Financial Health

Jennifer Conole, M. S.Transition & Relocation ManagerBase San Pedro, Work-Life Division – Detachment San Diego

Financial Health

Why financial education and counseling?

Financial Goal-Setting The Financial Pyramid Debt Management Credit TSP and retirement planning Financial Resources

Why training and counseling?

USCG vulnerabilities! PCS! Spouse Employment Deployments Security Clearances

Economy Regular salary increases Transition preparation Retirement planning

Financial Goal-Setting

S.M.A.R.T. goal-setting Specific Measurable Attainable Realistic Time-specific

Financial Goal

“I want to be rich.” “I want to have $500,000 saved by

age 65. I will invest $250/month for 10 years in the TSP, beginning at age 21.”

“I want to be debt-free.” “I want to pay off $10,000 in credit

card debt and student loans within 2 years. I will put $500/month toward my debt, and not use my credit card anymore.”

The Financial Pyramid

Money Management Monthly living expenses: 70%

Savings Emergency Reserve Goal-Getter

Investing: 10% S. L. Y. Rule of 72

Financial Planning Pyramid

Options, commoditi

es, etc.

Controlled spending

Adequate income

Adequate insurance

Goal- getter

Emergency

Reserve SAVINGS

LEVEL

MANAGEMENT

LEVEL

Stocks Bonds Mutual funds

Real estate

Hard assets

IN

VEST

MEN

T

LEVE

LS

Debt Management

Debt ≠ Fine wine Debt to income ratio Monthly expense: 20% The faster you pay, the more you

save!* *The longer you take, the more you pay!

Credit

How you are “graded” for loans Scores range from 300-850 Negative items remain for up to 7 years MYTH: Once an item goes to collections

for nonpayment, and I pay the balance in full, it disappears as a negative item from my credit report.

Free REPORT www.annualcreditreport.com Your SCORE is not free!!!

What Affects your Credit?

Military Saves

www.militarysaves.com Pledge to become a “saver”

Quarterly informational emails Financial educator code for your

FREE score and report analysis!

Credit

Why it’s important Loan interest rates▪ Home loans▪ Vehicle loans▪ Student loans

Cell phones Apartments Security Clearance EMPLOYMENT!

Retirement Planning

Will you have $650,000 by the time you retire?

Roth IRA TSP

***ROTH FEATURE OPENED ON 07 MAY!***

The magic of compound interest and time

Financial Resources

San Diego Homeport Website www.uscg.mil/homeport (find San Diego)

TRM and Command Financial Specialists FREE financial counseling

CGMA Discounts, freebies, education grants

and interest-free loans, emergency assistance

NFCC (through agreement with CGMA) FREE financial counseling and Debt

management!

Financial Health

Why financial education and counseling?

Financial Goal-Setting The Financial Pyramid Debt Management Credit TSP and retirement planning Financial Resources