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F A L L 2 0 0 7

GoingGreen toProtect thePlanet(and Save Money)

Investing 101 ................................................................2– Be Prepared with Basic Principles

Going Green ................................................................3– Doing Your Part

Business Insurance ........................................................6– Choosing a Plan Wisely

Enjoying Retirement ....................................................8– Create a Dependable Income

Tax Tune-Up ..............................................................10– Get Ready Now

Fraud Alert ................................................................12– Beware of Lottery Scams

AFFINITY NEWS ..................................................13

WELCOME NEW SEGs ......................................14– Thank You for Choosing Affinity

IN EVERY ISSUE

I N T H I S

I S S U E 3

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Dear Affinity Member,

The consumption and conservation of energy are quickly becoming some of the world's mostpressing issues.

Fortunately, some solutions are already underway.According to a recent energy report in The WallStreet Journal, alternative energy sources such aswind and solar power are becoming more pricecompetitive in relation to traditional fossil fuelssuch as coal and natural gas. These alternativeenergy sources stand to gain momentum in theyears ahead.

In the meantime, as alternative energy is beinghoned and improved, we can all do our part tohelp leave less of an imprint on the planet bychanging the way we live. Even if each of ustakes small steps—such as using ecologicallyfriendly products or taking advantage of thenew federal energy tax initiatives—we can beginto forge a path toward a greener and cleanerenvironment.

This issue of Affinity Connectionsprovides simple ideas you can useto reduce waste, conserve energyand save money. At Affinity FederalCredit Union, we believe thattaking steps to conserve energyand natural resources will providepersonal, professional and financialbenefits for us all in the future.

Best regards,

John T. FentonPresident and CEO

6

1 Affinity Connections | FALL 2007

You don’t have to be wealthy to enter theworld of investing. It is important, however,that you understand some of the basicprinciples, as the world of investing is not a place to explore without adequatepreparation.

WHAT IS INVESTING?

Investing is putting your money to workin order to make more money. Unlikesaving, where your principal remainsconstant and your money earns interest,investments can fluctuate over time,so you need to be comfortable withtaking risks.

RISK AND RETURN

Every investment is two-dimensional—a function of risk and return. The higher the potential for return, thegreater the potential risk to lose moneyon your investments.

All investors, from the novice to the mostadvanced, must accept a certain level ofrisk in order to gain a return. Theacceptable level varies from individual to individual.

A BALANCED INVESTMENT PLANSTARTS FROM THE BOTTOM UP

A balanced investment plan takes intoconsideration what you can afford toinvest along with your tolerance for risk.It should help you achieve certainfinancial goals. The financial goals youset for yourself are the reasons why youare investing in the first place. Why areyou investing? To earn income? To reacha specific goal such as a new home or asecure retirement?

A solid plan is built from the bottom upand is well diversified. Look at theinvestment pyramid at the left. At the baseis the money you want to keep safe andrelatively liquid. Here you’ll

find the majority of your assets, includingsavings accounts; certificates of deposit;money market funds; U.S. Treasury bills,notes and bonds—all of which establish afirm foundation.

After you’ve built a solid base you canmove further up the pyramid to wherethe risk-reward ratio becomes greater.Balanced mutual funds, high-grademunicipal and corporate bonds as well asblue chip stocks all have the potential forgreater return.

At the peak of the pyramid are the mostrisky and illiquid investments. Only themost aggressive investors venture to thispoint, as these investments have the mostunpredictable results. Investments in thiscategory may include high-yield (junk)bonds, speculative stocks, raw land,stock options and futures.

DIVERSIFICATION

There are many ways to manageinvestment risk. One effective way isthrough diversification. By spreading yourmoney among many different types ofinvestments, you reduce the impact thatany one may have on your portfolio—soall your eggs are never in one basket.

Affinity CanHelp You Build

Your InvestmentPortfolio

Affinity can help you examine your tolerance for risk and seek outthe investments that best meet your objectives. Call 800-325-0808to speak with an Affinity Financial Consultant today.

A Mini-Coursein Investing

Speculative

Stocks

Bonds

Cash

Securities offered by Affinity Investment Services, LLC, 73 Mountain View Boulevard, Basking Ridge, NJ 07920, member FINRA/SIPC. Investments offered by AffinityInvestment Services are not deposits or obligations of Affinity Federal Credit Union. They are NOT NCUA INSURED and NOT GUARANTEED by Affinity Federal CreditUnion or any governmental agency and are subject to INVESTMENT RISK, including LOSS of PRINCIPAL. Investments may lose value. Affinity Investment Services, LLCis a wholly owned subsidiary of Affinity Federal Credit Union.

