magazine - USAA.com
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magazine - USAA.com
U SA A .CO M W I N T E R 2 008 M AGA Z I N E A MEMBER’S GUIDE TO FINANCIAL SECURITY Common Sense for Uncommon Times FdUSWI08_01_Covers102808.indd 1 11/6/08 5:23:01 PM MORE SECURITY FOR YOUR FINANCIAL FUTURE. In tough economic times, the value of our strength shines. We have secure products that provide guaranteed growth in any economic environment. Achieve your short-term goals with an FDIC-insured CD or take advantage of our tax-deferred Extended Guarantee Annuity that provides interest for your retirement savings up to 5.7% with a minimum guaranteed rate of 1-3%. Put our strength to work for you. GO TO USAA.COM OR CALL A USAA ADVISOR AT 800.235.1898 USAA.COM Annuities - Not FDIC Insured • Not Bank Guaranteed. Annuity rate shown applies to 10-year Extended Guarantee Annuity. Rates effective 10/1/2008; subject to change. Extended Guarantee Annuity earns interest at the rate in effect at the time of purchase. Rate guaranteed for the period selected. Afterwards, interest rates may change monthly, but not below the minimum guaranteed interest rate. The minimum guaranteed interest rate is subject to change and may vary by product and state. The minimum guaranteed interest credited to the contract will be 1%-3%. The minimum guaranteed rate is xed and will not change after the contract is issued. Extended Guarantee Annuity: AEG37641ST 05-01 (varies by state); in NY, NEG38001NY 05-01. Call for details on specic costs, benets, limitations and availability in your state. Annuities provided by USAA Life Insurance Company, San Antonio, TX, and in New York by USAA Life Insurance Company of New York, Highland Falls, NY. Each company has sole nancial responsibility for its own products. CDs require a $1,000 minimum opening deposit. Penalty for early withdrawal may reduce earnings. Availability restrictions apply. CDs provided by USAA Federal Savings Bank, Member FDIC. © USAA 2008. All rights reserved. 89172-1008 FdUSWI08_02_C2_ad.indd 1 10/31/08 9:58:22 AM MESSAGE FROM THE PRESIDENT WE’VE WEATHERED THIS KIND OF STORM BEFORE IS THERE ANYBODY WHO ISN’T REELING from the economic events of 2008? Those of us who have retirement in our sights are nervous about dwindling account balances. It all may seem out of our control, and we can sit and watch it happen, or we can take charge. Keep investing for your retirement. This is a very good time to be investing because there are solid investments at lower prices. Do review your time frame and objectives, and make sure that your risk tolerance matches your investment mix. You may want to consider investing in a target or asset allocation fund that will rebalance for you as the market changes. If you have access to an employer-sponsored retirement program, maximize your contributions to $15,500 with a $5,000 catch-up for individuals age 50 and over in 2008. Traditional and Roth IRAs, if you qualify, let you put away $5,000 with a $1,000 catch-up for individuals age 50 and over in 2008. If you’re worried about debt, the Debt Analyzer on USAA.COM can help establish a clear picture of your situation. You’ll learn ways to pay off the debt faster. Then you can re-establish a budget, and gain the peace of mind that comes from knowing you are living within your means. Get advice from someone you can trust Your financial situation is personal and deserves individualized solutions. Seek financial advice from someone who is salaried and focused on your interests. Many investors have made a “flight to quality” over the last two months and USAA members are no different. Members are moving their money to us and opening a record-breaking number of new investment and bank accounts because they recognize the quality of USAA products, service and advice — and they know they can trust USAA. USAA is strong And make sure the financial products you buy are from a company that not only has a history of financial strength, but is strong today. If it sounds like I’m describing USAA, you’re right. Unlike so many financial services companies today, USAA is conservative, strong and growing — just as we have been for more than 86 years and through countless economic downturns. Our employees care about your financial security, and they are eager to help you. ■ Josue (Joe) Robles, Jr. Major General, USA (Ret.) President & CEO U SA A . CO M FdUSWI08_03_CEO letter.indd 3 USAA means United Services Automobile Association and its affiliates. Financial advice provided by USAA Financial Advisors, Inc., registered broker dealer. WINTER 2008 USAA MAGAZINE 3 11/7/08 9:37:33 AM USAA A M E M B E R ’ S G U I D E TO F I N A N C I A L S E C U R I T Y W I N T E R 2 0 0 8 • VO LU M E 4 4 • N U M B E R 4 In Every Issue Mail Call 6 USAA members share thoughts on military life and pesky ATM fees. Common Sense for Uncommon Times 12 FYI 7 Get a vacation checklist, smartphone safety tips and other handy advice. In a year of unprecedented financial crises, get USAA’s perspective before you make your next move. On the Money 10 Our experts answer questions on refinancing, payday loans and more. By John Gilliam Member Savings FEATURES 25 Check out our guide to products and services especially for you. ’Tis the Season for Tax Prep 16 Take actions this fall that may pay off next spring. By Dennis McCafferty Member Snapshot 32 Meet an Army marksman who targeted gold in Beijing and won. 7 Essentials for Security 18 Here’s the lowdown on the latest ways to help secure your home computer. By Christopher Null On Course 20 Managing finances as parents age can be a challenge, and adult children may have to step in to help. Get our tips for easing the burden. By Kerry Hannon Teach Your Children Well Your kids are watching. Make sure that the way they see you manage money reinforces good financial habits. By Teri Cettina COVER PHOTO: JEFFREY COOLIDGE/GETTY IMAGES 4 USAA MAGAZINE WINTER 2008 FdUSWI08_04_TOC_3_USAA.indd 4 24 Save energy and money with our timely tips. 8 U SA A . CO M 11/6/08 5:24:15 PM Financial news got you down? mobile.usaa.com Head style 2 GET FREE ADVICE from USAA to help you weather the economic storm U SAA can send financial tips to your inbox — at no charge. Stable, secure and financially strong, USAA offers three e-newsletters filled with advice. Each one can help you make sense of your personal finances. ■ Financial Services Update — Offers insightful market commentary and in-depth analysis of financial news. Twice monthly. ■ Your Money — Offers insight and advice for day-to-day financial decisions, from budgeting and buying a car to saving for a new home or your Use MOBILE.USAA.COM to: retirement. Monthly. ■ Check account balances. ■ The Retirement Report — ■ Transfer funds. Gives guidance on how ■ Make stock trades. to secure your financial future with timely advice ■ Pay bills. and tips. Monthly. ■ Request auto ID insurance cards. USAA ON THE ROAD SUBSCRIBE TODAY Log on to USAA.COM > My Accounts > My Profile > Manage Newsletter Subscriptions USAA EXECUTIVE EDITOR: Sarah Plaster MANAGING EDITOR: USAA Magazine is published quarterly by USAA as an informational and educational service to members. Material in this magazine may not be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopy or otherwise) without permission from the publisher. The post office does not forward copies from incorrect addresses. © 2008 USAA. Jennifer Chappell Smith Shari Biediger, Lee Brookman, Nancy McAllister, Brian P. McGlinchey, Susan Speer CONTRIBUTORS: PRODUCTION AND CIRCULATION MANAGER: Lisa Severson VICE PRESIDENT, MEMBER COMMUNICATIONS: Rhonda Crawford U SA A . CO M FdUSWI08_05_USAA.usaa.com.indd 5 DESIGNED BY: McMurry, 1010 E. Missouri Ave., Phoenix, AZ 85014 PUBLISHED BY: USAA, 9800 Fredericksburg Road, San Antonio, TX 78288-3533; (800) 531-8646 (magazine business only). For information about USAA’s products and services, see page 25 or log on to USAA.COM. For information about reprinting material from USAA Magazine, please write to Lisa Severson at the address above. Requests must be in writing. MISSION: USAA’s mission is to facilitate the financial security of its members, associates and their families through provision of a full range of highly competitive financial products and services; in so doing, USAA seeks to be the provider of choice for the military community. USAA products and services are available only in those jurisdictions where USAA is authorized by local law to promote and sell them. usaa.com magazine for USAA members beginning their financial journey, U Magazine for members who are elementary and middle-school age, U-TURN for young teen members and U.25 for young adults. USAA ALSO PUBLISHES: USAA with the eagle is a registered service mark of USAA. WINTER 2008 USAA MAGAZINE 5 10/31/08 9:55:15 AM Jacey Eckhart AXZ\p<Zb_ Xik`j Yffb#K_\?fd Xe8`i=fiZ\YiXkXe [EXmpn`]\%? \]ifek:clY >l`[\kfIX `j`e^XD`c`kXip1K_\?Xi[_\X[\[NfdXe \i XjXelgY\ Ëj Xk#_fn$kfdXe=Xd`cp#_XjY\\e_\i lXc]fid`c`kXipj Xc[\[ gflj\j% &' USAA MAGA ZINE FA L L 2 008 Saving on ATM fees In response to “Attack of the Killer Fees” (Fall 2008): I used to go to my local bank ATM weekly to get pocket money. Then bank fees jumped to $3 per transaction; and, even though USAA Federal Savings Bank returns most of these fees,1 I started looking for cost-saving alternatives and found two. First, rather than going to the ATM weekly, I started going every other week and getting twice as much spending Send your feedback Visit USAA.COM/USAAMag and click “Contact Us.” Or, mail letters to USAA Magazine, Mail Call, E-1-E, 9800 Fredericksburg Road, San Antonio, TX 78288-3533. Please include a daytime phone number. All or part of your letter may be printed in an upcoming issue. It may be edited for clarity and length. • The opinions expressed here are those of individual members and not necessarily of USAA. If you have comments regarding an individual claim or concerns that do not pertain to items in the magazine, please refer to USAA.COM for a comprehensive list of contact numbers. USAA MAGAZINE WINTER 2008 FdUSWI08_06_mailcall_2_USAA.indd 6 USAA G?FKF>I8G?PF =;FEE8DLJ@C8 G?FKF>I8G?9PI8PE> I]Vih]djaYc @^Yhl^i]VeV Éihjgeg^hZjhbjX]# gZci^cVlVg ValVnhldggn# odcZl^aa @^Yhl]da^kZ l^aaValVnhW dkZghZVh ZVW hVkkni]Vci]Z ^ibdgZXjaijgVaan ^ghiViZh^YZXdj eVgih#@^Yhl ^aaValVnh!Val ciZg" idbdkZVlVn Vnh]ViZ [gdbi]Z^g[g^Z cYh# Æ>iÉh]VgYZgi] b^YYaZhX]dd Vcndji]^c`[dgV aZgdgV]^\]h bdkZ!