2020 Winter Newsletter

Blue Breaks Ground at Your Newest Erie-Vista Ridge BranchLocated just west of King Soopers in the Erie Vista Ridge area, the new branch will be a convenient location for Anthem and Erie residents. The 2,600 square foot building will be a full-service branch offering all finance services and accessible drive-thru ITM (Interactive Teller Machines). Ideally placed near Highway 7 and Sheridan, the credit union construction began in early December 2019 and the branch will be opened in mid-summer 2020. This unique design will be constructed through a partnership with VFLA (Architect) and Saunders Heath Construction out

of Fort Collins. It will feature a warm inviting patio and lobby with a two-sided fireplace and complimentary coffee bar. We look forward to everyone stopping by and making themselves at home. Blue looks forward to being a part of the Erie community and contributing to the areas quality of life.

Note: Investors should consider the investment objectives, risks, charges, and expenses associated with 529 plans before investing. More information is available in each issuer's official statement and applicable prospectuses, which contain this and other information about the investment options, underlying investments, and investment company, and should be read carefully before investing. Also consider whether your state offers a 529 plan that provides residents with favorable state tax benefits and other benefits, such as financial aid, scholarship funds, and protection from creditors. As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also the risk that the investments may lose money or not perform well enough to cover college costs as anticipated.1 College Board, Trends in College Pricing, 2014-2018

Broadridge Investor Communication Solutions, Inc. Copyright 2019*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members.

For College Savings, 529 Plans Are Hard to Beat!Raising kids is hard enough, so why not make things easier for yourself when it comes to saving for college? Ideally, you want a savings vehicle that doesn't impose arbitrary income limits on eligibility; lets you contribute a little or a lot, depending on what else happens to be going on financially in your life at the moment; lets you set up automatic, recurring contributions from your checking account so you can put your savings effort on autopilot; and offers the potential to stay ahead of college inflation, which has been averaging 3% to 4% per year.1 Oh, and some tax benefits would be really nice too, so all your available dollars can go to college and not Uncle Sam. Can you find all of these things in one college savings option? Yes, you can: in a 529 plan.

Benefits529 college savings plans offer a unique combination of features that are hard to beat when it comes to saving for college, so it's no surprise why assets in these plans have grown steadily since their creation over 20 years ago.

Eligibility. People of all income levels can contribute to a 529 plan — there are no restrictions based on income (unlike Coverdell accounts, U.S. savings bonds, and Roth IRAs).

Ease of opening and managing account. It's relatively easy to open a 529 account, set up automatic monthly contributions, and manage your account online. For example, you can increase or decrease the amount and frequency of your contributions (e.g., monthly, quarterly), change the beneficiary, change your investment options, and track your investment returns and overall progress online with the click of a mouse.

Contributions. 529 plans have high lifetime contribution limits, generally $350,000 and up. (529 plans are offered by individual states, and the exact limit depends on the state.) Also, 529 plans offer a unique gifting feature that allows lump-sum gifts up to five times the annual gift tax exclusion — in 2020, this amount is up to $75,000 for individual gifts and up to $150,000 for joint gifts — with the potential to avoid gift tax if certain requirements are met. This can be a very useful estate planning tool for grandparents who want to help pay for their grandchildren's college education in a tax-efficient manner.

Tax benefits. The main benefit of 529 plans is the tax treatment of contributions. First, as you save money in a 529 college savings plan (hopefully every month!), any earnings are tax deferred, which means you don't pay taxes on the earnings each year as you would with a regular investment account. Then, at college time, any funds used to pay the beneficiary's qualified education expenses — including tuition, fees, room, board, books, and a computer — are completely tax-free at the federal level. This means every dollar is available for college. States generally follow this tax treatment, and many states also offer an income tax deduction for 529 plan contributions.

DrawbacksBut 529 plans have some potential drawbacks.

Tax implications for funds not used for qualified expenses. If you use 529 plans funds for any reason other than the beneficiary's qualified education expenses, earnings are subject to income tax (at your rate) and a 10% federal penalty tax.

Restricted ability to change investment options on existing contributions. When you open a 529 college savings plan account, you're limited to the investment options offered by the plan. Most plans offer a range of static and age-based portfolios (where the underlying investments automatically become more conservative as the beneficiary gets closer to college) with different levels of risk, fees, and management objectives. If you're unhappy with the market performance of the option(s) you've chosen, you can generally change the investment options for your future contributions at any time. But under federal law, you can change the options for your existing contributions only twice per year. This rule may restrict your ability to respond to changing market conditions, so you'll need to consider any investment changes carefully.

Getting startedTo open an account, please contact Jennifer, Licensed Sales Assistant, at 307-432-5370 or 970-204-8010, to schedule an appointment with a CFS* Investment Representative in your area.

Blue Federal Credit Union Enters New Multi-Year Partnership With The Budweiser Events Center At The Ranch in Loveland, CO

The new partnership features several branding opportunities for Blue Federal Credit Union including naming rights acquisition of both the Blue Bar & Grill and Blue Federal Credit Union Guest Services.

