Winter 2009 USAA Magazine

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A Member’s Guide to financial Security

10 Steps

for

Climbing Out of Debt Start taking yours today Page 16

New Rules for Roth IRAs Page 14

The American Widow Project Page 20

How to Be Your Own Boss Page 22

A LEVEL OF PASSION RIVALED ONLY BY A LOVE OF COUNTRY. Tune in Saturday, December 12, 2:30 p.m. ET on

USAA IS THE PROUD PRESENTER OF AMERICA’S GAME This year marks the 110th Army-Navy Game, one of college football’s most storied rivalries. It’s a game rich in heritage and tradition — something we understand. USAA has served the financial needs of the military and their families for over 87 years, which is why we’re honored to present this national treasure.

Find out more at armynavygame.com

USAA means United Services Automobile Association and its affiliates. © 2009 USAA. 92500-1009

message from the CEO

Now serving all who have served honorably Earlier this year, I received the following letter from a USAA member: I was very excited when I saw that USAA is now being offered to those honorably separated from the military and jumped to send the link to my Dad. We were both disappointed to find out that the cutoff date for this was after 1996. Being a veteran myself, and having served in Iraq for 14 months, I still think Vietnam was one of the hardest conflicts this country has been a part of in the last 50 years and have all the respect in the world for my Dad’s service over there. Now that you are allowing more veterans membership, why not all those who have served? I am very pleased to let you know that eligibility for membership is now open to anyone who has ever served honorably in the U.S. Armed Forces. Our mission states “USAA seeks to be the provider of choice for the military community.” Not just the officer community. Not just military retirees. Not just those who served after 1995. We are carefully and responsibly managing USAA’s growth and have taken incremental steps in expanding membership eligibility to bring us to this point. We wanted to be very sure that USAA has the capital, the operational capacity and the capability to precisely underwrite and price for risk at the individual level. All those requirements are firmly in place. USAA is now the only property and casualty insurer to hold the highest ratings for financial strength from Moody’s, Standard & Poor’s and A.M. Best. Member satisfaction remains consistently high and is currently at 93 percent, through your choice of telephone, online or mobile — anywhere in the world. And our products and services continue to be competitively priced based on the individual risk. If you know veterans who served honorably but haven’t become USAA members, please share this news with them so that they may know the value of USAA and, by joining, facilitate future membership for spouses and children.  n

Josue (Joe) Robles Jr. Maj. General, USA (Ret.) President and Chief Executive Officer

See additional legal information on Page 30.

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cover feature

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 9 • Vo lu m e 4 5 • N u m b e r 4

In Every Issue USAA Online

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Check out ratings and reviews, webinars, videos and more at USAA.COM.

FYI

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cLimbing out of debt A member reveals her 10 steps to becoming debt free. By Kerry Hannon

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Track down year-end car deals, enjoy USAA access anywhere and find tips on buying foreclosures.

Ask a USAA Expert

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John Toohey offers advice on managing retirement money.

Member Savings

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Our guide highlights products and services especially for you.

Member Snapshot

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Meet Kai Ryssdal of public radio’s Marketplace.

Features

COVEr Photo: Randal Ford

Kickoff: USAA teams up with Army-Navy.

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Sweet Deal Get the lowdown on new Roth IRA rules for 2010. By Jean Chatzky

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Taryn Davis and Nicole Hart help military widows help each other. By Shari Biediger

USAA members share lessons learned for starting a business. By Dennis McCafferty

Tragedy to Triumph

usaa magazine  winter 2009

Be Your Own Boss

usaa online

Usaa.com Here for you 24/7 — wherever and whenever you need us Ratings and Reviews Grade our goods.

Let other members know what you think about USAA’s products and services, or comment on a personal finance article we’ve published online. Here’s how: Photography by corbis



Log on to USAA.COM/Social.

Click Products & Services and select the insurance or banking products you want to rate. To rate our advice articles, click the Advice & Planning tab, then click Advice Center and select Personal Finances. Click any story to add your comments. ■



Click Write a Comment.

Interactive Webinars

Get answers to your financial questions.

greg Blake

Jan Geiger

Want to learn about budgeting, planning for retirement, improving your credit score? USAA provides advice and commentary via video on these issues and more. Watch replays of these and other webinars. To find a topic that interests you, go to USAA.COM (Search: Webinar).

MannY Rios

Online Mortgages

Take advantage of historically low interest rates. Photography by corbis

Our new online tool prefills your USAA information, letting you get a rate quote and apply for a mortgage or refinancing in less than 20 minutes. Go to USAA.COM/Mortgage.

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. © 2009 USAA.

Suzanne McAuliffe Lee Brookman, Teri Cettina, Nora Duff, Melany Klinck, Nancy McAllister, Susan Speer

contributors:

production and circulation manager:

Lisa Severson vice president, member communications:

Rhonda Crawford

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DESIGNED BY: Pace Communications, pacecommunications.com, (336) 378-6065 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 27 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.

Videos

USAA members help each other. Taryn Davis and Nicole Hart, founders of the American Widow Project (see related story on Page 20), share their personal stories during USAA’s 2009 Memorial Day Ceremony. Go to USAA.COM (Search: Memorial Day).

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 with the eagle is a registered service mark of USAA.

USAA products and services are available only in those jurisdictions where USAA is authorized by local law to promote and sell them.

winter 2009  usaa magazine

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Kickoff: USAA Teams Up With Army-Navy Watch USAA make history in Philadelphia as the firstever presenting sponsor of the Army-Navy football game. USAA continues to demonstrate its commitment to honoring the military community through this 10-year sponsorship of the game. Can’t make the game? Tune in to the 110th ArmyNavy game on Dec. 12 at 2:30 p.m. (EST) on CBS.

USAA Takes Top Spot

Illustration by Chris Whetzel

USAA ranked No. 1 on Military Spouse magazine’s 2009 “Top 10 Military Spouse Friendly Employers” list. For details, go to USAA.COM (Search: Military Spouse).

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75? Senior Safety Over 75? The Insurance Institute for Highway Safety has news for you.

Wheel Deals

Late-year car shoppers may find it tough to drive a hard bargain in ’09. But try these tips.