ÇhVnhC X]ddaZgid VknWgVi@Zk Æ>YZÒc^iZani ^c8Va]djc# ]^c`ndjWZX aZdc#Ndjbdk dbZ Z^c!\dcZjig VX]VbZ" WaZcYl^i]Zk Va!aZVgcid ZgndcZZahZ#Ç i]^hbZVcii] ;dg8Va]djc! Vi]Z]VYidX Donna Musil l]ZcbZcÉh\ ]Vc\Zhedgih nbc Vi]^hcZl]^\] Vhi^XhlVhcÉiVkV^aVWaZ hX]dda#>ibZV [djcYdji]^h hX]ddacZZYZY cii]Vil]Zc]Z WVcY!]ZaZVgc igdbWdc^hih^c ZYideaVnigdb i]Z nZVg!8Va]djc WdcZ#7n]^hh ]VYaZVgcZY ]ZhiddYdji! idWaZcY^chd Zc^dg Vh]^hZaZXi^dc lZa ]^\]hX]ddaXa VhegZh^YZcid ai]Vi Vhhl []^h 8Va]djcÉhnd ^aaViiZhi# Y^[[ZgZciZme jc\ZgWgdi]Zg!7g^Vc!] VYV Zg^ZcXZl^i]b Y^YcÉiX]Vc\Z ^a^iVgna^[Z#7g^ idhj^ii]Zb Vc WZcii]Zb^a^ ^a^iVgn0]^h[Vi iVgnhX]ZYja ]Zg ZidVXXdbb 7g^Vc#BVcn dYViZ b^a^iVgn[Vb ^a^Zh Wnejh]^c\V bdk^c\YViZ[ VXXdbea^h]i]^h lVgYidVXXdb dglVgYdgWV X`" bdYViZi]ZW d[hX]dda#I]Z Z\^c 8Va]djchidd` c^c\dgZcY^c\ Kevin WVX]Zadgidjg# dcV\Zd\gVe on the , Brian an ]^X Æ>lVhV[gZh]b Hotel steps of thed their mo Vcl]ZcbnY id?VeVc!Ç7g^ Brian in Honolu Royal Ham, Brenda VY\didgYZgh VcgZbZbWZgh footba led the Unlu in Novem waiian , h^i"Ydlc#=Z #ÆLZ]VYV[V \VkZjhi]Zd ersity ll team to iversity of ber 2005 b^an a wi . of Ha ei^dcidbdkZ Wisc 14 9 dgcdiid yard waii by n over the onsin s an rush Un d a tou in chdowng for . . CO M USAA . CO M Kevin and Brian Calhoun, ages 6 and 3, at Disney World in Orlando, Fla., with their dad, Andrew, in 1987. 8C?FLE Jacey Eck hart’s bound for Kor family ea. G?FKF>I8G?PF =A8:<P<:B?8I K8E;=8D@CP:F LIK<JPF=A8:< P<:B?8IK Donna Musil relaxing in Fort Bragg, N.C., in the backyard in the late 1960s. I really enjoyed your article “Growing Up Military” (Fall 2008). It brought back lots of memories of being a Navy brat. The story of Kevin and Brian Calhoun could have been mine. I had to learn how to blend in. My brother stayed at his high school while my dad took an unaccompanied tour. Our family loved our military experiences, and I, like the author, have “military markers” that “speak the language of home to me.” Thanks for taking all those nameless feelings and experiences and putting them into wonderful words. I’m going to answer “I’m from the Navy” whenever asked! ■ Johanna Wood, Littleton, Colo. 6 ?8I K E8E;=8D@CP: FLIK<JPF=8E ;I<N: 9PA 8:<P <:B DC:D;I=: 8A6HH>8h^\c WgVi^ijYZ^hi] hd[b ZiZaaiVaZ[jb i]Z^ccdXZcif Wa^c\[dgVcVc ^a^iVgn jZhi^dc!ÆL] hlZgid ZgZVgZndj[gd GZ\jaVgeZdea b4Ç ÆHVc9^Z\d#ÇA ZhVni]^c\ha^`Z!ÆD]^d ^`Zdi]Zgb^a^ Çdg gZX^iZi]Za^iVc iVgnWgVih!>i ZcY nd[l]ZgZ>l >\gVYjViZY[g VhWdgcVcYl] id db]^\]hX]dd hiVi^dcZYi]Z aVcYl]ZgZl ZgZ adc\ZhiVcYl ZlZgZ gZXZcian#>hid ]ZgZ>a^kZYb ei]^h[VhX^c Vi^c\_djgcZn dhi Y^hXdkZgndc anl]Zc>cd d[hZa[" i^XZi]Vibn ZnZh]VkZ\aV a^hiZ oZYdkZg#I]Z c>bjbWaZ!ÆD cZgÉh DgÆHVc9^Z\d #Ç ]^d#Ç I]^h^hcÉiV\d bnhZa[ldcYZ dY[ZZa^c\#HdbZi^bZh>Ò g^c\^[bndlc cY l^aaVahd[jbW i]gZZb^a^iVg aZ[dgVchlZgh n`^Yh d[fjZhi^dchl idi]^hbdhiW ]Zci]ZnVgZ Vh^X WZhVkZY[gdb VYjaih#Dgl^a b^a^iVgnWgVi ai]Zn d[;VXZWdd`V ]ddYWni]Ze cYKdcV\Z!b dlZgh \Zd\gVe]^XWV dW^aZe]dcZh! X]Zadg]ddYV iZmi^c\! d[Æ6gbnL^k cYVaai]dhZZe ZhÇ4 ^hdYZh L]^aZY^[[ZgZ ci\ZcZgVi^dch ZmeZg^ZcXZb^ a^iVgna^[Z^cjc d[b^a^iVgnWgVih VcY6gbnWgV ^fjZlVnh!Òab i9dccVBjh^a] bV`Zg bdgZh^b^aVg^i Vhl^icZhhZYb ^ZhWZilZZci] Vcn i]ZÒab^c\d[ Z\ZcZgVi^dchY Æ7G6IH/Djg?d jg^c\ dcanY^YeViiZ jgcZn=dbZ#Ç gchZbZg\ZVb Cdi WgVihh]Z^ciZg dc\i]Z*%%b k^ZlZY[dgi]Z ^a^iVgn `^Yhhi^aaXdb egd_ZXi!Wjib Zjeid]Zgid ^a^iVgn i]Vc`]Zg[dg i]Zi]^c\hi]Z hVn^ nXdjaYcÉieji b^a^iVgna^kZh# ^cidldgYhVWd c\ jii]Z^g Æ>ÉkZWZZch] dl^c\i]ZÒab &'id-%!ÇBjh [dgeZdeaZ[gd ^ahVnh#Æ6adid b hVbZ#6adid [i]Z hij[ [^hi [i]Zhij[[l^a aValVnhWZi]Z ]Z hVbZ#Ç G?FKF>I8G?PF =9I@8E:8C?FL Feels like home Donn a Tisa Muand on a lay sil in Ha over wa on the ii ir way fro m Fort Ma Calif., son, Seoul, to Korea , in 19 73. Donna’ s JAG offi father, Louis “Bu cer with Kreuzn the 8th d” Musil, then ach off to sch , Germany, Infantry Divisioa major and sees the U.S ool in 1970. Mu his younge n in Bad . Army st as a lieu sil, now deceaseddaughter, Tis a, tenant , retired colonel. from E;=8D@CP:FLI K<JPF=;FEE8 B>A>I6GN DLJ@C mail call iv- Brian Calho un FA L L 2 008 USAA MAGA ZINE &( money. Second, I started using the ATM at Wal-Mart stores. Every Wal-Mart store I’ve ever been to has an ATM and all charge only $1.40 per transaction. With these two changes, I cut my ATM fee charges to our bank from around $156 per year to only $36.40 per year, a $119.60-per-year savings. Imagine if hundreds, or even thousands, of our members adopted these two simple behavioral changes. ■ Steve Likins, U.S. Army, Lt. Col. (Ret.), Memphis, Tenn. Editor’s Note: Thanks for sharing your tips. Keep in mind that you can also avoid ATM fees by using the cash back option on your debit card during checkout at stores that offer that feature. Military housing: big benefit Your article “Spending Smart” (Fall 2008) ignored one of the primary benefits of military service: a free house. When I was on active duty 20 years ago, U.S. commissioned and warrant officers and many noncommissioned officers qualified for a housing allowance that is not taxable by any government entity. I’ve been told that policy hasn’t changed. Coupled with the deductibility of home mortgage interest for income tax purposes, this practically equates to free housing. Only under the most extraordinary of circumstances should this benefit be ignored. ■ Thomas Smith, Fairfax, Va. Free ATMs: USAA does not charge a fee for the first 10 ATM withdrawals and refunds up to $15 in other banks’ ATM usage fees each month. Currency conversion charges may apply when using ATMs outside the United States. 1 U SA A . CO M 10/31/08 9:51:50 AM MAIN PHOTOGRAPH BY THERESA CASSANGE; INSET PHOTOS COURTESY OF DALONNA RIMSKY Drawing it out An Air Force wife gets kids to share how they feel about deployed parents K sought a creative way to help her son while his dad was deployed overseas. Rimsky used her computer to transform family photos into line drawings. “Kids love to color. It’s a familiar thing,” Rimsky says. “But talking about their feelings is not. As my son started coloring, he started opening up.” Now, she makes Color The Memories books for other families. The order she remembers best came from a woman who had lost her 30-year-old son. She ordered coloring books for her three granddaughters. “It really captured the memories for these girls who didn’t have their dad anymore,” says Rimsky. Between teaching her own two children at home and working as an after-school care director, Rimsky operates Color The Memories out of her kitchen in Louisiana — hoping to help other families like she helped her own. A snapshot of the Rimsky family transforms into a coloring book page. ids say the darndest things when you put a crayon in their little hands. Such as how much they miss their daddies. And when they finish, they might have more contented smiles. Coloring books by Color The Memories developed when USAA member DaLonna Rimsky F Y I When I said, ‘OK, let’s sit down and color Daddy,’ he started coloring and opening up, saying, ‘I really miss Daddy. I can’t believe he’s away.’ THE ROSTER Enjoy these events, sponsored by USAA. For more, visit USAA.COM/Events. DECEMBER 6 Army-Navy Game Philadelphia JANUARY 23 Military Appreciation Night — San Antonio Spurs vs. New Jersey Nets San Antonio U SA A . CO M FdUSWI08_07-9_FYI_v3_USAA.indd 7 WINTER 2008 USAA MAGAZINE 7 10/31/08 9:48:49 AM F Y I Vacation-proof your home B EFORE SETTING OUT to see the Seven Wonders of the World — or your brother-in-law’s house for the holidays — mark off this checklist to help keep your own home safe and secure. Ask the post office to hold your mail. Stop newspaper delivery. PHOTOGRAPHY: THIS PAGE: (TOP) IMAGE SOURCE, (BOTTOM) LAUREN NICOLE/GETTY IMAGES; NEXT PAGE: (TOP) MURIEL DE SEZE/GETTY IMAGES, (LEFT) VINCE PENMAN/ISTOCKPHOTO, (BOTTOM RIGHT) JON PATTON/ISTOCKPHOTO Adjust your thermostat — in winter, no lower than 55; in summer, no higher than 85. Set automatic timers for your lights to mimic your normal patterns. Unplug sensitive appliances such as computers, televisions and microwave ovens. Turn off water supply to toilets and your washing machine. Let your security service and/or the local police know your house will be empty. Source: Institute for Business and Home Safety SLASH YOUR ENERGY BILL HERE’S HOW: Replace incandescent lighting with Energy Star bulbs. ■ Find drafty windows, doors and baseboards and seal them with caulk. ■ Unplug coffee makers, DVD players, phone chargers and ■ 8 USAA MAGAZINE WINTER 2008 FdUSWI08_07-9_FYI_v3_USAA.indd 8 video games. They act as energy vampires — sucking up electricity, even when powered off. ■ If you’re replacing a fridge that’s more than 10 years old, consider choosing a new Energy Star model. ■ Choose flat-screen computer monitors, which are sleek savers. ■ Consider purchasing an LCD TV, which uses about half the energy of its plasma counterpart. Source: U.S. Department of Energy U SA A . CO M 11/6/08 5:26:28 PM MORE THAN SENTIMENTAL VALUE PROTECT YOUR FAVORITE THINGS What’s on your holiday wish list? A painting by a favorite artist? Something sparkling and emerald cut? Make sure that such items don’t fall through any gaps in your insurance. A Valuable Personal Property insurance policy protects items that have coverage limitations or are not covered under a homeowners or renters policy — from furs and jewelry to fine art. Have a special work of art, your grandmother’s silverware or another such item that you want to insure? With this kind of policy, you’ll get 100 percent replacement cost up to the amount you insure each item.1 Log on to USAA.COM and enter keyword “VPP.” SMARTPHONE S AVVY The pocketsize wonde r is as much a mob USAA offers ile compute r as it secure acce is a phone. member acc ss to We love the o u co n ts n vefrom mobil nience of ke devices. Bu e eping up wit t it’s wise to h family and friends protect yourself, to . We love m o, with tips