Financial Tips

In an era where financial institutions are evolving rapidly, one constant is that credit unions often still offer better interest rates compared to traditional banks. This is because they operate on a not-for-profit basis, which means they focus on serving their members rather than generating profits. This unique model allows them to pass on savings directly to their members, making them an outstanding choice for anyone looking to bank smarter and grow their wealth.

Wheelhouse Credit Union’s member-focused approach enables it to pass on savings directly to its members through enhanced savings rates and reduced loan rates. With features like mobile apps, online banking, and robust cybersecurity measures, Wheelhouse can also provide the same level of technological convenience and security as larger banks, ensuring that members can manage their finances efficiently and safely, no matter where they are.

Greater Earnings Opportunities
High-interest checking accounts can significantly grow your wealth by offering higher interest rates than traditional ones. For instance, if you maintain a balance of $10,000 in a checking account with a 3.00% Annual Percentage Yield (APY), you would earn $300 in interest over a year. This is a substantial increase compared to the mere $10 you might earn with a 0.10% APY* from many financial institutions. Over time, the benefits of a high interest rate become even more pronounced as your balance grows and interest compounds, turning your checking account from a simple transactional tool into a valuable asset for wealth accumulation. This financial empowerment is a key benefit of high-interest checking accounts.

Inspired Plus Checking¹
Does your current checking account come with roadside assistance? Probably not. Inspired Plus Checking from Wheelhouse provides additional protections and money-saving perks you may not even consider when evaluating a financial institution. These extend well beyond the standard rewards points for debit and credit card usage, which are included with Inspired Plus. For a modest fee, account holders can earn up to 3.00% APY*, obtain cell phone protection, sleep well with ID theft protection and credit monitoring, travel confidently with roadside assistance, earn fuel rewards points, take advantage of health savings on everyday items, obtain peace of mind with accidental death insurance, and more. The Inspired Plus Checking account is designed to provide you with a comprehensive suite of benefits that can save you money and provide peace of mind. Research shows that annual savings can reach upwards of $1,094 annually by accessing all benefits.

Security and Customer Support
Security is paramount in banking, and Wheelhouse excels in this area, too. Employing state-of-the-art encryption and multi-factor authentication ensures your financial data remains secure against potential threats. This robust security system is designed to provide you with peace of mind, knowing that your financial information is safe. Additionally, a user-friendly interface and robust customer support system provide further reassurance–a “phone branch” is well prepared with San Diegans ready to help other San Diegans. Whether you need assistance with account issues or have questions about features, support is readily available to address your concerns wherever you are located at the time.

By choosing Wheelhouse, you become part of a supportive community that is committed to your financial well-being.

* APY = Annual Percentage Yield. Rates are effective as of 09/09/2024 and are subject to change without notice.

¹ To receive the APY of 3.00%, you must make a minimum of 20 qualifying purchase transactions using your Wheelhouse® Visa® Debit Card associated with an Inspired Plus Checking account per calendar month and maintain an average daily balance of $75,000 or higher. No minimum balance is required to earn dividends. Inspired Plus Checking is a variable rate account. The APY may change after account opening. APY is accurate as of the last dividend declaration date. Fees could reduce earnings on the account. Inspired Plus Checking requires an initial minimum deposit of $10, monthly direct deposits totaling $450 or more, an active digital banking registration, eStatements within 90 days of account opening, and a monthly fee of $9 (nine dollars). If requirements are not met and maintained, the account will be converted to a Basic Checking Account, which may be subject to different terms, conditions, and restrictions, and access to BaZing® will be removed.

©2024 Wheelhouse Credit Union. Federally Insured by NCUA.

Data suggest that only 35% of members of credit unions have a will and /or trust. Read another way, 65% of credit union members have not taken the steps to secure their legacy for their families, leading financial management decisions up to the state or courts.

In the journey of life, we often prioritize our present needs over future uncertainties. However, one crucial aspect that many tend to overlook is planning for what happens after we’re gone. Creating a will and trust might not be high on your list of priorities, and it often falls into an “I don’t want to think about it” category, but it is an essential step towards securing your legacy and ensuring that your loved ones are taken care of according to your wishes. It is a gift you can provide them.