INVESTING 101


This newsletter is distributed with the understanding that it does not constitute legal, accounting or other professional advice. Neither Affinity nor any other party will assume liability for loss or damageas a result of this material. Appropriate legal or accounting advice should be sought from a competent professional. Affinity is not responsible for typographic or inadvertent errors. Affinity FinancialServices is a wholly owned subsidiary of Affinity Federal Credit Union. © 2007 Affinity Federal Credit Union.

Consider this:

• According to the U.S. EnvironmentalProtection Agency (EPA), the averageAmerican household is twice asresponsible for greenhouse gasemissions as the average car.

• For every ton of household waste,another 70 tons of manufacturing waste is created.1

What does this mean to us as a society? Itmeans that even the smallest of positivelifestyle changes we make in our homestoday can have long-lasting beneficialeffects for tomorrow. You need not spenda bundle to do it. Conversely, you mayactually save money by changing to aneco-friendly lifestyle.

LIVE UNPLUGGED

According to the U.S. Energy InformationAdministration (EIA), householdoperations account for about 20 percentof the greenhouse gas emissions thatcontribute to global climate change. Aportion of these emissions is attributed to electricity used in the home.

What do you have plugged in? Cellphones, chargers, laptops, printers, TVs?Many of these products (as well as small

appliances like coffee pots and toasters)are “energy vampires” that suck energyeven when turned off! By simplyunplugging items and turning off lightsyou will save on energy costs andminimize carbon dioxide emissions.

The chart below shows stand-by powerusage of some common householdappliances.

CHOOSE ENERGY-EFFICIENTAPPLIANCES AND OTHER PRODUCTS

Another way to reduce energyconsumption is to upgrade to more

efficient products. The EPA has created aprogram called EnergyStar® which certifiesproducts that save energy. Today’sEnergyStar washers, dryers, ovens,dishwashers and other products, such asthe new compact fluorescent lightbulbs(CFLs), not only save energy but lastlonger, too. All told, a homeowner thatswitches over to all EnergyStar eco-friendly appliances can expect about a 30 percent reduction in energy bills andgreenhouse gas emissions.

Your Home: Make Your World a Greener and Cleaner Place


Appliance Category Appliance Power Consumption

In Watts

Min Avg Max

Portable Stereo 0.7 2.2 7.7Audio Component System 1.1 3.0 15.1

DVD Player 1.3 4.2 12.0

Kitchen Microwave Oven 0.0 2.9 6.0

Computer 0.0 1.7 3.5Office Printer, Ink/BubbleJet 4.0 5.0 6.0

Phone/Fax/Copier 1.3 1.5 1.6

Cable Box 4.6 10.8 24.7Set-top Boxes Internet Terminal/Modem 4.4 10.6 18.8

Satellite System 8.8 12.6 18.8

TelephonyAnswering Machine 1.8 3.0 5.2Cordless Phone 1.1 2.6 5.0

TV-VCRTelevision 0.0 5.0 21.6TV/VCR 1.1 7.6 19.5

Chart Source: www.consumerenergycenter.org/myths/appliances.html

It’s undeniable that how we live affects the planet. If each of us takes steps to leave a minimal

environmental impact or what’s known as a “softer footprint”—working with nature instead of

against it—we can work to preserve the Earth’s resources.

Fortunately, new energy-efficient innovations have made it easier (and cheaper) for us all to be

green in the twenty-first century. And even if you aren’t ready to invest in big-ticket, eco-friendly

technology, some simple, common-sense approaches to energy-efficient living can help you save

money in the home and on the road.

Going Green to Protect the Planet (and Save Money)

HEAT AND COOL YOUR HOMEEFFICIENTLY

Almost 50 cents of every dollar of yourhome’s utility bill can be attributed toheating/cooling the home. You can reduceenergy waste by installing proper insulation,caulking and weatherstripping as well asupgrading to new energy-efficient windowsand doors.

Other fast energy-efficient fixes include:using programmable thermostats; regularlyservicing your heating and cooling units;turning down hot water heater temperatures;and closing your fireplace damper.

WASTE LESS BY REUSINGPRODUCTS

According to the EIA, Americans generate more garbage and use moreresources than any other country. In fact, the average citizen produces morethan 1,000 pounds of trash each year! By buying only what you need and usingproducts that can be reused rather thandisposed of, we can help reduce waste aswell as emissions.

Some easy ways to reduce waste include:buying large single containers for long orunlimited shelf-life items like laundrydetergent; avoiding single or limited-useitems, such as disposable razors or foilbaking pans; carrying a reusable canvas orstring bag instead of paper or plastic bagsfor shopping.

IF YOU CAN’T REUSE, RECYCLE

Recycling plastic, cans, glass and papersignificantly reduces the amount of litterending up in landfills and reachingmarine and coastal waters.

What’s more, recycling:

• Decreases emissions of greenhouse gases that can contribute to globalclimate change

• Conserves natural resources such astimber, water, and minerals

• Helps sustain the environment forfuture generations

To learn more about the importance of recycling, visit www.epa.gov/msw/recycle.htm on the web.