obile banking an from Richardson d investing. a nd consume And we love having r advoc a te everything and cell pho in one ne expert D device that W avid ood of Cons goes where umerAffair we go. But what do s .c DO om: you do if yo ur device is lost ■K eep a record or stolen? “P of what’s sto eople don’t realize in your dev red how vulnera ice. ble they are,” s ■N ays Denise o te the phon Riche’s make, m ardson, con and serial n odel sumer advo umber. cate and identity ■P assword-pro theft risk m anagetect your p ment specia ■ If hone. list. “Most o your phone f is us sit lost or down at a re stolen, con staurant an tact your s d put the phone o ervice provider im n the table,” mediately she explains. “ and file a police Thieves are report. waiting for you to lo D ON’T ok the othe r way, and when y ■S tore Social ou do, your Security, ba phone is gone.” nk account or credit card numbers in the devic e. USAA offers secure access to USAA accounts from mobile devices. Check out our mobile capabilities at USAA.COM/ Mobile. To make a transaction or take care of other business with USAA on a site created for mobile devices and computers with low bandwidth, visit MOBILE.USAA.COM. Conversion confusion? Y ou probably know about the digital television conversion coming in February 2009, but here’s the lowdown. If your TV was manufactured before 2003 and you use an antenna to get a signal, you’ll need a converter box, costing between $40 and $70. You can apply for coupons, worth up to $40 toward the purchase of the box, on the official digital conversion Web site: dtv2009.gov. Cable and satellite customers can avoid the cost since providers will automatically convert the signal. But, in a service outage, the box allows you to get local stations, which could be valuable in an emergency. Newer TVs have the digital signal, so no conversion is needed. Did you know? If you need a tow truck after an accident, USAA can send one directly to the scene. Call (800) 531-8722 and we can get your vehicle directly to a repair facility — reducing the time you’re without it. If you can’t call from the accident scene, report the claim promptly so that USAA can move your car from a storage yard to a repair shop sooner rather than later. WINTER 2008 FdUSWI08_07-9_FYI_v3_USAA.indd 9 USAA MAGAZINE 9 11/6/08 5:27:09 PM on the money Smart solutions From the pitfalls of payday loans to easing estate tax burdens, USAA answers your questions My 84-year-old mother has $250,000 in stock and mutual funds. Now she wants to start giving me and her grandchildren cash gifts by liquidating her investments. Should she just cash in/sell her investments and give the gifts, $12,000 per person, per year, to each of us? — Michael, Mechanicsburg, Pa. As you mention, your mom can give you and your kids up to $12,000 each, per calendar year, without taxes, or gift tax implications, according to the IRS. But keep in mind that her gifts don’t have to be in cash. “Seniors who are trying to reduce the size of their estates often implement a gifting strategy,” says J.J. Montanaro, a Certified Financial Plannertm practitioner with USAA. “If they sell the appreciated assets and give cash gifts it might benefit all parties.” The recipients would receive a gift without any capital-gains implications, and the givers would further reduce the size of their estates by paying the capital-gains tax. “When you make lifetime gifts of stock, land or other securities, you don’t pay capital gains tax. But when the recipients sell such assets, they will pay tax on the difference between what they sell them for and what you originally paid,” says Montanaro. Your mom is a great example of how smart investing can contribute to a comfortable 10 usaa magazine winter 2008 FdUSWI08_10-11_OntheMoney.USAA.indd 10 retirement and help create financial security for future generations. Making sure her money goes as far as possible can be tricky business, however. So consult a tax advisor if you have further questions. I have an adjustable-rate mortgage with 12 months left at my current rate. Should I refinance now? — Ronald, Faye, N.C. As of this writing, interest rates are still well below average, and there’s no guarantee they’ll drop again soon. So as long as you’re u sa a . co m 10/31/08 9:46:20 AM CTA HEAD CTAtaking copy cta copy cta copy cta My husband keeps copy cta copy cta copy cta copy out payday loans, even cta copy cta copy cta copy cta though I have done everycopy cta copy cta copy cta copy thing but leave him to make cta copy cta copy. him understand they are bad. I feel like I am never going to get out of this hole he put us in. What can I do to get rid of these loans instead of getting rid of him? — Tera, Lawton, Okla. planning to stay in your home for at least a few more years, go ahead and look into refinancing, says June Walbert, a Certified Financial Plannertm practitioner with USAA. While you’re at it, consider switching from your adjustable-rate mortgage, or ARM, to a fixed-rate loan. “ARMs have their benefits, but I usually recommend fixed-rate mortgages because they’re a predictable expense for the entire life of the loan,” says Walbert. As with any financial product or service, it pays to shop around. Start with your current lender to set a benchmark, and then check with others. Don’t forget to look at points, lenders fees and other closing costs, so you get an apples-to-apples comparison. u sa a . co m FdUSWI08_10-11_OntheMoney.USAA.indd 11 First, you’re right to take a stand against payday loans. These lenders are notorious for preying on people who are desperate for quick cash, assessing outrageous interest charges and huge penalties for the slightest misstep. And it sounds as though you’re in one of many families who are stuck in a destructive cycle of habitually borrowing money to pay off other loans. “People who take out payday loans often feel they have no other choice, but there are almost always better alternatives,” says USAA’s Montanaro. “Some creditors may be willing to offer revised payment plans to keep borrowers from defaulting. And if you have to borrow more money, using a low-interest credit card or even asking a family member for help is probably better than another payday loan.” As for trying to change your husband’s ways, help him understand that his decisions have long-term consequences. He may be robbing your family of the opportunity to own a home, send kids to college or retire one day. If he won’t listen to you, hopefully he’ll listen to a financial or family counselor. n Get Expert Help For more financial advice, turn to USAA Certified Financial Plannertm practitioners. Log on to USAA.COM and use keyword “Financial Planning Services.” See other important legal disclosures on page 30. Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and Certified Financial Plannertm in the United States, which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. Financial planning services and financial advice provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California), a registered investment advisor and insurance agency and its wholly owned subsidiary, USAA Financial Advisors, Inc., a registered broker dealer. w i n t e r 2 0 0 8 u s a a m a g a z i n e 11 10/31/08 9:46:36 AM 12 USAA MAGAZINE WINTER 2008 FdUSWI08_12-15_CommonSense.indd 12 U SA A . CO M 10/31/08 9:43:58 AM COMMON SENSE FOR UNCOMMON TIMES BY JOHN GILLIAM In a year of unprecedented financial crises, get USAA’s perspective before you make your next move This summer, before the bear market and credit crisis morphed into a global financial meltdown, I wrote an article about my terrible decisions in the 2000-2002 bear market. Back then, I rode the market down and threw in the towel with a 50 percent loss — just as the market was bottoming. Then I sat in cash for two years into the next bull market before getting back into stocks. It was a classic, portfoliodecimating case of buy high, sell low and then buy high again. Embarrassed I’d behaved so emotionally, I put most of my retirement assets into a conservative, professionally managed portfolio and promised myself I’d leave it alone. U SA A . CO M FdUSWI08_12-15_CommonSense.indd 13 Then came the deluge of once-unimaginable news: Fannie Mae, Freddie Mac, Lehman Brothers, Merrill Lynch, AIG, Washington Mutual, Wachovia — an incredible list of proud American financial institutions — either went under or were taken over. And the Dow kept plummeting, with no end in sight. With my portfolio down more than 30 percent in one year and still falling, my promise to “leave it alone no matter what” seemed quaint. Had the investing fundamentals underpinning my philosophy collapsed? Was it time to get out of the markets once and for all? Like every investor in America, I was scared, angry and confused. WINTER 2008 USAA MAGAZINE 13 11/6/08 5:29:22 PM When Everything Goes Down The thing that’s been so disturbing since the summer is that the prudent investor’s best friend — diversification through asset allocation — hasn’t worked. Instead of stronger asset classes balancing weaker ones, virtually every asset class has lost serious money. As bad as the U.S. stock market has been, overseas markets — especially emerging markets — have been much worse. Bonds not backed by the U.S. Treasury have also had losses. Real estate continues to be a disaster, while commodities have crashed, admittedly bringing the silver lining of lower gas prices. “The only thing asset allocation has done recently is make sure you don’t to his 401(k). They are like people all over America, making crucial decisions in the midst of a national crisis of confidence about the future. Unraveling the Big, Scary Ball Before making another big decision about my portfolio, I decided to sit back and unravel the ball of fear. While the “financial crisis” has become an allencompassing term for today’s ills, it’s not that simple. There are several key elements in play, and they have to be considered individually. The first is the credit bubble that drove the housing boom and the subsequent housing bust that froze the credit markets. The critical factor turning the