Finance Friday: How to benefit from historically low mortgage rates - We Are The Mighty
MIGHTY MONEY

Finance Friday: How to benefit from historically low mortgage rates

You might be living under a rock if you haven’t heard about the 10 Year treasury at an all-time low and the federal reserve cutting interest rates. Or, far more likely, you’re just not a numbers and data nerd like me with a vested interest in all things finance. Luckily, if you’re a prospect or existing homeowner, one thing is certain, and that’s a win for you in this economic time. Breaking this further down into how it applies to your earned VA Home Loan benefit, there are two subsections that need to be explored: purchase and refinances.


Finance Friday: How to benefit from historically low mortgage rates

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New home purchases

What these amazing low rates mean for you is more purchasing power. For example, a 0,000 30-year home loan at 4.5% is a whopping 1 MORE every single month than it would be at 3.5% (,000 over the full lifespan of the loan). An alternate way to look at this is that you can purchase a 0,000 at the 3.5% rate for the same monthly cost as a 0,000 loan at 4.5%. That’s an increase in ,000 upfront purchasing power for the SAME MONTHLY COST. If that doesn’t scream raining money to you, I don’t know what can.

Refinances

If you already have a VA home loan and just had some sort of feelings about missing out on this amazing opportunity, the good news is you can still capitalize on this opportunity through a VA Interest Rate Reduction Refinance Loan (IRRRL, also known as a streamline refi). Just like anything else, there are myths floating around out there, and you know I’m going to break through them.

You do not have to be currently living in the home you wish to refinance. If you have a home that was once your primary residence, which is the only kind of loan the VA writes, then you qualify for a VA IRRRL (but NOT a cash out refi and NOT switching from conventional to VA when it’s not owner-occupied). It really is that simple. Easy peasy!

If you’re looking at a transition but living in the home right now, you are NOT obligated to extend your plans to live in the home for any certain period of time. Just like any VA loan, there are absolutely no minimum residency requirements.

Finance Friday: How to benefit from historically low mortgage rates

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A refinance is exponentially easier than a purchase transaction. No appraisal or inspection is required for a streamline refi. You DO need to be able to prove an ability to repay, so employment verification is required. Lower documentation requirements all around make for an easier process, however. Bank statements, pay stubs, proof of homeowners insurance and a current mortgage statement are what you can expect your lender to ask for.

Expectation management is important. Expect a slower closing turn time than your traditional 30-day purchase loans. It is not a sign of incompetence on the lender’s behalf, it is simply a prioritization. When compared to a purchase contract that is tied to multiple parties for timelines to move, the urgency for a refi comes secondary. No one’s earnest money deposit and moving schedule is driving the need, and there is a lot more skin in the game on a purchase deal. Expect to see a 45-day rate lock on your refi and know that it’s nothing personal.

MIGHTY MONEY

The feds crack down on fake veteran charities

You may have seen them standing outside convenience stores, those guys dressed in camo that vaguely resembles a uniform. They have signs saying claiming they are charities that help veterans. Are they legit?

Well, not all of them are.


The Federal Trade Commission, along with law enforcement officials and regulators from offices in every state, DC, American Samoa, Guam and Puerto Rico, announced more than 100 actions and a consumer education initiative in “Operation Donate with Honor”.

The action was a crackdown on fraudulent charities that con consumers by falsely promising their donations will help veterans and service members.

“Americans are grateful for the sacrifices made by those who serve in the U.S. armed forces,” said FTC Chairman Joe Simons. “Sadly, some con artists prey on that gratitude, using lies and deception to line their own pockets. In the process, they harm not only well-meaning donors, but also the many legitimate charities that actually do great work on behalf of veterans and service members.”

Two charities face federal charges

Finance Friday: How to benefit from historically low mortgage rates

(Flickr photo by Keith Cooper)

Help the Vets

Neil G. “Paul” Paulson, Sr. and Help the Vets, Inc., (HTV) will be banned from soliciting charitable contributions under settlements with the FTC and the states of Florida, California, Maryland, Minnesota, Ohio and Oregon, for falsely promising donors their contributions would help wounded and disabled veterans.

