THWARTING HACKERS

OPEN FOR BUSINESS

WHENEVER WHEREVER BANKING

HOUSING STARTS WITH FMFCU

CHOCOLATE GOODNESS

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F R A N K L I N M I N T F E D E R A L C R E D I T U N I O N M A G A Z I N E

Choices

STIRLING SOWERBYMEMBER SINCE 2013

A Man AND His DreamStirling Sowerby Runs A Small Business ... And It Is Anything But Small

FALL 2014FALL 2014

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W H A T ' S I N S I D E

P R E S I D E N T ' S M E S S A G E

S P E E D • S E R v I c E • c o N v E N I E N c E

Cover Photo:Serving authentic German food from The Flying Deutschman, Stirling Sowerby now pilots his dream instead of following it. Thanks to a home equity loan from FMFCU, Stirling created his own restaurant on wheels.

ChoicesFRANKLIN MINT FEDERAL cREDIT UNIoNMAGAZINE

FALL 2014

PublisherJohn D. Unangst

Managing EditorsChristine T. Bicking Tom Kane

Executive Art DirectorPeter Richardson

WriterAmy Binder

Supporting EditorCindy Wanamaker

Photography SNPictures, Inc. Vincent J. Connor PhotographyChristine T. Bicking

circulation: 80,000 Members and Business Offices

For permission to reproduce any article in this magazine, to request advertising information, or to submit a Letter to the Editor, contact:

Choices magazine 1974 Sproul Road, Suite 300Broomall, PA 19008610-325-5000choices@fmfcu.org

Choices is the official magazine of Franklin Mint Federal Credit Union. It is published for the benefit of current and prospective members and partnering organizations. The information presented is as accurate as possible, but as with all financial matters, consult your financial, tax or other advisors before implementing any of the ideas presented. For specific information about any FMFCU product or service mentioned, please visit fmfcu.org. You can also call the Member Service Center at 610-325-5100 (Outside PA, call 1-800-220-3193).

© 2014 Franklin Mint Federal Credit Union.

Small Businesses Run the Nation 4

Better Products, Better Business 7

Foundation Update 10

Financial Services at FMFCU 15

Paying for College 23

Under the Radar 30

IRS Changes for IRAs 32

Dear FMFCU Family,

Let’s get down to business.

In this issue, we feature several stories about business members — many of whom first joined FMFCU as individual members.

You’ll read about amazing entrepreneurs who turned dreams into reality, including a pirate-themed food truck chef, licensed esthetician with a beautiful business, and chocolatier. Microbusinesses as a whole — those with fewer than five employees — play a significant role in the U.S. economy and FMFCU supports entrepreneurial members by providing better products for better business.

Just as amazing are the students and educators involved in the popular Hi-Q academic quiz competition and Partners in Learning Celebration. Through the FMFCU Foundation, we honor these stars of Delaware County education.

And don’t miss the story about coming IRS changes and how they may affect your IRA. Active investors who take advantage of current IRS regulations for IRA-to-IRA rollovers should take notes — or end up paying additional taxes and a possible penalty.

Whether you are a business or individual member, just starting out or retired, FMFCU can help you reach financial goals. No matter where you live or work, count on your Credit Union to deliver Speed, Service, and Convenience.

Sincerely,

John D. Unangst President/CEO johnunangst@fmfcu.org P.S. As always, please email me your comments and suggestions for Choices and FMFCU.

MEMBERSHIP for Life

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Mom & Pop had the right ideaSmall businesses run the nation

SMALL BUSINESSES ARE BIG business in America. While Fortune 500 companies grab most of the

headlines, it’s the little guys who actually keep the nation going. According to the U.S. Small Business Administration (SBA), in its 2014-2018 Strategic Plan, “America’s 28 million small business owners are the engine of job creation and economic growth in this country, creating two out of every three net new jobs in the United States, and employing over half of the nation’s workforce.” Even more telling is this statistic from the Association for Enterprise Opportunity: Microbusinesses represent 92 percent of all U.S. business. How small is a microbusiness? Fewer than five employees, including the owner. This includes mom & pop shops, solopreneurs (a one-person company), consultants, specialists, artists, musicians, freelancers, tradespeople, and those referred to as SOHOs (Small Office Home Office). Most small business owners are driven by passion for a certain product, mastery of a particular skill, or the desire to be one’s own boss. Others find it a necessity or the best path to success in a tough economy. While the SBA reports the majority of small business owners are age 50 and older, the younger generation has strong entrepreneurial aspirations. A 2012 survey by the market research firm Edelman Berland found 48 percent of millennials – the generation generally defined as being born between 1980 and 1995 – want to launch their own business. While the exact percentage of millennial FMFCU members becoming entrepreneurs is undefined, the trend is evident among this generation, with the oldest now 34 years of age.

