I n t e g r i t y - S e r v i c e - E x c e l l e n c e
Headquarters U.S. Air Force
Airman & FamilyReadiness CenterFTAC Presentation
Personal Financial Readiness
For
First Term Airmen
One Team, One Family, One Mission
Military Life Cycle
Military Life Cycle (MLC) – A transition model to create a career-
ready military that provides servicemembers a continuous
opportunity to prepare for civilian career success.
Goals for Servicemembers:
Allow servicemembers deliberate opportunities to plan for
transition throughout their careers
Ease burden of completely preparing for transition at end of
service
Draw attention to skills acquired in the military
Initial MLC Tasks:
eBenefits enrollment/Training
Principles of budgeting
One Team, One Family, One Mission
eBenefits
Access and enroll at: https://www.ebenefits.va.gov/ebenefits-
portal/ebenefits.portal
View veterans benefits all in one location
Categories of Benefits:
Compensation
Education
Insurance
Health
Housing
Personnel
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Overview
Spending Plan Basics
Savings and Investing
Banking and Allotments – Choosing a Financial Institution
Credit and Debit Management
Car Buying
Base Specific Issues
Financial Counseling Resources
Summary
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Leave and Earnings Statement
Individual Leave & Earning Statements available
on the myPay Website:
https://mypay.dfas.mil/mypay.aspx
Understand entitlements, deductions, and
allotments.
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Type of Pay Details Taxed Note
Basic
Pay
Based on rank & time
in serviceYES Pay increases @ 4 months, 2, 3, 4, & all even years thereafter.
Each January, basic pay is increased to incorporate cost of
living increase
Allowances
Housing (BAH) To offset housing
expensesNO Must be approved; different rates based on several factors; dorm
residence receive partial
Subsistence (BAS) To assist with the
cost of foodNO Must be approved; amount same regardless of # of dependents;
meal card holders receive partial
Clothing To maintain and/or
replace uniformsNO Basic replacement allowance received 1st 3 years then standard
replacement each year thereafter (upon anniversary of
enlistment)
Miscellaneous Such as flight pay,
hostile fire pay, etc.…YES Received depending upon career field and other factors
LES: The Basics
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DEFENSE FINANCE AND ACCOUNTING SERVICE MILITARY LEAVE AND EARNINGS
STATEMENT
IDNAME (LAST, FIRST, MI)
COOL, JOSEPH B.
SOC SEC NO.
111-11-1111
GRADE
E-2
PAY DATE
01JANXX
YRS SVC
0
ETS
0 1OCTXX
BRANCH
AF
ADSN/DSSN
4065
PERIOD COVERED
1-31 DEC 02
ENTITLEMENTS DEDUCTIONS ALLOTMENTS SUMMARY
A
B
C
D
E
F
G
H
I
J
K
L
TYPE AMOUNT +AMT FWD 0TYPE AMOUNTTYPE AMOUNT
Basic Pay 1509.9
BAH 7.20
BAS 294.43
TOTAL 1811.53
FICA (Social Security) 93.61
FITW (Federal Income Tax) 160.34
SGLI for $200,000 29.00
State Tax 39.00
Medicare 21.89
AFRH 0.50
Meal Deduction 242.15
MGIB 100.00
Mid-Month Pay 437.52
TOTAL 1024.01
Discretionary Allotment 300.00
Discretionary Allotment 50.00
TOTAL 350.00
+TOT ENT 1811.53
-TOT DED 1024.01
-TOT ALMT 350.00
-NET AMT 437.52
-CR FWD 0
=EOM PAY
437.52
PAY
DATA
FICA
TAXES
LEAVE BF BAL
0
ERND
2.5
CR BAL
5.5
ETS BAL
102
LV LOST
0
LV PAID
0
USE/LOSE
0
FED
TAXES
WAGE PERIOD
1326.30
WAGE YTD
15912.00
M/S
S
ADDL TAX
0
EX
0
TAX YTD
1468.08
WAGE PERIOD SOC WAGE YTD SOC TAX YTD MED WAGE YTD ST
NJ
STATE
TAXES
WAGE PERIOD
0
WAGE YTD
0
M/S
S
TAX YTD
0
EX
0
BAQ TYPE BAQ DEPN VHA ZIP RENT AMT SHARE JFTR DEPNS 2D JFTR BAS TYPE CHARITY YTD TPC PACIDN
Thrift
Savings
Plan
(TSP)
BASE PAY RATE BASE PAY CURRENT SPEC PAY RATE INC PAY RATE INC PAY CURRENT BONUS PAY RATE BOPNUS PAY CURRENTSPEC PAY CURRENT
CURRENTLY NOT USED TSP YTD DEDUCTIONS EXEMPTDEFERRED CURRENTLY NOT USED
REMARKS YTD ENTITLE___________________ YTD DEDUCT___________________
REMEMBER!!!
If you live in the dorm,
check the deductions section
of your LES to ensure your
BAS is being deducted.
Meal Deduction 242.15
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DEFENSE FINANCE AND ACCOUNTING SERVICE MILITARY NET PAY ADVICE
The amount in block 6 is your net pay for the pay date indicated in block 4 and was sent to the financial organization in block 7 for credit to your account. When cashing a
personal check at your financial organization on payday, advise your teller you are a participant in the Direct Deposit Program. It will help you with better service. If you are
paid once a month or you do not have your pay sent to a financial organization for direct deposit, information in block 5 through 7 will not be present and this form is intended
to provide you with the remarks information only.
111-11-1111 4065 15 DEC 01
Joseph B. Cool
201 Money Ave 5. ACCOUNT NUMBER 6. NET PAY AMOUNT
Cash SC 22222-2222 12345678 436.16
7. YOUR NET PAY WAS FORWARDED TO:
YOUR BANK/FINANCIAL INSTITUTION
6943 DORCHESTER ROAD
CHARLESTON SC 29418-3419
8. REMARKS
DEFENSE FINANCE AND ACCOUNTING SERVICE MILITARY NET PAY ADVICE
The amount in block 6 is your net pay for the pay date indicated in block 4 and was sent to the financial organization in block 7 for
credit to your account. When cashing a personal check at your financial organization on payday, advise your teller you are a
participant in the Direct Deposit Program. It will help you with better service. If you are paid once a month or you do not have your
pay sent to a financial organization for direct deposit, information in block 5 through 7 will not be present and this form is intended to
provide you with the remarks information only.
1. MEMBER’S NAME AND ADDRESS
437 MSS DPF
Joseph B. Cool
201 Money Avenue
Cash SC 22222-2222
2. SSN
111-11-1111
3. ADSN/DSSN
4065
4. PAY DATE
15 DEC XX
5. ACCOUNT NUMBER
1 2 3 4 5 6 7 8 9 1 0
6. NET PAY AMOUNT
437.52
7. YOUR NET PAY WAS FORWARDED TO:
MONEY BAGS FINANCIAL BANK, INC.