The defendants were charged with violating federal and state laws related to their actions. According to the FTC’s complaint, HTV did not help disabled veterans, and 95 percent of every donation was spent on fundraising, administrative expenses, and Paulson’s salary and benefits.

Operating under names such as American Disabled Veterans Foundation, Military Families of America, Veterans Emergency Blood Bank, Vets Fighting Breast Cancer, and Veterans Fighting Breast Cancer, HTV falsely claimed to fund medical care, a suicide prevention program, retreats for veterans recuperating from stress, and veterans fighting breast cancer.

In addition to the ban on soliciting charitable contributions, the proposed settlement order bans Paulson from charity management and oversight of charitable assets. To ensure that donors to HTV are not victimized again, HTV and Paulson must destroy all donor lists and notify their fundraisers to do so.

The order imposes a judgment of .4 million, which represents consumers’ donations from 2014 through 2017, when HTV stopped operating. The judgment will be partially suspended when the defendants have paid a charitable contribution to one or more legitimate veterans charities recommended by the states and approved by the court. Paulson must pay id=”listicle-2591219370″.75 million – more than double what he was paid by HTV – and HTV must pay all of its remaining funds, ,000.

Finance Friday: How to benefit from historically low mortgage rates

(Photo by Steven L. Shepard)

Veterans of America

The FTC charged Travis Deloy Peterson with using fake veterans’ charities and illegal robocalls to get people to donate cars, boats and other things of value, which he then sold for his own benefit.

The scheme used various names, including Veterans of America, Vehicles for Veterans LLC, Saving Our Soldiers, Donate Your Car, Donate That Car LLC, Act of Valor, and Medal of Honor. Peterson allegedly made millions of robocalls asking people to donate automobiles, watercraft, real estate, and timeshares, falsely claiming that donations would go to veterans charities and were tax deductible.

In fact, none of the names used in the robocalls is a real charity with tax exempt status. Peterson is charged with violating the FTC Act and the FTC’s Telemarketing Sales Rule.

At the FTC’s request, a federal court issued a temporary restraining order prohibiting Peterson from making unlawful robocalls or engaging in misrepresentations about charitable donations while the FTC’s enforcement action is proceeding.

State enforcement actions

States also identified and charged several charities and fundraisers who sought donations online and via telemarketing, direct mail, door-to-door contacts, and at retail stores. These groups falsely promised to help homeless and disabled veterans, to provide veterans with employment counseling, mental health counseling or other assistance, and to send care packages to deployed service members.

Some actions charged veterans charities with using deceptive prize promotion solicitations. Others targeted non-charities that falsely claimed that donations would be tax deductible. Some cases focused on veterans charities engaged in flagrant self-dealing to benefit individuals running the charity, and some alleged that fundraisers made misrepresentations on behalf of veterans charities or stole money solicited for a veterans charity.

Nationwide education campaign

As a result of these actions, the FTC and its state partners are launching an education campaign to help consumers avoid charity scams and donate wisely.

The FTC has new educational materials, including a video on how to research charities, and two new infographics. Donors and business owners can find information to help them donate wisely and make their donations count at FTC.gov/Charity.

This article originally appeared on Military.com. Follow @militarydotcom on Twitter.

MIGHTY MONEY

Endless opportunity in the face of enormous loss

Retired Army Sergeant, Alicia Hanf, served six years before transitioning to civilian life. Bridging the gap seemed easy. Hanf began her civilian career working for a marketing agency in Baltimore. Soon, she was at the top of her game. Then, one day, in an instant, her whole life trajectory changed.

She received a call from her brother. “Mom’s dead,” was all he said.

Hear Alicia’s full story on Victory Capital’s website

In that moment, numb to the world and short of breath, she could hear her drill sergeant’s voice.