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or car shoppers, the tried-and-true strategy of waiting until December to buy a car or truck could backfire this year because the federal government’s Cash for Clunkers program helped many dealers sell out of 2009 models. That’s not to say there aren’t deals to be had. You just might have to dig a little deeper. These tactics can help: n Research Market Values: Go to USAA.COM to compare prices, or use the True Market Value Pricing® calculator at Edmunds.com to uncover advertised and hidden dealer incentives. n Be a Detective: Dealers have to pay interest on cars that have been on the lot 60–90 days. Look for the manufacture-date label on the driver-side doorjamb (inside the car) to fuel your bargaining power. n Time Your Buy: Car dealers have monthly sales quotas to meet, and their actual number of sales is sometimes more crucial than their profit. They may be willing to give you a rock-bottom price if you sign the contract on the last day of the month.

want to save money? With USAA’s Car Buying Service, you can avoid dealer hassles and get exclusive, upfront member prices online. Go to USAA.COM (Search: Car Buying Service).

Per mile traveled, fatal crash rates increase starting at age 75 and grow markedly after age 80. But it’s not because older folks tend to get into more accidents than others. IIHS reports the higher death rate is due largely to greater susceptibility to injury and medical complications. Still, the overall picture is getting better. According to the Institute, between 1975 and 2008, autorelated deaths of people 70 and older grew by 13 percent, but their fatality rate per capita decreased 40 percent over the same time period. SAFETY FIRST Regardless of age, make sure you follow these tips: ■ Be alert. It’s safer to assume the other guy is a poor driver. ■ Look twice before turning. ■ Avoid driving in low light conditions. ■ Steer clear of heavy congestion. ■ Stick to roads you know. ■ Don’t speed, but keep up with the flow of traffic.

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Invest 101

The Snowball Effect What’s the hardest-working investment tool you can use? The power of time. Beth, Bob and Bridget all invested $2,500 at the same 6 percent rate of return. But see how compounding made Beth’s account grow? That’s the value of starting early.

IRA Break No required minimum distributions in ’09. If your retirement fund took a hit this year and you’re older than 70, you have a temporary reprieve: For 2009 only, you don’t have to take required minimum distributions from tax-deferred accounts. This applies to Individual Retirement Plans, employersponsored retirement plans, inherited IRAs and inherited Roth IRAs. For more on Roth IRAs, see “Sweet Deal” on Page 14.

2010

Beth’s $2,500

2020

2030

2040

2050

$25,714.29 Bob’s $2,500

$14,358.73 Bridget’s $2,500

$8,017.84 This chart is a hypothetical illustration and is not an indication of performance of any USAA product.

Holiday Jingle

Photography by Getty images

You can save on name-brand items at more than 500 retail stores and earn up to 20 percent in rewards by shopping at the new USAA online mall.

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Go to USAA.COM/MemberShop.

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ILLUSTRATION BY NIK SCHULZ

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Access Anywhere USAA debuts mobile app for BlackBerry®.

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hen USAA launched a mobile app for iPhone™ users earlier this year, we heard from our members who have BlackBerry mobile devices. And we listened. In February, we’ll launch a mobile app that gives users of the BlackBerry Bold™, Curve™, Pearl™ and Storm™ secure access to their accounts as well as an ATM locator, a loan calculator, a rental car locator and an accident checklist. USAA introduced the app for iPhone users in May and then in August unveiled another feature, Deposit@Mobile™, for the iPhone. This feature lets qualifying members* point, shoot and deposit checks using their phone’s camera. In early 2010, Deposit@Mobile will be available for most BlackBerry devices, as well. It’s fast, free and secure.

Go to USAA.COM/Mobile and sign up to get instant access to your accounts no matter where you are. *You must qualify for USAA’s remote deposit services; eligibility for USAA property and casualty insurance and credit qualification required. Deposits may not be available for immediate withdrawal. To take advantage of MOBILE.USAA.COM, you must be registered on USAA.COM.

Photography by Mark Wagoner and courtesy of USAA members

Going Mobile See who’s banking with USAA.

Did I already say I love this bank? Retired Army Sgt. Holly White, Austin, Texas

I can’t remember the last time I stepped inside a bank to deposit money. I can now do it on the go, and that’s incredible!

Just deposited three checks in less than five minutes with my husband’s iPhone. This totally rocks!

Air Force Cadet Tomas Ramos, Port Orange, Fla.

Anissa Power Busby, New Orleans, La.

Love the app! It has been really useful since I didn’t bring my laptop to Iraq. USAA has changed the game in online banking. Army Sgt. Johnny Taylor, Fort Meade, Md.

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Go

Green

Medicare Deadlines Nov. 15–Dec. 31: Enroll in a Part D Prescription Drug Plan, switch providers or drop out.

Tax credits cover some energy upgrade expenses.

Nov. 15–March 31: Enroll in a Medicare Advantage plan or switch from regular Medicare to Medicare Advantage. We can help protect you from health care and prescription drug expenses. Go to USAA.COM (Search: Medicare).

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Photography by Bunsen Bookworm/Corbis

for Green

Don’t miss these dates.

usaa magazine  WINTER 2009

ant to potentially reduce taxes and energy bills at the same time? Install Energy Star®–qualified insulation, windows, doors, roofing, heating and cooling systems, water heaters or fuel-efficient stoves in your primary residence. You may be able to receive a federal tax credit for 30 percent of the cost, up to $1,500 for products put in service in 2009 and 2010. Consult a tax advisor before making any large purchases. Additional tax credits are available through Caution 2016 for 30 percent of the cost of qualified geothermal heat pumps, solar panels, solar water Not all Energy Star products qualify heaters, small wind energy systems and fuel for tax credits. Read the rules at cells installed on existing homes or new energystar.gov/ taxcredits. construction. And there’s no cap — an important perk given the high cost of some of these items. ( 8 0 0 ) 5 3 1 - USAA ( 8 7 2 2 )

Foreclosure Buyers Beware

ILLUSTRATION BY harry Campbell

Stories of shockingly low home prices have attracted new buyers to the foreclosure market recently. But not everyone hits the jackpot. Impulsive or uneducated buyers often find themselves holding the deed to a money pit. Here are some tips to help you come out a winner.

DO Your homework. Search reputable online databases such as RealtyTrac. com for foreclosures. When considering unfamiliar areas, research neighborhoods, schools and market prices.

DON’T Buy property at auction unless you are comfortable with substantial risk. Auction properties may be in poor condition or have liens against them that will cause you legal headaches. Buying bank-held foreclosures is safer.

DO Drive a hard bargain. Generally, a foreclosed property should be at least 20 percent lower than similar homes. If there’s a glut of foreclosures, you may be able to negotiate an even better price.

DON’T Make an offer before inspecting the home. Look for water or insect damage and structural problems. Hire a professional to check electrical, plumbing and HVAC systems. If major repairs or upgrades are needed, ask a contractor to estimate costs.