Blue Federal Credit Union and Spectra entered into the first year of the all-new partnership on October 1, 2019. With this multi-year partnership agreement, Blue Federal Credit Union will rebrand assets around the campus and is now the official naming rights partner for both Guest Services and The Ranch Bar & Grill with their new names becoming Blue Federal Credit Union Guest Services and Blue Bar & Grill.

Spectra, the providers of venue management, food services & hospitality and partnerships at the Budweiser Events Center at The Ranch, is excited to announce a brand-new partnership with Blue Federal Credit Union, one of the best in the country, headquartered in Cheyenne, Wyoming with 14 convenient branches in Wyoming and Colorado. Blue is currently preparing to break ground on their 15th Branch located in Erie, Colorado.

“As a member-centric organization, Blue FCU is always looking for partnerships that align with our mission of working hard, having fun and winning for our members and this partnership embodies what is important to Blue”. We will leverage our brand to create a memorable experience for our members while investing in the communities we serve,” said Raj Madan, Blue Federal Credit Union’s Chief Marketing Officer.

“We could not be more excited to cultivate this new partnership with Blue Federal Credit Union here at the Budweiser Events Center,” said Keller Taylor, Spectra District General Manager. “Blue Federal Credit Union’s and Spectra‘s core values are aligned in terms of caring for our members and the communities we serve which will guide us as we create new experiences for fans who enter the arena”. Spectra, an industry leader in partnerships deals, acted as the naming rights agent on behalf of The Ranch Events Complex and the Budweiser Events Center.

2020 Census: Signs Of A ScamIn mid-March, the Census Bureau will start mailing out (and in some areas, hand delivering) invitations to participate in the 2020 Census. You can respond online, by phone, or by mail. The census questionnaire asks how many people are in the home, their sex, age, race, ethnicity, relationships to one another, phone number, and whether you own or rent the home. The Census Bureau will never ask for your full Social Security number, bank account or credit card numbers, money or donation, or anything on behalf of a political party. The 2020 Census will not ask citizenship status. If you suspect fraud, call 800-923-8282 to speak with a local Census Bureau representative.

Happy New Year From Your IRA Department at Blue!With the New Year, this is a great time to contact us to verify or update the beneficiaries you have named on your IRA or Health Savings account. We all have busy lives and sometimes this gets forgotten, but we are here to help you complete this with ease.Please contact your certified IRA Specialist, Lynn Hagen at 307-432-5861 or stop in at one of our convenient branches and one of our Financial Specialist can assist you.

Holiday Hours | Branch ClosuresMartin Luther King Day – Monday, January 20 Safeway branch is open. All other branches are closed. President’s Day – Monday, February 17 Safeway branch is open. All other branches are closed.

Insured by the NCUA

2020 Foundation Scholarship Applications Now Available

Blue Foundation Scholarship in Memory of Myrtle KnightApplications are now available to graduating senior high school students. Six scholarships in the amount of $2,000 each will be awarded this year.

To be eligible, applicants must: • Be members of the credit union with a Share Savings

account in their own name.• Be graduating in the spring of the current school year and

planning to attend college full time during the fall term.

• Use the scholarship at any accredited school of higher learning, including four-year colleges, two-year junior or community colleges, and accredited trade schools.

Winners will be notified by mail in the early part of May. Announcements will be made at the Annual Meeting and in our summer newsletter.

Shirley Howard/Blue Foundation ScholarshipApply for our business scholarship at Laramie County Community College (LCCC). Information on this scholarship is available at the LCCC financial aid office.

Visit bluefoundation.blue/scholarships to apply online. Applications must be submitted by April 1, 2020

Prime Time Club Prime Time Advantage Club is for members age 50 and finer. Details about events will be posted on our website as they become available at bluefcu.com. Email us at primetime@bluefcu.com for a monthly update on our calendar of events or call us at 307-432-5420.Cheyenne Movie DayCapital Theater on Pershing Blvd., Cheyenne, WYThere will not be a movie in January, 2020. Movies will resume on Thursday, February 6. The first Thursday of each month at 9:00 a.m. A choice of two movies will be provided with coffee and snacks served at 8:30 a.m. An RSVP is not necessary to attend the movie. Movies are held at 9:00 a.m. and an email of movie choices will be sent to folks who have provided email addresses. If you’d like to be added to the movie list, please contact primetime@bluefcu.com.

Blue Federal Credit Union Board of DirectorsThe deadline to file an application to be considered for a Board position has expired. Information submitted by nominees will be made available to the members of the credit union in the spring newsletter, during the weeks preceding, and on the day of the Annual Meeting. We will announce the selected Board Members at the Annual Meeting in June 2020.

The credit union bylaws do not provide for nominations from the floor; however, nominations for vacancies can be made by petition. Nominations by petition must be signed by at least 1% of the membership (with a maximum of 500). As of September 30, 2019, we have 89,158 members.

The petition must be filed with the Board Secretary, Jeffie Wiggins-McMullen, at 114 E. 7th Ave., Cheyenne, WY 82001, no later than Friday, April 10, 2020 at 5:00 p.m. (MST) Each nominee by petition must submit to the Secretary, at the time of filing the petition, a brief statement of qualification and biographical data.

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