed to burn longer (in fact, they use a third less energy and last ten times longer).

It's said that if every U.S. household replaced just one incandescent bulb with a compact fluorescent light bulb, the amount of energy saved could light 2.5 million homes for a year. That's fantastic, I'm all over that!

Unfortunately, those bulbs shouldn't be thrown away because they contain mercury, which is harmful to the environment. Yet the city recycling centers aren't set up to take them. For some reason one of mine burned out sooner than it was supposed to. Now I'm faced with the dilemma of what to do with it.

I found out that the Environmental Protection Agency schedules drop off dates throughout the year, but the next ones will be scheduled in 2008. I will start a little collection of bulbs until I hear of a collection date.

Also, behind the Naperville Fire Station Fire Station #4, 1971 Brookdale Road, there is a drop off facility that is open Saturdays and Sundays, from 9 a.m. to 2 p.m., excluding holidays. If you have questions about the City’s household hazardous waste collection program, please call the Department of Public Works at (630) 420-4190, Monday through Friday, between the hours of 7 a.m. and 4 p.m.

If you live in Carpentersville, Dundee, Elgin, Gilberts, Hampshire, and South Elgin residents
Residents with Carpentersville, Dundee, Elgin, Gilberts, Hampshire and South Elgin mailing addresses may call the HHW Hotline at 1-800-449-7587 to schedule a free pickup from your home. This service is operated by Curbside, Inc., and is sponsored by Kane County, the City of Elgin, and the Villages of Carpentersville and South Elgin.

These bulbs are so popular now, I'm sure the demand will increase next year for suitable drop off locations for disposing of the bulbs and it will get easier to dispose of them. Meanwhile, I know it's tempting to throw them away instead of bothering with proper disposal but hold onto your bulbs!

Save Gas, Cut Carbon Emissions, Burn Calories

Here's a way you can do all three - it's simple too. This tip is from The Daily Green. Check it out.

"When you are picking up food, doing your banking or even filling a prescription,
park your vehicle and walk inside instead of using the drive-through. It will
cut down on unnecessary fuel use as well as carbon emissions.

Every time you use a drive-through, you burn about 18 cents worth of gas idling your car. According to Quick Service Restaurant Magazine, the average drive-through wait time once the order is taken is three minutes. Add the minute or two that it takes to place the order, and that means one billion car-minutes spent idling
each year in front of Burger King restaurants alone! Estimates for total fuel
costs for idling in front of every drive-through in America are in the hundreds
of millions of dollars.

Parking your car and getting out also allows an opportunity to stretch your legs. Given the obesity epidemic in this country, any chance to get your body moving is also nothing to scoff at. Getting out also gives you the chance to throw away garbage, so you will be less tempted to toss litter out your window later on."

The best little deal in banking

Credit unions offer sweet deals on credit cards and auto loans, the best CD rates in the business and heaps of personalized services. And yes, you too can join one.

By Carolyn Bigda, Money Magazine writer-reporter

(Money Magazine) -- If you belonged to a credit union in the past, it was probably because a volunteer at work or church approached you to let you know about the good deal you could get on a car loan.

Credit unions still offer car loans, they're still tied to affiliation groups, and they still have friendly members looking to let you know about a good deal. But today these not-for-profits are in a pitched battle with big retail banks for all your banking business.

That's good news for you. You'll find credit unions with networks of free ATMs and terrific credit-card deals as well as rates on loans and savings products that the megabanks can't match. A recent study by Informa Research Services found that a higher percentage of credit union members liked their institutions than did bank customers.

And you don't need to belong to a church or work for a company that has a credit union to find one you can join. Not convinced? See if these five reasons change your mind:

Savings: How to earn real money

While large national banks were reluctant to pass on Federal Reserve rate hikes of previous years, credit unions tracked the Fed to offer higher-than-average yields, says Kyle Selberg, CEO of BankingMyWay.com, which follows bank and credit yields.

And when rates dropped in September, credit unions gave up little ground. These days you can still find phenomenal deals on CDs. For example, the Space Age Federal Credit Union in Denver offers a 16-month CD that pays 7 percent through the end of the year (on Jan. 1 the rate converts to 5 percent for the remainder of your CD's term).

And savings-account rates at some credit unions are competitive with those of major online banks. Recently, traditional savings accounts at the American Airlines Federal Credit Union, based in Texas, yielded 4.59 percent, slightly higher than rates at HSBC Direct.

Best deal on a six-month CD: Sabine Federal Credit Union (Orange County, Texas): 5.43 percent

National bank average: 3.45 percent

Credit cards: low rates, low fees, low penalties

Today the average bank credit card charges 13.69 percent, according to Bankrate.com. At credit unions it's 12.16 percent, reports the National Association of Federal Credit Unions.

A 2005 report from the Woodstock Institute, a nonprofit economic development group, found no credit unions practicing "universal default," a much criticized policy in which your lender raises your interest rate if you default on another lender's loan.

Some credit unions won't penalize you with higher rates even when you're late on their own card's bill. If they do, you'll rarely pay more than 18 percent, compared with upwards of 30 percent at major banks.

Auto loans: They're the best-known credit union deals for a reason

You're also more likely to qualify for those low rates, even if your credit history isn't polished or you're a recent graduate just building a credit profile. "We understand that real life happens, so we'll take a look at the whole picture," says Nancy Sieller, loan manager at Torrington Municipal and Teachers Federal Credit Union in Torrington, Conn. "We want to work with you."

Home loans: Financing you aren't likely to get from a bank

Maybe you or your kid wants to buy a home with little or no money down. Well, good luck getting that kind of loan from a bank in the wake of the subprime mortgage collapse.

Some of the largest credit unions, though, now offer what's called the Home Loan Payment Relief (HLPR) mortgage. It finances 97 percent or more of the cost of a home and is available to home buyers with limited income and, increasingly, to those looking to refinance out of an adjustable-rate mortgage.

If you're putting the standard 20 percent down, you'll get an interest rate that's as good as you'd find at a bank, and borrowers may also save on extraneous fees.

Perks: Take a class, get a deal on kids' savings

Many credit unions extend their services far beyond basic banking. You might find free personal-finance classes for your teen or complimentary retirement and credit counseling programs.

The McGraw-Hill Employees Federal Credit Union in New York City and New Jersey, for example, provides furlough loans to members who lose jobs and lets them defer payments for up to three months.

Some credit unions, including Achieve Financial Credit Union in Connecticut, will comb through a credit report with you and suggest how to improve your score.

And many offer kids' financial literacy tools and special savings rates: Youth CDs, for instance, often carry the same yields as their adult version but require lower minimum balances and give kids the opportunity to make additional deposits during the CD's term.


Your big questions answered

Question: Can I really join a credit union?
Answer: Thanks to 1998 legislation loosening membership restrictions, chances are better than ever that you can. Now you just have to figure out where you're eligible.

Step 1 Ask your mom and dad (and your grandparents...). If someone in your family is a member, you often qualify to join as well.

Step 2 Find out if your employer, trade group, alma mater or church is affiliated with a credit union. If you're a pharmacist in Pennsylvania, for example, you can join the Pennsylvania State Employees Credit Union.

Step 3 Still nothing? Time to check out the online databases: Go to the credit union locators at ncua.gov and creditunion.coop. Based on information such as your location, religion and ethnic background, you'll get a list of credit unions you might be able to join. Click on each credit union's Web site to learn the specifics.

Question: Should I ditch my bank?
Answer: It's worth considering if the credit union is a member of a large, free, nationwide ATM network such as the Co-op Network, which includes 25,000 ATMs (vs. 17,000 for Bank of America), and it has online banking too.

But many credit unions still can't match the big banks when it comes to the breadth of financial products or their services (like late branch hours). Combining your credit union membership with a checking account at a regular bank will probably offer you the best of both worlds.

Holiday Online Shopping Safety Tips

Holiday Online Shopping Safety Tips

Online holiday shopping offers numerous conveniences over driving in heavy traffic, tromping though snow, lack of parking, and last-minute crowds. You can do all of your holiday shopping sitting in the comfort of your own home but, you need to be on your guard. Online shopping can have a few extra pitfalls, and there are always a few con artists out there waiting to separate you from your Christmas gift money.

Tis the season to shop online... and by following the tips below, your holiday will be a happy one.

