FINANCIAL INSIGHT

As we enter July, I would like to wish each of you a Happy Independence Day. In keeping with the theme of Independence, this edition of the Financial Insight will focus on financial independence with tips to aid you in fiscal planning, protecting funds, and achieving savings goals. One quick and

easy tip that I utilized earlier this year was opening a Kasasa Cash® checking account to earn 2% APY* and then installed the CardNav app** on my phone to control my debit card. Using the CardNav app, I can set limits and alerts for my debit card usage. My favorite feature is the ability to turn my card off when I am not using it and then simply turn it on again when I am ready to make a purchase. This level of control protects me against fraud, and I encourage you to try it. We have a “How To” video on our website. Simply search debit card protection or CardNav.

Whether you are traveling, renovating, relaxing, or working this summer, we are here to assist you with your financial needs. Thank you for choosing and trusting Northwest Federal.

Jeff BentleyPresident/CEO

UPCOMING EVENTS

July 14NWFCU Foundation Neon Night Glow Run to benefit INOVA Children's Hospital

July 15Potomac Nationals Game Northwest Federal Field at Piftzner Stadium

August 26Potomac Nationals Game Northwest Federal Field at Piftzner Stadium

August 17NWFCU Foundation Night of Magicat Fairfax INOVA Hospital

September 4Closed in Observance of Labor Day

September 15Dulles Day Plane Pull benefitting Special Olympics VA

October 20Shred Event at 200 Spring Street,Herndon, VA 20170

THIRD QUARTER 2018 EDITION

INSIDE THIS ISSUE

2 Financial Planning in Retirement

2 Free Checking Earns 2.00% APY*

3 Protect Your Wallet

3 Avoiding Debt During Retirement Years

4 Control Your Debit Card

THIRD QUARTER 2018 | FINANCIAL INSIGHT | 1

703-709-8900 | www.nwfcu.org

Message From

Jeff Bentley President & CEO

THIRD QUARTER 2018 | FINANCIAL INSIGHT | 4

CONTROL YOUR DEBIT CARD

Debit cards are a convenient way to pay and with the CardNavSM by CO-OP app, you can control your debit card in realtime. You can opt-in to receive email notifications for the debit card transactions on your account. You have the control to customize and set multiple types of alerts regarding transaction amounts.

Set custom alerts for transaction type and dollar amounts for:• Purchases over a selected amount• International purchases• Online and phone purchases where your card is not physically present• Declined transactions

To sign up for alerts, visit www.nwfcu.org or contact us today.

Federally Insured by NCUA

Member Service Center M-F: 7:00 am-7:00 pm ET Sat: 8:00 am-1:00 pm ET703-709-8900 (844-709-8900 toll-free)703-709-8919 (Hearing impaired line)

www.nwfcu.orgnwfcu@nwfcu.org

CONTACT

Telephone Banking24-hour Bank-by-Phone 703-709-6917 (800-932-7666 toll-free)

Member Rewards MasterCard® Point Redemption Website: www.scorecardrewards.comProgram inquiries: 800-854-0790

FAX NumbersMember Service Center: 703-925-5113Mortgage Loans: 703-925-5014Consumer/Auto Lending: 703-709-9326

P.O. Box 1229Herndon, VA20172-1229

Ask about CardNavSM today!

*Learn more about Kasasa Cash Checking at nwfcu.org/greatchecking**Learn more about CardNav by CO-OP at nwfcu.org and search debit card protection.

PROTECT YOUR WALLET

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The importance of financial planning doesn’t change at retirement

Protect Your Wallet Before You Go

Stay safe when traveling. Follow these tips to reduce the risk of loss or fraud while you are away:

1. Checks. Leave checkbooks and checks at home, in a locked safe.

2. Minimize number of credit cards in your wallet. No more than two (2). Use transaction alerts to help keep your credit card account secure - sign up to receive a text message or email when your credit card is used. Register your

Northwest Federal credit card online today at www.nwfcu.org/protect.

3. Wallets. Make a copy of your health insurance card and keep with other important travel documents.

4. Pay bills before you go.

5. Place mail on “postal hold” rather than “vacation hold” with the Post Office. Arrange so mail may only be picked up by you and request that identification must be shown to receive held mail.

6. Scan important travel documents and store them electronically. This allows you to easily access copies of your passport, driver’s license, visa, and any other vital identification from anywhere in the world. Remember to do this for every person traveling with you, including children. Provide a copy of your itinerary to your designated emergency contact.

Source: Powered by: eFraud Prevention

Make your checking account more valuable and start earning higher dividends with Northwest Federal's Kasasa Cash® Checking:

• Earn 2.00% APY* on balances up to $15,000• Earn 0.25% APY* on portion of balance over $15,000• GET Unlimited ATM fee refunds nationwide*• It’s FREE!

