1

To Fee or Not To Fee?

What’s really going on? p.3

Autumn 2011

Austin Area Fires Take High Toll p.02

Paying It Forward p.02

What NCUA Insurance Means for You p.04

Five Steps to Financial Fitness p.04

Online Security Tips p.05

How to Improve Your Credit Score p.06

Tips for Buying a Car from a Private Party p.06

What Lenders Look For p.07

Mobile in Your Business Marketing Mix p.08

Using Credit to Maintain Cashflow p.09

Writing a Business Plan p.10

Organizing Your Retirement Accounts p.12

The Bigger the Picture, the Better the Plan p.12

How Much Will You Need to Retire? p.13

PreRetirement Debt Reduction p.13

First Time Home Buyer’s Checklist p.14

Feel Like It’s Your Credit Union? It Is! p.15

Karate School Owner Likes Personal Service p.15

Ed Jones, Member 1997

Scott Frowiss, Member 2011

Stephen Adams, Member 2008

Marchele Lee, Member 2011

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Austin Area Fires Take High TollFar from old news, relief is still needed for victims of the Austin-area fires.

Paying It ForwardAmplify launches a “Pay It Forward” campaign, designed to give back to the five-county area we serve.

Community

the fires raging near Austin since Labor Day weekend destroyed more than 1,400 homes in Bas-trop, Spicewood, Leander and

Steiner Ranch. Thousands of acres have been charred, affecting habitat for the endangered Houston toad, closing roads and parks, and forcing the evacuation of people, pets and livestock. At least two people have died. Smoke, trapped close to the ground by cooler air, lowered air quality miles away from the fires.

Rescue workers, including firefighters, the Red Cross, and Austin Pets Alive, have been at the forefront of the disaster,

our “Mini Home Makeover” contest launched in May. “The idea behind the contest was that there are many deserv-

ing people who need to make home re-pairs, but might not have the financial resources to do them,” explains Amplify VP of Marketing Lisa Nicholas. “We asked people to nominate someone who could benefit from winning $3,000 to make necessary home repairs, and chose one nominee from monthly submissions received in June, July and August to re-ceive a Mini Home Makeover.” Each winner received a check for $3,000.

Our first winner was Christy Bryson of Lago Vista. She was nominated by her friend, Bobbi Santana, who wrote: “Christy and her husband both work hard for their community, church, fami-ly, and friends. I know they would really appreciate a makeover.” Christy and her husband put the funds to work replacing their front door, painting, and replacing

furniture that had been well-used by their three boys.

July’s Mini Home Makeover winner was Eva Valdez, who lives in Round Rock. Ms. Valdez’s niece, Leticia La-vernier, nominated her for the contest, saying: “My aunt’s home is very old and could use some updates. She’s an awe-some, warm-hearted person and will do anything for you if she can!” Ms. Val-dez had been having issues getting her front door to lock properly, and was re-lieved to have it repaired. She also fixed her fireplace and installed solar lights in her front yard.

The final winner of the Mini Home Makeover was Stephen Williamson, who was nominated in August by his friend Heather LaPlante. In her nomi-nation, Heather wrote: “As long as I’ve known Stephen he has opened his home to those who are less fortunate or just down on their luck.” Heather said that the home Stephen has so generously

shared with friends is in need of repair, and “it seems like everyone takes but no one ever really gives back”. Stephen used the money to repair water damage to his house.

“This is one of the ways we give back to the Austin community,” says Ampli-fy President and CEO Paul Trylko. “We owe our success to those we serve, and we are grateful to have this opportunity to pay it forward.”

The contest was conducted on Face-book. Amplify plans to do more “Pay It Forward” activities later this year and throughout 2012.

fighting the fires and offering relief and rescue to people and animals. Texas is experiencing the worst drought since the 1950s, possibly the worst in state history. The exceptionally dry conditions have substantially increased both the risk of wildfires and the damage they can do.

There are several ways you can help the relief efforts. Amplify has already donated $5,000 to the Red Cross and is helping collect individual financial donations at www.centex.redcross.org/CreditUnionsCare. You can also do-nate to the Red Cross at the check out stands at H-E-B groceries.

Austin Pets Alive is accepting mon-etary donations at www.austinpetsalive.org, and donations of pet food, pet vac-cines, Frontline flea and tick treatment, and cleaning supplies can be made at their location at 2807 Manchaca Road in Austin. They are also encouraging peo-ple to adopt a displaced animal to really make a difference.

The Capital Area Food Bank is ac-cepting nonperishable food items at 8201 S. Congress Avenue. Catholic Chari-ties of Central Texas (www.ccctx.org) and the Austin Disaster Relief Network (www.austindisasterreliefnetwork.org) are also taking monetary donations.

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Board published a rule to implement the amendment, and the net effect is that the income that issuers of debit cards can generate as a result of interchange fees (charged to merchants, not consumers) has been reduced significantly.

At this time we can’t predict if Am-plify will be impacted by the Durbin amendment in the next few years. If we are impacted over the long term Amplify would look for other ways to compensate for the loss in income – such as making more loans that banks won’t make, offering value-added on-line services for our members, investing in technology to drive efficiency, and looking at every option to reduce costs.

If there is a bright side to the events of the past few months, it’s that credit unions have received a lot of positive attention in the media. Membership in credit unions nationwide has increased, and that means more people are discov-ering what you’ve known for years: cred-it unions operate with the best interests of their members in mind. We take the time to understand and anticipate your financial needs. We know you and your family by name. And we charge fewer fees, so you keep more of your money.