DO Work with a real estate agent who is experienced in foreclosures and can access multiple listing service data.

DO Get financing before you shop. USAA offers loan prequalification, which may give you greater bargaining power.

New Rules FOR Credit Cards Most changes required by the new credit card law take effect in February 2010. To learn more, go to USAA.COM (Search: 7 Ways the New Credit Card Law Affects You). u s a a . c o m   W I N T E R 2 0 0 9   u s a a m a g a z i n e

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Auto 101 Smart Financing Buying a new car? Visit USAA.COM (Search: Car Buying Service) and run the numbers. If you need to finance, consider the loan terms carefully. It’s no fun to be upside-down, owing more than your car is worth.

Cash Down Loan Terms

Option 1

Option 2

Option 3

20% 3YR@9%

10% 5YR@9%

0% 7YR@9%

$17,000 $7,069

$17,000 $14,429

$17,000 $19,376

After AFTER 2 years 2 YEARS

Car Value You Owe

Example for illustrative purposes only to show how a borrower can end up owing more than the value of the car purchased.

Rainy-Day Funds Drying Up? A variable-rate certificate of deposit may be a good place to sock away emergency funds these days. Unlike a fixed-rate CD, the variable-rate CD works like a savings account. You can deposit more money into it over time in minimum increments of $50. Interest rates on these accounts are generally higher than those of traditional savings accounts, and can

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fluctuate based on market changes. So if rates increase after you’ve invested, you won’t be locked into a lower rate. USAA’s variable-rate CDs are available in six- and 12-month terms, with a $250 minimum deposit. For details, go to USAA.COM (Search: Certificate of Deposit). ( 8 0 0 ) 5 3 1 - USAA ( 8 7 2 2 )

ILLUSTRATION BY Miguel Davilla

Sprinkle in some CDs.

mail call DEPLOYED PARENTS

Photography by getty images

I read the story “Breaking the News” (Fall 2009) by Alison Buckholtz. A sincere “thank you” to all our service men and women and their families for their sacrifices while being deployed to the combat zones. The statistics on deployed parents — two, three and four times deployed — are hard to read. There are so many of us who pray every day and throughout each day for all in combat. Please know we hold you dearly, and you are not alone. n Lillian Kelly, Sacramento, Calif.

Your Home, Alone Don’t let crooks steal your holiday cheer.

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lan to travel this winter? Make sure you’re not an easy mark for thieves. To deter break-ins: n Ask a neighbor you trust to check on your home while you’re away. n Stop newspaper and mail deliveries. n Lock all windows and doors, including those in your garage and basement. n Ask someone to shovel snow, if needed, during your absence. n Use timers on exterior and interior lights and radios to make your house appear occupied. n Put away tools and ladders — no need to help the bad guys break in. n Advise your security company of your plans. n Don’t “tweet” that you’re traveling.

Don’t have a home security system? Go to USAA.COM/ HomeSecurity. USAA members can save up to 44 percent on installation of an ADT Home Security System and can get monitoring for less than $1/day.

Facing our third deployment, my husband and I were eager to read “Breaking the News.” Our children are 2 and 4, and we are always looking for suggestions to make any aspect of deployment easier on them. We were very disappointed in the article and, frankly, think it does your readers a great disservice. The suggestion of buying good memories and distractions as a way to mitigate the pain of deployment is irresponsible. This is certainly not a solution for most military members. I think it would be more helpful to remind military families that their children are receiving invaluable lessons in service and patriotism. n Karen Ruedisueli, Fort Drum, N.Y.

LOOKING AHEAD Just enjoyed the most recent USAA Magazine (Fall 2009). Sounds like you needed to include the latest update that folks are saying we’re now out of the recession, although there will be some climbing still to do. It remains a great magazine with lots of useful information. Can’t wait to hear what you all say next time. n Kathryn Elizabeth Krastin, Austin, Texas

T@lk to Us Be our fan on Facebook®. Log on to Facebook.com/USAA. Twitter® users can follow USAA at twitter.com/usaa_news. E-mail us. Log on to our Web site at USAA.COM and click Contact Us. Write a letter. USAA Magazine, Mail Call, E-1-E, 9800 Fredericksburg Road, San Antonio, TX 78288-3533. Please include a daytime telephone 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.

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Jean Chatzky, award-winning journalist, best-selling author and motivational speaker, is helping millions of men and women battle debt. That’s why we’ve tapped her to write a personal finance column just for our readers in each issue of USAA Magazine. Chatzky’s newest book, The Difference: How Anyone Can Prosper in Even the Toughest Times (Crown Business), debuted in March.

Sweet Deal Photography courtesy of Jean Chatzky

New rules for 2010 give more people access to one of the best savings plans for retirement. Is the Roth IRA right for you?

For questions about Roth IRA conversions, call USAA at (800) 531-8722. 14 u s a a m a g a z i n e  

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dollars & sense By Jean Chatzky

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he lowdown on Roth IRAs has always been good. Since these accounts were created in 1997, I’ve heard them referred to as “too good to be true,” even “gifts from the Congressional gods.” Now, for a brief while, they are about to get even better. But I’m getting ahead of myself. For the uninitiated, the difference between a Roth Individual Retirement Account and a traditional IRA is this: Traditional IRAs. You can deposit $5,000 — up to $6,000 if you’re over 50 — into a retirement account today. You may or may not get a tax deduction on the amount you deposit, depending on your income and whether you have a qualified retirement plan like a 401(k) at work. But, in either case, when you pull the money out at retirement — which you must begin to do by age 70½ — you will pay income taxes on that money at your current rate. And if you need to pull money out before you hit age 59½ you’ll likely pay a 10 percent penalty in addition to income taxes.