• Evaluate the Seller - Purchase gifts through well-known online retailers that disclose full contact information. Just because an online store has a nifty website doesn't mean it has good business practices.
  
• Always ensure that online financial transactions are secure by checking the bottom right corner of the browser window. A little yellow lock will appear on secure sites.
  
• Check your bank statements regularly and investigate suspicious charges.
  
• Do not give out personal or financial information in response to unsolicited email. Do not click links in any email when conducting financial transactions.
  
• If you think you’ve been phished, immediately visit www.consumer.gov/idtheft.
  
• Record the Transaction - you have submitted your credit card and shipping information, you will likely land on a "Thank You" page. This page usually contains a transaction receipt and transaction number. Print this page for your records.In some cases, you will also receive a receipt by email. Again, printing the email and saving it is wise in case you have computer problems in the future.
  
• Always donate to charities directly, even after receiving emails requesting donations.
  
• When participating in online auctions such as ebay, check the seller’s references and feedback ratings. If purchasing a high-value item, consider using an online escrow service.
  
• Do not user your primary email address when shopping since you may inadvertently be signed up for excessive newsletters or marketing emails. Use a disposable account.
  
• Do not venture online without securing your PC. A good firewall is essential, and antivirus, anti-spyware and spam protection are also critical. Keep up with security update downloads.
  

Also, to save money, don’t forget to always check for a coupon or promotional code before checking out. Visiting CurrentCodes.com and getting a coupon only takes a few seconds and could save you anything from free shipping to 15% off or more.

Cruisin' Your Way to Lower Gas Bills

Here's a tip from The Daily Green on how to reduce your gas bills by using cruise control - and saving money on speeding tickets by slowing down . . . sensible advice!

"Worried about sky high gas prices? Did you know that by keeping your car
at a steady speed, cruise control helps save gas. It can also help save you
money in tickets, since you can stay “under the radar,” by avoiding the creeping
increase in speed that tends to plague drivers on long, boring hauls.

Whenever you hit the accelerator, you burn a lot of gas. Braking wears out
the pads, and forces you to use more gas to speed back up. Your vehicle’s
systems perform most efficiently at a constant rate.

Although fuel economy can vary significantly with model and conditions, the optimal range of efficiency is generally between 25 and 55 mph, according to the EPA. On the open road, try not to exceed 55, and try to stay steady at the speed limit on city streets. You’ll get there. "

Take a Bite Out Of School Lunch Costs

Every day when I make my daughter's lunch I carry on a tradition that started with my mom. She’d make my sandwich for school every day. And every day she’d take a bite out of my sandwich. For many years I didn’t even question it. It seemed so normal.

Then the kids started asking. “Who took a bite of your sandwich?” they’d ask.

“My mom,” I’d say. “You mean your mom doesn’t take a bite out of your sandwich?” I’d ask.

“No!” they’d laugh. I always felt a little sorry for them, assuming their mothers must not love them the way mine loves me. So now I carry on the same tradition…

“Geez mom do you have to take a bite out of my sandwich again?”

“Yes,” I said, mouth full. She caught me in the act … again.

But if you’ve taken a good look at the school lunch menu, you might understand why I take the time each day to maker her lunch. I've seen corndogs, nachos and pretzels with cheese on the menu. Excuse me but isn't that carnival food? The average calories per meal is between 700-800. I'm not a nutritionist, but that seems like a lot to me.

A friend of mine who recently started making her kids lunches had similar sentiments after making herself familiar with the school lunch menu. She was horrified and vowed to start making lunches in brown bags the old fashioned way.

Still, I have to give credit to the school lunch provider Sodexho. Making lunch for kids raised on McDonalds can't be easy. These kids grew up in a time when, until recently, the best tasting food made the biggest profit and few companies (or consumers, for that matter!) really cared about how healthy the product was. Taste came first at the sacrifice of health. Things are getting better. Still, lunchmakers like Sodexho (and me) compete for my daughter’s choice of lunch. My goal: nutrition. Their goal is to make a profit for their company and for the school district. If the food doesn't appeal to the kids they lose.

And I must admit this year’s school lunch menus are looking healthier.

Still, I make her lunch as often as I can – I think that whatever I send her is a little healthier than what they’re offering.

Plus it saves me money! I figure the cost of my homemade lunch at around $1, as compared to around $3. And then I get to take a bite out of her sandwich.

Beware - New Credit Card Phone Scam

We recieved an alert from our contacts at other credit unions that a new, very tricky scam is being conducted by phone. The bottom line to remember is that a ligitimate financial institution will never call to ask for your account information, because they already have it! Never give account information to anyone who contacts you.

This scam is pretty slick since they provide YOU with all theinformation, except the one piece they want. The scam works like this:

Person calling says, "This is (name), andI'm calling from the Security and Fraud Department at VISA. My badge numberis 12460. Your card has been flagged for an unusual purchase pattern, andI'm calling to verify. This would be on your VISA card which was issued by (name of bank). Did you purchase an Anti-Telemarketing Device for $497.99 from a marketing company based in Arizona ?"

When you say "No", the caller continues with, "Then we will be issuing a credit to your account. This is acompany we have been watching and the charges range from $297 to $497, justunder the $500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to (gives you your address), is that correct?"You say "yes".

The caller continues - "I will be starting a Fraud investigation. If you have any questions, you should call the 1-800 number listed on the back of your card (1-800-VISA) and ask for Security. You will need to refer to this Control Number. The caller then givesyou a 6 digit number. "Do you need me to read it again?"Here's the IMPORTANT part on how the scam works. The caller then says, "I need to verify you are in possession of your card." He'll ask you to "turn your card over and look for some numbers." There are 7 numbers; thefirst 4 are part of your card number, the next 3 are the security numbers'that verify you are the possessor of the card. These are the numbers you sometimes use to make Internet purchases to prove you have the card.

The caller will ask you to read the 3 numbers to him. After you tell the caller the 3 numbers, he'll say, "That is correct, I just needed to verify that the card has not been lost or stolen, and that you still have you rcard. Do you have any other questions?" After you say, "No," the caller then thanks you and states, "Don't hesitate to call back if you do", and hangs up.

You actually say very little, and they never ask for or tell you theCard number. But after we were called on Wednesday, we called back within 20 minutes to ask a question. Are we glad we did! The REAL VISA Security Department told us it was a scam and in the last 15 minutes a new purchaseof $497.99 was charged to our card . Long story - short - we made a real fraud report and closed the VISAaccount. VISA is reissuing us a new number.

What the scammers want is the3-digit PIN number on the back of the card. Don't give it to them. Instead, tell them you'll call VISA or Master card directly for verification of their conversation. The real VISA told us that they will never ask for anything onthe card as they already know the information since they issued the card! Ifyou give the scammers your 3 Digit PIN Number, you think you're receiving acredit. However, by the time you get your statement you'll see charges forpurchases you didn't make, and by then it's almost too late and/or moredifficult to actually file a fraud report. What makes this more remarkable is that on Thursday, I got a callfrom a "Jason Richardson of Master Card" with a word-for-word repeat of theVISA scam. This time I didn't let him finish. I hung up! We filed a policereport, as instructed by VISA.

Is the Latte Effect Really The Problem?

Shopping malls and retail stores are always packed, and there is a new restaurant on every corner. Everyone seems to be wearing designer shoes, jackets and jeans and sipping $4 lattes. Credit card commercials are constantly promoting splurging and, U.S. consumers have been more than happy comply.

So what's the problem? Why do so many middle class Americans with so much stuff say they feel so squeezed? If they are consumed by debt, isn’t it their own fault? I have always thought that many times we are responsible for the financial situations that we find ourselves in. After doing some reading on the topic I now wonder if our personal needs and consumption choices are really the problem.

Bankruptcy law expert and Harvard University Professor Elizabeth Warren spent a lot of time crunching the consumer spending numbers for her popular books, "The Fragile Middle Class” and “The Two-Income Trap.” In both, she makes this point: Despite all those $200 sneakers you hear about and the long lines at Starbucks, consumers are actually spending less of their income — much less — on discretionary items like clothing, entertainment and food than their parents did. In fact, after taking care of essentials like housing and health care, today’s middle class has about half as much spending money as their parents did in the early 1970s, Warren says.