“Do you know what your last known point is?”

Last known point is a component of situational awareness. It is the ability to re-orient yourself with your surroundings and find the last recognizable place in your environment. Finding your last known point helps you plot your way back from being lost.

According to Hanf, “From there, you find your way.” For her, last known point is the veteran’s edge in navigating the business world.

When Hanf was transitioning out of the military, she was mentored by a group of women. They helped her with her resume. They aided her in her job search. Their coaching helped her successfully cross over into civilian life.

Hanf says she could not have gotten as far as she is today were it not for the veterans and business organizations that helped create opportunities for her.

“When I think of opportunity, I think of all the things my mom gave up for us to have a good life. For me, opportunity is endless, it’s abundant. It’s always available to us,” Hanf says optimistically. She adds that such opportunities are available to all transitioning service members.

Whether it is help starting a new business, growing an existing one, or connecting with networking groups, Hanf advises veterans to seek out and take advantage of the many resources available to them.

For entrepreneurs feeling lost and looking for a last known point, there are numerous resources available.

Here are just a few to start that journey:

1) Resources available to all small business owners

  • The U.S. Small Business Administration (SBA) has over 100 centers providing training and counseling services in a variety of topics to help Americans start, build, and grow their businesses.
  • Small Business Development Centers (SBDC) provide free business consulting and low-cost training. Topics include business plan writing, capital formation, and marketing, among others.

2) Resources available to women business owners

  • The SBA’s Office of Women’s Business Ownership sponsors a Women-Owned Small Businesses Federal Contracting Program to provide access to federal contracting opportunities.
  • International Association of Women (IAW) provides networking events, professional development opportunities, career and business development services, and promotional opportunities for women in all stages of business.

3) Resources available to Veteran business owners

  • The SBA’s Veteran Business Outreach Centers provide business training, counseling and mentoring to veterans in their local communities.
  • Veteran Entrepreneur Portal is a part of the VA’s Office of Small and Disadvantaged Business Utilization. It provides business education, financing opportunities, information, and links to government programs created specifically for veterans.

For more information and useful financial tools visit Victory Capital.

This article originally appeared on Victory Capital. Follow @VCMtweets on Twitter.

Articles

House vets panel subpoenas details on VA art purchases

Finance Friday: How to benefit from historically low mortgage rates
The VA campus in Palo Alto, CA | VA photo


The Republican majority on the House Veterans Affairs Committee pushed through a voice vote Wednesday to subpoena documents from the Department of Veterans Affairs on millions spent for artworks at VA facilities and huge cost overruns at a Denver-area hospital.

Also read: VA awards $300 million in grants to help end veteran homelessness

“It’s unfortunate that the VA’s continuing lack of transparency has led us to this decision” to move for the subpoenas, said Rep. Jeff Miller, a Florida Republican and the committee chairman.

“I am confident we are not receiving the whole picture from the department” on spending for art and ornamental furnishings, including $6.4 million at Palo Alto, California, facilities.

The committee also wants specifics on the costs for a new Aurora, Colorado, facility that ballooned to $1.7 billion, nearly three times the original estimate.

Rep. Mark Takano, a California Democrat and the ranking committee member, argued that the VA was already working to provide answers and warned that the subpoenas could expose whistleblowers. “Now you will be outing employees who were honest with investigators” on the artworks and the spending on the Aurora facility, Takano said.

In June, Deputy VA Secretary Sloan Gibson said, “We got a lot of things wrong” with construction of the Aurora facility, but releasing an internal VA investigation would be counterproductive.

“You end up chilling the whole investigative process,” Gibson said in a news conference at the construction site.

Finance Friday: How to benefit from historically low mortgage rates
House Veterans Affairs chairman Rep. Jeff Miller

The subpoenas ask for all information on VA art and ornamental furniture purchases since 2010. The VA’s response in the inquiry thus far has been “wholly incomplete,” Miller charged.