Gain may be temporary and uncertain, but ever while you live, expense is constant and certain. —Poor Richard’s Almanac by Benjamin Franklin do as badly as the worst asset class,” USAA Investment Group’s Ron Sweet states. “Outside of Treasury securities, there’s been no place to hide. That’s what happens when you have a credit crisis combined with a recession, a depressed housing market, a financial system meltdown and a global crisis of confidence.” After they opened their third-quarter investment statements, my retired mother and business-owning brother had their own take on the situation. She asked me if she’d have to go back to work at 71. He told me he was going to stop contributing 14 USAA MAGAZINE WINTER 2008 FdUSWI08_12-15_CommonSense.indd 14 housing bust into a credit crisis was leverage. Just as homeowners were borrowing against rising home values, banks and hedge funds were borrowing against the inflated value of the mortgage-backed securities on their balance sheets. As home prices declined and foreclosures skyrocketed, it sparked a second key element that led to the overall crisis: banks and consumers alike scrambling for cash. That reaction created huge holes in bank balance sheets, which is what the government is currently attempting to fix by directly investing capital into the banks and taking a partial ownership position. A third big problem is the lack of trust between banks. And, again, the government has stepped in and is guaranteeing many types of common financial transactions. In fits and starts, the government’s bold action, along with coordinated steps overseas, is slowly unfreezing the credit markets. Further, concrete steps and programs are in place to support the housing market, such as the Hope for Homeowners Act of 2008 and the FHASecure plan. So does it still make sense to invest in the credit markets? Will bonds resume their traditional role as portfolio balancers and stable income providers? According to USAA’s Cliff Gladson, “The losses in the bond market were directly related to the credit crisis. With investment banks and hedge funds liquidating their bond holdings, we’ve had supply and demand imbalances that have very little to do with the essential element in the bond market — that is, the bond issuers’ ability to repay. With the exception of Lehman and WaMu, for example, the other big factor that can impact bonds is inflation, and the good news is that the combination of global recession with falling energy and other commodity prices will likely wring out whatever inflation exists. Many types of bonds are on sale, especially municipal and corporate securities.” Why the Stock Market Kept Falling Many people, me included, assumed that the government bailout would have a positive effect on stocks, but instead they just kept falling. USAA’s Ron Sweet explains why: “One big reason for the huge sell-off since mid-September — even after the bailout — is uncertainty U SA A . CO M 11/6/08 5:30:31 PM about capitalism and the capital markets moving forward. There are questions about the banking system and the impact of a less freewheeling capital environment. The market needs to see what earnings will be in the post-crisis world. Once that becomes clear, stock prices should find a new equilibrium that we can build from.” So is it time to get out of stocks and wait until things get better? Warren Buffett doesn’t think so. “A simple rule dictates my buying,” Buffett wrote in October. “Be fearful when others are greedy, and be greedy when others are fearful.” He continued, “I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.” America the Resilient If you are a long-term investor, a decision to get out of stocks is really a bet against the American (and now global) economy. Again Buffett’s words are If you would be wealthy, think of saving as well as getting. —Poor Richard’s Almanac by Benjamin Franklin comforting, as he explained that in the 20th century the Dow rose from 66 to 11,497. “You might think that it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain,” he wrote. “But some investors did; the hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy.” As I climb off the ledge of fear, and invite you to join me, does this mean that we should all leave our investment statement envelopes unopened and do nothing? Absolutely not, says USAA’s Sweet. “The 1980s and 1990s gave people exaggerated ideas about the stock market, leading to this very humbling decade with its two deep bear markets. People who are nearing or in retirement need to review the risks that they are taking, because they won’t have time to make up bear market losses, especially if they are forced to make withdrawals in a falling market.” As for younger members, Sweet counsels that you should be investing on a regular basis, mostly in stocks, using tax-advantaged retirement vehicles such as 401(k)s and IRAs and educational vehicles such as 529 plans and Coverdell Education Savings Accounts. “Systematic investing is the best way to go, but to make it work you have to keep buying when stocks are cheap — that’s when you get the biggest bang for your buck.” ■ Systematic investment plans do not assure a profit or protect against loss in declining markets. NEED REASSURANCE? PHOTOGRAPH BY JENSEN LARSEN PHOTOGRAPHY Call USAA at 800-531-USAA (8722). USAA: IT DOES MAKE A DIFFERENCE Financial writer John Gilliam U SA A . CO M FdUSWI08_12-15_CommonSense.indd 15 By way of full disclosure, I am a freelance investment writer, and USAA is my biggest client. It also manages my retirement assets. If you’re not ready to give up on your own financial future, call USAA and speak to a person who will take the time to get a comprehensive picture of your situation, explain your options, and make a recommendation. WINTER 2008 USAA MAGAZINE 15 11/6/08 5:30:50 PM ’Tis the Season — FOR TAX P BY DENNIS M C CAFFERT Y EASY, END-OF-THE-YEAR actions can help reduce your tax burden on April 15, 2009. Here’s how. INVEST YOUR HOLIDAY BONUS IN AN IRA. You were getting by without the bonus, right? So why not use whatever you get in December to reduce taxes? Depositing all of it immediately into an IRA may do just that. You may also be able to deduct the full or a partial amount of your IRA contribution on your federal taxes, if you meet IRS income requirements. Not everyone has an IRA. But people in certain income brackets can get a tax credit on contributions to a retirement savings plan through the Saver’s Credit. For more details, visit irs.gov and enter keyword “Saver’s Credit.” FIND THE IRA FOR YOU For information on USAA’s IRA offerings, log on to USAA.COM and use keyword “IRA.” 16 USAA MAGAZINE A GIVING NOTION. One of the easiest ways to reduce your payment to the IRS is to go into your closet, toss any unused clothes and items into a box and drop them off at a local charity. Cash donations count, too. This isn’t just spreading “goodwill to men” during the holidays — it’s a wise tax move. To get credit for the deduction, follow IRS requirements for documenting contributions. Some noncash contributions require more documentation than others. For example, a noncash donation under $250 generally requires a receipt or letter from the recipient charity outlining certain aspects of the gift. The giver should also make sure the items are in good condition, according to the IRS. Cash contributions have different rules. For more details, check IRS Publication 526 at irs.gov. WINTER 2008 FdUSWI08_16-17_TaxTips_USAA.indd 16 U SA A . CO M 10/31/08 9:36:08 AM X PREP Don’t forget to consider your volunteer efforts. You generally can deduct 14 cents a mile for travel to and from each event where you give of yourself and your time. PAY DEDUCTIBLE EXPENSES BY CREDIT CARD IN DECEMBER. If you use your credit card late in the year to pay a business expense, make a charitable donation or charge another cost that can be itemized, it will still count toward the current tax year. “The IRS considers the expenses deductible in the year that the charge is incurred, not necessarily when you pay the credit card charge,” says Tammie Hendricks, CPA, of the Henssler Financial Group in Kennesaw, Ga. That way, you may reduce your taxable income for the tax year, but don’t have to actually pay the bill until your credit card statement comes in January. INCREASE YOUR 401(K) CONTRIBUTION. Sure, it’s been a tough year financially. And the stock market has been horrific. But if you’re not contributing at all to your 401(k), you’re turning away free money from your employer with respect to company matches, which are often at least 50 cents on the dollar up to a specified percentage of your salary. Even if you are contributing, consider adding to the percentage of salary you set aside, because any reduction in your paycheck is a way to reduce your reported current income, thereby potentially decreasing your tax burden. And you don’t have to invest your contributions in the stock market either. Many plans have relatively safer bond and money market funds as options. U SA A . CO M FdUSWI08_16-17_TaxTips_USAA.indd 17 Sure, taxes are the last thing on your mind during the holidays. But spending a little time now can pay off next spring Don’t forget that you can increase contributions at the end of the year to make the most of the company match; you’ll reduce your taxable income and save toward your future. If you’re over 50, take advantage of “catch up” provisions that allow you to make extra 401(k) and IRA contributions. INCORPORATE YOURSELF. Many folks — including those in the military — maintain second incomes with weekend jobs such as landscaping, a homeimprovement gig or other means. If you fall into that group, consider incorporating your small business as an “S” corporation before the year ends and possibly reap immediate benefits. “The law still allows, within limits, for Social Security/Medicare tax advantages,” says Fred Imel, a certified public accountant based in Yukon, Okla. “The tax reduction, say, for a reservist with his own small business can be $3,000 to $8,000 per year, depending on the volume of the business and type of