Keep an eye on Ruthie Her beautiful business is going places

Ruthie Falkenstein has beautiful eyes, and she wants her clients to have them, too. Along with long eyelashes, perfectly shaped eyebrows, airbrushed tans, and a flawless look for special days. As a makeup artist, licensed estheti-cian, and owner of Ruthie’s Eyes, she worked for some of the most selective clients on the Main Line. Ruthie started about 11 years ago, first working for salons and then for an independent makeup artist. She really was an entrepreneur in the making. “It was always in the back of my mind to start something on my own,” she says. Ruthie got her chance about five years ago, taking on clients and traveling

to their homes providing services. When she became pregnant with her second daughter, and carrying equipment around became tough, she decided to open her own studio in Havertown. These days she provides a range of services for wedding parties, bar and bat mitzvahs, proms, fashion shows, and photo shoots. The 31-year-old mother of two has hours by appointment only so to give clients her undivided attention— and so she and her employees can accommodate their family lives. Ruthie hired one makeup artist who is a licensed esthetician, and she is in the process of training another makeup artist. Ruthie has been a member since 2004, joining when she was in her early teens. Her parents and two brothers are also members. Becoming a member was “awesome, because there was a close-knit

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Your Local Leasing Company

RoB coLDWELLMEMBER SINcE 2011

Left: Ruthie Falkenstein, a young entrepreneur and owner of Ruthie’s Eyes, applies color to a client’s face. Right: Rob Coldwell migrated his business accounts to FMFCU, which he uses to make transfers from his Your Local Leasing Company business accounts to property owners.

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group of people to guide you,” she says. “The Credit Union helped me with my first car and my first personal loan.”As an entrepreneur, Ruthie continues looking for guidance from FMFCU. In addition to a personal account, she has a business account and is working on securing a business loan. Ruthie admits to being somewhat old fashioned for the millennial generation, preferring to book appointments in paper ledgers instead of computers. Even so, she recognizes the need to stay current with the technology clients expect and is mov-ing toward booking appointments online.When learning about AnytimeDeposit —

with Swiss Farm Stores, developing new stores and new franchise owners. His wife was working at YLLCO, and Rob helped nights and weekends while getting his real estate license. He quit his day job in 2012 to be full time at YLLCO and bought the business in 2013. His business model has three parts: tenant placement (finding the highest quality tenants in the shortest period of time); managing properties for landlords (along with being eyes and ears for the owner); and handling all maintenance on properties. His work in managing properties is what led Rob to FMFCU. In 2011, he opened a membership and a personal line of credit. As his business grew, his bank constrained the ability to make electronic transfers of rental income to property owners. The $100,000 daily limit on transfers wasn’t a problem when the business was smaller. “Now we’re moving close to a half-million dollars a month in rental payments, and getting to a point where we couldn’t get money to our owners fast enough.” In June, Rob began migrating his various business accounts to FMFCU. He also is refinancing his personal real estate mortgages at the Credit Union. “I’ve always enjoyed working with the Credit Union, and they took the time to really understand my personal and business positions,” he says.

Chiropractic Wellness Associates A healthy approach

The Berardi brothers — Matt, 31, and Tony, 34 — are both graduates of New York Chiropractic College and are Pennsylvania board-certified physicians of chiropractic. They opened their Nor-ristown practice in 2011, treating patients with several chiropractic modalities, along with adjunctive and massage therapies, to address pain relief, corrective care, and wellness. And both are Credit Union members, Matt since 2006 and Tony since 2013. Matt visited several banks looking for business financial products and services. “I was dissatisfied by the treatment from other banks and employees who didn’t go out of their way to help get things done,” Matt says.

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Chiropractic Wellness Associates

the remote check deposit capability on the FMFCU Mobile Banking app — she said, “That’s crazy! I’m doing it.” She already had the app on her phone, but hadn’t been aware she could deposit checks so easily. “Now that I’m in this trend of becoming more technologically savvy, I’m definitely going to start using it.”

Your Local Leasing Company (YLLCO) Rental business booming

Rob Coldwell, 32, has been a landlord since graduating from Penn State, where he studied finance and took real estate classes. But before jumping into a full-time real estate career, he spent six years

MATT BERARDIMEMBER SINCE 2006

TONY BERARDIMEMBER SINCE 2013

The Berardi brothers, Matt (left) and Tony opened their practice, Chiropractic Wellness Associates, in 2011. To monitor activity in their business accounts, the pair use FMFCU e-Banking and pay expenses easily with Bill Payer.

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MEMBERSHIP for Life

YOUR CREDIT UNION can be one of your best business partners.

