The Credit Union Perspective

By: John Normandeau, President/CEO
BestSource Credit Union

Business & Professional

FINANCE

Do you know the difference between a bank
and a credit union?

Although banks and credit unions have similarities, it
is important to consider some key differences.

Business Type:
Credit Unions are non-profit financial cooperatives
that exist to serve their members. They are guided by
an unpaid board of directors. Whereas banks are operating to meet the financial
goals for their investors. The board of directors that guide banks are paid.

John Normandeau. CEO

Membership:
A Credit Union serves members with a common bond, such as an employer group
or living in the same community. A bank has no specific requirements and is open
to the general public.
Rates & Fees:
At a Credit Union profits are used to offer competitive savings and loan rates to
members as well as minimize fees. Banks traditionally have higher fees and rates.
Loans:
When evaluating loans Credit Unions aim to provide affordable credit to all
members. Banks seek to gain from a loan and value the more profitable loans.

Insurance:
At a Credit Union your funds are insured by the National Credit Union Share
Insurance Fund. At a bank, funds are insured by the Federal Deposit Insurance
Corporation. Both insure funds up to $250,000.

At BestSource Credit Union our goal is to help our members build financial stability
and educate them on ways to reach their financial goals. Stop in and see us or for
more information, visit www.bestsourcecu.org or call 800.666.4500.

Er SOURCE

CREDIT

Improving Members' Financial Live,

UNION

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1567300

August 12 • 2010

iN

W

e are fac-
ing reality.
Unfortunately,
until the end of 2008, we
didn't know there was a
reality to face. Property
values increased every
year, we had unlimited
credit available and it was
easy to raise money to
start a new venture. That
was reality then.
Twenty months later,
property values in the
tri-county area have fallen 27 percent
and are projected to decline a total of
50 percent by 2013. Available credit is
a luxury enjoyed only by those who
carry no credit card debt. The real
estate and construction industries no
longer exist.
Our community, entrepreneurial in
nature, has suffered adverse conse-
quences in this financial crisis. Real
estate developers, builders and many
businesses have folded. When the
economy unraveled, those in the real
estate industry ended up in default to
their banks and closed
their companies. Real
estate brokers and the
construction trades
saw a slowdown in
2009 that is more
aptly called a "melt-
down:' Worse yet, we
all recognize that the
days of the touchdown
are a long way off.
To make matters
worse, many busi-
ness people found
themselves short of
income in 2009 to
pay tax obligations
from 2008. Often
times, self-employed
people catch up on their taxes with
income earned the following year.
With income in 2009 evaporating,
there was no cash to cover 2008 tax
obligations.
While this was happening, on the
home front, college tuition, summer
camp, dance, golf and tennis lessons
continued. The loss of income com-
bined with ongoing family obliga-
tions led to a pressure cooker.
We know simple truths. Men are
reluctant to discuss the financial
pressures they face. After all, we
refuse to ask for directions when we
have no idea where we are driving.

It is thus no surprise that
we will delay the inevitable
discussion with our wives
that we're facing financial
problems. Unfortunately,
this means the situation
will continue to percolate
and ultimately reach the
boiling point.
The need exists to take
action before you reach the
boiling point. If you are
the spouse who does not
control the finances (often
the wife), you should open your eyes
a bit wider, address the problem and
lend assistance. Pretending the prob-
lem does not exist will not make it
go away; and moaning and griping
is not the solution. Compassion and
support — as difficult at that may be
— is needed.
Keep in mind, many more in the
community are hurting financially
and the meltdown of the economy
was not something within our con-
trol. Both spouses need to discuss the
situation openly — and to look to
finding a solution.
I know: easy to say,
hard to do.
Your goal is to
preserve future
income for you and
your family. Proper
planning is needed
and the strategies
are not always sim-
ple. Keep in mind,
besides your health
your financial
future is the most
important asset
you have. Care for
it as if it was your
heart. Don't listen
to your neighbor,
the manicurist or the bartender. If
you have heart problems, you want
the best cardiologist. For addressing
financial hardship, you should follow
a similar course and find a profes-
sional who can address all of the
issues and sort through them to find
the optimal strategy to reach your
goal. That is reality. O

Your goal is to
preserve future
income for you
and your family.
Proper planning
is needed and the
strategies are not
always simple.

DETROIT
JEWISH NEWS

32

Reality Check

Ken Gross is an attorney with Bingham

Farms-based Thav, Gross, Steinway &
Bennett and host of the Financial Crisis

Talk Center, a radio program that airs
weekly at 9 on Saturday mornings on
Detroit Sports Talk Radio 1130 AM.