»See “IRA Break” on Page 8.«

Q

Do I expect my tax rate to decline substantially in the future? If you do, it likely makes sense to forgo the

Q

Do I have the money to pay taxes on my conversion without raiding my IRA itself? If the answer is no, a

conversion and pay taxes on your IRA later rather than now. The closer you are to retirement (and making withdrawals), the stronger this argument is. If you have significant assets, it may be in your best interest to convert because financial analysts are saying tax rates may go up.

conversion doesn’t make sense. Pulling money out of the Roth IRAs. You pay income taxes on the money at your account itself pre-retirement will subject you to that onerous current rate before you make the deposit. But you don’t 10 percent penalty. You also lose the tax-free growth on have to pay taxes upon withdrawal. You don’t have to money sheltered within the account. Understand, it isn’t an withdraw the money at 70½ — or ever. You can pass the all-or-nothing proposition. You can convert some traditional entire account to your heirs if you like. Unlike a traditional assets to a Roth — those on which you have the money to pay IRA that penalizes you for early withdrawals, you can the taxes — but not the others, then hope for an opportunity withdraw contributions from a Roth with no tax and no to do the same sometime in the future. penalty if you’re over age 59½ and otherwise meet the requirements for a qualified distribuDo I trust the government tion. As I said: Good. to leave Roths untouched? Unfortunately, people with their Be IRA-aware. A recent survey If you’ve been following the funds in 401(k)s or IRA rollover headlines — in particular the health accounts have often felt like Roths commissioned by USAA care debate — you know that the were out of their reach. Why? Because found the new Roth conversion deficit is big and getting bigger, if your household had a modified which means that some taxes will, adjusted gross income of $100,000 or rules may go unnoticed and in the future, be going up. Although more, you didn’t qualify. untapped by many. The survey it’s unlikely that the government will For 2010, that changes. Beginning showed that only 9 percent of decide to tax withdrawals (that would Jan. 1, any household with any income be double taxation), the ability to can convert a traditional IRA to a Roth. respondents with household pass the account on to your heirs The conversion, of course, isn’t free. income of more than $100,000 and may find itself on the chopping block. When you convert a traditional IRA to All in all, your best defense is a Roth, you must pay the income taxes 27 percent of all respondents who own likely a good offense. Just as you on the amount of money that you an IRA planned on taking advantage don’t want all your eggs in one convert at your current rate. But, if of the opportunity to turn their basket, you don’t want all of your you convert in 2010, you’ll have the retirement funds subject to the same opportunity to recognize half the tax-deferred savings into tax-free tax treatment. Having some in a income when you file your 2011 taxes retirement income next year. Roth, others in a traditional IRA and and the other half on your 2012 return. For details, go to USAA.COM still others in discretionary accounts It’s a move that makes sense for many makes you an agile investor — able people. By answering the following (Search: Roth Survey). to deal with whatever curve balls questions you can decide if it makes Congress throws your way.  n sense for you.

Q

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Member Noemi Wikstrom shares the path she followed to get her finances on track.

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Sometimes it only takes a small stumble to wind up in deep debt. Ready to get out? A USAA member and a financial expert point you in the right direction. By Kerry Hannon » Photography by Ed McCulloch

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oemi Wikstrom stared inside the empty refrigerator. The phone rang, and she knew who it was — debt collectors. The 30-year-old single mother was broke. Unable to feed her three children, ages 7 to 12, she had no choice but to send them to live with relatives. “I felt like the worst mother on earth, but I had to be honest with myself,” she recalls. “I was earning around $20,000 a year as a senior airman with the Air Force and was $50,000 in debt.” That was five years ago. But her predicament started when she was a 19-year-old divorced mom, raising young children without child support and living in Puerto Rico. Earning minimum wage as a

“I was earning around $20,000 a year as a senior airman with the Air Force and was $50,000 in debt.” USAA member Noemi Wikstrom with her daughter, Mandi, and husband, Chris

10 Steps to Financial Recovery BUDGET AND SAVE

Noemi Wikstrom, now on her way to being debt free, recounts the 10 steps she took to improve her financial situation.

J.J. Montanaro, a USAA financial expert and CERTIFIED FINANCIAL PLANNER™ practitioner, offers his take on each step of Wikstrom’s recovery process.

CUT SPENDING

TRACK DAILY EXPENSES

SET GOALS

1

2

3

4

Wikstrom I saved $100 and put it into a savings account. Then, I put 10 percent of my income into this account, no matter what. I didn’t even miss the money. It was like paying a bill, but I was paying myself.

Wikstrom I stopped buying new clothes and found ways to trim grocery bills, like buying ground meat over steak and ramen noodles over pizza. I also moved in with a friend for a year, which cut my monthly rent from $875 to $100.

Wikstrom I carry a notebook and write down everything I spend money on.

Wikstrom I wanted to be free of all my revolving debt in five years and have a healthy savings account so I could pay for food and gas, and support my children.

Montanaro Systematically adding money to an emergency savings fund is a must, especially in crazy economic times like these. Smart move, Noemi.

Montanaro The roof over your head may be your most costly expense. Look for options like downsizing, getting a roommate or moving in with a sympathetic friend for a while.

Montanaro Most of the time it’s not the big items that get you into trouble. Noemi’s technique helps you track little expenses that add up.

Montanaro It’s smart to set up checkpoints to your final destination. Getting rid of the first credit card bill or reducing your debt by $1,000 are good short-term goals.

See additional legal information on Page 30.

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receptionist, she owed $1,000 on a maxed-out credit card with a 25 percent interest rate. That debt ballooned. In 2001, she enlisted in the Air Force and moved to Colorado. Financially, things didn’t improve. Desperate, she turned to payday loans for everyday expenses, bounced checks and racked up bank fees. Then came $7,000 in unexpected medical bills after a digestive disorder diagnosis. “I didn’t know where to start to clean up my life,” recalls Wikstrom, now a civilian who contracts with the Navy as an operational satellite technician. “Nobody can help you if you don’t take the first steps to help yourself.” n

5 Wikstrom After my day job, I worked at a photo shop for $5.25 an hour. I was able to pay an extra $6,000 toward my debt.

Montanaro Noemi is a textbook example of working both ends of the equation — cutting expenses and increasing income — to hammer down debt.

PAY OFF HIGH INTEREST LOANS SYSTEMATICALLY

6 Wikstrom First, I took care of my three payday loans. Then, I moved down my list of creditors from $10,000 past due on an auto loan to $7,000 in medical bills.

Montanaro Some folks start with the smallest loan just to see progress, but from a numbercrunching standpoint her strategy makes sense.

PAY BILLS AUTOMATICALLY ONLINE

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FIND OUT YOUR CREDIT SCORE

8 Wikstrom No more latepayment fees! Paying bills online helped keep me in the rhythm of budgeting.

Montanaro Paying bills on time helps ratchet up your credit score. Online bill paying helps make this happen.

Wikstrom When I couldn’t get a car loan or a new credit card, I checked my score and it was 491. Today, it’s around 648 — not perfect by any means but a big improvement.

Montanaro A good credit score can translate to loans when you need them and thousands of dollars in interest savings. Scores range from the 300s to 850, with most folks falling in the 600s and 700s. Strive for a score of at least 720 to 740 to get better rates on credit cards, auto loans and mortgages.