The basics, our life essentials, now take up close to three-fourths of every family's spending power (it was about 50 percent in 1973), leaving much less left over at the end of the month.
Even though household incomes have risen about 75 percent since 1970, most of that they say, is the result of a second earner, generally a woman, joining the work force. In many cases that added income has been swallowed by rising fixed expenses, such as child care and housing costs, because many people try and buy more house than they can actually afford. The average family now pays at least twice as much for housing compared to what our parents paid in the 1970s.

Four in 10 Americans don't have even one month's worth of savings for use in case of an emergency, according to a survey by HSBC Bank published in 2006. And even with two incomes built into the family budget, the odds of a household getting hit by a layoff have doubled in the last generation. The combination of high housing debt, rising health care costs, lack of savings and greater exposure to unemployment has left many families in a dangerous financial position.

I see the biggest problem being that the largest portion of our budgets are spent on fixed costs like housing, has risen much faster than wages and inflation. That means mortgages, more than lattes, are the source of many of our financial problems.

I now think that the "latte factor" is only being used as a way to distract people from the real changes in the economy.

Roth IRA - - more than just a great retirement investment.

The Roth IRA was first introduced in 1998. Since its introduction, it has become an investment program of choice for a number of our clients because of its versatility.

Like the regular IRA, annual retirement contributions for 2007 to the Roth IRA are $4,000 per person (or $5,000 if you are over age 50) and you have to April 15th to make contributions (Roth IRA contributions are subject to a phase out based on income. You need to be in a qualified income level to contribute).

And, although Roth IRA contributions are not tax-deductible, you may still benefit from the ability to withdraw earnings tax-free.
Here are a few examples of the Roth IRA’s flexibility.

• Saving for college tuition? You can draw on a Roth account to help with your child’s educational expenses, and still retain control of the funds. In addition, if you hold onto your account for at least five years and you’re older than 59 1/2, no taxes would apply on earnings. In fact, contributions can be used at any time, free of taxes and penalties.
• Encourage your youngsters to save. If you have children who have part-time jobs, they too can open a Roth IRA.
• Shopping for your first home? If you’ve had your Roth IRA for at least five years, you can withdraw up to $10,000 ($20,000 for couples) in earnings “tax-free and penalty-free” if you use the money for a “first time home mortgage purchase.”
• Passing on your investments to heirs couldn’t be easier. You can bequeath the funds in Roth IRAs to your beneficiaries, who can withdraw money from the account tax-free over a number of years.
• Roths offer great estate planning advantages. Beneficiaries can withdraw money from a Roth account tax-free. And, unlike regular IRAs, there is no minimum distribution starting at age 70 ½, so seniors with earned income can keep investing in the Roth account at any age.
• If you’re a retiree, you don’t have to worry about being pushed into a higher tax bracket with your Roth distributions, since Roth IRA distributions are tax-free.

Keep in mind that a Roth IRA may not be appropriate for everyone. For example, the IRS requires the owner to hold his/her Roth for 5 years or until age 59 ½ (whichever is later) in order to avoid penalties and taxes on the earnings upon withdrawal. To determine whether a traditional IRA, Roth IRA or other retirement investment program is right for your specific financial goals, contact Mike Pozzi, our Hawthorne Credit Union Investment Adviser at (630) 983-2310.


Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested.

Slow Down to Save Gas

Here's something I didn't realize...from The Daily Green (thedailygreen.org). This site offers tips to going green and some great healthy recipes, too. Subscribe to their daily emaily newsletter! An article appearing in todays' Daily Green newsletter:

Drive 55 (MPH)
On the highway, try not to exceed a speed of 55 miles per hour. Not only are you less likely to get into an accident, but the faster you drive, the more fuel your vehicle consumes per mile. That means more money and more greenhouse gases.

At 65 mph you’re burning 10% more fuel than at 55, according to the American Council for an Energy-Efficient Economy. At 70 you lose 17% of your fuel economy, and at 75 it’s 25%. The numbers get worse from there.

Even though you may thrive off living in the fast lane, if the national speed limit were reset to 55, it would save 1 billion barrels of oil per year — more than the U.S. imports from the Persian Gulf.

The reason why is simple physics. As your engine heats up at higher speeds, it burns gas faster. Plus, all that increasing resistance from air and road drag you down.

Hawthorne is Safe from Sub-Prime Mortgage Risk

What's going on in the sub-prime mortgage market? I am sure you have all heard of The Sub-Prime Mortgage Meltdown. According to the New York Times many of the top lenders in the nation are reporting serious losses, filing for bankruptcy protection, or looking for another company to buy them.

Hawthorne Credit Union continues to be a steadfast, strong financial institution. Other financial institutions entered risky ventures by holding sub-prime mortgages on their books, but Hawthorne did not.

Hawthorne maintains high standards in its lending practices, responsible investments and always strives for stable capital. We do not hold sub-prime mortgages on our books, which protects us from risk.

Further, Hawthorne Credit Union is here to stay. Since its inception in 1935, Hawthorne has been serving the people of the Chicago suburbs with honest service at affordable prices. Because we’re a not-for-profit financial cooperative, we’re owned by our members and therefore can’t be bought or sold.

If you entered into a mortgage that is too much to handle, contact our specialists at Hawthorne. Jean Harlowe, our mortgage specialist, can help refinance your loan into one with more affordable payments. For those with more serious needs, Sharon McCroskey, our credit counseling specialist, can discuss options and help find a desirable solution. Contact us at 630-369-4070.

September is Life Insurance Awareness Month: It's Time to Stop Gambling with Our Families Financial Futures.

Do you ever wonder what would happen to your family, if something happened to you? The thought is so scary and hard to think about, that a lot of us have decided that the possibility of this is unlikely and it is easier not to deal with the issue at all. Unfortunately there are many times when this solution does not work.

If you have found yourself or a family member in this situation, you know all too well, how true this is. Without the financial means to continue through life without a loved one that you were financially dependent on, the ability to deal with such a significant loss becomes even more difficult.

Gambling has become a popular pastime in America. Consider the craze over the multi-state Mega Millions lottery. Every time the jackpot rises to eight or nine figures, millions of Americans run to their local convenience store for a chance to become the next mega millionaire. Their chance of winning? About 1 in 175 million. The good news: the consequences of losing aren’t usually very severe, since the average investment is only a few dollars.

Contrast that to the financial consequences of dying prematurely and not having adequate life insurance protection. The outcome can be dire. Bills pile up quickly. Mortgage or rent payments get missed. Families are forced to find cheaper housing. Education plans are put on hold. Dreams get dashed.

What’s most frustrating is that all of this financial suffering is avoidable with proper insurance planning. Then why do three in ten adult Americans have no life insurance at all, and most of those with coverage have far less than experts recommend? The answer is simple. We’re a nation of gamblers. But in this particular case, many Americans are taking a bad bet.

Ask a 35-year-old man what his chances of dying are in the next 15 years and he’ll probably say, “Pretty slim”. Actually, he’s right. About 95% of men that age will live beyond their 50th birthday. But of the nearly 2.1 million 35-year-old US men, consider how many won’t live that long. 21,126 won’t live to age 40, 52,817 won’t make it 45, and nearly 100,000 35-year-olds (or 1 in every 21) won’t live to see their 50th birthday.

Most Americans don’t fully appreciate the gamble they’re taking by not having adequate life insurance coverage. The chances of dying too young are much greater than most people realize and life insurance protects your loved ones in case the unexpected happens.

For more details on life insurance or to schedule a no-cost, no-obligation appointment with Financial Network Registered Representative, call 630-983-2310, fill out our request form, or email us today. And watch for upcoming announcements on our no-cost financial seminars.

We Can Help You Save for the Holidays!

Believe it or not, it’s getting to be that time of year again! Time to start thinking about the upcoming holiday season! I know, you might think I am crazy, but before you know it you’ll be planning Thanksgiving, buying gifts and possibly traveling. Can you see the dollar signs yet?

As far as I am concerned it’s never too early to start saving money and shopping for the holiday season. For some of us, including me, this is easier said than done. In January it does not seem important to start saving for Christmas, since most of us are just starting to try and recover from the financial impact that the previous holiday season has had.

A couple of years ago I decided that I wanted to do something to prepare for the holiday season and make the holidays more enjoyable and less stressful on me and my family. I decided to open a Christmas Club Account at Hawthorne.