Please accept my sincere thanks for choosing Amplify as your credit union, and for recommending us to your friends. We’re here to serve you, and we look for-ward to doing so for many years to come.

notiCE

To Fee or Not to Fee?Debit card fees, big banks and the credit union movement have all been making big news. What does it all mean for Amplify and you?A letter to the membership from Paul Trylko

Amplify Celebrates Lending Milestone of $2 Billion with Zero Percent Interest on Couple’s Loan

Amplify Credit Union recently attained a major milestone in its Central Texas lending activity, achieving a total of $2 billion in cumulative loans made since beginning operations in 1967. To celebrate this achievement, Amplify has modified the loan that put them over the $2 billion mark, which was a second lien on a mortgage loan made to Jordan and Kimberly Caulfield, to zero percent interest.

“We are extremely proud that we’ve been able to provide this level of lending assistance to businesses and consumers in the Austin area,” says Paul Trylko, CEO and President of Amplify. “Our primary focus is on helping people achieve financial success, and one of the many ways that we accomplish that is providing financing for qualified borrowers.”

“Our lender suggested we look at Amplify,” said member Kimberly Caulfield. “Everything was so easy – we applied online, everything was taken care of for us, and we’re thrilled with the service we’ve received.”

The current composition of Amplify’s loan portfolio is approximately 48% real estate, 36% auto, 8% business, and 8% miscellaneous consumer loans. The company is actively seeking to grow its loan portfolio, with market-leading rates in many loan categories. Trylko added, “We are working hard to reach our next major lending milestone of $3 billion in loans.”

Membership at Amplify Credit Union is open to everyone in Travis, Williamson, Hays, Caldwell and Bastrop counties. All lending decisions are made locally, and the majority of the credit union’s loans are owned and serviced by Amplify.

it’s been an interesting few months for financial institutions. On Oc-tober 1st, some large banks an-nounced plans to charge customers

a monthly fee to use their debit cards. Backlash was swift, loud, and even

resulted in a Facebook-based movement called “Bank Transfer Day”. A woman in Los Angeles, frustrated at the fees she was being charged by her bank, urged people across the country to close their accounts at large banks and move their money to credit unions and community banks on Saturday, November 5th.

On November 1st, the banks that had been considering charging a monthly fee for debit card usage announced they were dropping plans to do so. A vic-tory for consumers? Well, to an extent. Financial experts have been quoted in publications like the New York Times warning that while banks may have de-cided not to implement debit card fees, they will be looking for other ways to

create income – which will likely in-clude different fees in the future.

In fact, a story that ran on NBC Nightly News in late October warned consumers about “stealth fees” such as fees to visit a teller and fees for failure to maintain a certain minimum balance.

The credit union story – Amplify’s story – has remained constant while these events unfolded. Amplify never had any plans to charge members to use their debit cards. Since we’re a member-owned cooperative, we return our profits to you -- our owners --in the form of low-er rates on loans, better rates on deposits, and fewer fees. That won’t change.

Why were banks considering new fees? The short answer is the Durbin Amendment, which became effective October 1st. The Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act amends the Electronic Fund Transfer Act. Very generally speaking, the Federal Reserve

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What NCUA Insurance Means for You

You want to know your money is safe when you deposit it with Amplify. That’s why we work with the National Credit Union Association to give every members’ deposits coverage by the National Credit Union Share Insurance Fund.

NCUSIF is backed by the full faith and credit of the federal government. Your non-IRA deposits are cumulatively insured for up to $250,000, and IRA deposits are separately insured for up to $250,000. That’s up to $500,000 in guaranteed coverage if your regular deposit and your IRA accounts are with Amplify.

For more information, or if you have any questions about share insur-ance coverage, stop by any Amplify branch or call us at (512) 836-5901.

DEposits

1 Set or review your goalsChances are you already have

some financial goals in mind. Get them on paper and make them part of a larger picture. For example, you may already have a goal to buy a car or a home. How about retirement?

When you lay out your financial goals, make sure you look at the long-term picture, not just your immediate wants and needs. Then review your goals at least once a year. Your priori-ties may change depending on what’s going on in your life, so don’t be afraid to make changes.

2 Tackle your day-to-day financesTo make the most of your money,

you need to know where it’s going. That daily double latte could become a down payment on a house faster than you think.

Making a budget — and sticking to it — is easier than ever, thanks to tech-nology. There are all kinds of tools, free and fee, to help you track your spending and find ways you can save. One easy way is with AmpleChangesm, which rounds up the amount you’re putting on your debit card to the nearest dollar and puts the change in your share account. Other tools include budgeting software like Quicken®. Amplify’s “Saving for a Goal” calculator on our website, and even apps for your mobile phone.

3 Pay down your debtDebt can seem overwhelming.

Like many things in life, you just have to tackle it one step at a time. There are two things to consider when setting up a plan to pay down your debt. First, some debt, such as a mortgage or credit cards, can often be refinanced at a lower inter-est rate. This can lower your minimum payments and save you money over the life of the loan. The second thing to look at is which loans are the most

costly. The higher the interest rate, the faster you want to get rid of the debt.

If you have a few small debts you can pay off quickly it can make you feel like you’re making progress and give you an emotional boost to stick with your plan.

4 Don’t forget your investments!Many of us find it stressful to

make investment decisions, and once we’ve allocated our funds we just let them be. If one type of investment does especially well, or especially poorly, it can throw off the balance you’ve or-chestrated to give you your best mix of risk and returns.

It’s a good idea to do an annual re-view of your investments, on your own or with a financial advisor, to make sure you’re still allocating your investment funds appropriately. Don’t try to out-guess the market during these reviews; just make sure your portfolio is diver-sified with a mix of high risk/return investment and safer/lower yielding in-vestments that you feel good about.

5 Take care of the paperworkTwo things most of us would

rather ignore are insurance and a will. While neither is fun to think about, spending a little time on them can put your mind at ease.

When reviewing your insurance cov-erage, ask yourself if you have the right kind of insurance, for the right amount, and if you are paying a fair price for it. Premiums for auto and home insurance are highly impacted by the deductible you choose. Be sure your deductible is an amount you’ll be comfortable paying should you need to file a claim. For any type of insurance, it’s always good to shop around each time your policies renew.

