Heritage Club

Navigating Through Retirement

The Northwest Federal Heritage Club designed exclusively for qualifying members over the age of 62, to provide resources to help make important choices for your financial planning, including a special package of member benefits.


Earn More Money

Open a new certificate, with a minimum one-year term1, and:

  • Earn a bonus dividend rate of 0.10% on a new certificate with a balance between $50,000 - $99,999.99
  • Earn a bonus dividend rate of 0.25% on a new certificate with a balance of $100,000+

Earn bonus points on your Northwest Federal Member NOW Rewards Mastercard®

  • 1,000 extra points annually
  • Accumulate points faster and be on your way to visit friends, grandkids, and travel the world


There is nothing you need to do to join the Club. At age 62, you automatically become a member of this elite group.


Bookmark this page and visit often. You'll have access to

  • Tips on protecting yourself from Identify Theft and other cyber security threats
  • Financial guides to stay on budget during retirement, planning and setting up account ownership, and more useful planning tools to financially secure you and your family
  • Send us your suggestions on topics that matters most to you

 

Submit Ideas to Serve You Better Here

 

 

 

5th Edition, 4th Quarter 2018 Financial Insight
4th Edition, 3rd Quarter 2018 Financial Insight
3rd Edition, 2nd Quarter 2018 Financial Insight
2nd Edition, 1st Quarter 2018 Financial Insight
1st Edition, 4th Quarter 2017 Financial Insight

 

1Heritage Club Certificate bonus rates are only available on new certificates opened after becoming a Heritage Club Member and are not available on promotional or Add-On Certificates. Information as of 10/01/2018 and is subject to change without notice.

FINANCIAL INSIGHT

A Message From Jeff Bentley, President and CEO

Autumn has arrived bringing with it shorter days and falling leaves, signaling that the holidays are just around the corner. The next few months are some of my favorite, but for many, that means increased demands on our time and budget. In this edition of the Financial Insight, you will find guidelines intended to protect you from charitable scams and methods designed to control spending on a fixed income.

As always, keeping secure the personal and financial information that you entrust to us is top priority for Northwest Federal. Understanding and recognizing fraud is an effective way to prevent it from happening to you. In the Financial Insight, you can learn about our tools to detect fraud before it occurs.

Our website is a great resource to access tools that are aimed to help protect your financial security, manage your money, and plan for your future. In addition, when relevant, we will send financial information by email, special mailings, and in your monthly statements. Also, keep a look out in your email, or regularly check our website, for news about special Northwest Federal events designed for the entire family. 

Hopefully, the financial and security suggestions in special editions of the Financial Insight have proven helpful. Northwest Federal remains committed to providing our members with valuable financial products and services. As your lifetime financial partner, we are here when you need us!


Jeff Bentley
President/CEO

 

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Don't Fall Victim to Charity Scams

The time of year is nearing when we may want to give a little extra to those less fortunate. Don't let scammers steal your money and personal information, or take advantage of your generosity. Before you give, make sure your donations benefit the people and organizations you want to help by taking the following precautions:

  • Ask for detailed information about the charity, including name, address, and telephone number.
  • Get the exact name of the organization and do some research by searching the name of the organization online.
  • Call the charity. Find out if the organization is aware of the solicitation and authorized the use of its name. Their development staff should be able to assist.
  • Find out if the charity or fundraiser must be registered in your state by contacting the National Association of State Charity Officials.
  • Check that the charity is trustworthy by contacting the Better Business Bureau's Wise Giving Alliance, Charity Navigator, Charity Watch, or GuideStar.
  • Ask if the caller is a paid fundraiser. If so, ask:
    • The name of the charity they are representing.
    • The percentage of your donation that will go to the charity.
    • The percent of your donation that will go to the actual cause.
    • The percentage of your donation the fundraiser will receive.
  • Keep a record of your donations.
  • Make an annual donation plan. This way, you can decide which causes you want to support and which charities you wish to send donations.
  • Never send cash donations. For security and tax purposes, it's best to make a check payable to the charity or pay by credit card.
  • Never wire money to someone claiming to be a charity. Scammers often request donations be wired because it is just like sending cash: once you send it, you can't get it back.
  • Do not provide your credit or debit card number, bank account or any personal information over the phone. 
  • Be wary of charities that pop up in response to current events and disasters. Even if they are legitimate, they probably don't have the infrastructure to get the donations to the affected area or people.
  • If a donation request comes from a group claiming to help your local community (for example local police or firefighters), ask the local agency if they have heard of the group and are receiving financial support.


Provided by eFraud PreventionTM

 

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How Inflation Affects Retirees

Stay ahead of inflation in retirement

Inflation, a sustained increase in the price of goods and services in an economy over a period of time, averages a little over 3 percent annually.1 For the 12 months ending July 2018, U.S. inflation stood at 2.9 percent.2 As the economy grows, inflation tends to tick upward, and retirees and near-retirees may be especially concerned about how this will affect their finances.

Inflation makes a big difference in how far your dollars stretch. Look at the purchasing power of $100 in 1971 compared to today:

  • According to the Bureau of Labor Statistics Consumer Price Index (CPI), 2018 prices are 504.4 percent higher than prices in 1971. In other words, $100 in 1971 is equivalent to $604.41 today.3

So how do you stay on top of inflation?

Understand that Social Security income merely increases in proportion to inflation; It keeps pace with it, but never outruns it. If you want to beat inflation in retirement and maintain your purchasing power and related quality of life, don’t look to your Social Security benefit. Investing with the goal of staying ahead of inflation should be a part of your plan.

Evaluate the benefit of extremely conservative investments. If you favor ultra-conservative investments, you may effectively end up living on less as your buying power dwindles. And in recent years, some costs have risen much faster than the inflation rate — such as prescription drug prices — which many retirees can’t forgo.

Allow for some “growth” investing in retirement. While it is prudent for investors to assume less investing risk as they age, accepting some risk by staying invested in equities may be necessary. In a good year, equities may post much greater returns than fixed-income investments. If you’re looking at decades of retirement, it may be worth accepting the volatility that comes with investing a portion of your assets in equities.  

Pay attention to the CPI to help you gauge your spending and saving needs. The latest CPI data can be found on the Bureau of Labor Statistics’ website at https://www.bls.gov/cpi/.

There are many other ways to stay ahead of inflation no matter what life stage you are in. Whether you’re already retired or are about to retire, a Northwest Financial Advisor can help you discover what your options are to as you strive to outpace inflation.

 

1 Inflationdata.com. Long Term U.S. Inflation – Average Annual Inflation by Decade, McMahon, Tim. April 1, 2014. https://inflationdata.com/Inflation/Inflation_Rate/Long_Term_Inflation.asp  
2 USinflationcalculator.com. Current US Inflation Rates: 2008-2018. https://www.usinflationcalculator.com/inflation/current-inflation-rates/
3 TheBalance.com. What are the Effects of Inflation on the Economy? Kennon, Joshua. Updated July 11, 2018. https://www.thebalance.com/what-are-the-effects-of-inflation-357607

Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific financial, tax or legal advice or recommendations for any individual. Please consult your financial, tax or legal advisor regarding your specific situation.
Investing involves risks including loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Investment advice offered through Northwest Financial Advisors, a registered investment advisor and separate entity from LPL Financial.

Northwest Financial Advisors and Northwest Federal Credit Union are not registered broker/dealers and are not affiliated with LPL Financial.
 

                                     Not NCUA Insured.                              Not Credit Union Guaranteed.                            May Lose Value.
 

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