This is a savings account that I can deposit money into throughout year to effortlessly build up a nice gift fund. In November the money automatically gets deposited in to my savings account and I can go shopping without having to worry about paying for everything.

Last year I got a late start and only had $300 in the account when the money got transferred, but this year I have been doing better. I transfer $25 - $50 each pay period into my Christmas Club Account. This year when the deposit is made I should have about $800. This will help take some of the pain out of my excessive shopping.

For us, there is not a better way to save money for the holidays than this kind of savings account. So easy & painless!


Click here for more information on the Hawthorne Christmas Club Account.

Get your kids back to school on the right foot!

All the parents I know are so smiley and positive lately and there is a noticeable bounce in their step that I haven't seen in months. Oh yeah, school's back in session!

It’s that time of year again. The back-to-school frenzy has begun. Stores are running sales on backpacks and pencils, and computer companies are pushing laptops for the college-bound group. The money requirements on us hard working parents is back in full swing and once again the question of how to teach our kids how to handle the money that we give them for lunch, books and spending, rears its ugly head.

The Wall Street Journal ran a great column a few weeks ago on allowances. The main point of the article was that you should give your kids an allowance as soon as they can understand that money buys things. Now I am not suggesting that your kids should be paying for lunch or school supplies, or their books in college, but they should understand that now, that additional money needs to be part of your budget.

On Saturday, when we gave Zach his allowance we included additional money for the hot lunches that he wanted to get this week. We explained that we are now paying for this in addition to his allowance. His response was that he earns his money by doing work around the house for us, so that does not count. Not exactly the point I was trying to get across, but at least we tried.

To help you kids start saving money, Hawthorne’s Youth Account is a good place to start and Googolplex for Kids offers fun games & activities for kids of different ages.

I also found some good resources to help young kids understand financial literacy (I think I will need to make sure that visiting these sites get added to Zach’s list of things to do), they include:


Mykidscredit.com answers what you and your kids need to know about credit.

Jumpstart.org promotes financial literacy for K-12 youth. The site isn't especially pretty, but there's lots of good information there.

Consumerjungle.org. Click on students to practice money management skills.

For those of you will college age students, you can help get them off to the right start with some help from Hawthorne.

Student Loans We can guide you through the Federal Family Education Loan Program. Our credit union is an ideal place to learn about the Federal Family Education Loan Program (FFEL). While each loan varies according to your child's financial situation, here's an overview of Stafford and Parent Loans for Undergraduate Students :(PLUS).

Totally Free Checking With no minimum balance and no monthly fees, a student can save money and stay focused on studies. With Family Rewards, the ATM transactions could be free or discounted! The first 6 ATM transactions each month are FREE!

Hawthorne Visa® Check Card Accepted on and off campus, at millions of locations -- including grocery stores, book shops and gas stations. And it doubles as an ATM card, for access to cash. Hawthorne has 57,000 surcharge free ATM locations nation wide. We also offer a FREE easy ATM locator on our web site.


Student Visa® Credit Card Avoid high rate, high balance credit cards sold on campus. Provide your student with our card, which offers a low balance, low rate, no annual fee and a 25-day grace period on purchases. Great for emergencies!

Our student credit card offers a great way for college students to establish a credit history and learn to use credit wisely. The credit limit is $500 and is in the student's name. This card does not require a parent's signature.

Stay in Touch 24/7 You have the option to be a joint owner on the student account, which gives you access to view detailed, up-to-date activity checking account online at www.ehawthorne.org http://www.ehawthorne.org/.

Students out-of-state can call toll-free to access AnyTime® Phone.

Arrange for regular, automatic transfers from your account to your student's. You choose the date, the frequency and the amount. For more details, contact your nearest Hawthorne Credit Union office at 630-369-4070. Or, go online to http://www.ehawthorne.org/.

Sub-prime mortgage worries trigger market correction

Market volatility has increased dramatically in recent weeks. The new high of 14,000 on the Dow Jones Industrial Average on July 19 didn’t last long as the index fell 5.5% by the end of the month. The decline for the broader S&P 500 index was even greater, 6.3% in that same span. The catalyst for the downdraft was the housing market, particularly questions about the impact of rising delinquencies and defaults among lower grade mortgage holders. While housing construction and sales have slowed gradually over the past year, housing’s effect on the overall economy and stock market has been small. Other business sectors have remained strong, particularly those taking advantage of the growing international markets. However, the risk of actual defaults by borrowers in sub-prime mortgages has triggered concerns of losses spreading to other parts of the higher-risk debt markets and severely hurting stocks as well. Other analysts believe investors were seeking a reason to take short-term stock profits after the recent new highs in the markets, and the mortgage market problems merely provided that spark.

While most business sectors experienced declines in the sell-off, most of the pain was focused on those companies that had benefited significantly and now could suffer direct losses from the extension of the sub-prime loan problems. Home builders, mortgage companies, banks, and brokerage/investment management companies led the decline. Mortgage companies and brokerage stocks were particularly vulnerable due to their more direct involvement in facilitating the development of the sub-prime lending trend. Most of the major banking institutions had long recognized the potential risk of these kinds of loans and avoided significant involvement with either generating or investing in them. Recent second quarter earnings announcements show that severe losses have been contained to relatively lesser quality firms.

Against the fairly isolated sub-prime mortgage problems, second quarter profit reports support the view of a relatively steady economy. Second quarter GDP was better than expected. Reports to date by companies of the S&P 500 show second quarter profits modestly ahead of expectations. Wage and job growth offer support to the continuation of economic growth continuing at least through the year. This in turn leads to greater confidence that mortgage delinquencies will not spread to prime mortgage holders. However, many market analysts believe that market psychology may stay disconnected from the economic data and more focused on headlines surrounding mortgage-related problems for a while longer. This could lead to continued uneasiness among investors and more market volatility in the short-term.


Prepared by: Martin Cosgrove, CFA, Director of Investment Research
Research Department/ING Advisors Network

The views are those of Martin Cosgrove, Research Department, ING Advisors Network, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Investors cannot invest directly in indices. Please consult your financial advisor for more information.

Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.
Financial Network Investment Corporation is an ING company. Affiliates and subsidiaries and/or officers and employees of Financial Network or ING may from time to time acquire, hold or sell a position in the securities mentioned herein.

Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested

Everything you NEED to know about Identity Theft

News stories continue to appear about fraud committed with stolen personal information. Why is this so important? In today's information era, it is quite simply easy to have your identity stolen. As your credit union, committed to your financial safety, we feel you need to have the latest information to keep your self and your accounts safe.

Remember Hawthorne will NEVER ask for your personal information, account number, PIN, or any sensitive account information via email. If you receive an e-mail that claims to be from Hawthorne and asks for your account information- you should consider it to be a fraudulent attempt to obtain your personal account data for an illegal purpose and you should not follow the instructions in the e-mail. If you are confused or would like to verify the request, simply call 630-369-4070, 800-848-1697 (outside IL).


Some tips to help you REDUCE YOUR VULNERABILITY are listed below.

• Do not sign the back of your credit cards. Instead, put "PHOTO ID REQUIRED".


• When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the "For" line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.


• Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. You can add it if it is necessary. But if you have it printed, anyone can get it.


• Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel in case your wallet is stolen. We've all heard horror stories about fraud that's committed on us in stealing a name, address, Social Security number, credit cards. But above all- put these photocopies in a safe place!


• Never give your account numbers or Personal Identification Numbers (PIN) to someone who contacts you. The Credit Union (and most other financial institutions) will NEVER ask for your account information or PIN numbers in an email.


• Shred anything with your Social Security Number, birth date, or account number and all credit offers.


• Don’t carry your Social Security card, extra credit cards, passport or birth certificate in your purse or wallet if not absolutely necessary.


• Reconcile your accounts immediately, and challenge any purchases that you don’t remember.


• Cancel lost credit cards immediately. However, the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep a separate list where you can find it quickly and easily.


• Report it to the Credit Union if your checkbook is stolen.


• File a police report immediately in the jurisdiction where your purse or wallet was stolen. This proves to credit providers you were diligent, and it is a first step toward an investigation if one is required.


• If you believe your Social Security number has been compromised, call the Social Security Administration’s fraud line to report it.