Next, if you don’t already have a will and a living will, it’s time to get these critical documents done. If you’ve al-ready got a will and a living will, any change in your life situation, such as marriage, a new child, or a move is a good time to review both and see if you need to change any of your choices.

Five Steps to Financial FitnessIt’s never too late to work on your financial fitness. Even better, it’s not as hard as you might think.

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members’ account se-curity and privacy is our first priority. To help maintain the security of your ac-

counts, we encourage you to follow the guidelines below to maintain the high-est possible protection:

• Protect your PINs and passwords. Keep them in a safe place, don’t share them with others, and don’t create PINs and passwords that use obvious information like names, birth dates, and phone numbers.

• Never respond to e-mail requesting your passwords, user names, Social Se-curity number, or other personal infor-mation, no matter how official it looks. If you’re asked to call a telephone num-ber, verify it independently.

• Change your password frequently. You can change your Online Bank-ing password in the “Preferences” op-tions at any time.

• Notify your credit union of any sus-picious email or telephone inquiries, especially those seeking account in-formation or online passwords.

• Always make sure you are dealing with a reputable, federally insured institution with secured Web pages when applying online for an account online.

• Never make online transactions on sites with which you’re not familiar. Thieves can set up fake sites that look very authentic.

• If your operating system has a fire-wall, spam blocker, or other built-in security application, make sure it’s turned on. Also activate spam filter-ing and other online protection pro-vided by your ISP or e-mail service,

such as Yahoo, Google, or MSN.

• Set you security software to update and renew automatically. Spam, spy-ware, and virus-detection programs incorporate “rules” or “definition” files that must be updated regularly to catch the latest threats.

• Turn off your computer when not using it for long periods (or at least disconnect the Internet cable). This can reduce the chance that a remote computer will penetrate your oper-ating system security and access it. And you’ll save energy.

• Use public computers with caution. Don’t use computers at libraries, ho-tels, or airports for conducting finan-cial or other personal business. The same goes for using your own com-puter on a public wireless network, especially if you’re not on a secured Web page or haven’t disabled your system’s computer-to-computer con-nections.

• Watch what you download. Free soft-ware on the Internet may be useful, but also may carry viruses and spyware. As much as possible, stick to well-known manufacturers or trusted sites.

• Run antivirus software. It works and you need it, even if you own a Mac.

• Run two antispyware programs. Spy-ware is so insidious, and sometimes difficult to detect, that it warrants double protection. Set the better of the two programs to block spyware in real time. Use the other to scan when-ever you suspect something might have escaped the first program.

• Use “disposable” e-mail addresses to thwart spammers.

• Use a credit card. Credit cards offer

better protection than other options when shopping online.

• Don’t assume a certified site is safe. A secure connection is critical when sending personal information online (indicated by “https” before the Web address and a padlock or other icon on your browser), it’s doesn’t mean that the site is genuine and reputable.

• Avoid using hyperlinks in e-mail. Hyperlinks can show one address but take you to another. Before clicking on links in Web pages, hover your cursor over the URL and see whether the address that appears at the bot-tom of your browser looks as if it’s related to a page or site you expect to visit. When you arrive at the site, verify that the URL shown in your browser’s address bar is the correct one. Pay attention to the part of the URL between “http://” (or https://) and the next slash. Look for tricks such as the use of a zero where the letter O should be.

• Type carefully. Tricksters sometimes create lookalike sites that use com-mon mistypings of popular URLs.

• Report phishing. Forward any phishing e-mail to the Anti-Phishing Working Group (reportphishing@antiphishing.org), the Federal Trade Commission (spam@uce.gov), and the company or organization that is being impersonated. You also can file a complaint with the FBI’s In-ternet Crime Complaint Center at www.ic3.gov.

• Review your credit-card and bank statements as soon as you receive them. Report suspicious charges or withdrawals immediately.

Online Security TipsMaintain the security of your accounts by following these guidelines.

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How to Improve Your Credit ScoreCredit scores affect loan interest and insurance rates.

Private Party Car Buying Tips Avoiding headaches and lemons.

LoAns

Buying a used car from an individu-al instead of a dealer can save you the dealer markup, but you won’t

have the recourse if the car turns out to be a lemon. Take these steps to make sure you know what you’re buying and that you don’t pay more than you planned.

Ask questionsInformation is power. Don’t be afraid to ask questions. A legitimate seller will be glad to give you answers. Start with these basics:

• How long have you owned the car?• Why are you selling it?• Can I review the vehicle’s repair and

maintenance records? Sometimes sell-ers may not have the records. If that’s the case, ask him for the name of the mechanic or shop that works on the car so that you can review the records there. If the seller tells you he main-tained the car himself, so there are no records, you can have your own mechanic, or a company like Lemon Busters, thoroughly examine the car. If you don’t want to pay for that, walk away. You don’t want a car if you don’t

your credit score can affect every-thing from the interest you pay on a loan to how much you pay

for insurance. If your credit score is less than 800, you might want to take steps to raise it a notch or two.

Here are the most common factors that go into calculating a credit score:

1. Payment History: Those who have always made their payments on time, and have never had an account sent for collection will have higher credit scores than people with less perfect payment histories. Mistakes do get made, and the unpredictable can hap-pen, and creditors do understand this. If you’ve made a few late payments over the years your score may be a bit lower, but you should still be eligible for the best financing.

2. Credit Usage: If you live on credit, it will hurt you when you need to borrow money. We’re not talking about folks who pay for everything with plastic and then pay the entire

amount each month. We’re talking about those who max out their credit cards and only make only the mini-mum monthly payment. If that’s you, it will hurt your credit score. On the flip side, if you use your credit re-sponsibly, and have plenty of it to use, your credit score will be higher. Us-ing your credit cards to pay for things and then paying them off in full each month would be considered a respon-sible use of credit.

