CUSO Financial Services, L.P.at Advantage FinancialPreston IveyFinancial Advisor110 Cybernetics WayYorktown, VA 23693757-886-3344757 814 5751 (Cell)pivey@1stadvantage.orghttps://1stadvantage.cusonet.com/

September 2018Infographic: Working in Retirement

Take Charge of Your Student DebtRepayment Plan

How can I save money on my cell phoneplan?

Should I cut the cord on cable?

What to Do If Your Term Life Insurance Policy Is About to Expire

See disclaimer on final page

One advantage of term lifeinsurance is that it isgenerally the mostcost-effective way toachieve the maximum lifeinsurance protection youcan afford. Many peoplefirst purchase term life

insurance to protect their family's financialinterests after a significant life event, such asgetting married or the birth of a child.

You may have done the same for your familywhen you purchased your policy years ago.And chances are, other than paying thepremiums, you probably haven't given it muchthought since then. However, if your term lifeinsurance policy is set to expire in the nearfuture, it's important to explore your optionsnow before the coverage runs out.

Before you get started, you first need toreevaluate your life insurance needs anddetermine if anything has changed. Are yourchildren grown and have they graduated fromcollege? Do you have a mortgage? If you havefinancial obligations that you need to take careof, you may still need term life insurance. If youare nearing retirement and have fewer financialobligations than you did when you wereyounger, your need for a term life insurancepolicy may not be as great as it once was.

Purchasing a new policyIf you are in relatively good health and yourcurrent term life insurance policy is about to runout, you might consider purchasing a new termpolicy altogether. When applying for a new termlife insurance policy, you will generally need topass a medical exam. In addition, since you areolder now, your premiums may be higher thanthey were under your old policy. However, youmay not need as large a policy as you did whenyou first purchased term life insurance yearsago. It may pay to shop around and comparebecause premiums can vary among insurers.

Renewing your existing policyWhen the coverage period for your term lifeinsurance ends, you may have the option torenew the policy, depending on the specific

policy and limitations. Though you won't berequired to take a medical exam if you renewyour policy, the rate will generally increaseeach time it is renewed for an additional termbecause your age has increased (as has theinsurance company's risk of paying a deathbenefit). These increased premium costs cansometimes make renewing a term life insurancepolicy an expensive way to cover your lifeinsurance needs.

Converting your policy to permanentlife insuranceIf you have a convertible term life insurancepolicy, you may be able to convert it to apermanent life insurance policy, such as wholeor universal life insurance. Permanentinsurance continues throughout your life aslong as you pay the premiums. As with terminsurance, permanent insurance pays a deathbenefit to your beneficiary at your death, but italso contains a cash value account funded byyour premium dollars. When you convert yourpolicy, you won't need to prove your insurabilityby taking a medical exam. However, there isusually a conversion deadline, which is the dateby which you must convert, typically beforeyour term life insurance is set to expire.

The cost and availability of life insurancedepend on factors such as age, health, and thetype and amount of insurance purchased. Aswith most financial decisions, there areexpenses associated with the purchase of lifeinsurance. Policies commonly have mortalityand expense charges. In addition, if a policy issurrendered prematurely, there may besurrender charges and income tax implications.Any guarantees are contingent on theclaims-paying ability and financial strength ofthe issuing company.

The rules governing 1035 exchanges arecomplex and you may incur surrender chargesfrom your "old" life insurance policy. In addition,you may be subject to new sales and surrendercharges for the new policy.

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Infographic: Working in Retirement

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Take Charge of Your Student Debt Repayment PlanOutstanding student loan debt in the UnitedStates has tripled over the last decade,surpassing both auto and credit card debt totake second place behind housing debt as themost common type of household debt.1 Today,more than 44 million Americans collectivelyowe more than $1.4 trillion in student debt.2Here are some strategies to pay it off.

Look to your employer for helpThe first place to look for help is your employer.While only about 4% of employers offer studentdebt assistance as an employee benefit, it'spredicted that more employers will offer thisbenefit in the future to attract and retain talent.