• Contact credit-reporting agencies. This is perhaps the most important and least discussed step. Call the three national credit-reporting agencies immediately and ask them to place a fraud alert on your name and Social Security number. With an alert in place, any company checking your credit knows your information was stolen and they must contact you by phone to authorize new credit.

Market Jitters

The market volatility over the past few weeks has been significant. Given the turbulence, it is good to hear from an expert (below) to keep everything in perspective. I believe in all markets it is important to keep invested according to a disciplined asset allocation based on your level of risk acceptance. It is also my belief that this is the way to grow wealth long term.
Stay the course!!

Mike Pozzi
Investment Adviser Representative

Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested.


Sub-prime mortgage worries trigger market correction

Market volatility has increased dramatically in recent weeks. The new high of 14,000 on the Dow Jones Industrial Average on July 19 didn’t last long as the index fell 5.5% by the end of the month. The decline for the broader S&P 500 index was even greater, 6.3% in that same span. The catalyst for the downdraft was the housing market, particularly questions about the impact of rising delinquencies and defaults among lower grade mortgage holders. While housing construction and sales have slowed gradually over the past year, housing’s effect on the overall economy and stock market has been small. Other business sectors have remained strong, particularly those taking advantage of the growing international markets. However, the risk of actual defaults by borrowers in sub-prime mortgages has triggered concerns of losses spreading to other parts of the higher-risk debt markets and severely hurting stocks as well. Other analysts believe investors were seeking a reason to take short-term stock profits after the recent new highs in the markets, and the mortgage market problems merely provided that spark.

While most business sectors experienced declines in the sell-off, most of the pain was focused on those companies that had benefited significantly and now could suffer direct losses from the extension of the sub-prime loan problems. Home builders, mortgage companies, banks, and brokerage/investment management companies led the decline. Mortgage companies and brokerage stocks were particularly vulnerable due to their more direct involvement in facilitating the development of the sub-prime lending trend. Most of the major banking institutions had long recognized the potential risk of these kinds of loans and avoided significant involvement with either generating or investing in them. Recent second quarter earnings announcements show that severe losses have been contained to relatively lesser quality firms.

Against the fairly isolated sub-prime mortgage problems, second quarter profit reports support the view of a relatively steady economy. Second quarter GDP was better than expected. Reports to date by companies of the S&P 500 show second quarter profits modestly ahead of expectations. Wage and job growth offer support to the continuation of economic growth continuing at least through the year. This in turn leads to greater confidence that mortgage delinquencies will not spread to prime mortgage holders. However, many market analysts believe that market psychology may stay disconnected from the economic data and more focused on headlines surrounding mortgage-related problems for a while longer. This could lead to continued uneasiness among investors and more market volatility in the short-term.


Prepared by: Martin Cosgrove, CFA, Director of Investment Research
Research Department/ING Advisors Network

The views are those of Martin Cosgrove, Research Department, ING Advisors Network, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Investors cannot invest directly in indices. Please consult your financial advisor for more information.

Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.
Financial Network Investment Corporation is an ING company. Affiliates and subsidiaries and/or officers and employees of Financial Network or ING may from time to time acquire, hold or sell a position in the securities mentioned herein.
Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested

Save money on food, by eliminating waste.

Does anyone else waste a lot of money by throwing out food that has gone bad? I always go grocery shopping with the best of intensions. I stock up on fruits and vegetables that I intend to eat soon, but by the time I am ready to use them, or finish eating them, they have gone bad.

When I clean out the refrigerator, I through away more food than I would like to admit. I am always trying to save money on just about everything else, but when it comes to food, unfortunately a lot of our money ends up in the trash.

I am very excited to report that I may have found a solution to this problem that will end up saving my family a lot of money. Yesterday, I saw a TV commercial advertising a product called “Green Bags” by Debbie Meyers. The advertisement claims that these bags will prolong the life of fruits and vegetables up to ten times as long. The bags control humidity and moisture build up, which discourages mold, bacteria, fungus and decay. They also help reduce vitamin loss by up to 50%.

Last night I went to the web site, http://www.buygreenbags.com/ and bought 20 of these bags for $9.99, and the bags can be used 10 times each. I will let you know if they work.

Teaching Your Kids Savings Tips Along the Way

Certainly, summer is the time for vacations, travel, family adventures and a savings tip or two for the kids along the way.

We just got back for a short trip to Naples, Florida a couple of weeks ago, (yes, if you are wondering, it was very hot) and just like after every other vacation, when we got home I wondered where did all of our money go. Between the airfare, the car and dinning out all time, we ended up spending more than I had planned on. The next time we go on vacation, I’ve promised myself that we will save in advance by opening a Vacation Savings Account at Hawthorne.

One of the vacations savings tips that I have passed on to Zach is to never buy anything in an airport. This conversation started, because on our way through the airport for our departure we walked by the airport book store and he saw the new and last Harry Potter book, Harry Potter and the Deathly Hallows.

He went on to tell me how much he wanted to read the book and that he just had to have it, (he is only six and is not capable of reading the 759 page book, but of course I did not want to tell him that). I explained that you should never buy anything in an airport, because it is always much more expensive. The book in the airport book store was $50.

Once we were sitting down waiting to board the plane, I took out my laptop and we looked on the Walmart web site to find that the book would only cost $17.86 if we bought it there. He could not believe the price difference. After seeing this he said that we would definitely need to wait until we got home (not that he had a choice, but it was nice that he could figure it out on his own).

Since we've been home, I let Zach buy the book at Walmart with some allowance the he has saved up. I also overheard him in his room talking with his friend Joe, a couple of days ago. He was telling him that he should never buy anything in airport because it cost much more than buying the same item in a store. He continued to tell Joe about the Harry Potter book at the airport book store.

It made me feel good to think that some of the life lessons that I am trying to teach him along the way, may actually stick with him. Only time will tell.

Join Us for our Women & Investing Seminar - August 16th

Growing up, I was the middle child and the only girl, so I was told “go for your dreams and do what you want to do!” This was of course encouraging, but behind these words there was always the unspoken idea that I would grow up, get married, have a bunch of kids and be provided for by someone else. But things don’t always go as planned and times have changed. Not just for young women and middle-aged divorcees, but women in their 60’s and 70’s are now losing their pensions and finding themselves in situations that they had not planned for.

For some of us, the inability to learn about investing is a lack of interest, a dislike of numbers, a feeling that we're chronically disorganized or don’t have time, and the perception that managing the money is something our husbands want to do (or, just as often, feel they should do).

Women are marrying later in life, getting divorced more frequently and outliving their spouses by an average of five years. As a result, nearly 90% of all women will be solely responsible for managing their finances at some point in their lives.

Unfortunately, many women become involved for the first time during a crisis such as a spouse’s death or divorce. It is far better to know how to manage your money before you have to, rather than learning it under stress and on the fly when something bad happens.

By not learning about investing, we could be robbing ourselves of a good shot at earning some extra money (unearned income). We need to learn to allow our money to work just as hard as we do, so that we can feel financially secure. If we don't learn more about investing, then the only money we will have is the money that we earn from working. Moreover, if we don't invest, the money we earn actually loses value over time. If we do nothing with our money, inflation and taxes diminish our dollars, so they are worth less tomorrow (and the tomorrow after that).

Take advantage of the opportunity to join us on Thursday, August 16th, to learn more about investing and achieving your financial goals. Our seminar starts at 6:00 pm at Hawthorne’s Naperville Branch, located at 1519 North Naper Blvd, in Naperville. Click here to register for the seminar today.

Paying for your child's college education - Learn about your options.

Saving for college can be one of the most challenging financial goals and it is important to take advantage of every opportunity to put extra money into your child’s college fund.

Our number one goal is to raise our son to be good adult... AND, to make sure that he is well-educated so he is prepared to have a good future.

As young as Zach is (in the fall he will be going into first grade), I already have his education in mind, particularly, how we'll save for his education. After all, just like any investment, the earlier we start the better.

I started saving a little ($100 a month) several years before he was born, but I have no idea if it will be enough and the money is not being put in a typical education fund, so it may not even be used for that. I may end up needing that money for retirement or another one of life’s many expenses.

At this point I think it is definitely time for us to put together a more definitive plan for Zach’s education. We still have several years to make sure that we have enough money saved, (or enough to at least get us started) for Zach’s education.