3. Credit History: If you’ve been re-sponsibly using credit for many years, you’ve created a positive track re-cord that will help your credit score. While it may not be fair, people with less than seven years of credit history often receive a lower score just be-cause they are a less proven risk.

4. Credit Applications: Every time you apply for a credit card or store credit, your credit history shows that someone has checked you out. These checks ap-pear on your credit report and can be a red flag to lenders. They may see it as

you trying to take on too much credit, whether or not you were approved. It’s better to be selective. Limit your credit applications to get the best rates and terms you qualify for. If you decide to close an account for any reason, get a letter from the credit card company or credit issuer stating that the account was closed at your request.

You are entitled to one free credit re-port per year. Peruse it closely, and if you see errors contact the credit re-porting company to get it corrected. For information on obtaining your credit report, contact one of the three major credit-reporting agencies:

Equifax (www.equifax.com)800-685-1111 P.O. Box 740241, Atlanta, GA 30374-0241

Experian (www.experian.com)888-397-3742 P.O. Box 2104, Allen, TX 75013

TransUnion (www.transunion.com)800-916-8800 P.O. Box 1000, Chester, PA 19022

know it’s been properly maintained.• How has the car been driven? Was it

used for errands around town, a daily commute in traffic, long road trips? Was it used by teenagers? Has it sat, undriven, for a while?

• Is the seller an auto dealer? Is the title issued in their name? If you think a seller may be an unlicensed dealer, be extremely cautious. These individuals often peddle cars with “shady” pasts and serious mechanical problems. Ask yourself why the car isn’t being sold through a legitimate dealer.

• If something seems too good to be true, it probably is. Ask if the car has a salvaged title. If it does, walk away immediately. A salvaged title means the vehicle has been badly damaged at some point and is usually uninsurable.

Remember, if a seller refuses to answer your questions do not hesitate to shop around. That good deal will probably wind up costing you far more than you want to spend.

Do your homeworkDon’t rely solely on the seller’s answers.

They want to sell, and may skew their responses or just not know if something has failed if the vehicle has been sitting for a while. To be safe, use these tech-niques to make sure you know the truth about the car you want to buy.

• Have a mechanic inspect your vehicle• Obtain a Vehicle History Report at

www.carfax.com. If you have a sn-artphone you can do this while you’re standing there. Or, tell the seller you’re interested but you need to check the VIN and do it when you get home. The website will quickly tell you if the car has ever been reported stolen, been wrecked, had its odome-ter tampered with, had multiple own-ers, and much more.

Secure financing before you shopBefore you start shopping for a used car, get pre-approved for an Amplify Auto Loan. If you settle your financing be-fore you start shopping, you’ll start out ahead of the game. You’ll know exactly what you can spend and can’t be talked up and the seller will be more likely to negotiate with someone who already has their money ready to go.

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All lenders start with the same ba-sics: your FICO or credit score, job history, income, and debt.

Whether you’re applying for a credit card, an auto loan, or a home mortgage, these factors will affect how much you can borrow, what rate of interest you pay, and whether or not you get the loan.

Mortgage lenders generally focus on five additional factors:

• Income stability• Debt-to-income ratio• Loan-to-value (LTV) ratio• Property appraisal• Credit history

Income stabilityThis can be more than your salary. If you have any other verifiable income, and financial assets with at least a two-year history, these will work to your advantage. This includes, but is not lim-ited to investment income, social secu-rity, disability, commissions, royalties, and alimony payments.

Debt-to-income ratioLenders traditionally prefer that your combined debt and housing expense be no more than 36% of your monthly pre-tax income. Generally that breaks down as 28% for housing expense and 8% for debt.

Housing expenses usually consist of principal, interest, taxes and insurance (PITI), but can also include condomini-um maintenance fees and home owners’ association fees. Other debt typically in-cludes credit card balances, installment

loans (such as auto loans), student loans, and other regular financial obligations.

It’s a good idea to reduce your cur-rent debt as much as possible before applying. Consider waiting on a major purchase and consolidating outstanding loan balances at a lower interest rate to repay them more quickly.

Loan-to-value ratioA loan-to-value (LTV) ratio is the amount of your loan proportional to the value of your property. Since lend-ers want to minimize risk, they look for lower LTV values that come with higher down payments. An LTV of 80%, for example, means that you are putting 20% down and borrowing 80% of the property’s value. This is a lender’s ideal ratio, and smaller down payments usu-ally trigger penalties such as mandatory PITI and the lender taking, holding, and paying your annual insurance and taxes rather than you managing those funds.

If coming up with a down payment is a challenge, investigate loan programs designed to help you buy a home with-out a lot of cash, or use gifted funds.

Property appraisalAll lenders require a professional finan-cial assessment of your property by a li-censed appraiser to ensure that the market value equates to the loan amount. A lend-er needs to know that the borrower’s col-lateral, which includes both the property and the down payment, will be enough to recover their investment in case the bor-rower defaults on loan repayment.

An appraisal also helps you know you’re not offering too much for the property. If the appraisal is significantly below your offer, you may want to re-consider the amount you’re offering.

Credit historyIt’s a good idea to check your own credit report to correct any errors. Past credit problems don’t have to be an obstacle. If you can reasonably explain (and verify) hiccups in your payment history, most lenders will listen.

If your FICO score is below 680 you will be considered a higher risk loan candidate and should expect to pay a higher interest rate on a loan.

Have your documents readyLenders are going to want to see sal-

ary history and two or more years of tax returns. If you have credit issues, be ready to explain them; lenders often look for a way to justify doing business. They don’t make money when they don’t make loans, but they need to show they are making prudent loans.