Many employers are targeting a student debtassistance benefit of $100 per month.3 Thatdoesn't sound like much, but it adds up. Forexample, an employee with $31,000 in studentloans who is paying them off over 10 years at a6% interest rate would save about $3,000 ininterest and get out of debt two and a half yearsfaster.

Understand all your repayment optionsUnfortunately, your student loans aren't goingaway. But you might be able to choose arepayment option that works best for you. Therepayment options available to you will dependon whether you have federal or private studentloans. Generally, the federal government offersa broader array of repayment options thanprivate lenders. The following payment optionsare for federal student loans. (If you haveprivate loans, check with your lender to seewhich options are available.)

Standard plan: You pay a certain amount eachmonth over a 10-year term. If your interest rateis fixed, you'll pay a fixed amount each month; ifyour interest rate is variable, your monthlypayment will change from year to year (but itwill be the same each month for the 12 monthsthat a certain interest rate is in effect).

Extended plan: You extend the time you haveto pay the loan, typically anywhere from 15 to30 years. Your monthly payment is lower than itwould be under a standard plan, but you'll paymore interest over the life of the loan becausethe repayment period is longer.

Example: You have $31,000 in student loanswith a 6% fixed interest rate. Under a standardplan, your monthly payment would be $344,and your total payment over the term of theloan would be $41,300, of which $10,300 (25%)is interest. Under an extended plan, if the termwere increased to 20 years, your monthlypayment would be $222, but your total paymentover the term of the loan would be $53,302, ofwhich $22,302 (42%) is interest.

Graduated plan: Payments start out low in theearly years of the loan, then increase in thelater years of the loan. With some graduatedrepayment plans, the initial lower paymentincludes both principal and interest, while underother plans the initial lower payment includesinterest only.

Income-driven repayment plan: Your monthlypayment is based on your income and familysize. The federal government offers fourincome-driven repayment plans for federalstudent loans only:

• Pay As You Earn (PAYE)• Revised Pay As You Earn (REPAYE)• Income-Based Repayment (IBR)• Income-Contingent Repayment (ICR)

You aren't automatically eligible for these plans;you need to fill out an application (and reapplyeach year). Depending on the plan, yourmonthly payment is set between 10% and 20%of your discretionary income, and anyremaining loan balance is forgiven at the end ofthe repayment period (generally 20 or 25 yearsdepending on the plan, but 10 years forborrowers in the Public Service LoanForgiveness Program). For more information onthe nuances of these plans or to apply for anincome-driven plan, visit the federal student aidwebsite at studentaid.ed.gov.

Can you refinance?Yes, but only with a new private loan. (There isa federal consolidation loan, but that isdifferent.) The main reason for trying torefinance your federal and/or private studentloans into a new private loan is to obtain alower interest rate. You'll need to shop aroundto see what's available.

Caution: If you refinance, your old loans will goaway and you will be bound by the terms andconditions of your new private loan. If you hadfederal student loans, this means you will loseany income-driven repayment options.

Watch out for repayment scamsBeware of scammers contacting you to say thata special federal loan assistance program canpermanently reduce your monthly paymentsand is available for an initial fee or ongoingmonthly payments. There is no fee to apply forany federal repayment plan.1 New York Federal Reserve, Quarterly Report onHousehold Debt and Credit, February 2018

2 CFPB, Innovation Highlights: Emerging StudentLoan Repayment Assistance Programs, August 2017

3 Society for Human Resource Management, October2, 2017

If you have federal studentloans, you aren'tautomatically eligible for anincome-driven repaymentplan — you have to fill out anapplication (and reapplyeach year).