12345 CASH COW LANE, SUITE C
NORTH CHARLESTON, SC 11111-1111
8. REMARKS
This is what your mid month
statement will look like when viewed on line.
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Servicemember’s
Group Life Insurance
SGLI provides group term life insurance.
You are automatically covered on your first day of active duty or active
duty for training, unless you decline or reduce your coverage.
The maximum amount of SGLI coverage you may have is $400,000.
The current monthly cost of SGLI is $28.00 for $400,000 of coverage,
plus $1.00 for Traumatic SGLI ($29 total).
You may elect to be insured for lesser amounts in increments of $50,000,
The cost is $3.50 per month per $50,000.
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SGLI – Advantages
Very affordable premium.
Pays if death is in the line of
Military Duty…other policies
may contain “war clauses.”
Family coverage for spouses
very affordable.
Children receive $10K
of coverage for FREE.
Members have 120 days to
convert SGLI coverage to
VGLI upon separation from
service.
Higher premiums, but no
medical exam/proof of
good health required if
converted within 120
days.
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“What type of pay
helps me to offset
the cost of food?”
Question?
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http://www.cnpp.usda.gov
Food Cost Plans
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The Military Pay Charthttp://www.dfas.mil/militarymembers/payentitlements/militarypaytables.html
BASIC PAY—EFFECTIVE JANUARY 1, 2016Grade 2 or less Over 2 Over 3 Over 4 Over 6 Over 8 Over 10 Over 12 Over 14 Over 16 Over 18
O-10
O-91
O-81
9,946.20 10,272.00 10,488.30 10,548.60 10,818.60 11,269.20 11,373.90 11,802.00 11,924.70 12,293.40 12,827.10
O-71
8,264.40 8,648.40 8,826.00 8,967.30 9,222.90 9,475.80 9,767.70 10,059.00 10,351.20 11,269.20 12,043.80
O-62
6,267.00 6,885.30 7,337.10 7,337.10 7,365.00 7,680.90 7,722.30 7,722.30 8,161.20 8,937.00 9,392.70
O-5 5,224.50 5,885.70 6,292.80 6,369.60 6,624.00 6,776.10 7,110.30 7,356.00 7,673.10 8,158.50 8,388.90
O-4 4,507.80 5,218.20 5,566.50 5,643.90 5,967.00 6,313.80 6,745.80 7,081.50 7,314.90 7,449.30 7,526.70
O-3 3,963.60 4,492.80 4,849.20 5,287.20 5,540.70 5,818.80 5,998.20 6,293.70 6,448.20 6,448.20 6,448.20
O-2 3,424.50 3,900.30 4,491.90 4,643.70 4,739.40 4,739.40 4,739.40 4,739.40 4,739.40 4,739.40 4,739.40
O-1 2,972.40 3,093.90 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10 3,740.10
O-33
5,287.20 5,540.70 5,818.80 5,998.20 6,293.70 6,543.30 6,686.70 6,881.40O-23
4,643.70 4,739.40 4,890.30 5,145.00 5,341.80 5,488.50 5,488.50 5,488.50O-13
3,740.10 3,993.60 4,141.50 4,292.40 4,440.60 4,643.70 4,643.70 4,643.70W-5
W-4 4,095.90 4,406.10 4,532.40 4,656.90 4,871.10 5,083.20 5,298.00 5,620.80 5,904.00 6,173.40 6,393.90
W-3 3,740.40 3,896.40 4,056.30 4,108.80 4,276.20 4,605.90 4,949.10 5,110.80 5,297.70 5,490.30 5,836.50
W-2 3,309.90 3,622.80 3,719.40 3,785.40 4,000.20 4,333.80 4,499.10 4,661.70 4,860.90 5,016.30 5,157.30
W-1 2,905.50 3,218.10 3,302.10 3,479.70 3,690.00 3,999.60 4,144.20 4,346.10 4,545.00 4,701.60 4,845.30
E-94
4,948.80 5,060.70 5,202.30 5,368.20 5,536.20E-8 4,050.90 4,230.00 4,341.00 4,473.90 4,618.20 4,878.00E-7 2,816.10 3,073.50 3,191.40 3,347.10 3,468.90 3,678.00 3,795.60 4,004.70 4,178.70 4,297.50 4,423.80
E-6 2,435.70 2,680.20 2,798.40 2,913.60 3,033.60 3,303.30 3,408.60 3,612.30 3,674.40 3,719.70 3,772.50
E-5 2,231.40 2,381.40 2,496.60 2,614.20 2,797.80 2,989.80 3,147.60 3,166.20 3,166.20 3,166.20 3,166.20
E-4 2,046.00 2,150.40 2,267.10 2,382.00 2,483.40 2,483.40 2,483.40 2,483.40 2,483.40 2,483.40 2,483.40
E-3 1,847.10 1,963.20 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00 2,082.00
E-2 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50 1,756.50
E-15
1566.90
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Allowances Continued…ALLOWANCES
Family Separation Allowance
All Pay Grades: $250
Basic Allowance for Subsistence (Effective January 1, 2016)
Family Subsistence Supplemental Allowance (Effective October 1, 2010)
Officers: $253.63
Enlisted: $368.29
All Pay Grades
Not to Exceed $1100.00
Clothing Allowances (Effective October 1, 2015)
Standard Initial Clothing Allowance (Enlisted Members Only)Army Navy Air Force Marine Corps
Male Female Male Female Male Female Male Female
1,643.45 1,888.07 1,797.42 1,982.74 1,389.18 1,597.93 2,007.82 1,945.65
Cash Clothing Replacement Allowance (Enlisted Members Only)Army Navy Air Force Marine Corps
Basic Male Female Male Female Male Female Male Female
327.60 349.20 320.40 327.60 248.40 252.00 403.20 392.40
Standard 468.00 496.80 457.20 468.00 352.80 360.00 601.20 576.00
Special 0 0 648.00 669.60 0 0 0 0
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BAH Rates2016 BAH (Basic Allowance for Housing)
E-1 thru E-4: In dorms/ Approx. $7.80
E-1 thru E-4: Without dependents / $855.00
E-1 thru E-4: With dependents / $1059.00
According to the 2015 Defense Travel Management Study, at Moody AFB:
75% of BAH goes toward rent (on avg.)
25% of BAH goes toward utilities (on avg.)
• BAH used to include the cost of renter’s insurance, but in 2015, this
changed. You are expected to assume a 1% out of pocket cost for this
item.