Endnotes:

1. The Hidden Life of Garbage ©2005 Heather Rogers

Sources and further reading:

• www.policycouncil.nationaljournal.com

• www.epa.gov

• www.eia.doe.gov


Federal Tax Breaks forGreen Homeowners

The federal government offers tax creditsfor homeowners who take advantage ofnew solar technology and/or install energy-efficient windows, insulation, doors, androofs, as well as heating and coolingequipment. These credits are available forsystems placed in service from January 1,2006 to December 31, 2008. To learnmore, visit www.energy.gov/taxbreaks.htmon the web.

t the Planet (and Save Money)

How Much Energy IsYour House Using? Try This Calculator!

You can measure your energy use onlineto get a picture of how much energy yourhousehold consumes. Go towww.epa.gov/climatechange/emissions/ind_calculator.html on the web.

Want to Do Your Part for

the Planet?

Sign up for Affinity online statements! Just visit www.affinityfcu.org,log in to “Home Banking,” select “Account Access,” then click on“Online Statements.” For more information or to sign up forHome Banking call 800-325-0808.


Combined with energy usage in the home,more than 2.3 billion metric tons ofenergy-related carbon dioxide emissionsare produced annually by America's roadwarriors.1 Ready to tackle the emissionsproblem? Walking or bicycling to workare two of the best ways to cut emissions.However, if you live more than a fewmiles from the office, as many of us do(or you simply don’t want to be seen atwork every morning in your bicyclingtights), the next best alternatives are tocarpool with friends or take mass transit.

You say you have no commuting pals ormass transit in your neighborhood? Don’tdismay. There are still steps you can taketoday for reducing fuel use that will helpyou save money and cut emissions.

TAKE IT EASY

Aggressive driving—braking quickly and accelerating quickly—can lower gas mileage by as much as 37 percent.

SLOW DOWN

By driving the speed limit you can savea bundle. Each mile per hour over thespeed limit results in increased fuelconsumption.

As a rule of thumb, you can assume thateach 5 mph you drive over 60 mph costsyou an additional 20 cents per gallon for gas.

LIGHTEN UP

Removing all extraneous “stuff” from yourtrunk and back seat will make your vehiclelighter, thereby maximizing fuel efficiency.

STOP IDLING

Idling is extremely wasteful. Turn off yourcar whenever possible to save fuel andreduce emissions.

TUNE IT UP

Keeping your vehicle on a regularmaintenance schedule will improve gasmileage. Be sure to inflate tires, changespark plugs and replace dirty air filters.

TAKE IT TO THE LIMIT

Buy a hybrid vehicle. These new cars usea combination of gasoline engines andelectric motors that reduce emissions andimprove mileage. Although mileage willvary by make, model and size, you canexpect as much as 60 mpg city/66 mpghighway for the top-mileage hybrid car.

You can compare the gas mileage of yourcurrent vehicle with a hybrid vehicle atwww.hybridcars.com/calculator.

Endnotes:

1. National Journal Policy Council

Sources and further information:

• www.Edmunds.com

• The Alternative Fuel Vehicle Institute(www.afvi.org/faq.html)

• www.Hybridcars.com

• www.fueleconomy.gov/feg/drivehabits.shtml

Tax Break for Hybrid Vehicles

The federal government provides a tax credit for individuals who purchase certainenergy-efficient vehicles. The tax credit applies to vehicles purchased or placed in serviceon or after January 1, 2006 and can range anywhere from $250 to $3,150 dependingupon the make and model. As of March 2007, more than 40 different models of hybridswere eligible for the credit. For more information visit www.IRS.gov and type "hybridvehicles" in the search engine.

Your Commute:Greener Commuting Can Stretch Your Fuel Dollar

Going Green to Protect the Planet (and Save Money)

If you are a small-business owner, you understand thattaking risks comes with the territory. For instance, youmay have left a secure, full-time job to start up your newendeavor. Or perhaps you’ve taken out a loan to fund yourbusiness start-up. These are common risks entrepreneursface when taking the leap from idea to reality.

There are times, however, when an owner needs to avoidcertain risks that could threaten a business. This is wherea good business insurance policy comes into play.Business insurance is a powerful and necessary tool thatcan protect your business from unforeseen situations thatmay arise. Even if you have a Limited Liability Company(LLC) or a corporation, business insurance is a must.While an owner’s personal assets are typically shieldedunder these structures, the business itself is not.

THE ABCs OF BUSINESS INSURANCE

A well-designed business insurance plan protects threethings: its people, its assets and its reputation. Acompetent business insurance agent who is familiar withyour industry can work with you to determine the areasin which your business is vulnerable. Your agent can alsomake sure you don’t over-insure for every possible risk.After all, your aim is to make a profit, not to go belly uppaying insurance premiums.