Unless the potential borrower has absolutely no financial credibility they should never assume that less than per-fect credit means he or she has no bar-gaining power. Lower credit does not mean the borrower shouldn’t shop for the best deal, or that he is limited to a certain type of loan. Have your realtor, your lender, or a mortgage broker help you explore all of your options and get pre-approved before you start shopping.

What Lenders Look ForThe five factors mortgage lenders consider.

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smALL BusinEss

Business owners are always looking for ways to maxi-mize their marketing bud-gets. One way to do this—

and reach busy customers wherever they may be—is mobile marketing.

According to Amplify member Kev-in Barnett, co-founder of Hi5 Mobile Marketing, research suggests that mo-bile devices will pass PCs as the access device of choice by the year 2014. 53% of Americans who use mobile phones go online at least once per day.

Kevin started his company to bring businesses the tools for successful mo-bile marketing campaigns. He also works with businesses to develop a strategy be-hind those tools and tactics that fits seam-lessly into their overall marketing mix.

Because of the growing statistics of consumers engaging with businesses via mobile, Kevin says it is crucial to kick start a mobile campaign with intention.

“Your initial marketing concept may be to use a QR code, but there’s a lot more to it than that,” he says. “Where

will it link to? How can you leverage that one scan to its fullest potential? How can you engage your target audi-ence better than your competition? Why would anyone want to scan your QR code? And how will a QR code allow you to reach your own business goals?”

Kevin works with his clients to de-velop other mobile marketing tactics such as mobile websites, text-message marketing, mobile check-ins, mobile ad-

Mobile as Part of Your Business Marketing MixBy Kevin Barnett Hi5 Mobile Marketing hi5mobilemarketing.com

vertising, and social-mobile couponing.For businesses who are just getting

into mobile marketing, Kevin recom-mends starting with a mobile website. If you look at the before-and-after examples on Hi5 Mobile Marketing’s website at hi5mobilemarketing.com, the benefits of having your website optimized for cell phone users are obvious. Other cost-ef-fective mobile tactics to consider imple-menting are also featured on the site.

Kevin came to Amplify Credit Union after seeing the measures their profes-sionals take to help small businesses prosper. “It became clear to me that I wanted to have my money with a credit union,” Kevin explains. “I like the idea that credit unions are accountable to me, as an account-holder. Everyone at Amplify has been wonderful, and I like the fact that they’re local.”

u Use a QR code that scans quicklyu Give users a clear call to actionu Give users a good reason to scan your QR codeu Educate consumers on how to scan QR codes—

not everyone is familiar with them yet!u Offer a non-Smartphone option for getting

the contentu Serve up mobile content – remember,

viewers are using a mobile device. u Size and test your QR code before you mass

produce it.

Rescue A Friend Today! Don’t have a QR code reader? Get yours free today at Mviso.com/scan.

Hi5 Mobile Marketing’s 7 Tips for Effective QR Codes

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Using Credit to Maintain CashflowAvoiding “dotcom” demise.

Cash flow, simply put, is the movement of money in and out of a business. A lack of operating cash was the prima-

ry “cause of death” for many U.S. “dot-coms” in the early 2000s, and poor cash flow management continues to result in the collapse of business enterprises, large and small, around the world.

One of the goals of cash flow manage-ment is to decrease the amount of time it takes to collect cash. If you sell on credit, you need to collect the cash in a timely manner to maintain the cashflow your company needs to pay its own bills. This can be a major source of cashflow prob-lems for many companies.

The credit cash trapSelling on credit is pretty much a re-quirement in today’s economy. Most companies can’t compete unless they can offer credit terms, and credit can encourage buyers to place larger or-ders. But too many credit buyers treat credit terms as if they were interest-free, perpetual loans. They aim to im-prove their own cashflow by dragging out payment as long as possible. As a result, you can end up with an inordi-nate investment in accounts receivable tying up your cash flow.

Reducing this payment period, even slightly, can go a long way toward im-proving your cashflow instead of theirs. Here are some basic steps to help you improve your credit process so it helps your cashflow:

1. Credit approvalReview your process. Are you per-forming credit evaluations on all new customers? Are your credit terms ap-propriate and adhered to by your sales department? Do you have a procedure in place for updating credit information on a regular basis? Do you belong to an industry credit group?

2. InvoicingYou can’t expect timely payment and good cashflow it you’re not asking for the money on your end. Are your in-voices accurate and prompt? Are pay-ment terms short enough to help your cashflow and are they clearly stated? Do you provide incentives for early pays? Have you considered electronic invoice presentment and payment, or ACH drafts to facilitate payment?

3. Receivables managementThe process won’t manage itself, so you need to be sure someone is in charge of monitoring your credit accounts. Do you adequately follow-up on customer disputes and late pays? Are you mea-suring performance against goals? Do

you regularly review aging reports? Do you have an understanding as to why customers are paying late (i.e. invoice discrepancies, quality issues, etc.)? Have you trained or encouraged your customers to pay within terms using ei-ther positive or negative reinforcement?

4. CollectionsNo one likes to send an account for col-lection, but if they don’t pay you, you don’t really need to worry about losing their business. Do you have employees focused on collections? Are they well trained? Do they have enough time to follow up on all past due accounts? Have you considered outsourcing part of your receivables portfolio (small balances, specific divisions, etc.) for 1st party follow-up? Should you consider using a professional 3rd party collection firm?

Just a small improvement in how you manage the credit you extend can go a long way toward improving your cashflow and the health of your com-pany. Cash may still be king, but in a credit dependent world, making good use of it ,and managing it well , can be almost as good.

10

smALL BusinEss

Every business, no matter how small, should have a business plan. It tells everyone critical to your business, from your

management team to your lenders to your suppliers, that you’ve got a viable vision. It also functions as your road map for product development, market-ing, and growth.