“We will not accept VA trying to pull the wool over the eyes of this committee and the American people for poor decision-making and waste of funds made on the part of the department,” Miller said.

“VA claims to have spent approximately $4.7 million on art nationwide from January 2010 to July 2016, yet the committee has already substantiated over $6.4 million spent during this period in the Palo Alto health care system alone,” he said.

Miller again singled out artworks at the Palo Alto Polytrauma Rehabilitation Center, described by the VA as one of five facilities nationwide designed to provide intensive rehabilitative care to veterans and service members with severe injuries to more than one organ system. Miller made similar complaints about Palo Alto nearly a year ago in a House floor speech.

Miller took issue with “Harbor,” a huge rock sculpture in a pool that its designers said was intended to evoke “a sense of transformation, rebuilding and self-investigation.”

When installation was included, it cost nearly $1 million “to put the rock up,” Miller told the committee.

Miller also complained about an artwork called “Horizon” on the walls of the Palo Alto facility’s parking garage.

“Horizon” spells out in Morse code the “With malice toward none …” quote from President Abraham Lincoln’s famous Second Inaugural address and a quote from Eleanor Roosevelt, which says in part, “You must do the things you think you cannot do.”

MIGHTY MONEY

They started at the bottom, now they are billionaire veterans

These are the guys who have lived the American dream. Five former enlisted warriors from various services who raised their right hand when it was time to serve, then got out and hustled to earn what they knew could be theirs.


These veterans went from E-1 to billionaire.

Related: 9 incredibly successful companies founded by military veterans

1. John Orin Edson, Army – Net worth: 1.6 Billion

Mr. Edson’s service began during the Korean War when he enlisted in the Army, where he spent three years in the signal corps.

Once out, Edson began selling his own racing boats from a parking lot in Seattle, Washington. He eventually bought the rights to Bayliner Marine for a reported $100.00 and developed the company. Edson sold it to Brunswick for $425 million.

He joined the billionaire’s club through sound investing and now reportedly spends his days flying helicopters and cruising yachts.

Finance Friday: How to benefit from historically low mortgage rates
Stays calm and makes billions (Image from Forbes)

2. Daniel Abraham, Army – Net worth: 1.8 Billion

When Abraham finished his service with the infantry in 1947 Europe, he returned stateside where he bought the Thompson Medical Company. At the time, the company had revenue of $5,000.00 annually. Today, the company is still around and is doing quite well.

He joined the billionaire’s club through his interest in the weight-loss industry, which led to his development of Slim-Fast Foods. You may have heard of it.

Finance Friday: How to benefit from historically low mortgage rates
Slim-Fast money! (Image from Gossipextra.com)

3. David Murdock, Army – Net worth: 4 Billion

Mr. Murdock dropped out of school in the 9th grade and was drafted into the Army during WWII. Once out, Murdock moved to Detroit and was homeless for a time, but he managed to get a $1,200 loan to buy a failing diner.

He flipped it for a small profit that he used to move to Arizona. There, Murdock began a career in real estate, acquiring many businesses, including the pineapple and banana producer Dole Food Company, which he developed into the giant it is today.

Murdock joined the billionaire’s club by selling his 98-percent share of the sixth largest Island of Hawaii. He believes in health and has vocal plans to live to see his 125th birthday.

Finance Friday: How to benefit from historically low mortgage rates
(Image via Kim Brattain Media YouTube)

4. Charles Dolan, Air Force – Net worth: 5 Billion

Charles Dolan served in the Air Force before beginning his endeavors in telecommunications. Dolan got his start producing sports clips that he sold for syndication.

In the 60s, he established Teleguide, a platform that provided information services through cable television to hotels in New York. Dolan created the predecessor to what would become HBO.

He served as executive chairman of AMC Networks, which includes AMC, WETv, IFC, and the Sundance Channel, as well as the independent film business, IFC Entertainment.