Property and liability are the two most common types ofcoverage for small business owners. However, other typesof insurance may be equally important or even requiredby the state or federal government. In addition, dependingupon the business you are in, you may need specializedprotection for specific types of risks.

PROPERTY INSURANCE

Business property insurance should cover the premises aswell as any assets, such as business equipment, machinery,furnishings, inventory, on-site personal property and the like.

There are many policies available with a myriad ofvariations. With a basic policy you can expect to becovered for losses that arise from fire, smoke, explosionsand vandalism. You can also get a broader form of


Business Insurance:Choosing a Plan Wisely


coverage that adds on damages due towater, broken windows and falling objects,for example.

Not all insurance plans are alike, so readthe policy carefully to make sure youunderstand what is (and isn’t) covered. If there is an item in which you areinterested, but you would rather not buythe entire package, chances are you canadd a rider to a basic policy for thatspecific coverage—such as on the loss of accounting records or cash—and save money.

LIABILITY INSURANCE

General liability insurance covers yourbusiness for damages or injuries that tookplace on your property or that werecaused by you or one of your employees.

There are three categories of liabilityinsurance:

• Personal Injury Liability: Covers yourbusiness if someone is injured on yourproperty and files suit.

• Product Liability: Protects your businessif a customer claims to be hurt by yourproduct.

• Auto Insurance: Legally required bymost every state, provides coverage fordamage caused by vehicles owned by abusiness. It can also cover “non-owned”vehicles such as employee automobilesused on the job.

REQUIRED AND SPECIALIZEDINSURANCE

There are other perils that may or may notbe covered under a broad liability or

property policy. If you are practicingmedicine or law, for example, generalliability will not provide the type ofprotection you need if someone claimsthat your business caused them harm.Knowing state and federal insurancerequirements is essential, as isunderstanding the risks associated withyour line of business.

Here are a few examples of insurance notcommonly provided under a broadliability or property policy, that may beessential for you to safely and/or legallyrun a sound business:

• Workers’ Compensation: Required bynearly every state, this insurance paysfor medical care as well as lost portionof wages for employees injured whileemployed.

• Theft Insurance: Covers you if youroffice equipment is stolen.

• Employment Practices Liability: Coversyou against employee civil or legalrights claims such as harassment,wrongful termination anddiscrimination.

• Business Interruption: Pays you if yourbusiness is forced to close for a periodof time due to events such as fire orearthquake.

• Key Man: Provides death benefits if afounder, owner or key employee who iscrucial to the operation of the businesspasses away.

• Intellectual Property: Providesprotection on trade secrets or patents.

• Professional Liability: Also known asErrors and Omissions (E&O) orMalpractice Insurance, protectsprofessionals (such as doctors, lawyers,accountants or any company thatconsults clients) against claims formistakes or omissions.

WHERE TO BEGIN

To find the right plan at the right pricewith the right components, you will needto shop around. If your needs are verysimple, you may want to start by checkingwith your trade association, professionalorganization or Chamber of Commerce,where you may be able to take advantageof group rates.

Another approach is to enlist the servicesof a competent insurance broker or agent,well versed in your industry who can puta plan together or find you a packagedpolicy exactly for your type of business.An experienced agent or broker will make sure that your business is neitherover-insured nor under-insured and willprovide you with concrete ways yourbusiness can be proactive in minimizingrisks which can save you headaches (andmoney) down the road.

Whatever route you decide to take, it’sgood practice to deal with a professionalyou know and trust who works with themost highly rated and well-respectedinsurance companies, so that you have the best protection possible.

Sources and further information:

• Small Business Start-Up Kit by Peri J. Pakroo J.D. ©2006 Nolo Press

• Insurance Information Institute (www.iii.org)

• The National Federation of Independent Business(www.nfib.com)

Under-insured?Over-insured?

Affinity Insurance Specialists can review your coverage to make sure you have the right insurance. Find out more atwww.affinityfcu.org or call 800-325-0808.


Ready to kick back and enjoy yourretirement years? There are many thingsyou will need to do to prepare for yournew lifestyle. Creating a dependableincome stream that you won’t outlive isone of them.

Social Security alone will unlikely beenough to support an active retirement.Unless you receive pension checks fromyour employer, you will need income foreveryday living since you will no longerhave employment earnings. Here are someguidelines to help you start off on theright foot.

PUT IT ALL TOGETHER

Your first step will be to take a good, hardlook at your income sources. You maywant to enlist the services of a competentfinancial advisor who has experience inthe areas of retirement and tax planningwho can:

• Review your Social Security benefits,IRAs, pension income, 401(k), stock

options as well as other savings,investments, assets and insurance

• Help you analyze and target yourretirement goals, income needs,tolerance for risk and intentions foryour heirs

• Take into consideration present andfuture tax issues

DESIGN A PLAN

When you begin withdrawing funds duringretirement, it’s important to keep yoursavings growing while minimizing taxesand preserving principal. You’ll need aninvestment plan to accomplish this task.An asset allocation mix that is adjustedregularly can produce income whileprotecting against inflation’s negative effectson your purchasing power.