Your business plan puts into writing some key factors to your success:

1. What you need to do to get started or to grow, and what resources (time, money, etc.) you will need to make it happen.

2. What it will take to make a profit and how long that will take.

3. What others will need to know for you to market your business effectively.

If writing doesn’t come easily to you, just the idea of writing a business plan can be intimidating. Just remember, you’re not looking for literary awards, just an outline of your plans. You may even find that writing out your plan gives you new ideas and business strategies.

Writing down your business goals will give you a road map you can refer to at any time. This will help you main-tain your focus once your business is up and running and keep you on track with your original vision.

Essential elements Every business plan is unique, but some elements are consistent throughout all

Writing a Business PlanDo you really need a business plan? Yes. Yes you do.business plans for the plan to be com-plete. The following outline is an over-view of what your plan should contain.

1. Cover sheet2. Executive summary (statement of the

business purpose)3. Management Plan4. Marketing Plan5. Financial Plan6. Supporting Documents

The Executive Summary is the most important section of your plan. It pro-vides a concise overview of what your business is all about. Don’t get lazy with this part. It’s your chance to tell your story and make your case to investors and lenders, and develop a clear mes-sage about your business that will form the basis of your long-term strategy. But be concise. Try to keep your Executive Summary to one page.

The Management Plan is where you introduce yourself and other key play-ers on your team. Focus on the key at-tributes and experience each person brings to your enterprise and boil it down to a brief paragraph on each one. Stay focused here on how the team has the necessary experience to make your business a success.

Use the Marketing Plan section to illustrate your knowledge about the particular industry your business is in. Talk about competitors, who will buy your product or service, what makes

your product better (your unique selling proposition), the location of your mar-ket, and how you will market, advertise and deliver the product.

The Financial Plan is where you talk about money. How much do you have and how much do you need? Where will the money be spent? How much for salaries, overhead, administrative costs, marketing, production, delivery, raw materials, etc.? What’s your break even? How are profits distributed? How much have the owners invested? Be specific. Potential lenders and suppliers want to know you have a stake in your business and a good handle on the numbers.

Supporting Documents is where you attach CVs, tax returns, contracts with suppliers, lease agreements, engi-neering reports, market research, and anything else that supports your case for your business. Think about what a lender or investor might want to see and make sure it’s there.

Finding a nicheThere are undoubtedly some particu-

lar products or services that you will be especially suited to provide. Talk-ing with your customers can provide insights and anecdotal information, and if you study the market carefully, you will find opportunities. To research your niche, consider a market survey with potential customers to uncover un-tapped needs. Also identify the areas in which your competitors are firmly situ-ated. If you do find a new niche market, make sure that this niche doesn’t con-flict with your overall business plan.

Always remember that your business plan is a living document. Your mar-kets, goals, and strategies are likely to change over time and your plan should reflect that so it remains a working roadmap for your business.

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Organizing Your Retirement AccountsConsolidate to better di-versity and manage your investments.

if you have retirement accounts scattered among several finan-cial institutions, it can be difficult to calculate overall rate of return

on your investments. That’s one of the reasons CFP® Dan Dillard of Amplify Financial recommends consolidating retirement investments.

Dan says he also often sees clients who have left a job, but keep their 401(k) with their former employer. “If you’re no longer getting a match from the employ-er, there really isn’t a good reason to keep your 401(k) with them,” he says. “Usual-ly company-sponsored 401(k) plans have a limited selection of investment options from which you can choose. If you roll over your 401(k) to and IRA, it opens up a whole world of investments for your re-tirement savings.”

As a general rule, Dan recommends that individuals have only one 401(k) if they are still employed, one IRA, and one Roth IRA. “Another reason to con-solidate is that if something happens to you, and your accounts are in one place, it’s much simpler for your heirs.”

Dan says some people believe that having accounts with several different financial institutions helps with diver-sification. “Diversification comes from having your assets allocated among dif-ferent types of investments with varying levels of attendant risk,” he explains. “It’s actually much easier to achieve diversifi-cation if your accounts are streamlined.”

Another type of diversification Dan discussed at a recent workshop is “tax di-versification”. If people qualify for a Roth IRA, we generally recommend that they invest in one,” he says. “Doing so means that in retirement you’ll have both taxable withdrawals from your traditional IRA, and nontaxable withdrawals from your Roth IRA.” Since at least 50% of your Social Security payments will be taxed, it can be a good strategy to plan to have nontaxable income when you retire, espe-cially if you’ll be in a high tax bracket.

inVEstmEnts

if you’re thinking about meeting with a financial adviser to start mapping out your journey to and through re-tirement, you may wonder, “Why do

they need to see all these documents?”In a recent workshop, Dan Dillard,

CFP® CPRS® with Amplify Financial, explains that an important part of helping clients plan to reach their re-tirement goals is assessing where they are currently.

“We use these documents to create your personal balance sheet,” Dan ex-plains. He says there are several ques-tions those documents will answer:

• How are your assets structured?• What portion of your assets is liquid

or accessible within 24 hours?• What portion of your assets is tax-

able, and what’s nontaxable?• What real estate investments do you own?

notiCE

The U.S. Department of the Treasury will end over-the-counter sales of paper savings bonds on December 31, 2011. This means savings bonds will no longer be available through financial institutions and applications mailed directly to the Federal Reserve Bank by customers. This move is expected to save taxpayers an estimated $70 million over the next five years.

Although paper bonds are being discontinued, electronic Series EE and Series I Savings Bonds will remain available for purchase via TreasuryDirect. This secure, web-based system, operated by the Bureau of the Public Debt, has been used by investors since 2002 to purchase savings bonds online.