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CUSO Financial Services,L.P.at Advantage FinancialPreston IveyFinancial Advisor110 Cybernetics WayYorktown, VA 23693757-886-3344757 814 5751 (Cell)pivey@1stadvantage.orghttps://1stadvantage.cusonet.com/

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019

Non-deposit investment productsand services are offered throughCUSO Financial Services, L.P.("CFS"), a registered broker-dealerMember FINRA/SIPC and SECRegistered Investment Advisor.Products offered through CFS: arenot NCUA/NCUSIF or otherwisefederally insured, are notguarantees or obligations of thecredit union, and may involveinvestment risk includingpossible loss of principal.Investment Representatives areregistered through CFS. The CreditUnion has contracted with CFS tomake non-deposit investmentproducts and services available tocredit union members.

Should I cut the cord on cable?In the last few years, it'sbecome common forconsumers to ditch cabletelevision in favor of streamingservices and devices. Many

affordable streaming options are available,making it easier for consumers to give up cablewithout necessarily sacrificing their favoriteshows. But there are some drawbacks torelying exclusively on streaming services fortelevision viewing. Consider the followingbefore you decide to cut the cord.

The most obvious benefit of cutting cable is themoney you'll likely save each month. Comparewhat you spend on your monthly bill to howmuch of your cable subscription you actuallyuse. Are you regularly watching all the channelsyou pay for, or do you watch only a few ofthem? Are the channels you watch worth whatyou pay each month? If not, it might makesense to cancel cable and switch to analternative entertainment source.

You may decide to replace cable with astreaming service or device. In addition to beingless expensive than cable, most services areuser-friendly. You won't need to flip throughhundreds of channels to find your favorite

shows, and as long as you have an Internetconnection, you can view them on the go onyour cell phone or tablet. Plus, streamingservices typically let you stop and start monthto month without termination fees.

But depending on your viewing preferences, astreaming service might not be the right optionfor you. There is often a delay in the onlinerelease of many television shows, which can befrustrating for dedicated viewers. And if you're asports fan, you might be disappointed to learnthat you won't have access to live sportscoverage through most streaming services.Comprehensive sports packages are offered bysome services, but they can be expensive andare not available in all regions.

Another disadvantage of switching to streamingis that you may need to subscribe to multiplepackages or invest in special streaming devicesto access the programs you want. You mightalso consider the cost of high-speed Internet —you won't be able to stream without a relativelyfast Internet connection. Between multiplesubscriptions and reliable Internet, the cost ofstreaming can add up quickly. Be sure tocompare prices and take advantage of anyfree-trial offers.

How can I save money on my cell phone plan?Paying your monthly cellphone bill might feel like anecessary evil: You can't livewithout your cell phone, butyou don't like the steep price

of your plan. Fortunately, there are ways tosave money on your plan without sacrificing thecell phone services you need.

Review your monthly bill. Aligning whatyou're paying for with what you're actually usingcan go a long way in saving money on yourplan. Look at your bill to get a breakdown ofyour average data consumption, as well as thenumber of phone calls and text messages yousend/receive in one month. This will help youdetermine whether your activity levels matchyour plan. If, for example, you're paying forunlimited data each month but use only fivegigabytes, on average, then it might makesense to decrease the data limit on your plan.Or if you depend on unlimited data, considerways in which you can lower the amount youuse. Turn cellular data off in your app settingsand connect to Wi-Fi whenever possible todramatically reduce data usage.

Research discount options. Ask youremployer or your cell phone service provider to

see if you're eligible for employee discounts.Members of the military, veterans, and seniorcitizens may also receive discounts, dependingon the provider.

Sign up for a different plan. Most carriersoffer plans that allow you to share data andminutes with others. These are often referred toas family plans, though you don't need to berelated to someone in order to join youraccounts. You might also consider prepaid cellphone plans, which generally don't requirecredit checks or contracts, and don't have dataoverage fees. Many types of prepaid plans areavailable on the market, so look at differentones to determine what works best for you.

Switch to an alternative carrier. Before youmake the switch, though, indicate to yourcurrent provider that you want to cancel — youmay be offered a deal for continuation ofservice. If not, keep in mind that manyalternative carriers offer promotions exclusivelyto new customers. Make sure you know howlong the promotion will last and what yourmonthly costs will be when it ends.

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