1. Create a Portfolio

A diversified, well-managed portfolio ofinvestments can help you achieve the levelof income you will require for a

comfortable and secure future. A mix ofinvestments that meets your objectivesand risk profile, such as dividend-payingstocks, preferred stocks, municipal and/orcorporate bonds, certificate accounts,certain mutual funds, exchange-tradedfunds and the like are the ingredients of

New Pension Laws

Looking forward to receiving yourcompany pension in one lump sum?Take note: The Pension Protection Actof 2006 changed the calculations forfiguring out lump-sum payments fromdefined benefit plans. These changeswill likely reduce lump-sum payouts tomany workers nearing retirement age,but will not affect retirees who opt forthe monthly check option.

Before taking your retirement benefits,get a printout of the lump-sum paymentversus the monthly check payments tocalculate the difference.

Creating YourOwn PaycheckDuring Retirement


an income-generating portfolio. Regularreview and adjustment of your portfolio,accumulated savings and withdrawal rateswill help you stay on target.

2. Consider an Income Annuity

As a supplement to an investmentportfolio, you may want to considerconverting a portion of your existingsavings or investments to an incomeannuity. In exchange for a one-timeinvestment, the issuing insurancecompany will guarantee to pay you astream of payments for life.

There are two types of payment options:

• Fixed payments that do not changeregardless of market conditions

• Variable payments which fluctuate butoffer the potential for higher returns

Be aware that an annuity is a seriousfinancial commitment for life. Surrendercharges and other fees and expenses willapply, so read the prospectus carefully.

3. Delay Retirement

If outliving your assets is still a concern,another way to create income is to simplynot give up work entirely. A meaningfulpart-time job close to home can:

• Bring in much needed income

• Give your savings and investments moreyears to grow

• Delay withdrawals from IRAs and otherretirement vehicles

• Allow you to build a social network thatcan add a new dimension to your life

Source: Kiplinger’s May 2007 “Retirement Report”

Need to Adjust Your

Asset Allocation?

It’s never too late to talk to the retirement professionals at Affinity. Call 800-325-0808 today to find out how you cancreate a steady income stream during your retirement years.

InvestmentManagement Tip...

Withdraw more than you need foryour retirement living expensesduring years when your investmentshave made especially strong gains.Move those excess funds to a moneymarket account that provides easyaccess to your money when youneed to supplement your income.

You should always consider the investment objectives, risks, charges, expenses and tax consequences of any variableproduct or investment carefully before investing. Consult with a competent tax advisor before embarking on any retirementplanning strategy.



Waiting until the last minute to assess

your tax situation is a surefire path to

a larger tax bill from Uncle Sam. If

you are serious about minimizing

taxes, take action now to help reduce

next year’s tax bite.

THINK TAX DEFERRED

Max out your 401(k) plan for this year.This will lower your 2007 taxable incomewhile building your nest egg. If you areself-employed, fund a SEP-IRA (SimplifiedEmployee Pension IRA). TraditionalIndividual Retirement Accounts (IRAs)also provide tax-deferred growth, and mayeven be tax deductible, depending uponyour situation. (And don’t forget to takeadvantage of any make-up contributions,if you are age 50 or older.)

BE AWARE OF THRESHOLDS

Tax benefits from qualified tax-advantagedplans are often limited by your AdjustedGross Income (AGI). Contribution

amounts and deduction opportunitiesmay phase out and even disappear as youreach certain income thresholds. Keepingapprised of the current year’s thresholdscan help you plan better in order tooptimize tax-saving opportunities.

For instance:

• Taxpayers who are married and filingjointly cannot make Roth IRAcontributions if their modified AGI is $166,000 or more in 2007.

• For 2007, if you are covered by aretirement plan at work, your deductionfor contributions to a Traditional IRA isreduced (phased out) if your modifiedAdjusted Gross Income (AGI) is:

a) more than $83,000 but less than$103,000 for a married couple filinga joint return, or

b) more than $52,000 but less than$62,000 for a single individual orhead of household.

One-Time TaxDeduction for 2007Home Purchases

If you made less than a 20% downpayment on your new home this year,you may be entitled to a tax break onany Private Mortgage Insurance (PMI)premiums paid in 2007.

This one-time tax deduction is onlyavailable for qualified home purchases(i.e., generally those used as a primaryresidence of the taxpayer) that aremade in 2007 for homeowners whohave Adjusted Gross Incomes below$100,000 joint or $50,000 single.Taxpayers who earn more may take apartial deduction for incomes up to$110,000 joint or $55,000 single.