Input new BAH into spending plan in projected category
Example: $7.80 current, $855/$1059 projected
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www.defensetravel.dod.mil
Basic Allowance for Housing
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INCENTIVE AND SPECIAL PAYSAviation Career Incentive Pay
Years of Aviation Service
2 or
less
Over 2 Over 3 Over 4 Over 6 Over 14 Over 22 Over 23 Over 24 Over 25
125.00 156.00 188.00 206.00 650.00 840.00 585.00 495.00 385.00 250.00
Career Enlisted Flyer Incentive PayYears of Aviation Service
4 or less Over 4 Over 8 Over 14
150.00 225.00 350.00 400.00
Hazardous Duty Incentive Pay (Crew Member- Non-AWAC)
Pay Grade Amount Pay
Grade
Amount Pay
Grade
Amount Pay
Grade
Amount Pay
Grade
Amount
O-10 150.00 O-5 250.00 W-5 250.00 E-9 240.00 E-4 165.00
O-9 150.00 O-4 225.00 W-4 250.00 E-8 240.00 E-3 150.00
O-8 150.00 O-3 175.00 W-3 175.00 E-7 240.00 E-2 150.00
O-7 150.00 O-2 150.00 W-2 150.00 E-6 215.00 E-1 150.00
O-6 250.00 O-1 150.00 W-1 150.00 E-5 190.00
Hazardous Duty Incentive Pay (Non-Crew
Member)
Imminent Danger Pay/Hostile Fire Pay
ALL GRADES – 150.00 ALL GRADES – 225.00
Diving Pay HDIP (Parachute, Flight Deck, Demolition, &
Others)
Officers – 240.00 (Max) Enlisted – 340.00 (Max) All Grades – 150.00
(Member qualified for HALO Pay – 225.00).
COMBAT ZONE TAX EXCLUSION For other pays or specific requirements for the pays cited in this
table, go to the web at:
http://www.dtic.mil/comptroller/fmr/07a/index.html
Basic pay for the MCPO of the Navy, CMSgt of the AF, Sergeant Major of the Army or Marine Corps, basic pay is $7,816.20. Combat Zone Tax Exclusion for O-1 and above is based on this basic pay rate plus HFP/IDP ($225).
Special Pays
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Income Definitions
Total pay + allowances =
Gross Income
Gross income – tax deductions – additional deductions
such as allotments=
Net Income
You can think of “net income” as the amount of
money you “take home” from each paycheck.
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Net Income Example
E-5 over 8 years w/dependents
Total compensationBase Pay $2,845.20, BAS $348.44, BAH $1,581.00 (A) $4,774.64
Total tax deductionsSGLI (self/family/spouse), TSGLI, AFRH, federal taxes,
FICA (social security/medicare)
(B) $351.29
Total additional deductionsMonthly savings $200, monthly investing $63.83 (C) $263.83
Net Income (A-B-C) $4,159.52
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Deductions
Federal Taxes
2016 FICA Taxes
- Social Security (6.2% of Base Pay)
- Medicare (1.45% of Base Pay)
SGLI
AFRH
Possibly:
State Taxes
FSGLI
Meal Deduction
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Budget about 35% of your net income for rent/utilities.
Do you have an emergency fund?
Short term goal: $1,000
Long term goal: 3-6 months of living expenses
One-time Expenses:
Security deposit (normally equal to one month’s rent)
Utility deposits/activation fees
Moving expenses (gas, eating out, etc.)
Pet Deposit
Furnishing residence (What about “Rent-to-Own”?)
Setting up household (cleaning supplies, food, etc.)
Budgeting
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Goals
Unrealistic Goals
Vs.
Realistic Goals
Short Term Now to 2 years
Intermediate Term 2 to 5 years
Long Term Beyond 5 years
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Savings and Future Plans
Emergency Savings Fund: At least $1,000
Experts recommend setting side 3-6 months of living
expenses
Future Planning
Goal Specific
Separation/Retirement
Ball Park Estimate
www.asec.org
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How do we talk about money?
What is the dollar amount that separatesa rich man and a poor man?
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What is a spending plan?
Simply a plan to put your money where you want it to go!
Your A&FRC can help you develop a personalized
spending plan!
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SPENDING PLAN ACTIVITY
First cash flow plan is a draft.
Most of your variable expenses will be estimates.
For a more realistic spending plan, track your expenses or
review past banking/credit card statements.
Revise the original spending plan, incorporating goals based
upon changes you’d like to make.
Complete spending plan worksheets sections A – J
Debt-to-income ratio
Income - (Living Expenses + Monthly Debt Pmts) =
surplus/deficit/or zero
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Financial Readiness
(reference AFI 36-2906)
7.1 Members will pay their just financial obligations in a
proper & timely manner
7.2 Will provide adequate financial support of a
spouse or child/relative …(court order for
child support)
7.3 Will comply with 7.2 for garnishment
of wages
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Deployment Readiness
Financial Considerations
How will your budget change during deployment?
Expenses in deployed location
Expenses back at home
Who will be managing finances?
What are your goals? Make a plan for the extra money you will be receiving. (e.g. savings, TSP, debt mgmt.)
Are your financial and legal documents organized?
Do you have an emergency fund?
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Tips for Success
Complete budget before you depart; revisit regularly.
Keep track of account balances, due dates for bills, etc.
Practice financial fidelity: communicate with spouse about
out-of-the-ordinary expenses, bills, etc.
Set-up “Active Duty Alert” on credit reports.
Organization is key: know where your documents are,
keep list of accounts/contact info, etc.
Set-up “Auto-Pay” on accounts.
Update car insurance.
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Personal & Family
Financial Readiness
Review LES monthly.
Understand entitlements/deductions/allotments.
Develop Spending Plan. Revisit regularly.
Save for emergencies.
Plan for deployments.
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Intro & Spending Plan
Questions?
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What is the Difference Between
Saving and Investing?
Saving:
To meet short term goals
Emergencies
Investing:
Money set aside for future income,
benefit, or profit to meet long term goals
What is your “risk tolerance?”
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Savings & Investment Tools & Options
Savings Account
Certificates of Deposit
U.S. Savings Bonds
Money Market Accounts/Funds
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Other Options
Stocks
Bonds
Mutual Funds
Real Estate
Collectibles
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Maximize your Money
IRA (Individual Retirement Account)
Traditional
ROTH
Education
Any mutual fund, stock, bond, etc. can be part of an IRA account
Research companies and review the prospectus before sending any money.
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New AF Blended Retirement System
Under the current system, monthly retired pay is calculated as 2.5
percent times the number of years the member served times the
average of the highest 36 months of basic pay the member
received.
