Posts Tagged ‘militaryfamiliespersonalfinance’
Monday, June 17th, 2013
By Barbara O’Neill
What factors make service members and their family attractive targets for lenders?
Service members are prone to greater financial challenges because of their unique behaviors. Lenders know that service members are required to maintain financial stability, including a good credit score, to maintain their security clearance. Lenders see this as a sign that service members will work hard to pay off any debts they incur or to at least seek counseling and assistance when they are having problems. Also, service members are not able to “disappear” if they fall behind on their payments. Lenders know that, even in the case of a PCS move, they will be able to find the service member and collect on old debts.
Another fact lenders are aware of is how much each service member earns. Pay scales are available online and can be used by lenders to determine the amount of debt military families are able to support. Finally, service members tend to start borrowing money at a younger age than civilians. This can lead to big financial decisions being made by inexperienced consumers trusting banks and other lending organizations that do not have their best interest in mind.
For additional information, refer to consumerfinance.gov/Service Members/.
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This post was published on the Military Families Learning Network Blog on June 17, 2013
Tags: loans and military families, military families and debt, military families and lenders, military families personal finance, militaryfamiliespersonalfinance
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Friday, June 14th, 2013
Join the Personal Finance
team for a busy week starting Monday with Paying for Education Expenses and the GI Bill with speaker Drew Hill, Director of Veterans Affairs – Worldwide with Embry-Riddle Aeronautical University. Mr. Hill’s 90-minute presentation will cover the post 9/11 GI Bill and the Montgomery GI Bill. Topics to be covered include: eligibility, the application process, and transferability. This presentation in Part 2 in our Paying for College series. Review Part 1 here.
Then on Monday, Dr. Barbara O’Neill and Dr. Michael Gutter will present Credit Basics and Debt Repayment Strategies. This 90-minute session will focus on credit and debt management strategies and provide numerous resources to support consumers to succesfully manage their finances. 
Both of the web conferences will offer 1.5 continuing education credits to AFC-credentialed participants. Both web conferences begin at 11 a.m. ET. To connect to the hosting platform, security certificates are required. Please review these instructions. Alternatively, both presentations will be streaming on Ustream.
Tags: credit, debt, financial management, GI Bill, military families personal finance, militaryfamiliespersonalfinance, Montgomery GI Bill, paying for college, personal finance web conferences, personal finance webinars
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Monday, June 3rd, 2013
By Barbara O’Neill
Can a service member in his 30s use funds in a traditional IRA to pay for college? 
Like all IRA owners, service members who withdraw funds from a traditional IRA before age 59 ½ are subject to the 10% early withdrawal penalty with a few exceptions. One of these exceptions is to pay for qualified higher education expenses. Funds withdrawn will be subject to the early withdrawal penalty, however, if they are in excess of the actual amount of expenses.
When determining the amount of money needed to withdraw, service members should take into account any distributions from 529 plans, scholarships, grants, and other tax-free payments, such as gifts or inheritances they have received during the year. Qualified higher education expenses for the IRA exemption include tuition, fees, books, supplies, and equipment required for enrollment as well as room and board as long as the student is attending school at least half-time. For more information, refer to irs.gov/publications/p590/ch01.html#en_US_2011_publink1000230896.
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This post was published on the Military Families Learning Network Blog on May 27, 2013
Tags: IRA and education, military families personal finance, militaryfamiliespersonalfinance, paying for college, paying for college and military, traditional IRA
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Monday, May 20th, 2013
By Barbara O’Neill
What are some tips for service members for naming beneficiaries for insurance policies and retirement savings plans such as the Thrift Savings Plan (TSP)?
Photo by lorenkerns (creativecommons.com)
First, service members should regularly review the beneficiaries named in insurance policies and retirement savings plans and revise them as needed. Second, service members should name secondary beneficiaries in case the primary beneficiary predeceases them. Third, service members should record in one document all of the beneficiaries and contingent beneficiaries for all of their important papers that include named beneficiaries for ease of review and periodic updating. A form to record beneficiary designations can be found at njaes.rutgers.edu/money/pdfs/beneficiary-designations.pdf
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This post was published on the Military Families Learning Network Blog on May 20, 2013
Tags: beneficiaries, beneficiaries and insurance, beneficiaries and savings, military families personal finance, militaryfamiliespersonalfinance
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Tuesday, May 14th, 2013
The Johnson family first joined us during Dr. Michael Gutter’s April 15 Financial Statements & Record Keeping web conference. Here, they discuss opening a 529 plan for their 2-year old son, Sam. Watch as Brittany and Brett discuss the advantages of this education savings option, and save the date of May 21 for Dr. Barbara O’Neill’s Paying for Post-Secondary Education Expenses web conference.
The Johnsons discuss 529 plans
by: msgutter
Tags: 529 plans, college savings plans, military families personal finance, militaryfamiliespersonalfinance, paying for college, saving for college
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Monday, May 13th, 2013
By Barbara O’Neill
Why should service members start a savings program before they are deployed?