Source: Mortgage News Daily “An Update on PMITax Deductions” 5/30/07

Give Yourself a Tax Tune-Up

Save Money at Tax Time


Be Safe!Be Smart!

For More Tax Benefits, Open a Health Savings Account This Year!

Eligible individuals can reap significant tax benefits by establishing Health Savings Accounts (HSAs) for medical expenses. The primaryeligibility requirement is enrollment in a High Deductible Health Plan (HDHP).

HSAs offer these benefits:

• You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you do notitemize your deductions on Form1040.

• Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded fromyour gross income.

• The contributions remain in your account from year to year until you use them.

• The interest or other earnings on the assets in the account are tax free.

• Distributions may be tax free if you pay qualified medical expenses.

• An HSA is “portable” so it stays with you if you change employers or leave the work force.

To learn more, talk to your Affinity Financial Advisor, or call 800-325-0808.

New This Year—Health Savings Account Funding Opportunity!

Beginning in 2007, if you are covered by a High Deductible Health Plan (HDHP), you may be able to make a nontaxable Health SavingsAccount (HSA) funding distribution from your IRA [other than a Simplified Employee Pension (SEP) or Simple IRA] that would otherwisebe included in income. For more information go to www.irs.gov/publications/p969/index.html.

HSAs offered by Affinity are insured by the NCUA.

Get a Head Start onThis Year’s Taxes!

The Affinity Tax Center can help you with your tax planning andpreparation needs. To get started visit www.affinityfcu.org orcall 800-325-0808.


MAKE CHARITABLE CONTRIBUTIONSTHIS YEAR

Make your charitable contributions beforeyear end so you can deduct them on your2007 return. Be sure to keep proof of ALLdonations no matter how small. The IRShas new record-keeping requirementsstipulating that you can no longer deductcash contributions unless you keep arecord such as a cancelled check, bankstatement or acknowledgement from thequalified charity. Additionally, if you havea large amount of income this year,

consider funding a charitable trust for an immediate tax benefit. Talk to yourfinancial advisor for details.

MONITOR RETIREMENT PLANDISTRIBUTIONS

Minimum distribution requirements on retirement plans kick in when you’reage 701⁄2 or older. Neglecting to takedistributions results in a hefty tax penaltyso make sure you’ve taken your requireddistribution for 2007 if you’ve reacheddistribution age.

REVIEW YOUR WITHHOLDING

If your lifestyle has changed or youreceived a large tax refund last year, modifyyour wage withholding so that taxes paidduring the year match those that you willowe. This way you won’t provide aninterest-free loan to the IRS. The IRS has ahandy withholding calculator on the web.Go to www.irs.gov and type “withholdingcalculator” in the search box.

For more information, visit the IRS websiteat www.irs.gov/individuals/index.html.

Source: www.IRS.gov


Fraudulent schemes of every variety areon the rise. Some are new while others areold-fashioned scams that have beengussied up and recycled in newfangledways to hook unsuspecting individuals.

Nearing the top of the Federal TradeCommission’s (FTC’s) complaint list thisyear are bogus lottery notifications, anupdated form of advance fee and check-cashing fraud that can lead to full-blownidentity theft.

IF YOU THINK IT SOUNDS TOOGOOD TO BE TRUE, YOU’RE RIGHT.

Fake lottery notifications come in manyshapes and sizes: internet, mail andtelephone. Operators of these scamsconvince individuals via email or regularmail that they have won a lottery inanother country. Sometimes they are sobrazen as to use the telephone to convince

consumers that they have “WON A LUMPSUM PAYOUT” in the tens or hundreds ofthousands of dollars.

What normally follows are a series of fake“red tape” type documents that looklegitimate. These documents requestpersonal information such as bank andcredit card information that the scammersuse to drain bank accounts or makecharges. Some of the schemes ask for anamount of money up front. Othersolicitations include real-looking checksthat victims are instructed to cash in orderto pay a “processing fee” to the fraudulentoperation. The winner turns into a loserafter the “processing fee” is paid and thecounterfeit check is discovered.

These solicitations are illegal. Often basedin Canada or another country, they violateU.S. law that prohibits the cross-border

sale or purchase of lottery tickets,according to the FTC.

WHAT SHOULD YOU DO?

The FTC suggests that you ignore all mail,email and phone solicitations for foreignlottery or sweepstakes promotions. Neverdisclose your personal information. If youreceive what looks like lottery materialfrom a foreign country, notify yourpostmaster.

If you’ve been victimized, call the AffinityMember Service Center at 800-325-0808,inform your state attorney general’s officeand contact the FTC at www.ftc.gov, or call toll-free 1-877-FTC-HELP (1-877-382- 4357); TTY: 1-866-653-4261.

Sources:

• www.FTC.gov

• San Francisco Chronicle, “Beware Canadian Lotto Scam,”12/15/06

Be Safe!Be Smart!