All members who enter service, or who sign a contract to serve, on
or before December 31, 2017 are grandfathered into the current
system, but can opt-into the new BRS.
As of 1 Jan 2018 – all joining members will automatically be
enrolled in BRS.
After 2 years of service – the first 3% of member contribution is
matched dollar for dollar by the Service. The next 2% is matched 50
cents on the dollar. Example – if a member contributed 5% of pay to
the TSP, the Service will contribute another 4% to the member’s
TSP account.
Militarypay.defense.gov
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The Power of Compounding Interest
Ben vs. Arthur:
Ben starts investing at age 19.
He invests $2,000/year for 8 years.
Avg. rate of return: 12%
His contributions= $16,000
Arthur starts investing at age 27.
He invests $2,000/year for 39 years.
Avg. rate of return: 12%
His contributions= $78,000
Even though Arthur invested 23 more years than Ben….Ben has more in his account at
age 65… all because of compounding interest!
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Retirement savings and investment plan for Uniformed military members serving on active duty, and members of the Ready Reserve or National Guard of each service in any pay status.
Contributions are pre or post-tax dollars then taxed at withdrawal/distribution at current tax rate (tax-deferred).
Traditional TSP vs. Roth TSP
Can contribute to both Traditional & Roth
Traditional contribution limit is $6,000
Roth contribution limit in 2016 is $18,000 ($53,000 if in a combat zone)
Number of options available upon separation/retirement: leaving money in TSP, partial/full withdrawal, purchase an annuity, or a combination.
Account can be accessed penalty-free at age 59 1/2
Thrift Savings Plan: www.tsp.gov
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Traditional vs. Roth TSP
The Treatment of… Traditional TSP Roth TSP
Contributions Pre-tax After-tax1
Your PaycheckTaxes are deferred*, so less money is
taken out of your paycheck.
Taxes are paid up front*, so more
money comes out of your paycheck.
Transfers InTransfers allowed from eligible
employer plans and traditional IRAs
Transfers allowed from Roth 401(k)s,
Roth 403(b)s, and Roth 457(b)s
Transfers OutTransfers allowed to eligible employer
plans, traditional IRAs, and Roth IRAs2
Transfers allowed to Roth 401(k)s,
Roth 403(b)s, Roth 457(b)s, and Roth
IRAs3
Withdrawals Taxable when withdrawn
Tax-free earnings if five years have
passed since January 1 of the year you
made your first Roth contribution, AND
you are age 59½ or older, permanently
disabled, or deceased
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The Benefit of Pre-Tax Investing
Regular Savings
Basic pay $18,118
-Tax @15% $ 2,718 =
$ 15,400
Invest 8% $ 1,449
Remainder $ 13,951
TSP Savings
Basic pay $18,118
Invest 8% $ 1,449 =
$16,669
-Tax @15% $ 2,500
Remainder $14,169
$218 more in your pocket!!
Based on E-2 with less than 2 yrs service, investing 8% in TSP
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Thrift Savings Plan: www.tsp.gov
Contribute in 1% increments up to 100% of your base pay
Add 1-100% of any special, bonus or incentive pay
IRS elective deferral limit for 2016 is $18,000
Six investment funds:
G Fund
Government Security Investment Fund
When you first start investing in TSP, your contributions will default to the G fund.
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F Fund
Fixed Income Index
Investment Fund
Tracks Barclays Capital US
Aggregate Bond index
Thrift Savings Plan: www.tsp.gov
C Fund
Common Stock Index
Investment Fund
Tracks S&P 500
(Large/medium sized
companies)
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S Fund
Small Capitalization Stock Index Investment Fund
Tracks DOW Jones (small/medium sizes companies)
Thrift Savings Plan: www.tsp.gov
I Fund
International Stock Index Investment Fund
Tracks Morgan Stanley Capital Int’l EAFE Index
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L Funds (Life Cycle Funds)
Professionally determined investment mixes
Thrift Savings Plan: www.tsp.gov
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Savings Deposit Program
Total of $10,000 may be deposited during each deployment and
will earn 10% interest annually.
Must be a SDP-eligible combat zone. Must be receiving Hostile
Fire Pay.
Deposits may be made in cash, by check, or through allotment.
Once started, allotments may be increased/decreased as your
financial situation changes. Your allotment will stop upon your
departure from the combat zone.
Will continue earning interest for 90 days upon return.
Money can be withdrawn via request through MyPay.
Contact Accounting & Finance for more information.
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Educate Yourself
Library
Internet
Comparison shop for investment companies
Compare advertised rates of return to the average and
benchmark for that category
Beware of investment and insurance scams
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Practical Tips
Establish emergency fund first.
$1,000
3-6 months of living expenses
Use allotments or direct-invest.
Pay yourself first!
Many companies allow you to invest $50/month.
Plan to save/invest a realistic amount (10% is the goal).
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Easy Street!
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Saving & Investment Basics
Questions?
I n t e g r i t y - S e r v i c e - E x c e l l e n c e
Headquarters U.S. Air Force
Airman & FamilyReadiness CenterFTAC Presentation
Banking
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Banks vs. Credit Unions
Credit Unions:
• Democratically controlled by
members
• Not for profit
• Insured by the National Credit
Union Administration
• May offer lower-cost services and
higher interest rates on savings
Banks:
• Generally run by a group of
investors with capital
• For profit
• Federally insured by the Federal
Deposit Insurance Corporation
(FDIC)
• May offer greater accessibility and
a wider range of services
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Choosing a Financial Institution:
What do they offer?
Checking & Savings Accounts
Credit cards/debit cards
Lines of credit
Personal, business, and auto loans
Mortgages
Online or mobile banking
Automatic bill pay
International banking
Financial planning
Investment management
Health, home and car insurance
Retirement programs
Fly - Fight - Win
And what about the fees?
Monthly Service Charge
Charge per Check
Insufficient Funds
Overdraft Protection: (Median Fee= $34 for each transaction while in overdraft status)
The Consumer Financial Protection Bureau estimates that overdraft and non-sufficient fund fees represent 60% or more of consumer checking account fee income.
ATM Use- some financial institutions reimburse you for ATM fees
International Transaction Fees
Fly - Fight - Win 71
Banking
Questions?
I n t e g r i t y - S e r v i c e - E x c e l l e n c e
Headquarters U.S. Air Force
Credit and Debt
Management
Airman & FamilyReadiness CenterFTAC Presentation
Fly - Fight - Win
Credit Defined
• Credit vs. Debt
• Benefits of good credit:
• keep/obtain a security clearance
• obtain lower payments and interest rates on credit
cards/loans
• buy a home, a car, or just about any “high” ticket item
on credit
• borrow money quickly to cope with an emergency
Fly - Fight - Win
Credit can be used:
to purchase items today that you couldn’t normally afford and
spread the cost over time
to make high cost purchases easier and quicker to obtain
to conveniently pay for items
to obtain frequent flyer miles, points, etc… for “free” items or
cash rebates
to build upon existing credit by making on-time monthly
payments
Why Use Credit?