FIX CREDIT REPORT ERRORS

9 Wikstrom To continue improving my score, I regularly check my credit report. I’ve found errors in the past, and it was a tedious process to get them corrected. I had to write letters to the credit bureaus and send proof that I was right.

Montanaro Go to the official site, AnnualCreditReport. com, to request a free credit report from each of the three reporting agencies — Experian, Equifax and TransUnion — every 12 months. Keep in mind, your credit score does not come with the free report. You’ll have to purchase your score from each bureau.

DO PERIODIC CHECKUPS

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Illustrations by Oliver Munday

TAKE A SECOND JOB

What’s your debt situation? Go to USAA.COM, click the Advice & Planning tab and take the free financial assessment.

Wikstrom I take USAA’s free financial assessment every six months.

Montanaro Assessing your situation regularly should be part of your financial regimen. Getting out of debt is possible, but it takes patience. Congratulations, Noemi.

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Taryn Davis (left) and Nicole Hart (right) help widows support each other and look to the future. Visit AmericanWidowProject.org for more information.

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» american widow project

icole misses David’s smile. Taryn misses Michael’s accepting ways. In the midst of losing the men they loved most, early in their marriages, these military widows grieve for those things and so much more. Yet, two years later, Nicole Hart laughs again, and Taryn Davis accepts her loss and looks to the future. “All those things I miss about him are my ‘teachers’ now,” says Taryn. “The things he lived for and did — those are getting me through my days.” Taryn, 23, established the nonprofit American Widow Project in 2007 when she reached out to other young war widows to film a documentary about what she calls their tragedy and their triumph. Nicole joined her, and today the two women run the AmericanWidowProject.org Web site and schedule events around the country to connect with other military widows. Nicole, who turned 24 in April, says the events are about experiencing life again. “Once I got involved with the project, it shocked me that I could do more than just exist,” she says. “I could actually live and enjoy life.” Still, it pains them both to think about other military spouses who have lost their soul mates and may be feeling isolated and alone, as they once did. “The sad reality for me is I don’t get to hear my husband say every day he loves me,” says Taryn. “But I get to feel his love by working with widows, meeting people and seeing that they still honor his sacrifice.” n

«

N

Tragedy

to

Triumph

By leaning on each other, military widows Taryn Davis and Nicole Hart found the strength to build a new life — for themselves and others like them. By Shari Biediger » Photography by Jeffery Salter

winter 2009  usaa magazine

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BE YourOwn Boss Think starting a business is out of reach? Entrepreneurial members share the lessons they’ve learned to help you live your dream. | By Dennis McCafferty | Illustration by Shout

W

hen Chris Charbonneau quit his corporate sales job in Maryland pending a layoff last fall, he had a decision to make: Look for work in a bad economy, or carve out a niche with a business of his own. Hoping to cash in on the green movement, he and his wife, Kate, both avid recyclers, decided to pursue an idea they had been tossing around — creating reusable nylon tote bags to carry groceries, shopping mall purchases or just about anything else under 40 pounds. A key selling point? The bags collapse into a small pouch that can be tucked into a purse or backpack. “My wife and I had plenty of those 99-cent reusable bags grocery stores sell. But we were constantly leaving them behind when we walked out the door to go shopping,” says Charbonneau. “We needed something we could stash in my wife’s purse or easily hold in one hand. So we came up with our own solution.” It remains to be seen whether Charbonneau’s idea will take off. But as a budding entrepreneur in a tough economy, he’s in good company. More

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Find out how these USAA members put their dreams into action.

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USAA MEMBER PROFILES

than half of the firms currently on the Fortune Make 500 list began during a recession and/or a Make A a bear market, according to research by the Plan Plan Ewing Marion Kauffman Foundation. Other USAA members are following a similar path. Sol Scott lost her job in January when the luxury real estate business she worked for in Florida shut its doors. Now, she runs her own concierge and lifestyle management company that caters to celebrities, sports figures and other affluent clients. Maj. Doug Crandall, who separated from the Army in June 2008 after 13 years of service, worked in customer service nine months before quitting in April to write a book about one of his military heroes and launch a leadership-development business in Richland, Wash. And Meg Ferguson is still glad she turned down a dream job at a software company five years ago to start her own Philadelphia-area online marketing firm. They all shared one key ingredient for any new business: a plan. “It’s nice to talk about noble dreams, but what many people fail to do is develop a comprehensive plan,” says James King, director of the New York State Small Business Development Center, a partner program of the Small Business Administration.

Chris Charbonneau Annapolis, Md. Business Joey Totes Inc., eco-friendly reusable bags Previous Job Salesman for a forest products company Vision Combine a passion for recycling with an idea that could change consumer behavior Lesson Learned You get what you pay for — don’t scrimp on things that matter most

Sol Scott Weston, Fla. Business Sconetti, concierge and lifestyle management company for affluent clients Previous Job Marketing director for a luxury real estate business Vision Find balance between career and life Lesson Learned Save for a rainy day

Do

Know what you want

Your When Ferguson turned down a lucrative Research executive position with bonus and benefits in 2004, she did it for one reason: She wanted more. “I just wasn’t happy in the corporate world,” she says. “I finally confronted the truth about myself, and realized that I wanted the freedom to carve out my own niche.” With help from the Small Business Administration, she spent six months shaping her vision — determining what products and services she would offer, outlining goals,

assessing competitors, developing a pricing strategy, identifying a customer base and nailing down other essentials of a business plan. With a home computer, no employees and one client who happened to be a friend, she opened an online marketing firm. Through networking, positive word of mouth and a strong marketing plan, she now has more than 50 clients and regularly bids on large contracts for multimillion-dollar national and global companies, universities and government

Protect Yourself When you strike out on your own, you no longer have insurance and retirement plans traditionally supplied by employers. Make sure you’re covered in these essential areas, says Bruce Phillips of the National Federation of Independent Business Research Foundation: Health: Get on a spouse’s employer-sponsored plan. Otherwise, join a trade association that offers group insurance for members. Retirement: Look into a Simplified Employee Pension (SEP) IRA. This provides a way to sock away

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tax-deductible funds for retirement since you don’t have an employer-sponsored 401(k). Liability: Purchase an umbrella policy to protect your personal assets in case someone slips and falls on your property. Life: Consider term life

insurance — you pay only for a set period of time, and rates are typically lower than permanent life insurance. Disability: Explore disability insurance, which replaces a portion of your income lost due to an illness or accident.

USAA offers some of the most competitive umbrella and life insurance policies around. Let a USAA financial professional help you with insurance or IRA decisions. Go to USAA.COM to learn more.