Use our ClickSWITCH® service to easily move any checking accounts at another financial institution to Northwest Federal.

To open start earning higher dividends on checking today

• Call at 703-709-8900• Visit a branch• Open your account online

*APY = Annual Percentage Yield. When account qualifications are met during the monthly qualification cycle, balances up to $15,000 receive APY of 2.00%; and balances over $15,000 earn 0.25% dividend rate on the balance over $15,000, resulting in an APY ranging from 2.00% to .48% depending on the account balance. If monthly qualifications are not met, all balances earn .05% APY. APYs accurate as of 7/1/2018. Rates are variable and may change after account is opened. $100 minimum deposit is required to open the account. Monthly account qualifications must be met to receive ATM fee refunds.

ClickSWITCH is a registered trademark of ClickSWITCH, LLC.

FINANCIAL PLANNINGIN RETIREMENT

FREE CHECKING EARNS 2.00% APY*

Avoid Debt Problems During Retirement Debt problems are never easy but can be more difficult when you’re a senior living on a fixed income. That’s why it’s critical to take steps to ensure you have an effective debt management strategy and to take aggressive, early action if your debt starts to get out of control. The tips below are designed to help you manage debt effectively in your retirement years.

Minimize Debt Before Your Paychecks StopIf you’re still working close to retirement age, one step to take before you leave your job for good is to minimize unsecured debts as much as possible. The less debt you have, the fewer bills you’ll have to worry about draining your Social Security and retirement assets.

• If possible, pay off your mortgage in-full. This will leave only annual taxes and insurance to pay on your home.

• Before you retire, get a dependable car and pay it off. Starting out retirement with a reliable car and without an auto loan gives you less to worry about

as you adjust to not having a paycheck.

• Don’t carry credit card balances into retirement. If you’re holding outstanding unsecured debt that you’re paying every month, make a plan to eliminate it quickly by paying bigger chunks while your paychecks are still coming in.

• Make big purchases before you retire. It’s likely you’ll need to make big purchases during retirement, such as appliances and furniture, but getting as many out of the way before you leave your job will help you make the adjustment successfully.

Go Part-Time If you’ve already left full-time employment and find yourself struggling with too many obligations, consider taking a part-time job to supplement your retirement income until you’ve paid off any debt overhang you may have. Use free tools like credit card debt and mortgage payment calculators to determine exactly what you need to earn and how long it will take to pay down what you owe.

Avoid New Debt While you may not be able to avoid debt entirely, you can at least avoid high-risk debt that often leads to problems. Here are a couple of the biggest offenders that cause problems for seniors:

• Student loans. Seniors often go back to school or take classes to expand their horizons. If you can’t go back without taking out loans, it might be best to expand those horizons in other ways.

• Credit card debt. A little credit card debt is fine, especially if you take on a small amount of debt each month on a specific purchase like gas or groceries to earn rewards or cash back, and then pay off the debt each month that’s absolutely acceptable.

AVOIDING DEBT DURING RETIREMENT YEARS

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If you’re like many, you may assume that financial planning ends once you retire. After all, retirement is a major life milestone that you’ve planned and saved toward for many years, and it’s often a great relief to finally retire. But the notion that financial planning is no longer needed is mistaken and can lead to financial difficulties down the road. If you consider the reasons for financial planning, including assessing and managing cash flow, investments, retirement savings and distributions, insurance coverage and even estate planning and trust needs, none of this ends abruptly the day you say goodbye to your employer. So what does financial planning in retirement look like? First, managing cash flow is paramount in retirement when you are no longer receiving a steady paycheck, raises or bonuses from an employer. You’ll need to ensure you have enough income from your savings and investments to maintain your desired standard of living. It's important to consider your

current financial objectives and risk tolerance, and make the necessary adjustments to your investment portfolio to reflect this new phase of life. In addition, after having invested in your retirement savings for so long, it’s critical to develop and maintain a prudent retirement income distribution strategy. The strategies you employ to keep your taxes to a minimum may also change after retiring. Once you receive Social Security and are required to take distributions from your retirement accounts, you’ll need to explore new ways to keep more of your money.* Evaluating and regularly reassessing your family’s ability to experience financial security upon your death is also valuable. No one likes to think about the inevitable, but knowing you have plans in place, including using tools such as life insurance, wills or trusts, may offer you peace of mind and future financial stability for your loved ones.

It’s a lot to tackle on your own. Many people seek the advice of a qualified financial or tax advisor to help them through their retirement journey. If you have concerns about managing your finances in retirement, our subsidiary, Northwest Financial Advisors, is standing by to serve you. Email contact@nwfllc.com or call (703) 810-1072, ext. 110, to schedule a free consultation. Northwest Financial Advisors and Northwest Federal Credit Union are not registered broker/dealers and are not affiliated with LPL Financial.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

*This information is not intended to be a substitute for individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

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.

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