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.”