Fly - Fight - Win
Provides long term
or future value
“Worthwhile” Debt
Fly - Fight - Win
Food
Clothing
CDs / DVDs
“Entertainment”
Miscellaneous stuff
Items of
temporary value
“Not so Worthwhile” Debt
Fly - Fight - Win
Open checking/savings account
Secured credit card
Use Military STAR or Club Card wisely, then apply for a
national credit card.
Use a credit card for small amounts, and pay it off each
month to build your credit history.
Obtain a small signature loan, put money in savings and
make payments as required.
Establishing Credit
Fly - Fight - Win
Choose & Use Credit Wisely
Know the interest rates and fees:
Purchases
Cash advances
Transfers from other cards
Penalty Fees
What is your current balance and limit?
What is the minimum payment?
When is your payment due?
Make payments on-time, every time!!!
Fly - Fight - Win
Calculate Your Monthly Interest Charges
1. Divide your APR by 12 months. This gives you a monthly percentage
rate.
APR of 18%: 18% ÷ 12 months = 1.5%
2. Multiply your balance by this monthly interest rate. The result is your
interest charge.
On a balance of $500, your interest charge would be $500 x .015 =
$7.50
3. Add the interest charge to your balance to determine your new balance.
So, your new balance would be: $500 + $7.50 = $507.50
Next month payment calculation $507.50 x .015 = $7.61 so
$507.50 + $7.61 = $515.11
Fly - Fight - Win
Ensure debt doesn’t exceed 15% of monthly income
Shop around for credit- look for low interest rates, no
annual fees, and benefits. (www.bankrate.com)
Never lend credit cards to anyone.
Check credit report for FREE at
www.annualcreditreport.com
Tips for Avoiding Credit Pitfalls
Fly - Fight - Win
Track your
spending…
purchases
can add up
fast!
Save your
receipts and
report
problems if
needed.
Pay more
than the
minimum
amount.
More Tips…
Fly - Fight - Win
Truth in Lending Act:
Requires creditors to disclose, in writing, the following:
Annual Percentage Rate (e.g. cost of the credit
expressed as an annual % of the original amount of credit
provided)
Terms of the loan
True costs to the borrower
Understanding Terms & Conditions
Associated With Credit
Fly - Fight - Win
Revolving credit
Credit cards
Installment credit
Car loans
Mortgage
Types of Credit
Fly - Fight - Win
Credit Cards vs. Debit Cards
Credit Cards
Covered by the Truth
in Lending Act
Liability limit = $50
(if fraudulently used)
Right not to pay
disputed charges
Debit Cards
Covered by Electronic
Funds Transfer Act
Liability Limit = $50 (if
reported w/in 2 business
days) or $500 or
everything in account +
line of credit (if fail to
report w/in 60 days)
Dispute procedures in
place
Fly - Fight - Win
Stored Value Cards
Examples: Gift cards, phone cards, etc.
NOT a debit card
NOT tied to a checking account
NOT covered by any federal law or regulation
Dispute procedures established by card issuer
Liability limit = value stored on card
BLUF: Lose your card = lose your money
Fly - Fight - Win
Loan Amount $1,000
Interest Rate 19.8%
Monthly Payment 3% of balance ($30)
# Years to Pay 4 years, 1 month
Total Finance Charge $463.84
Visit http://www.powerpay.org
Cost of Credit:
Fly - Fight - Win
Monthly Minimum Payments
Take Home Pay
Debt Divided by Income= Debt Income Ratio
(DIR)
Example: $250 debt payments = 25% DIR
for $1000 take home pay
When is it too much?
Fly - Fight - Win
0 - 5%: Doing well
10 - 15%: Manageable
20% +: Go on a “credit diet”
28%: Maximum for a mortgage
36%: Combined maximum for
consumer credit debt and
a mortgage
When is it too much? (Cont’d)
Fly - Fight - Win
Your credit report contains:
Personal info
Employer info
7–10 years history
Inquiries (“soft /hard”)
Negative indicators:
Bankruptcy
Charge-off and
collection info
Credit Reports/Scores
http://www.experian.com/credit_report_basics/pdf/samplecreditreport.pdf
Fly - Fight - Win
Credit Scores
• 65% based upon
payment history
and amount owed
• Pay on time
• Keep balances well
below credit limit (not
more than 10% of
available credit)
• Check your report
and correct errors
• Influences what
credit products will
be available to you
and the cost of
those products
• Lower scores =
overall higher cost;
or even inability to
obtain credit
• Three digit number
generated by a
mathematical
algorithm based on
information in your
credit report
• Fair Isaac & Co.
(FICO) – Most
common
• FICO Range : 300 -
850
What is a
Credit
Score?
Why Should
I Care?
How Do I
Influence
My Score?
Fly - Fight - Win
10%10%
15%
30%35%
Payment History Outstanding Debt Length of Credit
New Credit Types of Credit
Credit Score Recipe
Fly - Fight - Win
$406.29$372.29
$339.95$324.42
$309.32 $294.66
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
500-559 560-619 620-674 675-699 700-719 720-850
Credit (FICO) Score
$16,000 Vehicle Loan
Ca
r P
aym
en
tCredit’s Impact
Fly - Fight - Win
$395,000
$353,000
$308,000
$250,000
$227,000 $217,000
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
500-559 560-619 620-674 675-699 700-719 720-850
Credit (FICO) Score
$200,000 Home Loan
To
tal In
tere
st
Pa
id
Credit’s Impact
Fly - Fight - Win
Pay on time…every time!
Pay more than the minimum
Limit yourself to 1 credit card
Keep your debt level low
Don’t “max” out your credit card
Check your myFICO
How to Improve Your Credit Score
Fly - Fight - Win
FICO Score
Fly - Fight - Win
Security Clearances
Credit and Debt Management
Fly - Fight - Win
Security Clearance
Financial Considerations
Failure or inability to live within one's means,
satisfy debts, and meet financial obligations
may indicate poor self-control, lack of judgment,
or unwillingness to abide by rules and regulations,
all of which can raise questions about an individual's
reliability, trustworthiness and ability to protect
classified information.
An individual who is financially overextended is
at risk of having to engage in illegal acts to
generate funds.