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USAA MEMBER PROFILES

Maj. Doug Crandall Richland, Wash. Business Author of I Can and founder of Blue Rudder, a leadershipdevelopment firm Previous Job Customer service rep Vision Change lives, inspire character and guide leaders Lesson Learned Get a part-time job that provides health insurance until your business takes off

to 13 at home and a spouse who was a stay-at-home mom, his decision to write a book and launch a business during a recession forced some tough choices. He used a $15,000 tax refund, mostly from being a first-time home buyer, to pay household expenses for three months as he wrote and researched his book. He also took out more than $8,000 from his investments, refinanced his home and canceled cable TV. “Yes, it seems kind of stupid to do this in the current economy,” Crandall admits. But he says he felt driven by a strong spiritual calling to write about Army Capt. Scotty Smiley, a blind Iraq war veteran whom he met while teaching at West Point. His wife agreed the project was worth the risk. Their instinct paid off four months ago when Simon & Schuster announced it would publish the book next fall. Now, Crandall is pouring his energy into a leadership-development business and is working on a second book.

Meg Ferguson Wayne, Pa. Business Vision House Marketing, an online marketing firm Previous Job Marketing executive for a software company Vision Free myself from corporate life and control my destiny Lesson Learned Don’t give away services to land clients

Measure your success

agencies. “Ironically, I work longer and harder now than I ever did,” she says. “And I’ll never look back!” Figure out funding

Save

In Your business may not require a huge investAdvance ment to get started, but you’ll need some cash to market your product or service, buy supplies and keep the lights on. If you know you’ll want to do this in the next two to five years or so, start socking away money now. Then, in the future, you can draw from a savings fund or cash in a certificate of deposit when it matures — and possibly avoid taking out a loan to cover startup costs. By setting up shop at home and ordering 1,000 business cards for free from an online site, Ferguson kept initial costs low and didn’t have to borrow any money to start her marketing business. Charbonneau siphoned about $5,000 from savings to develop a tote bag prototype and conduct market research. Scott relied on her marketing background to design her own logo and brand identity for her business, and took $5,000 from personal bank accounts to pay for an online domain name, office supplies and marketing materials. Charbonneau and Ferguson also consulted financial professionals for guidance. Of these three, all but Ferguson relied on their working spouses for monetary support as they got their businesses off the ground. Ferguson’s one client helped her stay afloat until she could build her customer base. Crandall didn’t have any cushion. With four children ages 6 u sa a . co m

No matter how you calculate success, you Set should compare it against the objectives set Specific Goals forth in your business plan. It’s not enough to say you want to build brand awareness or make a profit. You need to set firm, specific targets. Charbonneau, for example, aims to sell 10,000 tote bags, available in various sizes and prices, to produce revenue of $50,000 for the year. Ferguson wants to maintain or increase her 96 percent client retention rate. Scott wants to double her profit each quarter and net a six-figure annual salary. And Crandall hopes to sell 25,000 copies of his first book and have three anchor clients for his burgeoning leadershipdevelopment service by this time next year. With careful preparation, planning and perseverance, all four have a shot at reaching, or even exceeding, their goals. And maybe, with a little luck, they’ll reach them sooner rather than later. n

Resources

n Counselors to America’s Small Business Known as SCORE®, this nonprofit association provides free counseling and mentoring to entrepreneurs. SCORE.org • (800) 634-0245 n Small Business Administration An independent government agency that helps Americans start, build and grow businesses. SBA.gov • (800) 827-5722 n National Federation of Independent Business A nonprofit association that represents small and independent businesses in the United States. NFIB.com • (800) 634-2669 n Business.gov The U.S. government’s official Web site to help small businesses start and operate while staying compliant with laws and regulations.

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ask a usaa expert

By John Toohey

Game Plan

Don’t drop the ball on managing your retirement money. No matter your age, the recession surely has you wondering how today’s money woes may affect your future. John Toohey, USAA vice president of Equity Investments, offers tips for keeping your retirement plan on track, whether you’re retiring in three years or 30-plus. He gives one piece of advice to everyone: Diversify and rebalance your portfolio.

Near or Living in Retirement

If you haven’t left your job yet, examine your expected retirement earnings from your workplace retirement plan, investments, Social Security and any other sources. And you may want to test out living for six months on that amount. Income too tight? Consider working longer, downsizing expenses or tweaking your retirement portfolio. A financial advisor can suggest whether you’d benefit from a focus on incomeproducing investments like income annuities, corporate bonds, municipal bonds, fixed annuities or high quality dividend-paying stocks. 1–2 Decades From Retirement

Check your diversification and rebalance your portfolio. Annual review of your asset allocation can help enforce a buy low, sell high practice that may lower your risk and potentially improve investment returns. It’s important to have a mix of stocks, bonds, cash and other investments designed for you, your financial objectives and your tolerance for market swings. Talk to a USAA financial advisor to help make sure

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usaa magazine  Winter 2009

your asset allocation is on track, as well as evaluate whether your investment mix is right for your time horizon. And look into catch-up contributions if you’re 50 or older, so you can contribute more to 401(k) and Roth IRA plans.

unemployment, consider job security, too, before making long-term investment decisions. If you have job security concerns or volatile job income, it may be a good idea to fatten up the cash stash before maxing out your taxdeferred accounts.

2–3 Decades From Retirement

Folks who are several decades from retirement are often advised to take more risk with their retirement funds. However, given the rise in

Want to tap into USAA’s money management expertise? Call us at (800) 235-1898.

3 or More Decades From Retirement

Invest systematically with help from a financial advisor. The younger you are when you start, the less you’ll ultimately have to save during your lifetime. Take advantage of the power of tax-deferred compounding and matching contributions offered through employer-provided retirement plans. n Asset allocation does not protect against a loss or guarantee that an investor’s goal will be met. Diversification is a technique to help reduce risk. There is no absolute guarantee that diversification will protect against a loss of income. Systematic investment plans do not assure a profit or protect against loss in declining markets. Dollar cost averaging involves continuous investment in securities regardless of fluctuating price levels of such securities. Investors should consider their financial ability to continue purchases through periods of low price levels. Investing in securities products involves risk, including possible loss of principal.