Understanding the Basics
A will is a legal document that outlines how you want your assets to be distributed after your death. It allows you to specify who will inherit your property, money, and possessions, as well as appoint guardians for any minor children. Without a will, your estate will be distributed according to the laws of your state, which may not align with your intentions.
On the other hand, a trust is a legal arrangement where a trustee manages assets on behalf of beneficiaries according to your instructions. Trusts can provide more control over how and when your assets are distributed, offering flexibility in managing inheritance, especially for minors or individuals who may not be financially responsible.

Ensuring Your Wishes Are Honored
One of the primary reasons for having a will and trust is to ensure that your wishes are honored after your death. Whether you have specific sentimental items you want to pass on, or you want to provide financial support for family members, a will allows you to clearly state your intentions. This clarity not only helps avoid potential disputes among family members but also provides peace of mind knowing that your legacy will be carried out as you desired.

Protecting Your Loved Ones
Creating a will and trust is not just about distributing assets; it’s also about protecting your loved ones during what can be a challenging time emotionally. By appointing guardians for minor children in your will, you ensure that they will be cared for by someone you trust. Additionally, a well-structured trust can safeguard assets for beneficiaries who may not be able to manage them on their own due to age, inexperience, or other reasons.

Minimizing Estate Taxes and Legal Complications
Proper estate planning through a will and trust can also help minimize estate taxes and avoid legal complications that can arise when there is no clear plan in place. By strategizing how your assets are distributed and managed, you can potentially reduce the tax burden on your estate, leaving more for your beneficiaries. Moreover, having a legally sound will and trust can streamline the probate process, saving time and expenses for your loved ones.
In conclusion, while it may be uncomfortable to think about our mortality, planning for the future through a will and trust is a responsible and caring decision. It’s a proactive step towards ensuring that your legacy is preserved, your loved ones are protected, and your wishes are honored long after you’re gone. Take the time to create your will and trust today—it’s one of the most important gifts you can give to yourself and your family.

The Wheelhouse Difference – Member Program
Wheelhouse Credit Union offers Members estate planning through our partner Love My Credit Union, a leading online digital estate planning service. Over 700,000 estate plans have been created using their secure, 100% online program. Customized, legally binding estate plans are built by attorneys and Member support is available six days a week. Get started for as low as $159 with your Wheelhouse Member Discount. Click here for more information.

As summer hits its stride, the idea of financially preparing for the holidays might feel like overkill. Consider this: money is the most cited source of stress during the holidays, with 58% of US adults worrying about overspending or not having enough money.

July is an ideal month to assess your financial picture and make mid-year adjustments that will help you cruise into the holiday months with fewer concerns. To make planning easier, here is a seven-item checklist you can use as your guide:

1. Review Your Budget

With a customizable budgeting worksheet or free app, identify areas where you may be overspending and eliminate costs or comparison shop if possible. Budgeting isn’t about guilt, rather it is a way to ensure you’re saving a little each month – ideally 10% of your income. Less still counts.

2. Automate Savings

Consider the “set it and forget it” approach to allocating savings so that when peak holiday spending season comes around, you’ve avoided (or at least minimized) high interest credit card balances that can put a damper on the season and coming year. Look into opening a holiday-specific savings account at your financial institution and start saving now.

3. Strategize Debt Repayment

Review the balances and interest rates of your credit cards, loans, and other debts. Tackle high-interest payments first (so you’re able to put more toward principal in the long run). Explore a debt management program which can help you eliminate debt faster.

4. Check Your Credit Report

Request a free copy of your credit report from AnnualCreditReport.com. Review the report for any inaccuracies or signs of identity theft. Dispute any errors you find, which could be a contributing factor to a lower score.

5. Revisit Investments

If you have any investment accounts, assess whether your allocations still align with your long-term goals and risk tolerance. Market conditions often change, and your investment strategy should account for these fluctuations.

6. Maximize Retirement Contributions

If you have a retirement account, check your contributions, and see if you have any room in your budget to increase them. This especially applies if your employer offers matching contributions, as it’s essentially free money. The sooner you invest, the more time your money has to grow.

7. Review Insurance Policies

Ensure that your health, auto, home, and life insurance policies still meet your needs. Life changes such as marriage, the birth of a child, or significant purchases might necessitate adjustments to your coverage or comparison shopping for more favorable rates.

This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit.

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