DoD Directive 5200 2-R Appendix 8
Fly - Fight - Win
Inability or unwillingness to satisfy debts
Irresponsible spending
History of not meeting financial obligations
Deceptive or illegal financial practices (theft, fraud, income tax evasion)
Financial problems linked to drug abuse, alcoholism, and gambling problems
Unexplained affluence
Credit Management and
Security Clearances
Fly - Fight - Win
Accrual voucher and use split disbursement
Know what is authorized:
Meals
Lodging
Rental car
Cash advances for official expenses only
Airlines tickets for official travel
What about your Government ??
Fly - Fight - Win
Lower interest rates on debts incurred prior to
joining the military to 6% (w/exceptions)
Exempting the military member from paying property
taxes on vehicles (w/exceptions)
Exempting the military member from paying state
taxes on vehicles (w/exception)
Servicemember’s Relief Act
Fly - Fight - Win
Talk to Creditors
Visit Power Pay (www.powerpay.org)
Contact your Airman & Family Readiness Center
Contact the Legal Office
Contact a Consumer Credit Counseling Service
Credit Problems?
Fly - Fight - Win 111
Questions?
Credit and Debt Management
I n t e g r i t y - S e r v i c e - E x c e l l e n c e
Headquarters U.S. Air Force
Understanding the
“Car Buying Game”
Airman & FamilyReadiness Center
FTAC Presentation
Fly - Fight - Win
1Step
Shopping with
Confidence
Fly - Fight - Win
Consider Your Needs
WANTs vs. NEEDS
What’s important to you?
1Step
Nationality of origin
Body size – sub-compact, compact, midsize, etc.
Body style – 2-door, 4-door, convertible, SUV, etc.
Engine size
Possibly higher insurance rates
Transmission – manual, automatic
Drive train – 2-wheel drive, 4-wheel drive
Reliability
Style
Performance
Utility
Safety
Handling
Economy
Price
Image
Fly - Fight - Win
What equipment options do you want?
Air conditioning
Power windows
Power locks
Tilt steering
Cruise control
Sunroof
Sound system
Determine approx. monthly costs for payment, insurance,
gas, and maintenance. Make those payments to yourself
(savings acct.) for 1-3 months. Can you afford it?
Ad Valorem Tax
1Step
Consider Your Needs and Budget
Fly - Fight - Win
Where and When to Shop
Where:
“Auto Malls”
Neighborhood dealerships
Automobile and truck shows
Used car marts
Neighborhood used car lots
Private parties
Public and Police auctions
When:
Salesmen have weekend quotas to meet…
Shop on weekdays or weekday evenings
Especially the last few days of the month
1Step
Fly - Fight - Win
Your Car Shopping Goals
On your first shopping trip:
See which cars fit your needs and budget-
Can accomplish these goals by following a step-by-step
shopping game plan…
1Step
Fly - Fight - Win
Your Car Shopping Game Plan
Greet the salesman.
Tell him exactly what you want to see.
Look at the factory window sticker.
Inquire about other versions of the same car (DX, SE, LX).
Sit inside the car.
Test drive the car.
Don’t baby the car; drive like you normally would.
After the drive, ask for a brochure.
Ask more questions.
Thank the salesman.
Leave!1Step
Fly - Fight - Win
Used Car Shopping Tips
Problem - Never quite sure what you are getting.
Useful tips:
Examine body of vehicle
Examine interior
Look under hood
Look under vehicle
Check odometer
Check the car’s VIN
Use CARFAX or another method to checkout the car’s history.
Have your mechanic inspect vehicle before you buy. If the seller
won’t allow this, be suspicious.
1Step
Fly - Fight - Win
Choosing
the
Right Car2Step
Fly - Fight - Win
Clear Up Your Confusion
Many of the new and late-model vehicles are alike.
The perfect car does not exist.
This is not a life-or-death situation.
You may need to re-examine your needs.
You may need to re-examine your budget.
2Step
Fly - Fight - Win
Do Some Additional Research
Manufacturer’s Brochures
Auto and Consumer Magazines
US Government Safety Publications and Websites
Auto Manufacturers’ Websites
2Step
Fly - Fight - Win
Making the Big Decision
Once satisfied with shopping and research…
Narrow down choices:
Which car is the right one for you?
The car that’s right for you is the one that fits
your needs and your spending plan…
And feels right!
2Step
Fly - Fight - Win
Preparing
to
Buy3Step
Fly - Fight - Win
Determining the Invoice Price
New Cars and Trucks
www.edmunds.com
Used Cars and Trucks
www.kbb.com
3Step
Fly - Fight - Win
Arranging Your
Automobile Insurance
Prior to removing car from lot, you will have to show
proof of insurance.
Call current company for quote.
Shop around and compare.
Insurance is required by law!
3Step
Fly - Fight - Win
Selling Your Present Car
Ways to Sell Your Car:
Sell the car on your own
Check Kelley Blue Book
Let a consignment dealer sell it for you
Sell your car directly to a used car lot
Trade it in to the dealership
Donate your car to charity
Sell it on EBay
3Step
Fly - Fight - Win
Arranging Your Financing
Check your credit report.
How are you going to pay for the vehicle?
Cash
Bank financing
Credit Union financing
Online financing
Dealership financing
Compare interest rates and loan terms.
Choose the financing deal that’s best for you- see if
companies will compete for your business.3Step
Fly - Fight - Win
Interest Rates and Loan Terms
Fly - Fight - Win
Arranging Your Down Payment
Unless you receive 100% financing from your bank, you will be
required to pay a down payment.
Amount depends on selling price of vehicle
Three sources:
Cash
Factory rebates
Your trade-in
If you are a first-time buyer or have questionable credit,
you may be required to put down a larger down-payment.
Ex./15-20% 3Step
Fly - Fight - Win
Lease or Buy?
8 Reasons Not to Lease:
Penalty for excessive mileage
Need good credit to lease
Required to maintain the car as if you own it
Quoted lease payments may not include sales tax
May be a large return fee at the end of the lease
Difficult to terminate lease early
Payments may not be lower than if you bought the car
3 Reasons to Consider Leasing:
You know you will keep the car for ONLY 2-3 years
Car manufacturer is offering a “lease special”
Accountant advises you to lease versus buy 3Step
Fly - Fight - Win
Buying Like
an Expert
4Step
Fly - Fight - Win
Getting Ready to Go
What to bring:
The invoice price for the car you are interested in
Checkbook and/or cash for down payment
Loan pre-approval forms
Auto insurance information
Driver’s license
Social security card
Title and registration, if you are trading in a car
Who to Bring:
If vehicle will be jointly-owned, bring spouse
Friend who is not emotionally involved in the situation
4Step
Fly - Fight - Win
How to Keep Your Sanity
Think twice before you buy.