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member savings | Exclusive Products and Services for USAA MEMBERS ONLY

Gifts That Shine Make someone feel truly special. Thoughtful gifts are the most cherished, and we want to help you make it a gift to remember. As a USAA member, you can save on jewelry and other gifts that truly express your heartfelt appreciation. Enjoy these great deals on popular gifts: Receive 25% off every FTD order, including a wide variety of florist-designed and directshipped flowers, holiday centerpieces and personalized gifts1 Pay low interest and extend your payments over several months on qualifying diamond and jewelry purchases Apply the current value of your USAApurchased diamond toward a larger stone with our Diamond Upgrade Program

To order, go to USAA.COM (Search: Gifts). Protect your valuable gifts with USAA Valuable Personal Property Insurance2:

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Cover items your homeowners coverage may neglect

PAGE 29

Photography by Getty Images

Get 100% replacement cost with no deductible3 Obtain coverage for as little as $4/month with no appraisal4

Membershop Retirement PAGE 29

Life Insurance

For more information, go to USAA.COM (Search: VPP). See additional legal information on Page 30. u s a a . c o m   W i n t e r 2 0 0 9   u s a a m a g a z i n e

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Photography by Getty Images

Member Savings

MEMBERSHOP

This holiday season, save more to give more. Make shopping simpler — and more rewarding — with USAA.

Shop from your computer: Holiday shopping usually takes a lot out of you. There’s driving, traffic, parking, crowds, hectic sale schedules and carrying everything around. This year, save your gas and your feet with USAA MemberShop™. Visit USAA.COM/ MemberShop — our online shopping mall has access to 15 million products from more than 500 online retailers

Maximize your savings with a USAA Total Rewards, USAA Eagle Points or USAA Cash Rewards® Card: Get member-only low variable rates Choose rewards including cash, gift cards and travel rewards

Go to USAA.COM (Search: MEMBErSHOP).

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photography by Corbis

Receive rewards when you buy online — no matter what credit or debit card you use5; the rewards add up even faster with a USAA card

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Retirement

Help from the pros. Don’t let retirement become a full-time job. USAA retirement professionals are ready to help you choose investment options from Target Retirement Funds to managed investment portfolios.

Take advantage of the difference with Guaranteed Savings Annuities: Choose the tax advantages of a Guaranteed Savings Annuity or the regular income of a Guaranteed Income Annuity Get guaranteed income with no market risk Consult with salaried advisors who are not paid on commission

Use USAA Target Retirement Funds to help you plan for retirement:

Diversify with our mix of equity and bond funds, no matter how close you are to retirement

Certificates of Deposit (CDs) offer stable growth for your retirement dollars: Competitive fixed rates — all FDIC-insured Get guaranteed growth for as little as $1,000 with terms from three months to seven years

Select low-cost investment options based on a target retirement date Investments/Insurance: Not FDIC Insured • Not Bank Guaranteed • May Lose Value The risks of the Target Retirement purposes at age 65. The principal value Funds reflect the risks of the underlying of the Target Retirement Funds is not funds in which the Funds invest. The tar- guaranteed at any time, including at the get date is the approximate date when target date. The Funds’ objectives do investors plan to start withdrawing not change over time. their money for retirement purposes. In Mutual fund investments are not insured general, the Target Retirement Funds’ and offer a variable return. investment program assumes funds will Diversification does not guarantee a start being withdrawn for retirement profit or prevent a loss. See additional legal information on Page 30. Life Insurance

Get covered for long-term care. When you retire, insurance becomes more important than ever. Most health insurance plans — including Medicare and Medicaid — only offer limited coverage for long-term care. That’s why we have worked to make available policies that meet your budget and care preferences at association prices.

Long-term care coverage you can depend on: Cover custodial care in a variety of settings Plan now to avoid complications down the road Count on our knowledgeable professionals to help you make the right choices for you Learn about our full range of Medicare Solutions

 o discuss your options with a T professional, call (800) 235-0481.

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Retirement

Get rolling. Time to make your hard-earned money work for you (for a change). When your active duty ends, you should consider investing your earnings to continue saving for your retirement. Take control of your retirement with a USAA IRA. The Thrift Savings Plan (TSP) offers three choices: withdraw it, leave it or take it with you. Early withdrawal could mean a substantial tax hit if you’re under 59 1/2, as well as expose you to other potential penalties. So roll it into a USAA Traditional IRA directly to continue investing toward your retirement.

Put your money where your future is: Roll your TSP into a USAA Traditional IRA to avoid early withdrawal penalties and ordinary income taxes Get free financial advice from a USAA CERTIFIED FINANCIAL PLANNER™ practitioner Manage your money easily online Keep your options open, including USAA and non-USAA mutual funds, exchange-traded funds, stocks, bonds and CDs Investments/Insurance: Not FDIC Insured • Not Bank Guaranteed • May Lose Value There may be tax consequences associated with the transfer of assets. Indirect transfers may be subject to taxation and penalties. Consult with your own advisors regarding your particular situation. Withdrawals made before age 59 1/2 may be subject to a 10% federal penalty and ordinary income taxes. Mutual fund investments are not insured and offer a variable return.

 o discuss your options with a retirement T professional, call (888) 260-5480. Life Insurance

Knowing more begins now.

Photography by Getty images

Coverage you can trust from an organization you can count on: Get free advice and determine the correct amount of coverage for your family with help from our financial advisors Our life insurance companies have the highest ratings from A.M. Best and Standard & Poor’s See additional legal information on Page 30.

Photography by Getty images

When service to your country is over, service to yourself and your family becomes top priority. Our Term Life Insurance can help provide the protection you need once you no longer qualify for Servicemembers’ Group Life Insurance (SGLI).

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THE USAA EDUCATIONAL FOUNDATION® financial

planning

a guide fo r your su rvivors buying or refinancing a home home

legal disclosures

Investments/Insurance: Not FDIC Insured • Not Bank Guaranteed • May Lose Value USAA or its affiliates do not provide tax advice. Taxpayers should seek advice based upon their own particular circumstances from an independent tax advisor. Financial advice provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California) and USAA Financial Advisors, Inc., a registered broker dealer.

as marital status, rank or military status. Rates and benefits may vary due to eligibility. 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. Purchase of a non-property and casualty insurance product, or an insurance policy offered through USAA General Agency, does not establish eligibility for or membership in USAA property and casualty insurance companies.

Page 3

The USAA Educational Foundation, a nonprofit organization, has the resources to help make your life more manageable. Changing Jobs (#532) Managing Credit And Debt (#501) Individual Retirement Accounts (#561) Buying A Vehicle That Meets Your Needs (#505) Buying Or Refinancing A Home (#502) When A Loved One Dies: Legal And Financial Concerns (#551) When A Loved One Dies: Coping With Grief (#552) A Guide For Your Survivors (#579) 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.