industry. Nearly all of my clients use this. In 15 years, many have saved enough to buy a house with the savings.” MEMBER DISCOUNT! For a 25 percent USAA member discount on TurboTax Online federal and state products, log on to USAA.COM and use keyword “TurboTax.” MAKE AN EXTRA MORTGAGE PAYMENT. This is a great move, especially if you’re paid by an employer every two weeks and either November or December happens to be a month where you receive three paychecks instead of the normal two. Instead of blowing your extra cash on something you don’t need, make your January 2009 mortgage payment now. That way, you can deduct the interest on that payment in the current tax year. ■ The preceding discussion is not tax advice. Consult your tax advisor regarding your specific situation. PostHoliday Prep Want tax tips for after the holidays? Go to USAA.COM/ USAAMag and click “New Year’s Resolutions: What to Do as Tax Season Starts.” WINTER 2008 USAA MAGAZINE 17 11/7/08 8:52:57 AM 7 Essentials for SECURITY BY CHRISTOPHER NULL Y O U D O N ’ T H AV E T O be a computer USAA Works to Protect Your Information Our Web site uses sophisticated encryption and virus-detection software to protect your information. To protect against unauthorized access, your personal information resides behind a secure firewall monitored by our security experts. For more, log on to USAA.COM and use keyword “USAA Online Security Guarantee.” If you call in to do business with USAA, you may be asked to establish a phone password to authenticate your identity — for that call and all future calls. 18 USAA MAGAZINE expert to help protect your computer from hackers, viruses and black-masked thieves. Here are the must-have tools and actions to take today. 1 USE ANTIVIRUS SOFTWARE. Installing basic antivirus protection should be your first move. Today’s antivirus package options do more than just help protect you from basic virus attacks. Most also ward off attacks from malware — short for malicious software — such as spyware, rootkits, keyloggers and other Web-based interlopers. McAfee VirusScan Plus, Symantec Norton Antivirus, Trend Micro Antivirus and Kaspersky Anti-Virus are capable applications. Avira AntiVir (free-av.com) is a good, free antivirus option. 2 RELY ON ANTI-SPAM PROTECTION. Spam isn’t just a nuisance, but a major avenue for security breaches, whether you open an infected attachment or click on a malicious link. Stop spam outright to avoid these risks. Most major e-mail applications, Internet service providers and Web-based mail services now offer anti-spam services for free. Turn these on by using the Web-based tools given by your e-mail provider; they are usually easy to find. One risk is that perfectly innocent e-mail will be flagged and deleted as spam. If you’re concerned about false positives, try a third-party application, which gives you more control over spam flagging, but which will likely let in a few more junk messages. Outlook users can consider the third-party application SpamBayes, a free plug-in found at SpamBayes.sourceforge.net. WINTER 2008 FdUSWI08_18-19_computer_security_3_USAA.indd 18 3 KEEP YOUR FIREWALL ACTIVE. A firewall is simply a barrier between you and the rest of the world. It filters out unwanted traffic — mostly attacks that troll random computers looking for security holes. Without a firewall, you’ll likely be attacked within minutes of connecting an unsecured computer to the Internet. The good news is you’re probably already running a firewall: Almost every wireless router has one, and Windows XP and Windows Vista include one, too, turned on by default. There’s no need to configure your firewall further or to invest in expensive additional firewall software. Just make sure you never turn off your firewall. 4 TAKE ANTI-PHISHING MEASURES. Beware of phishing, which occurs when phony Web sites designed by scam artists get you to give up your personal information. Modern Web browsers can help protect you against phishing attacks. Firefox 3, the latest version, has a very robust anti-phishing system that causes an enormous red page to pop up if you stumble onto a known malicious site. Internet Explorer 7 also checks Web sites automatically as you browse. Upgrade to the latest version of either browser and you should be fine. USAA provides phishing alerts on its Web site home page if a scammer ever targets USAA members. See “USAA Works to Protect Your Information” on this page for more on USAA’s online security measures. 5 TURN TO ANTI-SPYWARE TOOLS. If a malware application does creep past all your defenses and your antivirus software can’t clean it, consider more specialized spyware defense tools. You can pay for any number of spyware cleaners, but you really don’t need to: U SA A . CO M 11/7/08 9:00:29 AM USE COMMON SENSE AND A LITTLE KNOW-HOW TO HELP KEEP YOUR MAC OR PC SAFE AND SECURE Free anti-spyware tools are capable of cleaning any infection that the paid tools can. computer can be tracked and perhaps recovered by law enforcement if it gets swiped. 6 7 PROTECT AGAINST THEFT. All the software in the world won’t protect you from simple theft. One estimate says that 5 percent of all laptops are stolen in the first year after purchase.* Follow these tips: ■ Never leave your laptop unattended. ■ Don’t lock it in your car where it can be seen. ■ Invest in an inexpensive cable lock to secure your computer to your desk. ■ Consider a computer theft recovery and identity theft protection service, such as Computrace® LoJack® for Laptops, so that your BACK UP YOUR DATA. Drop your laptop in a pool? Get it snatched on the street? Plan for such misfortunes by backing up data early and often. How? ■ Buy an inexpensive external hard drive. ■ Back up multiple computers to a single, giant disk with little effort. ■ Check out online backup services, such as Mozy.com, which automatically copy files to secure servers over the Internet, where even a house fire can’t destroy your data. ■ *Source: Switched.com, “Five Most Stolen Gadgets,” Jan. 31, 2008 SPECIAL OFFER ILLUSTRATION BY JACK UNRUH USAA has teamed with McAfee to offer its VirusScan Plus software at a 50 percent discount for USAA members. For details, log on to USAA.COM and use keyword “McAfee.” U SA A . CO M FdUSWI08_18-19_computer_security_3_USAA.indd 19 WINTER 2008 USAA MAGAZINE 19 10/31/08 9:33:38 AM On Course Find out how planning now can help you and your parents navigate financial waters later BY KERRY HANNON On his 70th birthday, USAA member Leonard Ratzman didn’t have a will or any kind of estate plan. “I suddenly realized that the worst thing I could do as a father is to pass away and leave my only heir, my daughter, without a list of things to do, people to contact and so forth,” the now-75-year-old recalls. He created “The Turnover” document, a two-inch-plus binder that contains a whopping 60 sections of detailed information to help her manage his estate after his death. While not everyone will go to such lengths, learning what’s in Ratzman’s guide can help you think about information parents can compile and organize to help their grown children manage their affairs, not just after they die but as they age and require assistance. Follow these tips to make managing their affairs easier for them — and for you. 20 USAA MAGAZINE WINTER 2008 FdUSWI08_20-23_Parents_v3_USAA.indd 20 U SA A . CO M 10/31/08 9:20:38 AM ALL IN THE FAMILY PHOTOGRAPHY BY JEFF NEWTON • PHOTO ILLUSTRATION BY RYAN ETTER It may not be easy to ask your parents if they need your assistance with day-to-day finances. “Money is the last bastion of privacy for many people,” says Sharon Burns, co-author of How to Care for Your Parents’ Money While Caring for Your Parents. “There are all sorts of control and trust issues involved.” In the end, helping older parents manage their money may be a necessity and can serve as a gratifying way to give back. Start the money conversation. The death of a first parent or a serious medical condition, such as a broken hip, often spurs the discussion. Stay tuned in to signals that you may need to get involved: ■ unpaid bills that generate late fees, second notices and utility cutoffs ■ noticeable changes in spending habits ■ checking account problems, such as bounced checks ■ credit card problems, such as late payment charges ■ confusion about what bills have been paid or about a particular charge If you spot one of these red flags, schedule a frank talk. Get the full financial picture. If your parents welcome your involvement, ask them to share key legal and financial papers. They should have in place several essential documents, including a will, U SA A . CO M FdUSWI08_20-23_Parents_v3_USAA.indd 21 WINTER 2008 USAA MAGAZINE 21 11/7/08 9:29:06 AM “I wanted to make the overwhelming task of taking over as efficient and painless as possible.” living will and separate durable Powers of Attorney for health care and financial decision-making. Compile other critical papers, such as deeds, insurance policies, investment accounts, bank accounts, income statements, retirement accounts, all outstanding loan documents and current bills. Decide who should manage your parents’ money. In big families, think about who lives nearby and who has the know-how. One sibling might be a financial whiz, but make sure he’s ready to take on the responsibility. “This isn’t fun work,” Burns says. “You’re dealing with not only the financial paperwork, but at times allconsuming, emotional handholding.” 