For Jeanie and Jerry Dolan, own-ers of Dolan Properties, LLC., turning to FMFCU was both a money-saver and door-opener for future expansion. The Dolans have a rental property business and currently manage two properties in Collingdale and one in Sharon Hill. Between the three rentals and their own home, four mortgages were in their name, which is the limit for most lenders. But the Dolans heard about a type of loan, called a blanket mortgage, allowing them to consolidate rental properties into one mortgage. Jeanie, an FMFCU member since 1994, called the Credit Union. The first person she talked with said FMFCU didn’t do blanket mortgages — and at that point it didn’t. The Dolans were the first. Working with Bryan Messick, assistant vice president and branch manager in Media, the Dolans took out a loan to pay off the three rental mortgages. Now they make monthly payments to the Credit Union out of their business account, and the total is less than half of what it was for the three separate mortgages. “This frees us to buy more properties and grow the business,” Jeanie says. “We have several realtors sending information on properties every day, and now we’re thinking about adding something bigger — like duplexes or other multi-family properties.”

FMFCU for today and tomorrow

“Business owners need to consider what we can do for them now and in the future,” says Janet Fitzgerald, FMFCU business services analyst. “We can meet their needs as the business grows.” A small office or home-based business just starting out might only need a Business Free Checking account, Business Choices Check Card (both

without any maintenance fees), and e-Banking. But as the business takes off, other FMFCU services make sense, saving both time and money.

Merchant Services: Making the sale is one thing. However, making it easier for customers to pay, and business owners to process payments, takes businesses to the next level. With FMFCU, small businesses can look (and grow) much bigger. • Accept credit and debit cards for purchases, with fast, secure payment processing • Offer electronic gift cards to create loyalty and additional sales • Scan checks at the point of purchase for remote deposit capture, gaining faster access to funds • Accept international Visa and Master- Card payments, converting transactions to the customer’s home currency with dynamic currency conversion

Cash Management Services: Cash flow is the lifeblood of any business. Collecting, disbursing, managing funds. Accounting can be a complex dance made

simple by taking a few steps to engage FMFCU services.

• Payroll and other ACH transactions for electronic payments • Recurring vendor payments can be set up to occur automatically • Consumer initiated payments to routinely withdraw rents or recurring payments from the checking or savings accounts of customers • Treasury tax and loan payments can be made on schedule

Business Lending: One reason the Credit Union exists is to provide loans at reasonable rates. FMFCU offers loans for commercial real estate, term loans, and lines of credit. Until recently, lines of credit were typically for $10,000 and higher amounts. Now FMFCU offers businesses that qualify smaller lines of credit.

Can FMFCU products and services help your business grow? Talk with one of our business services representatives. Call 610-359-3899 or email BusinessServices@fmfcu.org

Better products for better business

Dolan Properties, LLC.

JEANIE AND JERRY DOLANMEMBERS SINCE 1994Jerry and Jeanie Dolan review statistics on a

property they want to purchase. The couple own Dolan Properties LLC., a rental property business.

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Carol Amplo, manager of the Mercy Suburban Hospital Branch, showed them the FMFCU brand of service, and now “she’s part of our business,” Matt explains. “If we have problems or need anything, she defi nitely goes out of her way to call and make sure things get done.

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THERE’S A REASON FMFCU is known as “The Credit Union of Choice!” and continues to win

“Best of…” awards. It’s the people. They’re the ones who go above and beyond to help members achieve their goals, whether personal or business-related. Too often what they do goes unnoticed or unmentioned by anyone but the receiver. Until now.

Saint Francis Hospital Branch

Devin Newtown is an employee at Saint Francis Hospital in Wilming-ton, Delaware, who joined the Credit Union at the onsite branch in 2012. At the time, his credit score was low. According to Lori Freeland, member service representative, Devin was advised to enroll in the credit rebuilder program available through FMFCU. The branch staff worked with him for several months, and after complet-

Expect more from FMFCUThanks for letting us serve you better

ing two phases of the program, Devin’s credit score was high enough to qualify for a new car loan. The day Devin purchased his car, Lori was on vacation. Still, he was able to reach her by cell phone to ask loan questions. He called at least six times. Finally, Lori joked, “OK, Devin, the next time you call, it better be to say you’re pulling off the lot with your new car.” And it was. As Devin told Lori, he could not have done it without guidance from the Saint Francis Branch staff.