Keep apprised of the latest alerts. Please visit the Affinity web siteoften at www.affinityfcu.org/security.

Fraud Alert Update: Beware of Lottery Scams

?Didyou

know

You Can Manage Your Account at Over 1,700 Shared Branches!

We know that having a branch location close to you is important. That's why Affinity is part of an extensive network of credit union branches that let you conduct transactions face-to-face,just as if you were at an Affinity branch. With shared branching at over 1,700 Credit UnionService Centers, you can do more than just access your money; you can make deposits andpayments, transfer money between accounts—and much more. So whether you've moved, are traveling, or are just looking for a branch location closer to home, Affinity is there! Findlocations at www.affinityfcu.org/locator.


Affinity’s Beth Degnan Receives Accolades fromUnited Way

We are pleased to announce thatBeth Degnan, AVP, Office of theCEO and Affinity Federal CreditUnion Foundation Chairperson,has been awarded the SomersetCounty United Way 2007 AliceLull Corporate PhilanthropyAward for her hard work,dedication, and wonderfulcontributions as a communityvolunteer and activist. This prestigious award is bestowed uponsomeone from Somerset County’s business community whosebusiness has made significant financial and non-financialcontributions to benefit one or more non-profit agencies.

Beth was nominated for the Star Award by Julia Bey Ahmet,Director of Development at Community Hope, Inc. whichoperates the Hope for Veterans Program. Her tireless effortshelped to launch the Veterans Learning Institute, a newtraining program that focuses on financial education andpersonal growth skills to empower veterans’ successfultransition back into the community. Affinity employeevolunteers with specific skill sets in each particular subject

matter present monthly workshops at the Hope for Veteransfacility. In addition to the classroom setting, the veterans, aswell as the staff, have access to the Credit Union’s library andAffinity’s comprehensive training programs on topics rangingfrom computer and communication skills to personal growthand education.

Beth also received honorable mention for the Christian T.Nielson Unsung Hero Award, having been nominated byAndrea Krich, Executive Director of Making It Possible toEnd Homelessness (MIPH). Beth, with a select group ofAffinity volunteers, developed weekly financial literacy classespresented at MIPH’s Amandla Crossing transitional housingprogram. Amandla Crossing is a one-year transitionalhousing program for homeless mothers and their children.

According to the United Way, this is the first time one personwas nominated for awards by two separate agencies in oneyear. Beth and her team at Affinity are truly dedicated to theaid and development of the underserved and those in need,in order to help break the cycle of homelessness and despair.Congratulations to Beth for being rewarded and recognizedas a leader and for giving her time, talents, and resources toactively support our community and help make SomersetCounty a better place.

Community News

Announcing—Affinity’s Fall Inventory Clearance Sale! Saturday, September 29, 2007 from 9am to 3pm rain or shine,at AFCU Headquarters, 73 Mountain View Blvd., BaskingRidge, NJ. Members and non-members can shop for highquality, pre-owned vehicles at clearance prices.

Affinity has competitive loan rates. Get pre-approved beforethe sale and you’ll be eligible to attend an invitation-only, pre-sale event! For more information, call our Member ServiceCenter at 800-325-0808 or visit www.CUCarzone.com.

Coming Soon—Faster Check Processing at Affinity! Soon, we’ll be processing checks electronically. As a result,you will experience faster transaction times in our branches,an even higher level of privacy protection, and the checks youwrite will clear faster. To learn more, call 800-325-0808 or visitwww.affinityfcu.org/check21.

Go Green Sweepstakes: You could win a 2008 Toyota Prius Hybridwhen you use Online Bill Pay!

Save paper, time and money! Enjoy the ease and convenience ofOnline Bill Pay and you could win a 2008 Toyota Prius Hybrid.Earn an entry for enrolling in Online Bill Pay and an entry forevery bill you pay online between September 1 and September30, 2007. Learn more at www.affinityfcu.org/billpay.

1. No Purchase Necessary. 2. Qualifying online bill payments must be $10 or more invalue. Limit of one (1) payment per payee will be counted toward the sweepstakesentry period. 3. Sweepstakes begins September 1, 2007 and ends September 30, 2007.4. Sweepstakes open to legal US residents 18 years of age or older with a unique,personal and valid social security number. 5. To receive a free entry or to obtain fullofficial rules, please send a SASE to: Q3 2007 September Bill Pay Sweepstakes, P.O. Box1369, Manhasset NY, 11030-6369. Please refer to official rules for complete details.Void where prohibited by law.