22 USAA MAGAZINE WINTER 2008 FdUSWI08_20-23_Parents_v3_USAA.indd 22 For only children, the burden can seem heavy. Don’t hesitate to get help from your own spouse, a knowledgeable friend or even a professional financial advisor. USAA has CERTIFIED FINANCIAL PLANNER™ practitioners and trust services team members at USAA Federal Savings Bank who can help. Understand their budget. Get a handle on monthly income and expenditures and make sure a usable budget is in place. Streamline accounts. Consolidate redundant bank accounts and consider canceling unused credit cards. Next, consider combining current credit card accounts and PHOTOGRAPH BY SETH JOEL PHOTOGRAPHY —USAA MEMBER AND DAD LEONARD RATZMAN U SA A . CO M 10/31/08 9:27:01 AM accounts, insurance policy numbers, user IDs and so forth. His daughter will even have instructions on how to care for his hanging plants. Ratzman also tips off his daughter to the potential value of some of his possessions, including a vintage Hawaiian shirt that might be a collector’s item. “She would never know that,” he says. And he supplies the name of a trusted car dealer to call if she wants to sell his ’72 Corvette. Ratzman continually updates the document. “My daughter was grateful when I told her about it, but didn’t want to know the details,” he says with a laugh. “It’ll transferring outstanding balances to a lower-interest card. Introduce online banking. If your parents are comfortable transacting business on their computer, online banking with automatic bill pay is probably the easiest way to help with daily finances, particularly from a distance. Arrange for direct deposit for income and set up automatic bill pay from your parents’ checking account. You can also request that dividends and interest payments be reinvested automatically or deposited directly into the checking account. If computer use isn’t part of the picture, develop a bill-paying calendar and remind your parents to write the checks, Burns advises. Or, you can suggest taking over the task yourself. Hire a pro. If your parents refuse to let you get involved with their finances, or if managing their money gets too complicated, consider hiring a financial advisor. USAA has Certified Financial Planner™ practitioners ready to help. If a bill-payer is all that’s required, check out the American Association of Daily Money Managers, at aadmm.com. Depending on your parents’ situation, you may also need to hire an elder care attorney to help with estate planning and the health care insurance system. The National Academy of Elder Law Attorneys, at naela.org, can point you to local experts in the field. Ratzman’s “Turnover” document contains the essentials, including a will, a living will, durable Power of Attorney and a Health Care Power of Attorney. But it goes way beyond the basics, revealing details in a sequential order, beginning with a priority list of contact data for insurance companies and funeral arrangements. There’s a list of important passwords; a list of friends and business contacts; and scans of all the active keys he carries for his home, cars and the safe-deposit box. The document provides a list of all credit card numbers, utilities accounts, savings and checking accounts, investment Financial Planning. Work with a USAA Certified Financial Planner™ practitioner. Log on to USAA. COM and use keyword “Financial Planning Services.” Trust Services. You can name the USAA Federal Savings Bank as acting, or successor, Trustee. A team of Trust administrative professionals can help manage your parents’ finances. Log on to USAA.COM and use keyword “USAA Trust Services.” Medicare-Related Help. USAA Life Insurance Company offers Medicare Supplement Insurance and USAA Life General Agency has contracted with Humana to provide Medicare prescription drug plans and Medicare Advantage plans. Call (800) 531-0909, or log on to USAA.COM and use keyword “Medicare.” Long-Term Care Insurance. USAA Life Insurance General Agency makes available Long-term Care Insurance that potentially can help keep your parents’ nest egg intact. Log on to USAA.COM and use keyword “Long-term Care.” photo illustration by Ryan etter Remember the details Turn to USAA be there when she needs it most, safely stored in a safe-deposit box.” Such letters of instruction also can be stored in a fire-proof safe at home. Make sure your loved ones have the code to open it, or that they’re named on a safe-deposit box so they can access it. n Power Play For more on Power of Attorney, visit USAA.COM/ USAAMag and click “Power Play.” See legal disclosures on page 30. GHA03DCRR u sa a . co m FdUSWI08_20-23_Parents_v3_USAA.indd 23 W I N T E R 2 0 0 8 u s a a m a g a z i n e 23 10/31/08 9:27:32 AM MAKING ALLOWANCES TEACH YOUR CHILDREN For ideas on the best way to dole out allowance, log on to USAA.COM/ USAAMag and click “Making Allowances.” WELL BY TERI CETTINA Your kids learn their money habits from you. Make sure they’re good ones Christmas, USAA member Susan Beacham gives her teenagers coupons for family outings. A Milwaukee Brewers game. A purse with an invitation to meet the refugee women-turned-entrepreneurs who made it at a local nonprofit. “It’s important that my daughters — and all kids, really — see that charity isn’t just writing a check. It’s about helping real people,” says Beacham, a former banker who founded Money Savvy Generation for kids. Read on for more tips. with the real thing. “They need to touch dollars and coins, count them, stack them and learn that they’re concrete things,” says Neale Godfrey, author of Money Doesn’t Grow on Trees. TEACH THE VALUE OF SAVING MAKE ALLOWANCES COUNT USAA member and veteran teacher Karyn Hodgens and her husband created a spreadsheet to explain the concept of compound interest to their freespending son. “Something clicked. He said, ‘You mean I’ll earn more money just by letting it sit there?’ He was an instant convert,” Hodgens says. Soon, she and husband John, a software engineer, developed KidsSave, a software program that creates virtual accounts to track the real money in piggy banks. Beacham suggests kids pay for actual expenses with part of their allowances — such as schoolbook orders. “[It] teaches kids how to make hard choices,” she says. WALK THE WALK Kids watch, more than they listen to lectures, Godfrey says. Agrees Beacham: “You may be the greatest money manager in the world, but if you don’t show and tell your children what you’re doing, they can’t learn from you.” GO BEYOND SPENDING LESSONS Require kids to save, invest and donate. WINTER 2008 FdUSWI08_24_Teach_6_USAA.indd 24 Matching your kids’ savings — the way employers match money in a 401(k) plan — can be a powerful motivator. Grandparents might also offer matching funds. DON’T BE TOO GENEROUS Even if you can afford to give your teens a comfortable allowance — don’t, suggests Godfrey. “By about age 12, kids should do small, paying jobs for friends and family members,” she says. “By 16, they’re capable of getting summer jobs and saving for year-round expenses.” ■ Bank products provided by USAA Federal Savings Bank, Member FDIC. To add your children to your USAA profile, log on to USAA.COM and use keyword “Preferences.” Click My Profile and Preferences > Personal Information. Help your teens open a USAA Teen Checking or Savings account online. Go with them to a Web site created just for them: MYUSAA.COM. There, they can log on to make transactions or subscribe to USAA youth magazines. Tech-savvy kids have plenty of options for online money-education sites, such as kids.gov. But before they play with virtual money, they must be comfortable USAA MAGAZINE CREATE MONEY-MATCHING PROGRAMS YOU, USAA AND YOUR KIDS USE TECHNOLOGY 24 “They need to learn that money isn’t just for spending,” says Godfrey. PHOTOGRAPHY BY JEFF NEWTON • ILLUSTRATIONS BY ZELA LOBB EVERY U SA A . CO M LB 11/7/08 1:51:38 PM member savings | Exclusive Products and Services for USAA MEMBERS ONLY find out how USAA can help you, too The day Rick Deese found out that under new eligibility requirements he could become a USAA member, he took action. “I joined that night,” says the retired Air Force chief master sergeant. Now he’s saving about $3,700 per year on auto insurance and enjoying other benefits. His family has: USAA Homeowners Policy. Deese enjoys accessing this policy and his other USAA accounts on USAA.COM. ■ Deese will share the USAA legacy with his four children, and he appreciates USAA’s support of military families: “When I retire from my current job in the civilian world,” he says, “I’d like to be the doorman at USAA.” Photograph by Kemp Davis ■ USAA Auto Insurance Policies on three vehicles. Deese could hardly believe his low rate quote on USAA.COM. “Switching to USAA was a no-brainer,” he says. ■ USAA Checking and Savings Accounts. Deese and his wife like using direct deposit, USAA Web BillPay® and a debit card that allows them to get ATM fees reimbursed and to receive points for debit card purchases. PAGE 26 Banking Services You Can Trust PAGE 27 Great rates on retirement tools PAGE 28 usaa home services can save you up to $4,300 Tell your family and friends that they might be eligible for USAA membership. go to usaa.com, go to My Accounts page, and click “Share USAA” in the bottom right corner. u s a a . c o m w i n t e r 2 0 0 8 u s a a m a g a z i n e FdUSWI08_25-30_membsav.indd 25 25 11/7/08 9:31:41 AM BANKING THE BANK YOU CAN TRUST New Year’s Solution A Home Equity Line of Credit from USAA can help. With variable Annual Percentage Rates as low as 5.29% and no prepayment penalties, you can lower your monthly payments, accelerate your debt consolidation plan or free up the cash your family needs to make 2009 its best year ever!2 PHOTOGRAPH BY IMAGE SOURCE HOME EQUITY LINE OF CREDIT Restrictions apply. See page 30 for details. USAA MASTERCARD Apply in minutes online. GO TO USAA.COM (keyword: USAAHomeEquity) A Chance to Give AND Receive USAA BANKING Are You with the Right Bank? Been meaning to make the switch to USAA? We’ve made it simple to transfer to a USAA checking or savings account. Start the process online and soon you can take advantage of it all: ✓ USAA free checking with no minimum balance requirements ✓ USAA savings account with interest rates that grow with your balance ✓ No monthly fees ✓ Free worldwide ATM usage* ✓ Free transfers from non-USAA accounts ✓ Free online bill payment ✓ Mobile access: Check account balances With no annual fees and your choice of rewards programs, the benefits of a USAA MasterCard® card are among the industry’s best. Now, it has another benefit. Sign the sales slip for every purchase made with your USAA MasterCard®* between Nov. 1, 2008, and Jan. 2, 2009, and you’ll be automatically entered for a chance to win. This holiday season MasterCard is giving you the