Before you “seal-the-deal,” examine everything with a fine-
tooth comb.
Vehicle’s exterior – dings, scratches, dents
Vehicle’s interior – rips and tears in fabric, scratches
Ensure vehicle has all features you are paying for
Size of engine
Interior/Exterior equipment
Test drive the vehicle
Read everything PRIOR to signing anything!
4Step
Fly - Fight - Win
4Step
FIRST Rule of Negotiating
Never appear anxious, worried, or desperate.
Remain calm, casual, and willing to walk away at any time.
SECOND Rule of Negotiating
Never negotiate down from the sticker price.
Always negotiate UP from the invoice price (new cars)
or wholesale price (used cars).
Negotiating the Selling Price
Fly - Fight - Win
Negotiating the Selling Price
1. Salesman will ask basic questions.
-- Tries to make the negotiating start out friendly
2. He will want to discuss monthly payments.
- Never negotiate based on monthly payments.
-- “I’m not interested in discussing monthly payments.
I only want to talk about the selling price of the vehicle.”
--- Negotiate up from dealer’s cost.
3. How will you be paying for the vehicle?
- “I only want to talk about the selling price right now.
We can discuss finances later.”
4Step
Fly - Fight - Win
4Step
6. Once you’ve made an offer, be quiet!
- The salesman will probably insist your offer is too low.
THIRD Rule of Negotiating
Whoever speaks first after an offer is made
is in the weaker negotiating position.
7. The salesman will try to get you to raise your bid.
FOURTH Rule of Negotiating
Never negotiate against yourself.
Never raise your own bid until
they make a counteroffer.
Negotiating the Selling Price
Fly - Fight - Win
4Step
8. Let the games begin!
- The salesman will walk over to the Sales Manager’s office
-- Sit back and relax.
--- Sooner or later, the salesman will return.
---- He and/or his Sales Manager will present their
counteroffer.
---- Sit and think.
---- They will probably speak first to break the tension.
---- At the appropriate moment, show your flexibility
by raising your bid.
FIFTH Rule of Negotiating
Always raise your offer in small increments-
$50 - $100 at a time.
Negotiating the Selling Price
Fly - Fight - Win
4Step
9. The game will go on…
-- They will shake their heads, try all sorts of lines, theatrics,
and ploys to get you to spend more than you have planned.
10. Eventually, your offer will rise to your pre-set limit. When it does,
don’t budge!
11. If they won’t sell at YOUR price…
- Thank them and leave.
-- If they WILL sell at YOUR price…
Negotiating the Selling Price
Fly - Fight - Win
Closing the Deal
Negotiations finally end when:
They are convinced you absolutely cannot or will not go any
higher in your price.
They know they are making a profit…
even a minimal one.
With negotiations complete, the salesman leads you into the
Business Office.
4Step
Fly - Fight - Win
Inside the Business Office
Offers you “extras”…
Extended warranty
Paint and fabric protection
Rust-proofing and undercoating
Alarm system
Window tinting
Life, health, disability insurance
Remember…the Business Manager is another salesperson working on commission.
Formalities of signing forms and agreements-
Financing, interest rate, other details explained…read fine print! 4Step
Fly - Fight - Win
THOUGHT TO REMEMBER…
Car buying is a
process…
not an event!!!
Fly - Fight - Win 150
Understanding the
“Car Buying Game”
Questions?
I n t e g r i t y - S e r v i c e - E x c e l l e n c e
Headquarters U.S. Air Force
Base Specific
Issues
Airman & Family Readiness CenterFTAC Presentation
Fly - Fight - Win
Base Specific Issues
PCSing
Expenses / Expectations
Detrimental Business Practices
State or Country Liability Laws
Gap Insurance
Fly - Fight - Win
Contact local A&FRC for relocation resources
Establish or transfer banking
Notify creditors of address change
Transfer auto insurance coverage
Research the area (schools, housing, commute)
Ask questions about local community resources
Letter of reference for utility companies (discounts)
PCSing
Fly - Fight - Win
Payday Loans
Rent-To-Own
Title Loans
Zero Down / Zero Payments
Take Home Today!!
High Interest / High Pressure Auto Dealers
Pawn Shops
Tax Refund Anticipation Loans
Loan Consolidation
Detrimental Business Practices
Fly - Fight - Win
Unfair/abusive loan terms
Aggressive sales tactics
Take advantage of borrowers’ lack
of understanding
Complicated transactions
Deception
Also available online
Predatory Lending
Fly - Fight - Win
Borrower writes a post-dated check or provides bank account info to
cover amount borrowed.
If not paid off, borrower continues to pay “fee” indefinitely until entire
amount borrowed is paid. Fee NEVER applies to the loan.
How does Pay Day lending work?
Fly - Fight - Win
Fees equal 400% APR and higher
Capped at 36% for military and their dependents as of
Oct 2007 (also includes other stipulations for military
personnel)
75% of payday customers cannot pay back the loan in
two weeks
Payday lenders make it easy to borrow, but hard to pay
off
Problems w/ Pay Day Lending
Fly - Fight - Win
Negotiating new payment plan with creditors.
Personal/consumer financial management counseling:
Airman & Family Readiness Center
Military One Source: http://www.militaryonesource.mil/
Borrowing from family.
Emergency assistance programs: Air Force Aid Society
Cash advances on credit cards (not the best choice but better than
predatory lenders)
Small consumer loans
Alternatives to Pay Day Lending
Fly - Fight - Win
Sources of Help
• Reduce interest rates & stop late and over the limit
fees
• Consolidate your unsecured debt into one easy
monthly payment
• Pay off your debt in most cases within 5 years
• Develop a workable budget!
Fly - Fight - Win
Other
“Things”
to Avoid…
Credit and Debt Management
Fly - Fight - Win
Car Title Loans
“Get Cash for a
Car Title Loan
Today!”
“Keep Your
Vehicle – No
Credit Checks –
Easy Online
Form – Get Cash
in 15 Minutes!”
“No Proof of
Employment or
Income
Required!”
Example:
Borrow $500 for 30 days at
25% per month (e.g. 300% APR)
= $125 interest!
Second month pmt: $625 x .25=$156.25
so $625 + $156.25 = $781.25
Fly - Fight - Win
Tax Refund Anticipation Loans
No longer permitted, but replaced with
similar products.
Short-term cash advances against a
customer's anticipated income tax refund.
The interest can be the equivalent of an
annual percentage rate (APR) of 70% or
more.
Example: On a refund of about $3,300,
you might pay over $300 for tax
preparation services and loan fees for just
a one or two-week loan.
For military members, capped at 36%
APR.
Fly - Fight - Win
Renting will cost $1,439.76!
