Costco Connection - August 2006

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MEMBER SERVICES

Update

Current news for Costco members

PRACTICAL TIP

Emergency fund a s afety n et

HAVING A SURVIVAL KIT and an evacuation plan mapped out for your family is a smart move, regardless of where you live. But equally important is preparing for situations that might challenge your financial well-being.

Would a job loss gradually deplete your long-term savings or investments while you job hunt? Would you be forced to accumulate credit-card debt that would then burden your pocketbook even after you find a new job?

An emergency fund would prevent the costly effect of disrupting long-term savings and investments or escalating credit-card debt. It is a practical way of dealing with unpredictable financial drains, whether from job loss, personal health, family emergencies or even natural disaster.

How much to stash

Three to six months of living expenses is a good target. If you are single and in a secure job, the lower range should be adequate. If you have a family to support, or work in a field where downsizing and layoffs are frequent, you should target the higher range.

You need to be aware of your monthly living expenses. According to a U.S. Department of Labor report from 2003, consumers have an average expenditure of $3,400 per month. You may be below or above that average.

If you’re going to figure out your
monthly living expenses, you may as well
extend that process to develop a budget
for yourself. Budgeting allows you to plan
for the routine
monthly
expenses as
well as for
other irregular
expenses such
as insurance

ALSO:

For an article about Credit Reports & Monitoring, the Service of the Month, see page 53.

ARTVILLE

premiums and taxes. A budget will serve as a road map to reaching your emer-gency-fund goal.

Where to keep it

It’s important to keep your emergency fund liquid, meaning it’s easily accessible and earning interest without penalty for withdrawal.

Money market accounts are an excellent solution and pay an attractive return while keeping funds very accessible. Be sure to seek an account where funds are insured by the Federal Deposit Insurance Corporation. Be wary of uninsured opportunities you might discover via the Internet.

Costco offers a money market plan through Capital One. The interest rate has gone up recently, and at press time was 4.82 percent.* A minimum deposit of $5,000 is required, so you may need to stage your move into that program.

For more information, call toll-free 1-866-630-7954, or visit costco.com and click on “Services” and “Money Market Accounts & Cerficates of Deposit.”

*Rate effective as of July 5, 2006. For daily balances of $100 or less, the AP Y was 0.00%. Minimum initial deposit amount is $5,000. Terms and conditions of this offer are subject to change without notice. Rates are variable and are subject to change. Fees could reduce earnings. Withdrawal limits apply. These products are offered by Capital One, FSB, and Capital One Bank, members FDIC.

To learn more about our complete suite of member services,
click on the “Services” link at costco.com or call 1-800-220-6000.

SERVICE UPDATES

What to do in
NYC and Vegas

COSTCO’S ONLINE Entertainment Ticketing is serving up some of the best entertainment in New York and Las Vegas.

Expect the best available seats (first come, first served) and savings of 40 percent or more on all events. Executive

Members save an additional 5 percent.

Here’s what you can find in August.

New York

On Broadway: Fame Becomes Me starring Martin Short at the Jacobs Theatre; Dirty Rotten Scoundrels at the Imperial Theatre.

Las Vegas

Mama Mia at the Mandalay Bay Resort & Casino.

For more information and a list of the the latest shows, visit costco.com and click on “Services” and “Online Entertainment Ticketing.”

Ch ecking your
Costco spirit

HERE’S SOMETHING SPECIAL for Costco-philes. Costco’s Check Printing program is issuing a special series of checks designed with pictures of Costco warehouses.

Featured in this series are three new locations—Langley, British Columbia; Pembroke Pines, Florida; and Salinas, California—and the original Costco, a Seattle building that was replaced last year.