chance to win two matching holiday gifts in the Overjoy of Giving Sweepstakes. One to give away and one to keep for yourself. You could win two cars, two trips, two Home Depot® home makeovers or two shopping sprees. ENJOY LOW RATES! Current USAA MasterCard holders can visit priceless.com/overjoy. Don’t have a USAA MasterCard yet? Log on to USAA.COM and use keyword “MasterCard” to apply. Hurry, the promotion ends Jan. 2, 2009. All USAA MasterCard cardholders are winners with your choice of cash rebates or merchandise or travel discount; industry-leading fraud protection; and combined rewards points** on debit and credit cards to earn rewards faster. at MOBILE.USAA.COM ✓ And much more! *USAA does not charge a fee for the first 10 ATM withdrawals and refunds up to $15 in other banks’ ATM usage fees each month. Currency conversion charges may apply when using ATMs outside the U.S. See how easy it is to sign up! GO TO USAA.COM (keyword: EasySwitch) OR CALL (800) 531-USAA (8722) 26 USAA MAGAZINE FdUSWI08_25-30_membsav.indd 26 WINTER 2008 Get a USAA MasterCard card. GO TO USAA.COM (keyword: MasterCard) *NO PURCHASE NECESSARY. Max. $70,000/prize package. Shopping Spree: MasterCard Gift Card & Home Makeover: Home Depot Store Credit. Void where prohibited. PIN-based & international transactions ineligible. Starts 11/1/08. Ends 1/2/09. Restrictions apply. Visit priceless.com/overjoy for Official Rules & complete details. **Earn 1 point for every $1 credit card purchase or $2 debit card purchase. Select ‘credit’ at checkout; PIN-based purchases do not earn points. Other restrictions apply. U SA A . CO M 11/7/08 1:52:14 PM s! security you deserve annuities Safe Havens Reach for retirement goals with no market risk. All our annuities are backed by the strength of USAA Life Insurance Company or USAA Life Insurance Company of New York, both rated AAA — “Extremely Strong” by Standard & Poor’s. Savings Annuities ■ ■ ■ et peace of mind. The money you put in and your interest G are guaranteed no matter what happens in the stock market ax-deferred compounding interest helps you reach T retirement goals faster Photograph by karl gerber y RETIREMENT pply for rates as high as 5.7% with a minimum guaranteed A rate of 1-3% with the Extended Guarantee Savings Annuity. Lock them in for 2, 5 or 10 years3 guaranteed Income Annuities ■ ■ Monthly fixed income for the rest of your life tructured payouts so you (or your beneficiary) get back S all the money you put in4 Lock in your rate. GO TO USAA.COM (keyword: USAAannuities) Certificates of Deposit Take Advantage: Great CD Rates Fixed Rate and Adjustable Rate Certificates of Deposit make great retirement savings tools. Why? Both are FDIC-insured and offer guaranteed growth. Adjustable Rate CDs ■ ■ If rates rise, you can opt to make a one-time adjustment and at the same time add more money. Then, the rate never goes down ock in rates as high as 4.75% Annual Percentage Yield L with a 5-year term5 Fixed Rate CDs ■ Get 5% Annual Percentage Yield for a 5-year fixed-rate CD5 Secure your rate today. GO TO USAA.COM (keyword: USAACDs) Garrett Kost, Certified Wealth Strategist with USAA Announcing the USAA Global Opportunities Portfolio management fees up to 40% BELOW INDUSTRY AVERAGE Stocks are volatile. But you can’t avoid them altogether if you want your nest egg to potentially grow. The USAA Global Opportunities Portfolio is a managed account that invests your money in USAA Mutual Funds that have exposure to stocks from around the world as well as fixed income securities. It is designed for conservative members who want moderate growth potential and seek to limit their risk. Find out more from a USAA investment professional. CALL (800) 531-USAA (8722) Investments/Annuities: Not FDIC Insured • Not Bank Guaranteed • May Lose Value See page 30 for important information. U SA A . COM u s a a . c o m w i n t e r 2 0 0 8 u s a a m a g a z i n e FdUSWI08_25-30_membsav.indd 27 27 11/7/08 9:33:09 AM HOME SMARTER WAYS TO FINANCE YOUR HOME USAA HOME SERVICES Are Your Mortgage Payments Hard to Make? Want to Re-Fi? USAA Can Help. In light of all the recent economic news, one thing is clear: You need a lender you can trust. That’s why thousands use our low-rate home loans to finance their dreams. In fact, now may be a good time to buy — USAA’s member-only mortgage rates and closing costs make it even easier. With a USAA Member-Only Mortgage, the Savings Add Up $1,200 +$3,100 UP TO Average USAA member savings on points and lenders fees6 Your cash bonus when you buy and sell your home with USAA MoversAdvantage® real estate services YOU SAVE UP TO $4,300 Mortgage specialists are on call. GO TO USAA.COM (keyword: MoveEasier) OR CALL (800) 531-1282 USAA MOVERSADVANTAGE® Making Moving Easier Buying or selling your home should be exciting — not stressful. USAA ensures that the entire process runs smoothly by assigning you a MoversAdvantage7 specialist who: Helps you select from a national network of USAA Preferred Real Estate Companies ■ Monitors your agent’s performance, helping to make sure your needs are met every step of the way ■ Acts as your advocate, dedicated to providing you with excellent service ■ Provides you with a cash-back bonus of up to $3,100 when you buy and sell your home with MoversAdvantage Real estate services you can trust. GO TO USAA.COM (keyword: MoversAdvantage) 28 USAA MAGAZINE FdUSWI08_25-30_membsav.indd 28 WINTER 2008 PHOTOGRAPH BY TIM PANNELL/CORBIS ■ U SA A . CO M 10/31/08 9:09:28 AM auto the right car for you USAA Car Services Someone on Your Side FIND The Power Of Choice The USAA Car Buying Service lets you search a massive “virtual lot” of new and used cars so that you can find the model that’s just right for you. Read reviews, customize extras, view multiple photos and get a price estimate — specially negotiated for members, with savings up to $2,600 off MSRP8 for a new car purchase. Find out what your trade-in could be worth, too! BUY The Power of Money Photograph by altrendo images/Getty With our innovative suite of services, USAA helps you find the car you want, with the features you want, at the price you want. ENTER THE 1,000 GALLONS OF GAS sweepstakes! Go to USAA.COM/ AUTO No purchase necessary to enter or win. A purchase will not increase your chances of winning. See complete rules at usaa.com/auto. Money talks, so you’ll definitely be heard when you enter a new car showroom holding one of our checks in your hand. Our member-only USAA Auto Loan rates are extremely competitive, approval takes only minutes online and up to 100% financing lets you drive away in your new car having used our cash!9 insure The Power of Protection With low rates, it’s hard to believe that such a small amount of cash can blanket your car in coverage, but that’s exactly what our service does. You save up to $600,10 enjoy a generous accident-forgiveness program11 and get an automatic assessment of your claim online thanks to our Internet Loss Report system. Get it all done today. GO TO USAA.COM/AUTO OR CALL (800) 531-USAA (8722) See page 30 for important information. U SA A . COM u s a a . c o m w i n t e r 2 0 0 8 u s a a m a g a z i n e FdUSWI08_25-30_membsav.indd 29 29 11/7/08 9:34:09 AM THE USAA EDUCATIONAL FOUNDATION® MONEY MANAGEMENT BUILDING AND M MAINTAININGINVESTING GOOD CREDIT NNING T INDIVIDUA IAL PLA FINANC REMEN R RETI ACCOUN L RETIREMENT FO G TS (IRA IN As) PLANN LEGAL DISCLOSURES The preceding articles should not be considered tax, legal or estate planning advice. Consult your tax, legal or estate planning professional regarding your specific situation. Certified Financial Planner Board of Standards, Inc., owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the U.S. which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. Page 9 With replacement cost coverage, at our option and subject to policy limits, if you actually replace the property we will pay you the lesser of our cost to restore, repair or replace the damaged property or the amount you actually spent to restore, repair or replace the property. 1 Page 23 Trust Services offered by USAA Federal Savings Bank. The USAA Educational Foundation, a nonprofit organization, has the resources to help make your life more manageable. Planning For Retirement Financial Planning And Goal Setting Mutual Funds Making Money Work For You Annuities Building And Maintaining Good Credit Stocks And Bonds IRAs #508 Medicare supplement insurance by USAA Life Insurance Company, San Antonio, TX. Not available in MA, MN, NJ, NY, WI. Medicare supplement insurance and USAA Life Insurance Company are not associated with the federal Medicare Program. USAA Life General Agency, Inc. (LGA) (known in CA and NY as USAA Health and Life Insurance Agency) acts as an agent for select insurance companies to provide additional products to USAA members. LGA representatives are salaried and receive no commissions. However, LGA receives commissions from those companies which can include compensation based on the total quantity and quality of insurance coverage purchased through LGA. Plans not available in all states. Page 26 #511 #517 #523 #525 #536 #553 #561 To order free publications, just call (800) 531-6196 or visit usaaedfoundation.org. Have your USAA number and publication number ready when you call. The USAA Educational Foundation does not endorse or promote any commercial products or services. Subject to credit and property approval. Rates shown are APRs. Line of credit rates are variable and are based on The Wall Street Journal Prime Rate plus/minus a margin. As of October 21, 2008, line of credit APRs range from 5.29% to 14.59% based on the amount of equity in your home, the loan amount and your credit history. Offer based on a loan to value ratio of 70% or less. The maximum APR that may be imposed is 18%. Fees paid to third parties to open the line are estimated to range from $92 to $802.50 for a line amount of $50,000 with typical circumstances, depending on cost of evaluation, title work, and your state’s recording fees and mortgage taxes, if any. Property insurance is, and flood insurance may be, required. Rates subject