Rent-to-Own Contracts
Businesses charge a weekly or monthly rental for a
stated period of time on a piece of property that is
eventually owned by the consumer.
Late fees are exorbitant!
40" Smart 1080P LED TV
$59.99/mo | 24-mo lease
Everyday low price:
$899.99
Fly - Fight - Win
Pyramid Schemes
Participants attempt to make money solely by recruiting new
participants into a “program” (appearing to have
legitimate products or services to sell).
These schemes promise sky-high returns in a short period of time for
doing nothing other than handing over your money and getting others
to do the same.
Eventually the pyramid will collapse.
Example: http://www.investigationdiscovery.com/famous-
cases/videos/the-madoff-mystery-the-ponzi-scheme.htm
Fly - Fight - Win
Affinity Fraud
Affinity fraud occurs when an
individual takes advantage of a
particular group, by claiming
(either directly or indirectly) to be
part of that group.
They normally sell investments
and/or insurance policies that
are unnecessary or poor
choices.
http://www.businessinsider.com/
sec-shuts-down-marines-hedge-
fund-2013-8
Fly - Fight - Win
FTC Survey for 2011:
Shows an estimated 25.6 million Americans
fell victim to fraud…most found online…
Let’s take a closer look…
On-Line Scams
Fly - Fight - Win
• Accounts for half of all complaints
registered with the FBI!
The setup: Send in money for a product
and get nothing in return.
What actually happens: You never get
the product promised or the product
doesn’t match the promise.
The risk: You get ripped off and lose
money.
Auction Fraud
Fly - Fight - Win
Phishing
1 in 392 emails contain a phishing attack!
The setup: You receive an e-mail that looks like it came from a bank
warning you about identity theft.
What actually happens: The e-mail looks real and may actually be the
real website. However, the information requested by you is entered into
a bogus website by popping up a window over the real site to capture
your personal info.
The risk: Your account information is sold to criminals
Fly - Fight - Win
----- Original Message -----
From: Customer Support
To:
Sent: Friday, May 13, 2005 6:05 PM
Subject: Spam Alert: Security Alert!
Dear Customer,
We recently noticed one or more attempts to log in to your WellsFargo account from a foreign IP address. If you recently
accessed your account while traveling, the unusual log in attempts may have been initiated by you.
We would like to ensure that your account was not accessed by an unauthorized third party. Because protecting the
security of your account is our primary concern. However, failure to change your password, will result in account
suspension.
To change your password click on the following link, sign on,
you will be automatically redirected to change your password:
https://online.wellsfargo.com/signon?SIGNON_XPC=1010
Please do not reply to this e-mail. Mail sent to this address cannot be answered.
For assistance, log in to your WellsFargo account and choose the "Help" link in
the footer of any page.
Email ID PD469256469116177300
An
actual phishing
E-mail sent to
a customer. Wells
Fargo confirmed
it was fake!
Fly - Fight - Win
The TOP 5 Online
Scams Revealed
Consumer
Beware!
Congratulations!You’ve Won an Xbox
(IPod, TV, etc…)
The setup: You get an e-mail telling you that you won something really cool.
All you need to do is visit XYZ website and provide your debit card #
and PIN to cover “shipping and handling”
What actually happens: The item never arrives and a few months later,
mystery charges show up on your debit card.
The risk: Identity theft and lost money.
Fly - Fight - Win
Identity
Theft
Credit and Debt Management
Fly - Fight - Win
Identity Theft
Fly - Fight - Win
Security Freeze
Anyone can opt to have their credit files frozen for a
nominal fee.
If victim of ID Theft – no charge w/ police report
If the files are frozen, thieves won’t be able to get any new
credit.
In order to apply for credit, you must “temporarily” lift your
freeze. Lift fee must be paid.
http://consumersunion.org/pdf/SecurityFreeze-Consider.pdf
Fly - Fight - Win
State Lemon Law
Vehicle insurance coverage minimums:
Georgia minimum liability limits: Bodily Injury:
$25,000 per person, $50,000 per occurrence,
and Property Damage liability of $25,000 per
occurrence.
Apartment/house rental contracts (military clauses)
State or Country Liability Laws
Fly - Fight - Win
Insurance coverage you can purchase to pay the
difference between what is owed on a vehicle and the
amount received from the insurance company if totaled.
Example: John’s car is worth $15,000. John’s car is
totaled or stolen. He still owes $20,000 on his vehicle
loan. John’s car insurance policy will reimburse him with
$15,000. If John has GAP insurance, the extra $5,000 he
owes on his loan will be covered.
Gap Insurance
Fly - Fight - Win
Deceptive Insurance and
Financial Reporting Agencies
BBB Military Line
http://www.bbb.org/council/programs-
services/bbb-military-line/
State Insurance Regulatory Agency
www.naic.org/state_web_map.htm
Federal Trade Commission/OSA
www.consumerfinance.gov/servicemembers/
Federal Deposit Insurance Corporation
www.fdic.gov
Fly - Fight - Win 182
Base Specific Issues
Questions?
I n t e g r i t y - S e r v i c e - E x c e l l e n c e
Headquarters U.S. Air Force
Financial
Resources
Airman & FamilyReadiness CenterFTAC Presentation
Fly - Fight - Win
Financial Counseling:
A&FRC Personal Financial Readiness Program: offers
information, education, and personal financial counseling to
help individuals and families maintain financial readiness.
One-on-one counseling
Briefings, Workshops/Seminars
Information/Referral
Military OneSource- www.militaryonesource.mil
Base Financial Institutions: Armed Forces Bank and
SEFCU
Financial Resources
Fly - Fight - Win
Air Force Aid Society (AFAS)
The AFAS is the official charity of the USAF.
The Society has promoted the Air Force mission by
providing worldwide emergency assistance,
sponsoring education assistance programs and
offering a variety of base community enhancement
programs that improve the quality of life for Airmen
& their families
Fly - Fight - Win
AFAS www.afas.org
Provides interest free loans or grants for emergencies
FALCON Loans
Spouse/Children education grants
HAP Arnold Grant
Fly - Fight - Win
AFAS Community Support
Programs
Bundles for Babies
Child Care for PCS
Child Care for Volunteers
Heart Link
Give Parents A Break
Car Care Because We Care
Respite Care
Spouse Employment Program
Fly - Fight - Win
Airman & Family Readiness Center
Bldg. 400
257-3333
Our Programs:
Personal Financial Readiness
Air Force Aid Society
Readiness
Relocation
EFMP
Personal and Work Life
Key Spouse
Volunteer and Employment
Wounded Warrior
Transition Assistance
Fly - Fight - Win 190
Thank You!
Questions?