A++ (Superior) from A.M. Best Co., highest of 16 possible ratings; Aaa (Exceptional) from Moody’s Investors Service, highest of 21 possible ratings; AAA (Extremely Strong) from Standard & Poor’s, highest of 21 possible ratings.

USAA Companies

delivery. If an item is not available, a comparable substitute will be provided. Due to the perishable nature of our products, please make any customer service inquiries within 7 days of delivery.

Trust Services offered by USAA Federal Savings Bank. Credit cards provided by USAA Savings Bank, other bank products provided by USAA Federal Savings Bank, both Member FDIC.

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 Page 18 Casualty Insurance Company, USAA County J.J. Montanaro is a CERTIFIED FINANCIAL Mutual Insurance Company, USAA Texas PLANNER™ practitioner with USAA Financial Lloyds Company, San Antonio, TX, and USAA, Planning Services, one of the USAA family Ltd. (Europe). of companies. Investments provided by USAA Investment This material is for informational purposes. Management Company and USAA Financial Consider your own financial circumstances Advisors, Inc., both registered broker dealers. carefully before making a decision and consult USAA Brokerage Services is a division of USAA with your tax, legal or estate planning Financial Advisors, Inc., a registered broker dealer. Financial planning services and finanprofessional. cial advice provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in CaliPage 27 fornia), a registered investment adviser and 1 A standard service fee of $13.49 will insurance agency and its wholly owned subsidbe added to each item delivered by a local florist, and $14.99 to each item shipped iary, USAA Financial Advisors, Inc., a registered direct. Prices may differ based on day of broker dealer.

2 In most locations, to purchase a Valuable Life insurance and annuities provided by Personal Property policy, you must have a USAA Life Insurance Company, San Antonio, USAA Homeowners or Renters Policy. TX, and in New York by USAA Life Insurance 3 With replacement cost coverage, at our Company of New York, Highland Falls, NY.

option, subject to policy limits and policy deductible, 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.

Each company has sole financial responsibility for its own products. Other Product Related Disclosures

Property and Casualty Insurance $4 a month policy provides $2,500 on sched- Product or service requirements, price and uled jewelry. Rates may vary due to location. features can depend on the member’s choices as well as laws and the product or service contracts, which may vary by location. We Page 28 encourage you to read your USAA policies 5 Earn 1 point for every $1 credit card purchase and contracts carefully. Underwriting restricor $2 debit card purchase. Select “credit” at tions apply. checkout; PIN-based purchases do not earn points. Other restrictions apply. Investments 4

Member The term “member” does not convey legal, ownership or eligibility rights. Ownership rights are limited to eligible policyholders of United Services Automobile Association.

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.

All non-USAA products, brand names, comMembership eligibility restrictions apply to pany names are trademarks or registered purchase of property and casualty insurance. trademarks of their respective owners. Eligibility may change based on factors such © 2009 USAA. Eligibility

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9.75 in.

7.25 in.

YOUR COMMITMENT TO YOUR COUNTRY HAS NO LIMITS. YOUR LIFE INSURANCE MIGHT.

Better life insurance begins now. | 888-260-5480 Your Servicemembers’ Group Life Insurance (SGLI) offers a maximum payout of only $400,000. Chances are that may not be enough to provide your family with a lifetime of support. That’s why we offer Military Protection Plus. It picks up where SGLI leaves off and can stay with you long after your transition from Active Duty. And, as you’d expect, our coverage is military-friendly with expedited handling upon deployment and no war clause. Call now and get a quote over the phone.

Military Protection Plus is level term life insurance. Initial life insurance coverage limited to $350,000. Form LLT49045ST 01-05 (may vary by state). In New York, form NLT45861NY 01-04. Military Severe Injury Benefit and option to increase coverage to replace SGLI provided by riders. Increases in coverage require payment of additional premium. Rider forms LBR57941ST 05-06 and LBR67140ST 05-07 (may vary by state). In New York, forms NBR60469NY 06-06 and NBR67175NY 06-07. Availability of increased life insurance coverage depends on characterization of military separation. Call for details on specific policy costs, benefits, limitations and availability in your state. Life insurance and 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. © 2009 USAA. 92050-1009

DON’T LET RETIREMENT PLANNING BECOME YOUR SECOND JOB. TRY USAA.

Better planning begins now | 800-235-0481 | usaa.com In these economic times, evaluating your retirement strategy is not only appropriate, it’s smart. Fortunately, you have an ally in us. We offer a comprehensive suite of retirement solutions from professionally managed portfolios to guaranteed annuities. If value and great customer service are important to your retirement planning, then it’s time you talked with us about our integrated investing and life insurance solutions.

USAA means United Services Automobile Association and its affiliates. Purchase of a non property and casualty insurance product does not establish eligibility for or membership in USAA property and insurance companies. Investments provided by USAA Investment Management Company and USAA Financial Advisors Inc., both registered broker dealers. 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. An annuity is an insurance contract sold by an insurance company designed to provide an income usually after retirement that cannot be outlived. The fixed annuity guarantee is against principal loss and depends on the claimspaying ability of the issuer. Life insurance and 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. © 2009 USAA. 92101-0709

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member snapshot

Kai Ryssdal

USAA member since 1985

T

Photography by Dave Lauridsen

here are plenty of economic analysts on the airwaves. But Kai Ryssdal, host of American Public Media’s Marketplace, isn’t one of them. That may be why his show resonates with more than 5 million public radio listeners. “I don’t have a financial background. My wife handles our finances,” he jokes. “I’m a journalist. My job is to find the story and figure out how to make it interesting and understandable.” Ryssdal made several career leaps before landing on radio. He abandoned law school plans after a friend became a Navy pilot. “I thought that sounded cool,” he says. “So two weeks after graduation I threw everything I owned into my car and drove to Pensacola.” After eight years in the Navy, Ryssdal left active duty for posts as a U.S. Foreign Service officer with the State Department. Leaving government service when his wife was accepted to Stanford University’s Graduate School of Business put Ryssdal at a career crossroads. He tried broadcast journalism, a good fit for the selfdescribed “news junkie.” The current economic environment has broadened Ryssdal’s audience, and listeners have lots of questions for him. “I tell people two things. First, don’t make any rash decisions with your money. Second, find a financial professional you trust and who understands your goals.”

I’ve been lucky to be able to pursue what is attractive to me at the time. For a while it was flying off of an aircraft carrier. Then it was diplomacy and international travel. Now, it’s Marketplace. 92436-1009