After December 31, 2011, savings bonds can be manage, purchase and redeem electronic savings bonds online through www.treasurydirect.gov. Electronic savings bonds are secure and convenient to manage through TreasuryDirect, and investors no longer have to worry about misplacing, losing or storing savings bonds. In addition, with a TreasuryDirect account, customers can purchase electronic savings bonds as gifts and also convert paper savings bonds to electronic.

Opening a TreasuryDirect account is free, and, once it’s established, investors can:

Buy, manage, and redeem Series EE and I electronic savings bonds. Convert Series EE and I paper savings bonds to electronic through the SmartExchange® feature. Purchase electronic savings bonds as a gift. Enroll in a payroll savings plan for purchasing electronic bonds. Invest in other Treasury securities such as bills, notes, bonds, and TIPS (Treasury Inflation-Protected Securities).

Those currently holding paper savings bonds can continue to redeem them at financial institutions. Bonds, which have not matured, but were lost, stolen or destroyed, can be reissued in paper or electronic form.

For more information visit www.treasurydirect.gov.

The Bigger the Picture, The Better the PlanThe more your planner knows, the more he can help.

The documents you provide will also give your financial adviser a complete picture of your liabilities, as well.

“Another area we analyze is your cash flow,” Dan says. “We take a look at what’s coming in, what’s going out, and what’s left over.” As he works with his clients, Dan says he looks at fixed and variable expenses, and determines if there’s a surplus after these are paid. “If there is a surplus, our next step is to create a plan for investing that surplus to help you meet your goals.”

For clients who currently do not have a surplus, Dan works with them to determine how expenses might be trimmed to free up funds for retirement planning. “Currently most experts rec-ommend people plan to have income to last them until age 100,” Dan explains. “Without a comprehensive plan, people may run out of money in retirement.”

13

InvEsTIng FoR LIFE “WHERE ARE YoU goIng?”Guest speaker: Clay Leveritt from American Funds

one of the issues Dan Dillard, CFP® of Amplify Fi-nancial helps clients with is reducing debt prior to retirement. “Most people are balancing many de-mands on their finances,” Dan says. “It can be dif-

ficult to prioritize in a way that furthers financial goals.”When it comes to debt reduction, Dan has a simple phi-

losophy: Everything begins with savings. “This is always the first priority,” he explains. “I work with people to put enough money into savings to cover 3 – 6 months worth of expenses.” When people don’t have these funds in an easily accessible account, they tend to put emergency expenses on their credit cards, and the interest charges add up quickly. “It’s a vicious cycle,” Dan says.

Once an emergency fund has been created, Dan helps his clients analyze their income and their fixed and variable ex-penses. “With any amount left over, we split the difference between savings and the lowest debt,” Dan says. The reason he chooses the lowest debt, rather than the debt that carries the highest interest rate, is for the psychological boost clients get from paying off that debt. “It can be very freeing, and it gives people a sense of accomplishment that compels that to continue paying off their debts,” Dan explains.

He also works with clients to counsel them as to what types and level of debt are acceptable in retirement. “It’s not always bad to have debt in retirement,” Dan says. While many people have a goal of paying off their mortgage prior to retirement, that strategy may not be the best choice for every individual. “For some people the mortgage interest deduction may be beneficial in retirement,” Dan explains.

How Much Will You Need to Retire?Rules of thumb can leave you empty handed. PreRetirement

Debt ReductionEverything begins with savings.there are plenty of websites and publications offering

“rules of thumb” for determining how much money people need to retire. At a recent workshop, Dan Dil-lard, CFP® CPRS® with Amplify Financial, says this

usually leads to inaccurate estimates. “We like to be more pre-cise,” Dan says.

First, Dan says, financial advisers will examine how much their clients are spending each month today. “We look at what that money is going toward, and determine if it will continue to be an expense in retirement,” Dan explains. For example, individuals who currently have children in college, and are contributing funds toward college expenses, will not continue to have that expense in retirement.

Second, Dan encourages people to examine their current spending habits. “We see many couples who try to live on one spouse’s income, and put the rest into savings,” he says. “If you don’t need that money today, you probably won’t need it in retirement, either.”

Finally, Dan works with clients to identify their goals in re-tirement. “There are several factors to consider,” he explains. They include:

• Will your mortgage be paid off at retirement?• Do you anticipate any extraordinary medical expenses in

retirement?• Do you plan to move out of the country?• Do you plan to start a new business in retirement?• Will you buy a new house at retirement?

Another advantage of working with a financial adviser is that it might facilitate a discussion between spouses about retirement plans. “Most people spend more time discussing and planning for next year’s vacation than for retirement,” Dan says. “It’s important to discuss what you want to do in retire-ment, so there are no surprises.”

With so many variables to consider in retirement planning, including the effects of inflation, it’s important to work with a financial adviser to come up with a precise amount needed to retire, rather than relying on generalizations that are unlikely to provide accurate results.

For more resources on retirement planning, visit Amplify Financial’s

Retirement Center. To make an appointment with Dan, call 512.519.5476.

AMplify finAnCiAl’S fRee eDuCAtion SeRieS

learn @ lunchFriday, December 9, 2011 11:30 am - 1:00 pm

Amplify Credit union, Brockton Branch Board Room, 2608 Brockton Dr. Austin, tX 78758

to RsVp: http://investforlife.eventbrite.com

Questions? email us at amelton@goamplify.com or call 512.519.5476.

14

smARt CEntER

Before you start looking at homes, talk with us about getting pre-approved for a mortgage. We already know you and can help you through the process. Amplify will want some key information, so be prepared with this checklist.

First Time Home Buyer’s ChecklistBuying your first home can be exciting and stressful. You can reduce the stress by being prepared for the process.

RRun your credit report. If your credit score is low, fix any errors by contacting the credit report company. Be-fore you run your credit report, pay down any credit cards that are maxed-out. Be sure to improve your credit history before you’re ready to look for house by staying current on all bills for at least 12-18 months prior to applying for a loan.