The simple reason to save part of a service member’s military paycheck as early as possible is because “time is money.” The sooner money is saved, the sooner compound interest can work its magic by earning interest on interest. Also, by saving money in advance of a deployment, service members will be able to contribute as much as possible to the Savings Deposit Program (SDP) as soon as they become eligible. Deposits that are proportionate to a service member’s unallotted pay, bonuses, and allowances can be made by cash, check, or money order in $5 increments or by allotment.
Deployed service members can invest up to $10,000 in the SDP and receive 10% interest, compounded quarterly for as long as they are deployed and for up to three months after they return from a combat zone. The 10% return far exceeds the return on traditional bank savings accounts or credit union share accounts and is especially valuable on a larger sum of money (e.g., $10,000 of principal versus $2,000). For more information about the SDP, see saveandinvest.org/FinancialBasics/Saving/P124359.
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This post was published on the Military Families Learning Network Blog on May 13, 2013
Tags: militaryfamiliespersonalfinance, saving, saving money, savings accounts
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Monday, May 6th, 2013
By Barbara O’Neill
Are the children of service members covered by the federal health care law that allows adult children to stay on their parent’s health care plan until age 26?
Yes. Congress passed legislation requiring TRICARE, the health insurance program for active and retired service members, to adopt the provision required for health insurance offered by civilian employers to extend health care insurance for young adults until age 26. An annually adjusted fee ($176 or $201 per month in 2012, depending on the type of plan selected) is charged for each young adult covered through a parent’s insurance. Young adult TRICARE premiums are based on recent medical expense data.
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This post was published on the Military Families Learning Network Blog on May 6, 2013
Tags: heath insurance, military families personal finance, militaryfamiliespersonalfinance, TRICARE
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Monday, April 29th, 2013
By Dr. Barbara O’Neill
What is Military Stop Loss Pay?
Military Stop Loss occurs when a service member’s enlistment is involuntarily extended. As a result, additional pay may be provided to service members in this situation.
The deadline for filing a Retroactive Stop Loss Special Pay (RSLSP) claim for stop loss between September 11, 2001 and September 30, 2009 was October 21, 2012. RSLSP pay is $500 for each month/partial month served in stop loss status and the average benefit is $3,700.
Eligibility, filing, and payment information for Retroactive Stop Loss Special Pay is available online at http://www.defense.gov/home/features/2010/0710_stoploss/.
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This post was published on the Military Families Learning Network Blog on April 29, 2013
Tags: military families personal finance, Military Stop Loss Pay, militaryfamiliespersonalfinance, Retroactive Stop Loss Special Pay, RSLSP
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Monday, April 22nd, 2013
Meet the Johnson Family. Brett, Brittany and their son Sam are the subject our our personal finance case study, which details this military family’s financial situation. Brittany, a nurse, enjoys her career and earns a good salary. Brett also enjoys his career as a Corporal in the Army. They are focused on staying current on their bills and saving for their son’s education.
In this video, watch as Brittany and Brett discuss how to use their tax return, and stay tuned for more videos featuring the Johnsons!
This video and this blog post were published by the Military Families Learning Network and shared on the Military Families Learning Network blog on April 22, 2013.
Tags: military families personal finance, military family case study, militaryfamiliespersonalfinance, saving, tax returns
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Monday, April 15th, 2013
By Dr. Barbara O’Neill
An active duty service member is in financial difficulty and cannot afford his rent and other expenses. Will he be evicted? 
The Servicemembers’ Civil Relief Act (SCRA) provides a service member protection from eviction for non-payment of monthly rent while on active duty. The SCRA also allows service members to end a lease by giving written notice at least 30 days before the next payment is due. Monthly rent must not exceed a certain amount that is updated annually and service members are advised to speak with their base legal office for current rent amounts. This 30-day time frame allows a service member time to find affordable housing choices. For more information, refer to www.military.com/benefits/legal-matters/scra/lease-termination.
It is important to note that some landlords may be unaware of SCRA protections and try to evict service members anyway. The service member may need to “educate” the landlord by providing resources that explain the law such as http://www.military.com/benefits/content/military-legal-matters/scra/servicemembers-civil-relief-act-overview.html.
There is also a larger question of why a service member is not able to afford to pay rent. Causes of financial difficulty need to be clarified to determine if this is a one-time event of not being able to pay rent or a habitual practice. If a service member and/or spouse needs assistance with preparing and using a spending plan (budget), personal financial counselors are available at the state Joint Force Headquarters, through Military OneSource (see www.militaryonesource.mil/MOS/f?p=MOS:HOME:0), or through the State Family Programs Director.
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This post was published on the Military Families Learning Network Blog on April 15, 2013
Tags: military and eviction, military and financial hardship, military and paying rent, military families personal finance, militaryfamiliespersonalfinance, SCRA, Servicemember's Civil Relief Act
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