A F F I N I T Y N E W S

A Little Touch of LoveAbsolute DanceAffinity ExpressAiki DesignsAJS Productions, LLCAmerican Legion Post 306Amscan, Inc.An Intense ImaginationArla FoodsASiMAstron ConsultingAutumn LeafBalance Financial GroupBC SolutionsB-Club, LLCButterfly Beauty SupplyC. Kelly Contracting, Inc.Circle R Electrical ContractorsCity of East OrangeClass A Investors, LLCClassic CutsCourt Crazy 4UCrea ArtsCurtiss-WrightDelois & Bell Enterprises, LLCDesign Your Time, LLCDirect Floor CareE D Nesmith & AssociatesEdison Landscaping ServicesEl TumiEvent Images Unlimited, LLCFab ProductionsFerrero USAGerg Realty Corp, LLCGomez CleaningHope’s What Not ShopJeff’s Surgical Supply, Inc.Jimenez Landscape ContractorsKey To Me Therapy, LLCLaddey, Clark, & Ryan, LLPLaris ConsultingLTG Ventures, Inc.Market Consumer Insights, LLCMcDragon Production, LLC

Mexican Boys Corp ServicesMidtown ToastmastersMKTINSITE, LLCMosiac PsychotherapyMount Calvary Missionary

Baptist ChurchMP American Home ConsultantsNew Jersey Community NETworkAATPANLS Associates, LLC.Norseman Co., IncOjome Oncology & Hematology SpecialistsPeninsula Commercial Holdings, LLCPinnacle Business SolutionsPrecision DesignPrestige Accounting & Tax ServicesQuantumquest Limited LiabilityRMG MortgageRoyce Brook Landscaping, LLCS&M Landscape Lighting, LLCScientific Strength Coaches, LLCScooby Properties, LLCSeamless TechnologiesSouthernmost Investments, LLCSpektrum Painting, LLCStracor Inc.Strazzulla HoldingsStrickland Business Group, LLCSugar Tops, LLCTaloolah Entertainment ServicesThe Longo PartnershipTriangle SchoolTrinity Innovative Enterprises, LLCU.S. Victory Veteran Systems, LLCUASOFT Inc.Valley OBGYN Associates, P.A.VE & Tou, LLCVirtually ManagedWade Hardwood FlooringWahs Realty Corp, LLCWaiters Unlimited, Inc.Westfield Police DepartmentWycoff TruckingYasmin, Inc.

Since the last edition of Affinity Connections, the following companies have joined the Affinity Federal Credit Union family as Select Employee Groups (SEGs). We’d like to thankyou for choosing Affinity. If you know of a business that wishes to take advantage of offeringthe benefit of Affinity membership to their associates, please have them call 800-325-0808.We’ll be happy to talk to them about the Affinity Federal Credit Union difference.

Thank you forchoosing Affinity

W E L C O M E


73 Mountain View Blvd.Basking Ridge, NJ 07920

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www.affinityfcu.org | 800-325-0808

Here is a listing of Affinity Public Access Branches and their hours:

73 Mountain View Blvd.Basking Ridge, NJ 07920LobbyMonday-Wednesday, Friday,

8:30-4:00Thursday, 8:30-6:00Saturday, 9:00-1:00

Drive UpMonday-Friday, 8:30-6:00Saturday, 9:00-1:00

1520 Route 206 NorthBedminster, NJ 07921LobbyMonday-Wednesday, Friday,

8:30-4:00Thursday, 8:30-6:00 Saturday, 9:00-1:00


235 Ridgedale Ave.Cedar Knolls, NJ 07927Monday-Friday, 8:30-6:00Saturday, 9:00-1:00

Saint Clare’s Hospital25 Pocono RoadDenville, NJ 07834Monday-Wednesday, Friday,

8:30-4:00Thursday, 8:30-4:30

Saint Clare’s Hospital400 W. Blackwell StreetDover, NJ 07801Monday-Wednesday, Friday,

8:30-4:00 Thursday, 8:30-4:30

315 Route 206 NorthHillsborough, NJ 08844Monday-Wednesday, Friday,

8:30-6:00Thursday, 8:30-7:00Saturday, 9:00-1:00

1860 Route 35 SouthMiddletown, NJ 07748Monday-Friday, 8:30-6:00Saturday, 9:00-1:00

1098 Mt. Kemble Ave.Morristown, NJ 07960LobbyMonday-Thursday,

8:30-4:00Friday, 8:30-5:00Saturday, 9:00-1:00


A&P Shopping Center598 Central Ave.New Providence, NJ 07974Monday-Friday, 8:30-6:00Saturday, 9:00-1:00

15 East Midland Ave.Paramus, NJ 07652Monday-Wednesday, Friday,

8:30-4:00Thursday, 8:30-5:30

1342 Centennial Ave.Piscataway, NJ 08854LobbyMonday-Wednesday, Friday,


Drive UpMonday-Wednesday, Friday,


F O R Y O U R C O N V E N I E N C E

Not near one of thesebranches? You canalso access youraccounts via 50,000surcharge-free ATMs,1,700 shared branches,or through InternetHome Banking. Forinformation, visitwww.affinityfcu.org/locator.

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