Counting 50 States, One Quarter at a Time

In 1999, the United States Mint debuted a 10-year program, the 50 State Quarters® Program, that honors every American state in the order they each joined the Union.

The U.S. quarter design changes five times each year. This program represents the first change to the quarter since production of the Bicentennial quarter in 1975-1976. During this 10-year period, the U.S. Mint has ceased production of the "Eagle" quarter that has dominated the currency for so long. The 50 State Quarters® are produced at both the U.S. Mint at Philadelphia and Denver and distributed by the Federal Reserve through financial institutions throughout the country. This program is self-supported by the U.S. Mint at no additional cost to taxpayers.

Did you ever wonder where each state's design comes from? Each state is required to follow certain subject matter guidelines. No portrait of a living person and no head-and-shoulder portrait or bust of any person, living or dead, can be included in the design. States are encouraged to incorporate natural or manmade landmarks, landscapes, historically significant buildings, symbols of state resources or industries, official state flora and fauna, state icons or outlines of states. Designs are submitted for approval by the governor of each state. Then the U.S. Mint reviews the designs to be sure they will reproduce adequately. Two groups, the Citizens Coinage Advisory Committee and the Commission of Fine Arts, provide comments before the Secretary of the Treasury approves the final designs.

In 2006, quarters honoring Nevada, Nebraska, Colorado, North Dakota and South Dakota will debut. We have two more years to wait until Hawaii's turn! Hawaii claims the honor of the last quarter to be released, scheduled for October 2008.

Saving for College - Never Too Early, Never Too Late

Everyone wants to help their children, grandchildren - or themselves - realize their dreams.

U.S. Census Bureau statistics report that people with a bachelor's degree earn 62 percent more on average than those with a high school diploma. But college costs are higher than ever, and finding the funding can be a daunting task. According to The College Board, four years at a private college costs roughly $85,000 and at a public school, $22,000. Tuition rates increase at about twice the general inflation rate, on average, eight percent each year. That means the cost of college doubles every nine years. For a baby born today, college costs will be more than three times the current rates when the child is ready for college.

The good news: saving for college is easier than ever. There are numerous college savings plans that are easy to set up and manage, and many offer significant tax advantages.

According to FinAid, the SmartStudent Guide to Financial Aid, if you start saving early enough, even a modest weekly or monthly investment can grow to a significant college fund by the time a child reaches college age. For example, saving $50 a month from birth would yield about $20,000 by the time the child turns 17, assuming a 7 percent return on investment. Saving $200 a month would yield almost $80,000.

It is best to do some research and meet with your financial planner to understand the advantages of the various different ways to save for college. There are several different plans to choose from, including 529 college savings plans, Coverdell Education Savings Accounts (formerly known as Education IRAs), UGMA/UTMA custodial accounts (Uniform Gift to Minors Act and Uniform Transfer to Minors Act) and parents' or grandparents' investment accounts.

The bottom line - it's never too early or too late to start saving.

Roth IRAs Provide Tax-Free Growth

Many financial planners consider the period between January 1 and April 15 to be "IRA Season." It's the time of year when consumers take care of their annual investing obligations for 2005 and perhaps, look ahead to 2006.

The Roth IRA (Individual Retirement Account) was born on January 1, 1998 as a result of the Taxpayer Relief Act of 1997. It is named after its instigator, former Delaware Senator William V. Roth, Jr.

A Roth IRA can provide tax-free growth. There is no tax deduction for contributions, but instead it provides a benefit that is not available for any other form of retirement savings: if you meet certain requirements, all earnings can be tax-free when you or your beneficiary withdraw them. The earnings part of a Roth IRA can be taxable if the withdrawal rules are not observed, so be sure you understand the requirements. Other benefits include avoiding the early distribution penalty on certain withdrawals and avoiding the need to take minimum distributions after age 70 1/2.

Roth IRAs are particularly advantageous over regular IRAs for younger taxpayers because once contributed, 100 percent of the growth in the Roth IRA is tax free, and the young investors have many years for their investment to grow.

The basic limit for annual contribution to a Roth IRA in 2005 is $4,000 ($4,500 for those older than 50 before the close of the taxable year). For 2006, the basic limit stays the same and the catch-up limit for those 50+ is $5,000.

Though you don't get a tax deduction when you contribute to a Roth IRA, the chief advantage is obvious: the ability to have investment earnings completely escape taxation.

You're Invited to our Celebration of the Year!

Hawaii Community Federal Credit Union has planned a grand event at its grand new, brand new Branch & Administrative Offices at Kaloko. Yes, that's right! We're getting bigger and better, and you're invited to help us celebrate!

Take a peek...

Plan your President's Day around it. On Monday, February 20, we'll ceremoniously unlock the doors at 10 a.m. with a blessing and dedication. Then the fun will continue until 2 p.m., with entertainment, light refreshments, tours of the new facility...and a treasure chest full of prizes waiting to be claimed by YOU! The day will culminate with a grand prize drawing of $2,500 cash!

We're anxious to pay tribute to our members, thanking them for making this new Branch and Administrative Offices at Kaloko possible. And we welcome everyone else to come find out what we're all about. Our house is growing, and we look forward to our 'ohana growing, too.

See you there!