Uncompromised service in Downingtown

This past summer, Regina King wrote a heartfelt and appreciative letter to FMFCU President/CEO John Unangst about the Downingtown Branch. Regina, retired for the past fi ve years and living with her grandchildren, had just returned “from a most refreshing, relaxing vaca-tion in the Poconos.” Her “feel-good glow” soon faded when informed by

FMFCU and VISA her Check Card was compromised and fraudulently used for purchases at a Macy’s in Atlanta. She wrote: “I must commend the dedicated crew working that Sunday afternoon at the FMFCU site in Downingtown. They helped calm my frenzy, assisted with checking balances, and requested a new Check Card, which I received Tuesday. Talk about service!” Regina actually visited the branch twice, the second time to submit appropriate claim forms and letters. “On both occasions, Branch Manager Emily Cahill exhibited the best-of-the-best professional banking and people skills in affording me comfort under these trying circumstances,” her letter continued. Calling Emily “a gem,” Regina said she would have employed Emily in a heartbeat back in the days when she worked at Paoli Hospital.

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Building a circle of trust with other people makes all the difference. I keep people close who are helping us grow — and we can complement each other.” The brothers have their business accounts and company credit card with FMFCU, and use business e-Banking and

Bill Payer. At this point, Matt is pleased with the progress the business made and is already planning for an eventual expan-sion. “We have 10 treatment rooms in this offi ce, and we could add a few more fulltime doctors — it won’t be right away, but I’m confi dent we’ll get there.”

OFFICIAL FRANKLIN MINT FEDERAL CREDIT UNION PARTNER

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Tri-Point Electric Powerful customer service

Brad Balentine, 32, is a master electri-cian who started his business in July 2011 to serve residential customers and commercial accounts. Working out of his Broomall home, he strives “for customer satisfaction 100 percent of the time.” Brad became an FMFCU member in early 2014 because he wasn’t happy with the customer service at his bank. “Friends and family recommended the Credit Union, and they’ve been great; the customer service is extraordinary.” He cites the efforts of Janet Fitzgerald, FMFCU business services analyst, who was able to work magic where his previous bank failed. With her help, the daily limit on his business check card increased almost immediately. On another occasion, Janet helped Brad with documentation for a home mortgage he was applying for with another financial institution. “I asked if she could help, and she dropped what she was doing to get the needed documentation. She didn’t make it seem bothersome; she was just eager to help,” he says. Brad has a basic business account with FMFCU and uses Mobile Bank-ing every day. “Being a small business, I make a number of transactions to buy material,” he says. “With the app I can check balances. Plus, I also use AnytimeDeposit, which is huge for me because it saves so much time.”

Stirling Sowerby is Streetwise

Pirate-themed food truck serves authentic German meals

Many a business venture was launched by family members sitting around the living room talking about starting something new. For Stirling Sowerby, a chef by trade, it was natural for the idea of open-ing a restaurant to surface. But restaurants are expensive to open and costly to run. That’s when his sister-in-law suggested a more economical path, a food truck. She also suggested a name for the truck — The Flying Deutschman — playing off the fact Stirling is German (or Deutsch, as they say in Germany). The pirate ship theme became the inspiration for Stirling’s graphically wrapped food truck, which launched on

March 1, 2014. Serving “authentic Ger-man street food,” Stirling can be found at the Navy Yard, Clark Park in West Phila-delphia, various Center City locations, and special events like the World Cup Viewing Party on Eakins Oval. Stirling posts his daily locations on Facebook (search flyingdeutschman). Stirling moved to America 18 years ago when he married his wife, Liz. She has been a Credit Union member for the last 30-some years. A few years ago, they went to the FMFCU Brookhaven Branch to refinance their mortgage and had a good experience while reducing their monthly payments. Stirling, who had accounts with one bank after another, joined FMFCU in 2013 when he began planning The Flying Deutschman. “I like that this was a local place, not one of those too-big-to-fail banks. It was more community oriented, and the people are much more person-able,” he says. To customize, outfit, and license his oversized food truck, which has about 200 square feet inside, cost about $100,000. He financed the expense through a FMFCU home equity loan.

He and his wife regularly use e-Banking for checking account balances and tracking transactions. And, Bill Payer is used to send payments. Instead of following his dreams, Stirling is piloting them in The Flying Deutschman. As he says on his website, flyingdeutschman.com, he and his staff pride themselves on producing everything themselves: no open-package-and-reheat meals. “Most of the recipes we use were handed down from my grandmother.” Stirling says he found his passion for the culinary industry when he began as a dishwasher, at age 15. But a childhood photo reveals it might have been much earlier. Posted on his website is a photo of Stirling at age 5, wearing a chef’s toque — the traditional white hat — and holding a ladle that’s nearly as big as he is. Smil-ing ear to ear, Stirling is already beginning to look like the chef and entrepreneur he has become half a century later. Whether millennial or baby boomer, entrepreneurs continue to pursue their dreams. With their passion, a little luck, and the help of FMFCU, they can also secure their financial future.

The Flying DeutschmanStirling Sowerby, owner of The Flying Deutschman, a pirate-themed food truck, prepares an order of bratwurst inside the 200 square-foot kitchen.

STIRLING SoWERBYMEMBER SINcE 2013