REvaluate your debt-to-income (DTI) ratio. If your DTI is too high, consider paying off some debts or adding another income to the mix (perhaps a spouse’s income).

RFigure out how much you can spend on a home and what your approximate mortgage payment may be. Remem-ber to include taxes and insurance in your calculations.

REvaluate your down payment possibilities: Do I have at least 3% saved in some sort of savings account? If not, have I investigated down payment assistance or grant possibilities? There are programs designed to help women, minorities, and other interest groups that you may qualify for.

REvaluate possible loan programs: Are you best off with a conventional loan? If you have a small amount for a down payment and a less than ideal credit score, an FHA loan may be a good way to go. Veterans can also tap into VA loan options.

RStart the application process (the above things on the list can be done through the application process). You’ll need to provide your last two pay stubs, last two months of bank statements, and last year’s W-2s.

RGet pre-approval from a lender.

RFind your home.

RPut in a purchase agreement and have it accepted.

RYour lender orders an appraisal. A home inspection may also be required.

RLoan approval is finalized. You will need to provide last two current pay stubs, last two bank statements, and an-other year’s W-2 if your application finalization is in an-other year. Another credit report may be pulled, so don’t run out and buy furniture or appliances before the house is closed as your loan approval may be affected.

RDo a final walk through on the house before the clos-ing. Things can and do change on the house from the time the purchase agreement goes and the closing takes place, so it’s really important to do a final walk through before you close so any last minute problems can be addressed.

RClose on your home. Congratulations!

15

Karate School Owner Likes Personal ServiceAmplify Helps Member Aim and FocusBen Johnson, owner of Aim and Focus Karate School calls banking with Amplify “totally painless”.

Ben opened an account with Amplify when we were still IBM Texas Employees Federal Credit Union in 1983. He admits to trying a few big banks for his business banking needs, but he found their customer service lacking. An Amplify employee, Valerie Maclean, had two of her sons enrolled in Ben’s Karate school. She told him about the services Amplify offered business owners, and Ben decided to make the switch. He says he hasn’t regretted it for a minute.

“I love being able to deposit checks remotely,” Ben says. “That’s a real time-saver for me. I’m a little disappointed that I can’t scan cash,” he adds with a grin.

“I had a Line of Credit and needed to increase it,” he says. “I was able to do that without any problems.” Another example Ben cites is that he needed to buy a vehicle for his business, and the vehicle was located out of state. “Amplify worked with me to make that an easy process,” Ben says.

When Ben experienced some instances of debit card fraud, he says Amplify helped him to resolve the problem quickly and easily with no problems. “The main reason I bank with Amplify is that I can talk to a real human being,” Ben explains. “And I can talk to the same person on a regular basis. When I banked elsewhere, I never got the same person twice.”

Ben appreciates that the staff at Amplify know him by name, and “they even apolo-gize when they don’t have any Tootsie Rolls, since that’s my favorite candy.”

Feel Like It’s Your Credit Union? It Is!We love it when our Members feel like they own the place. That’s because they do.

Amplify is a not-for-profit financial cooperative. That means our mem-bers have pooled their money together to make loans to each other and to pay each other dividends on their savings. So when you deposited money in an Ampli-fy share account, you became more than a member, you became an owner.

As a member, you have access to our full range of products and services. You also have a voice in how Amplify is run and who serves on our volunteer board of directors.

And because we are not-for-profit, all of our earnings are returned to the you in the form of higher rates on sav-ings products, lower rates on loans, and lower fees than for-profit financial insti-tutions. It also means member service is our highest priority.

Everyone at Amplify, from our CEO to our branch staff, is here to help you make the most of your money and get the funds you need for the life you want.

©2010 CUcorp, Inc. 800-13 (01/10) 551

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16

Amplify Credit union | p.o. Box 85300 Austin, tX 78708 | 512.836.5901 | 800.237.5087 | goamplify.com | cumail@goamplify.com

notiCE

2012 Annual Election & Meeting of Members notificationIn preparation for the 2012 Annual Meeting to be held on March 29, 2012, the Nominating Committee has completed its evaluation of potential candidates for positions on the AMPLIFY Federal Credit Union Board of Directors. The process included a careful screening of candidates’ qualifications in accordance with the nominating process specified in the Credit Union’s By-Laws and NCUA Regulations. Nominations may also be made by petition and signed by 1% of the membership and submitted to the Executive Assistant* not later than 5 p.m., Tuesday, December 27, 2011. The Nominating Committee has recommended the two nominees listed below to fill the two open positions on the AMPLIFY Federal Credit Union Board of Directors:

Willie Everett is an incumbent Director and has been an AMPLIFY FCU (formerly IBM Texas Employees Federal Credit Union) volunteer since 1989, when he began serving on the Board of Directors. He moved from Director to Board Treasurer, to Vice Chairman, and currently serves as the Chairman of the Board. He brings over 33 years of experience in the finance and accounting fields with 22 of those years volunteering in a financial capacity with the Credit Union. Willie’s employment background includes 17 years working with IBM Corporation and 16 years with Apple, Inc. where he is currently employed, all within the finance arena.

Allen Jensen is an incumbent Director and has been an AMPLIFY FCU volunteer since 2002, first serving on the Supervisory Committee, and subsequently elected to the Board of Directors. He has a strong technical background, is very organized, and talented with problem-solving. Allen’s employment background includes 11 years working with IBM Corporation, nine years with Integraph/3D Labs/Creative Labs, and is currently employed by Nvidia, all in an engineering capacity. He has served on several neighborhood association boards which has given him experience with creating budgets and insuring management adhered to budgetary guidelines.

* Submit Nomination by Petition via email to cconstancio@goamplify.com, or by mail to P.O. Box 85300, Austin, TX 78708 by 5 p.m., December 27, 2011.