Several financing methods for saving for college are available. Some are even tax-deductible.

529 College Savings Plans lets us earn stock-market returns on college savings. Our contributions or investments are set aside and can even grow tax-free.

I like the fact that the money is set aside for the specific purpose, and incurs no penalties if withdrawn for that purpose. Also, several people can contribute to one beneficiary. This is a good vehicle for grandparents and other family member who wish to contribute small amounts of money, (even a $25 or $50 birthday or Christmas check is helpful) to a college fund.

Take advantage of the opportunity to join us on Thursday, July 19th, to get the facts about College Savings Plans. Our seminar starts at 6:00 pm at Hawthorne’s Naperville Branch, located at 1519 North Naper Blvd, in Naperville. Click here to register for the seminar today.

What a great weekend for Hawthorne!

What a great weekend for Hawthorne Credit Union! Why was it great? It was great because we demonstrated support of two very worthwhile organizations in Bolingbrook and Naperville.

First---our fantastic representation in the American Cancer Society’s Relay for Life Walk held last Friday @ Naperville North High School. We had the highest turnout ever of Hawthorne employees and their family members for a community volunteer event. I would like to thank our two staff co-captains Cheryl Lestina and Carl Freundt for their special efforts to make this a successful event for the “Relay” and for Hawthorne. Their efforts along with those of several others: Carla, Becky and Mary contributed to a fun night and raised more than $2,000 for the American Cancer Society. What a great way to raise money for an important cause while having a good time and representing Hawthorne all at once!

Thanks to everyone who participated!

A special thank you to Judy Clyne and her husband John who attended the Bolingbrook Park District Dance Force Awards Dinner last Saturday night. I know they both had a very busy and full day last Saturday topped off by the awards dinner. As Judy stated in her email, we do make a difference in our communities---not just through the services that we offer and how we help our members, but also how we help out various community based organizations. We should all be proud of the way Hawthorne Credit Union was represented this past weekend—and how you made that distinction!

Thanks again to all who participated.

Carl S.

Roth IRA - - more than just a great retirement investment.

Roth IRAs: The Swiss Army Knife® of Financial Planning
The Roth IRA is a great retirement program. The Roth allows the owner a great degree of flexibility and control, not available in other retirement vehicles. The referenced article goes over some of those points. I consider the Roth IRA one of the best gifts that Congress has given US citizens. I encourage my clients that qualify to fund their Roth contributions.
Mike Pozzi
Investment Adviser Representative
Hawthorne Credit Union
630-983-2310
pozzim@financialnetwork.com

Roth IRA - - more than just a great retirement investment.

The Roth IRA was first introduced in 1998. Since its introduction, it has become an investment program of choice for a number of our clients because of its versatility.

Like the regular IRA, annual retirement contributions for 2007 to the Roth IRA are $4,000 per person (or $5,000 if you are over age 50) and you have to April 15th to make contributions (Roth IRA contributions are subject to a phase out based on income. You need to be in a qualified income level to contribute).
And, although Roth IRA contributions are not tax-deductible, you may still benefit from the ability to withdraw earnings tax-free.

Here are a few examples of the Roth IRA’s flexibility:
** Saving for college tuition? You can draw on a Roth account to help with your child’s educational expenses, and still retain control of the funds. In addition, if you hold onto your account for at least five years and you’re older than 59 1/2, no taxes would apply on earnings. In fact, contributions can be used at any time, free of taxes and penalties.
** Encourage your youngsters to save. If you have children who have part-time jobs, they too can open a Roth IRA.
** Shopping for your first home? If you’ve had your Roth IRA for at least five years, you can withdraw up to $10,000 ($20,000 for couples) in earnings “tax-free and penalty-free” if you use the money for a “first time home mortgage purchase.”
** Passing on your investments to heirs couldn’t be easier. You can bequeath the funds in Roth IRAs to your beneficiaries, who can withdraw money from the account tax-free over a number of years.
** Roths offer great estate planning advantages. Beneficiaries can withdraw money from a Roth account tax-free. And, unlike regular IRAs, there is no minimum distribution starting at age 70 ½, so seniors with earned income can keep investing in the Roth account at any age.
** If you’re a retiree, you don’t have to worry about being pushed into a higher tax bracket with your Roth distributions, since Roth IRA distributions are tax-free.

Keep in mind that a Roth IRA may not be appropriate for everyone. For example, the IRS requires the owner to hold his/her Roth for 5 years or until age 59 ½ (whichever is later) in order to avoid penalties and taxes on the earnings upon withdrawal. To determine whether a traditional IRA, Roth IRA or other retirement investment program is right for your specific financial goals, contact Mike Pozzi, our Hawthorne Credit Union Investment Adviser at (630) 983-2310.


Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested.

Staying Organized, the Job is Endless

I don’t know about you, but I am constantly working to keep myself organized. Whether it means making lists or folders to file things in, the management of “stuff” never seems to end. Between work, finances, household chores, Zach's toys and school projects, it is like a bottomless pit that I can’t get out of. The only solution to avoid complete chaos that I have been able to come up with, is to never fall too far behind on anything. That can be easier said than done.

My neighbors always ask how I do it. Anytime they stop by, the house is never messy and nothing seems unorganized. This of course is not true. There are always things that are just waiting for me to get them done or in a pile, hiding in a closest.

My daycare lady, who is also a neighbor, always says that my worst day is a lot better than her best. But, she runs a daycare and has four kids of her own, so I am always in amazement at how she can keep up with everything.

Now, I am going to share one of my quarky secrets with you. I have been doing this since I lived in my first apartment after college, and the highlight of my Wednesday was to catch the back to back episodes of 90210 & Melrose Place, (about 15 years). I would clean during advertisements. During the advertisements of those two shows I could get the apartment cleaned. It is amazing how much I can get done in such a short period of time, especially when I know that you can sit back down on my lazy butt, in just a few minutes.

Since then, the space has changed a few times and more advertisements are required to accomplish things, but it still for the most part works. It drives my husband crazy because I am constantly up and down, but the alternative of a messy house is not a good option for him, so he has gotten used to it, plus sometimes he helps.

I just never (make that almost never) sit and watch the advertisements or fast forward through them with our DVR. It may seem a little crazy, but it is a lot easier that doing continuous work. It is nice to be able to break the jobs into simple tasks that I can do while catching an episode of Desperate Housewives.

I am often amazed at how little time it takes to do some of things around the house that I hate doing. For example, I can usually come close to getting a load of laundry folded during this time, or empty the dishwasher, clean out a drawer, vacuum or, take out the garbage. The list seems to never end.

My least favorite thing to do, but the easiest to get done, is paying the bills. Thanks to the great Online Banking and BillPayer service that Hawthorne provides, I can easily have a stack of bills taken care of in less than 5 minutes. I just click on the QuickPay button and go down the list, pay all the necessary bills and click submit. It could not be easier.

Sometimes, I also read organizing books, or catch a good organizing show on TV. I don’t think I will ever have the concept mastered, but a least I try. I still have piles of pictures in a closest waiting to be added to yet another picture album, and as soon I get that done there will be more pictures. Or, as soon as I have sorted through one pile of mail, there is another. The mailman never stops coming. I guess that is just how life goes. We never run out of things to do.

Bolingbrook Teacher Wins Scholarship to Colonial Williamsburg

Hawthorne congratulates Susan Bahl, a second grade teacher at Jonas E Salk Elementary School in Bolingbrook, who was awarded a grant provided by Hawthorne to participate in a week-long Early American History workshop at the Colonial Williamsburg Teacher Institute in Williamsburg, Va. More than 600 teachers will attend the Institute in 2007. More than 4,500 teachers from 47 states have participated since the Institute’s inception in 1990. Bahl was one of 25 teachers selected among hundreds of applicants to attend the week-long Institute July 10-17.

The Colonial Williamsburg Teacher Institute was created by The Colonial Williamsburg Foundation to encourage history education and make it exciting and engaging for students. Now in its 17th year, the Teacher Institute helps teachers and students meet national and state history standards through on-site, hands-on immersion experiences in colonial history. Teachers will also prepare new classroom teaching materials as part of the workshop.

Bahl has taught for four years at Jonas Salk Elementary. She holds a business degree from DuPaul University where and a Masters Degree in Education also from DePaul University.