to change. Consult your tax advisor regarding the deductibility of interest. Additional restrictions apply to Texas home equity loans/lines. Offer not available in all locations. You may have one rate lock at a time on your line of credit balance. $4,000 minimum per lock. 2 Page 27 3 Rate effective Nov. 1, 2008, subject to change. The rate shown applies to a 10-year Extended Guarantee Annuity with a balance of $1 million. Extended Guarantee Annuity earns interest at the rate in effect at the time of purchase. Rate guaranteed for the period selected. Afterwards, interest rates may change monthly, but not below the minimum guaranteed interest rate. The minimum guaranteed interest rate is subject to change and may vary by product and state. The minimum guaranteed interest credited to the contract will be 1%-3%. The minimum guaranteed rate is fixed and will not change after the contract is issued. Form AEG37641ST 05-01 (varies by state); in NY, NEG38001NY 05-01. Call for details on specific policy costs, benefits, limitations and availability in your state. Annuities provided by USAA Life Insurance Company, San Antonio, TX and in New York by USAA Life Insurance Company of New York, Highland Falls, NY. Each company has sole financial responsibility for its own products. Company ratings represent an opinion of financial strength and the company’s ability to meet ongoing obligations to policyholders. Money not previously taxed is taxed as income when paid. 4 5 $1,000 minimum opening deposit. Annual Percentage Yield (APY) of 4.75% current as of 10/24/08, APY of 5% current as of 10/31/08, and may change. Penalty for early withdrawals may reduce earnings. Page 28 $1,200 savings figure based on comparison of $200,000, 30-year fixed rate loan. 6 MoversAdvantage® offered by USAA Relocation Services, Inc., a licensed real estate broker and subsidiary of USAA Federal Savings Bank. Not available for employer-sponsored relocations, or for transactions in Iowa or outside US. This is not a solicitation if you are already represented by a real estate broker. 7 Cash bonus limited in some states. Bonus ranges from $350-$1,550 based on sale price of home sold/purchased. You must enroll in program before contacting participating real estate firm and be represented by that firm at closing to qualify for bonus. Qualify for an additional $100 when you also finance your home purchase with a USAA mortgage. Page 29 Based on actual member sales. 8 Car buying service available for new car/ truck purchases, lowest possible price not guaranteed. Not available in all locations. Loans and 100% financing subject to credit and property approval. Total loan amount cannot exceed USAA’s determination of vehicle’s retail value plus tax, title and license. 9 Annual savings based on countrywide survey of new customers from 12/01/06 through 11/30/07, and includes a discount for online purchase or quote. Actual savings may vary. Savings do not apply in NJ and MA. Online discount not available in CA, FL, GA, HI, ME, and NC. Discount is up to $30 in MO and MA. Discount applies to new policies only. Restrictions apply. 10 Stay accident-free for five years as a USAA policyholder and your premium won’t go up if you have one at-fault accident. Accident forgiveness is not available in CA, HI, MA, NC, NY and PA. 11 Page 31 Free shipping offer: applies only to new orders placed on or before February 15, 2009. Risk-Free purchase guarantee: Should any purchase not meet your expectations, please follow the instructions on the back of your packing slip. You may return your purchase within 30 days of receipt for a refund or exchange (less shipping, handling and return postage). We regret that personalized items may not be returned unless due to an error on our part or manufacturing defect. We will refund shipping and handling charges on damaged or defective merchandise returned to us. Loose diamond returns must be accompanied by the diamond grading report or a replacement fee of $150.00 will be charged. Items that show signs of excessive wear, those that have been altered or resized by anyone other than USAA, and items damaged in any way cannot be accepted for return. Valuable Personal Property Insurance: $4 a month provides $2,500 of coverage on scheduled jewelry. Rates are subject to change and may vary due to location. Valuable Personal Property insurance provided by United Services Automobile Association, USAA Casualty Insurance Company, USAA General Indemnity Company, and Garrison Property and Casualty Insurance Company, USAA Limited (Europe). San Antonio, TX. Each company has sole financial responsibility for its own products. property and casualty insurance products. Ownership rights are limited to eligible policyholders of United Services Automobile Association. Eligibility may change based on factors such as marital status, rank, or military status. Contact us to update your records. Children of USAA members are eligible to purchase auto or property insurance if their eligible parent purchases USAA auto and property insurance. Eligibility restrictions apply to purchase of property and casualty insurance. To be eligible for auto and property insurance, separated military personnel must have been separated on or after 1/1/1996 with a discharge type of “Honorable.” Once eligibility is established, it is generally ongoing. Eligibility may change based on factors such as marital status, rank, or military status. Customers must be in good standing and meet underwriting guidelines. Rates and benefits may vary due to eligibility. Notice to USAA Members United Services Automobile Association (“USAA”) continuously works to attract and retain the services of highly qualified individuals to serve as directors. However, the potential exposure to corporate litigation and associated expense of defense can be a significant disincentive to serve. Accordingly, the Bylaws of USAA require USAA to indemnify its directors to the maximum extent permitted by law for matters arising out of their service to, or at the request of, USAA. Pursuant to that obligation, USAA will provide indemnification and has advanced expenses in a recent lawsuit that names all the directors as defendants. The Court recently dismissed the suit. Plaintiff has appealed. USAA Companies USAA means United Services Automobile Association and its affiliates. Property and casualty insurance provided by United Services Automobile Association, USAA Casualty Insurance Company, USAA General Indemnity Company, Garrison Property and Casualty Insurance Company, USAA County Mutual Insurance Company, USAA Texas Lloyds Company, San Antonio, TX, and USAA, Ltd. (Europe), and is available only to military members and their families who meet certain membership eligibility criteria. Each company has sole financial responsibility for its own products. Coverage descriptions are brief and subject to the terms and conditions of your policy. Read your policy for details. Applications subject to underwriting. To find out if you are eligible, contact USAA. Underwriting restrictions apply. Investments provided by USAA Investment Management Company and USAA Financial Advisors, Inc., both registered broker dealers. Life insurance and annuities offered by USAA Life Insurance Company, San Antonio, TX, except in NY; some life insurance may also be offered in most states by USAA Direct Life Insurance Company, Omaha, NE; in NY, life insurance and annuities offered by USAA Life Insurance Company of New York, Highland Falls, NY. Financial planning services provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California), a registered investment advisor and insurance agency. Financial advice provided by Financial Advice Center as a service of USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California), and USAA Financial Advisors, Inc., a registered broker dealer. Credit cards provided by USAA Savings Bank, other bank products provided by USAA Federal Savings Bank, both Member FDIC. Alliance services provided through USAA Alliance Services, LP. Each company has sole financial responsibility for its own products. © 2008 USAA. Member Use of the term “member” does not convey any legal, ownership, or eligibility rights for XXXXX 88157 30 USAA MAGAZINE FdUSWI08_25-30_membsav.indd 30 WINTER 2008 U SA A . CO M 11/7/08 9:34:49 AM FdUSWI08_31_C3_ad.indd 1 10/31/08 8:16:04 AM member snapshot Spc. Vincent Hancock USAA member since 2006 PHOTOGRAPH BY ISSOUF SANOGO/AFP/GETTY IMAGES W hen Vincent Hancock first picked up a shotgun as a boy, he wanted to shoot. “I was too small, so my dad held the gun for me,” says the 2008 Olympic gold medalist. Now 19 and part of the U.S. Army Marksmanship Unit, Hancock garnered gold in men’s skeet for his country — and for his comrades. “Standing on the podium reminded me that I represent American soldiers everywhere,” he says. Hancock caught the Army’s attention when he was still in high school. At his first international competition in 2005, the 16-year-old won four gold medals, three silver medals and broke three world records. That year, he competed in seven international events and medaled in all of them. Hancock spoke with a recruiter in his hometown of Eatonton, Ga., and visited nearby Fort Benning, where the team is based. “These are the best training facilities and the best shooters,” says Hancock, who enlisted through the Army’s Delayed Entry Program as a high school junior. The Army helped Hancock mature as a competitor. Today his competition schedule takes him to countries such as Belarus. Wherever he goes, he tries to make personal connections with his opponents. “I want them to know that Americans are good people,” he says. Hancock has his sights set on at least the next five summer Olympics. He’ll be 39 for the 2028 games. “If your goals are high, you’re capable of anything,” he says. ■ Standing on the podium reminded me that I represent American soldiers everywhere. USAA member Vincent Hancock, a specialist with the U.S. Army Marksmanship Unit, won gold in men’s skeet at the 2008 Summer Olympics. 61425-1108 FdUSWI08_32_snapshot 3_USAA.indd 32 10/31/08 8:09:40 AM