The Colonial Williamsburg Teacher Institute provides participants with interactive teaching techniques and with the skills to become mentor teachers, assisting their peers and other educators in developing new techniques for teaching American History to students.
The Teacher Institute offers participants an extensive background in colonial history from the first English settlement at Jamestown to the American Revolution. Teachers participate in re-enactments of 18th century events and meet historians and interpreters portraying historical figures. Participants share teaching strategies to improve instruction, raise literacy levels and enhance historical thinking skills. Teachers that attend the Institute agree to conduct in-service training sessions to share their knowledge with other teachers.

Hawthorne joined credit unions in other states to send local teachers to the Teacher Institute and to fund all expenses. In addition, dozens of credit unions have supported the award-winning American History education programs produced by The Colonial Williamsburg Foundation by funding electronic field trips for local schools. The electronic field trips are interactive television events that bring the 18th century to life for millions of students nationwide.

Educational outreach initiatives at Colonial Williamsburg embody the motto adopted at the dawn of the restoration of the city that gave birth to the nation’s principles and values: “That the future may learn from the past.”

A Relay For A World Without Cancer

As many of you are now familiar, it has become a yearly event for Hawthorne to participate in the American Cancer Society's signature event, Relay for Life. Relay for Life raises money to fight cancer and to raise awareness of cancer in the community. The relay for life honors cancer survivors, and remembers those who have lost their lives to cancer.

When the American Cancer Society Relay For Life started over 20 years ago, one of the reasons given to explain why it was an overnight event was that "cancer patients don't get the night off from cancer, so why should we?". How true.

The fight against cancer goes on. There is no one I know who can say they DO NOT have a friend or relative who has battled this terrible illness.

Join us in the Relay for Life, June 22-23 from 6:00 p.m. to 6:00 a.m. at Naperville North High School, as we help raise money and awareness for the American Cancer Society. If you’d like to make a donation, ask a representative or email us today.

The American Cancer Society Relay For Life raises hundreds of millions of dollars each year in the fight against cancer. Millions of people will walk or run through the night to raise money to fight cancer. Relay For Life builds awareness of this dreaded disease and makes a difference in the lives of those affected by cancer HERE AND NOW!

Below is a poem I found, that I thought you might like to read. This poem helps us increase our awareness of what the Relay for Life is all about.

"Relay For Life - Bring Hope"
1998 - Written at 3am at an Illinois Relay For Life Event. -j.smith

Is there someone that you know?
Whose life is on the line,
They've been going through
the fight of their lives..
Come Together, Come Together for them
For Relay for Life

There are people,
Too many people.. crying
For a loved one that they know..
Come Together, Come Together.. for them
For Relay For Life

Walk together,
and have faith together..
We can bring hope
into their lives
Please come together, for them
For Relay for life

We can bring hope, all around
we have faith in the people in your town
So Come Together
For Relay for life.

We can bring hope, all around
we have faith in the people in this town..
So Come Together, for them
For Relay for Life.

What is the difference between being Cheap and being Frugal?

Everybody knows a cheap person and probably hates them. But I think we often mislabel frugal people as being cheap. I started thinking about this the other night after listening to a “lecture” from my dad about how to manage our phone service.

The topic came up because periodically during our phone conversation he was not able to hear me. I explained that we have had this problem several times since switching our phone service to Comcast, several months ago.

He went on to explain that they only use basic phone service with no additional features. Yes, that means no call waiting and no caller ID! He then went on to tell me that during the week they only call me and my brother using their cell phone minutes, and calls everyone else that he needs to talk to either at night or on the weekend from his cell phone, since those minutes are free.

Now this is a man who had money saved for his kids to go to college, lives in a beautiful home and drives nice cars, has no credit card debt and never makes us pay for dinner when he is in town, but he is worried about minimal charges on his phone bill.

My father is not cheap, he just enjoys saving money, when he can. Saving money and being cheap are two totally different concepts. So different that, well, maybe another couple examples will help.

I like to buy decent clothing. It’s not always cheap, but I like to make sure I buy it on sale. The more on sale an item is, the better I like it. In fact, if two dresses are on sale, I can buy two good dresses instead of one expensive one. Does that qualify as being cheap?

I just have a hard time buying things at regular price when in a few weeks it will be on sale (which is the price it should’ve been in the first place, in my opinion).

Here’s another example…

Let’s say you need to put gas in your car and on the way to going somewhere you were going anyway you pass two gas stations right next to one another. Gas is $3.45 a gallon at one and at least $3.55 a gallon at the other.

All other factors being equal, you’d have to be a total idiot not to buy the$3.45 a gallon gas…
That’s managing your money well.

On the other hand…

To kill a half an hour of your time driving clear across town, way out of your way, just to “save” a buck or two would be “being cheap”.

Yes, that would be me sometimes! I hate to admit this, but I have driven to Costco for gas, which is a good 20 minutes from our house.

Although there is sometimes a fine line between the two, there’s a distinct difference between “being cheap” and managing your money well and it is important for us to know and understand the difference between the two.

Knowing and understanding this difference and applying this principle to our lives can make the difference between us having money or being poor.

Substance vs Flash

The shop was small, crowded, spider-webby and downright scary. And loaded with charm and history. I spent a little extra money for my new bike – probably $50-60 more than I had to. But what I got in return was priceless.

My first stop was to a big box store, Dick’s Sporting Goods, because of a promotional ad I found in the newspaper. They had several bikes on sale; so it was a good place to start. My daughter was lured into the 2-story rock climbing apparatus and the trampolines and tents on display. It was practically a playground. I stood in Dick’s for about 30 minutes and not a soul came by to say hello or lend me any help at all. (Even if they had, I doubt they’d know any more about the bikes than I did. Still, a little help would’ve been nice.) I tried my best to decipher between the bikes in stock on my own and left without buying a bike that night. My experience at Dick’s was all flash and no substance.

From the beginning I was uncomfortable making a big purchase at a big box shop, but my experience at Dick’s confirmed it. I wanted to spend my money at a local shop and support a local small business. The big box stores, being run by big corporations far away from my home town, could really care less if I get the right bike. They only want one thing – my money - as much of it as they can possibly get.

The next night I dragged went to a little bike shop downtown in my home town. In the end I spent more than I might’ve at Dick’s. But I’m sure I bought the right bike for me because the shop owner clearly had a passion for bikes and 40 years of experience. You’d be hard pressed to find 40 years of experience at Dick’s!

The Geneva Cycle Shop has been in existence since the mid 1970s. The owner, Ellis G, first opened the shop selling motorcycles. His shop looks virtually unchanged since 1970. Before I entered the shop, Mr. G had already greeted me and asked how he could help. He quickly located two bikes that might meet my needs and told my why, all the while, serving two other customers. A few minutes later he had the tires pumped and ready for me to ride around the parking lot. (Where would I have tried out the bike at Dick’s?)

I selected a bike and promised to return a few hours later to give him time to prepare the bike (adjust the gears; tune up the brakes – would Dick’s have done this?) We returned later and while we waited, we chatted about service at big box shops, politics, the history of his shop. He told me about some great bike trails nearby. And when he was finished he promised to take care of any problems concerning the bike – just bring it back if I need help.

We also talked about technology – Mr G’s technology consists of a telephone and mailbox. That’s the way he likes it and that’s the way he plans to keep it. He takes cash and checks only. Simple. And fabulous.

In the end what I got was all substance and no flash. The extra money I spent bought me an interaction with a new character in my town; a bike that truly fits my needs; info about some great bike trails and a promise to fix minor repairs if I have any problems with it. Priceless.

Get Rich... Slowly

Who wouldn't like to have that one silver bullet to get rich quick. But the fact is, most of us will never find it. Still, we can accumulate wealth slowly over time. One way is to earn more. But another way is to spend less - think smaller, be satisfied with what we have instead of wanting something else.

I recently saw an ad for a credit card that was targeted toward people who have poor credit, over their heads in debt. It showed images of people that looked like clips from "Lifestyles of the Rich and Famous". I thought it must be so appealing to folks who've found themselves in difficult situations that resulted in high debt.

Getting over your head in debt is easy to do - an illness, a job loss, or a divorce and before you know it creditors are calling every day. It's an overwhelming, stifling and oppressive place to be because it's so hard to resolve. Ads like that credit card ad I saw don't help.

Many years ago I had too much debt, and I didn't know how I'd ever get out from under it. It really took years of living simply that made the difference: cutting back, living with less and thinking smaller. And paying off the bills slowly but surely. That's a difficult task in our culture because our society encourages spending more than saving or not spending. I'm grateful to say that my finances are significantly more healthy today.

Even if you're not in debt over your head, I hope you're not, living simply can help you accumulate wealth, too. There are two books that changed the way I think about money and helped me get out of debt:

Voluntary Simplicity, by Duane Elgin (Quill/William Morrow Publishers NY ISBN 0688-12119-5)- This book taught me about living "toward a way of life that is outwardly simple but inwardly rich." It's about learning to appreciate what you have instead of looking outside yourself for happiness. The tenets of Elgin's voluntary simplicity are frugal consumption, ecological awareness and personal growth.

Your Money or Your Life, by Joe Dominguez and Vicki Robin (Penguin Books NY ISBN 014-016715-3) - I learned how to determine what to spend money on by looking at my values and my goals and putting more money into things that propel me toward my goals. The subtitle is called "Transforming Your Relationship With Money and Achieving Financial Independence".

These books are great reads, regardless of your financial health. But if you are over your head in debt, we have a program that can help relieve some of the stress of living with debt every day. Check out Balance Pro on our website or contact Member Services for more information.

To Shred or Not to Shred - That is the Question!

Shred It or Regret It

It’s rampant. It's evil. It's coming to a town near you. It's IDENTITY THEFT.

Identity thieves may not exactly steal your life, or your home, but they can steal your money and make life a nightmare for you for a long time. According to the Identity Theft Resource Center, identity theft is American's fastest growing crime and over 7 million people per year are victims of this crime.

I found getting ready for Shred-It Day this weekend to be particularly draining. It probably had to do with the arduous task of sifting through mounds of paper in our file cabinets. Cleaning out our files was our Friday night project (are we exciting, or what)! While my husband complained about having to go through all the files, I asked him to keep in mind the amount of time I had spent over the years, doing all of the filing.

It was hard to figure out what to keep and what to purge. Just as we cleaned out one file cabinet, I tackled another only to be met with another pile of papers to sort through.

We had to weigh out what to should keep for tax purposes, what I want to keep for sentimental reasons and what we simply don’t need. After a couple of hours be were done, and were getting rid of at least 75% of what was in our filing cabinets. I felt like a weight had been had been lifted off my shoulders.

Let The Shredding Begin

On Saturday morning it was so simple. I gave the shredding company my boxes of papers and all of those personal records were gone, saving me hours of time standing in front of our home shredder to avoid the risk of becoming a victim of identity theft.

Not shredding all of our personal documents is not a risk I am willing to take. The average victim of identity theft will spend over 600 hours and $1,400 dollars of their money clearing their name after an identity thief strikes.

Below are a few easy things that you can do to help reduce the risk of having your identity stolen.

• Shred shred shred. Buy a good cross-cut shredder, and get the most heavy duty one you can afford. Be sure it will take staples and credit cards, as well as several sheets of paper at once. Shred anything with your name, address, and of course, any account numbers on it. It only takes a minute and it's worth it.


• Mail your outgoing letters and bills from the Post Office rather than your home. I know it sounds annoying, but when that little red flag is up indicating that you have outgoing mail for the postman to collect, it's also a sign for thieves to nab your mail, which often contains checks. The thieves "wash" the checks of all ink except for your signature, then poof they have a blank check, signed by you to write to whomever they want.


• Protect your Social Security Number and credit card information. There are only about a ton of email and phone scams out there these days, so don't be fooled. NEVER give personal information over the phone or in an email and, don't click through on any emails asking you to "verify your account information" or warning you that your Ebay or PayPal account has been compromised! It's just a scam to get you to input your personal information to a bogus site that will collect it and use it for fraudulent purposes.

Taking these simple steps will help reduce your risk, limit your exposure and avoid the nightmare of identity theft.

Boycotting Gas Won't Make A Difference

In fact, I swear this boycott suggestion has actually raised gas prices today. It's up to $3.50 (I heard it's over $4 in Chicago.) On one talk radio show this morning a limo driver said he watched the prices go up 35 cents in a 3 hour period yesterday. What we don't purchase today we'll purchase tomorrow or Thursday, and the gas companies know this. Remember, we've been spoiled up until now...Europeans have been paying these kind of prices (and higher) for a very long time.

There is only one way to show big oil companies that we're tired of getting the shaft - that is we have to reduce our consumption of gasoline. And that, my friends, won't happen in a day.

Here are some ways to reduce your use of gasoline:
1) Trade in for a smaller vehicle that is more energy efficient.
2) Trade in for a vehicle that uses alternative fuel. (I know where you can get a great rate on an auto loan, too....)
3) Drive less! Stay home and play outside or read a book instead of going out now and then. (Remember, everything you buy had to be shipped to the store in a gas-powered truck!)
4) Walk! It's summer - how about doing some of your errands on foot. Can you walk to the grocery store for milk? Think of all the impulse purchases you won't make if you have to carry stuff home. You'll save money and gas.
5) Ride your bike! Do some of your farther errands on bike - use a backpack or a basket if you have stuff to carry. You'll get some exercise and save gas too.
6) Use public transportation. Believe it or not, we actually do have a public bus in the suburbs. And the train is so much fun to take into the city. I always feel like I have much more freedom being in the city without a car. It's much easier to get around.
7) Carpool. Drive with a friend and have a nice conversation while you're out.

Then there are real, long term strategies that will really burn the oil companies if we all do these things:
1) Move closer to work. What if you could walk or bike there?
2) Work from home...there's nothing better than working at home, if you can.
3) Live where you shop. I love my house because it's located within walking distance to just about everything I need.

What if we all could reduce from the two-car household to a one-car household? What would you do with that car payment? The insurance? The gas money? The repair money?

I must say that this boycott that has circulated the web has really inspired some hope, though. I'd like to thank the person or group who made the suggestion about the boycott, they at least started a conversation about this topic, which needs to be discussed. There's really nothing we can't do in our country...maybe we really could become less dependent on oil. It won't happen in a day, but it could happen.

Are You Prepared?

After hearing about the devastating tornados in Kansas last week, looking at the horrifying pictures, and listening to the sad stories on the news, I wondered what all of those people were going to do now. How would I feel and what would I do if I found myself in a similar situation? With my house flattened and all of my personal belongings destroyed, how would I start to rebuild?

If you were to sustain a catastrophic loss like that, would you be prepared? Could you remember the details of all of your possessions? I know that I could not.

Even with home owners insurance, I would not be in a position to be able to recoup all of my possessions. Insurance companies require that you provide overwhelming and undeniable proof of what you own. When a disaster such as a tornado throws your life into utter chaos, insurance companies want details of all your tangible personal property and what it is worth, based on insurance stipulations and requirements. Not having this information available during a disaster, puts you at the risk of losing 20% or more of a casualty loss insurance claim, after faithfully paying all of the premiums.

By preparing yourself for the unexpected you can maximize the return on your insurance claim, and reduce the entire claims process by weeks or even months.

If you're like most of us, you buy things and put the receipt in a folder in case you need it for warranty purposes. But in case of a fire or a tornado. . . well, you know what can happen.

It is essential to keep a documented inventory of your personal property. Insurance policy interpretation is where the problems usually arise. It is assumed that families have color TV's, maybe even two or three. But what is not assumed is that you may have a big screen TV, a custom made dining room or bedroom set, or made to order drapery, etc. Property that falls into this category is not assumed by any insurance company. You will have to prove you had it in order to financially recover in case of a claim. Insurance companies will ask for an inventory, including description and value of damaged property. And, most important, they'll ask you to attach bills, receipts that justify the loss. Photos and written records kept in a safe deposit box would be very beneficial during a time like this.

My plan now is to start working on creating a digital inventory of my home using my digital camera, (how hard can that be). Record it now! Don’t regret it later! That is what I keep telling myself. I am planning to make a complete written inventory of our home, and take videos and photographs of our home and contents.

This process will help to ensure that if my family is faced with the same kind of disaster that many families in a small town in Kansas experienced last week, we will receive the proper settlement from our insurance company to help rebuild our lives.