Dolan serves as chairman to Cablevision now and, after stepping down as CEO, he bought the Red Sox… No big deal.

Finance Friday: How to benefit from historically low mortgage rates
Go Sox! (Image from NetWorthHQ.com)

Also Read: 5 essential business values from a veteran-owned company

5. John Paul DeJoria, Navy – Net worth: 4 Billion

Born in Echo Park, California to immigrant parents, John Paul served two years in the Navy before getting out. He went from homeless to living in his car to Billionaire through pure hustle.

He went salon to salon, selling hair products wherever he could, developing his company Paul Mitchell Systems with partner Paul Mitchell.

His true rags-to-riches, American-dream story continues as DeJoria is still part of several businesses, including the Patron Spirits company.

He’s also a former member of the Hells Angels. How’s that for keeping it real?

Finance Friday: How to benefit from historically low mortgage rates
Started at the bottom now he’s here! (Image from Forbes)

MIGHTY MONEY

9 expert tips for negotiating an alimony settlement

Second only to child custody, alimony is one of the most contentious and difficult-to-navigate processes in any divorce. When two people are splitting up, particularly when that split is acrimonious, the last thing either of them wants to discuss is the prospect of giving money to each other.

But, the topic has to be dealt with and the only way to do it successfully is to go in armed with as much knowledge as possible.


“Alimony is one of the very last pieces to fall into place,” says Lili Vasileff founder and President of Wealth Protection Management and of Divorce and Money Matters LLC and the author of Money Divorce: The Essential Roadmap To Mastering Financial Decisions. “Everything else happens and that’s the last piece of the puzzle that completes the whole picture and it’s usually the most complicated and complex because it’s interdependent on so many other things.”

It helps, adds Vasileff, to really go into this with realistic expectations because, by the time you’re negotiating alimony, you should have a very good idea of what all the other elements are as you close out this deal. Vasileff, who has decades of experience walking clients through alimony, offered these best practice tips for negotiating alimony.

1. Know your finances

One of the most important things, per Vasileff, to know when entering into alimony negotiations is what it actually costs for you to live — to understand what you can get by on, what you can’t live without, and what you’d love to have. By knowing that range, she says, you can negotiate from a better place of understanding in terms of what you might be accepting or even giving up.

Additionally, she says to have an idea of your own earning capacity. “Often I’m working with individuals who are perhaps out of the workforce permanently or temporarily or not fully employed and there’s a fear factor in not knowing what you’re able to attract in terms of your own capabilities,” she says. “And it’s really a great time to at least think about it and plan of how you need to be financially independent more or less at some point in your own life and what does that mean?”

2. Study the law

Take the time to learn all of the ins and outs of the laws in your state and how they apply to alimony payments. There are many different types of alimony out there and doing the research as to what you can realistically ask for in your state will not only help you build your case but also help you manage expectations. “If you’re expecting lifetime alimony and, let’s just say there’s a rule of thumb that it’s half the length of your marriage,” says Vasileff, “you could be in for a really bad surprise and be unable to negotiate without that kind of knowledge.”

3. Know your budget

You’re going to be paying retainers and attorney fees, so make sure that you actually have the resources available to make those payments on time. “Attorneys are not sympathetic and do not work for free often,” Vasileff says. Additionally, as you begin preparations for your divorce, make sure you figure out a budget. It’s an expensive process and going into it without a plan can set you up for a problem down the line. “Everybody plans for weddings or a bar mitzvah or a cruise,” Vasileff says. “Very few people budget for a divorce and you need to understand that there is a cost to divorce and it helps to think about it ahead of time so that you’re not taken by surprise and unprepared.”

4. Manage your expectations

While every state has uniform guidelines for child support, very few states have such guidelines when it comes to alimony. “It’s very discretionary,” Vasileff says. “It’s weighted by certain factors and the factors are enumerated in case law and in legal statutes. But how you apply those factors results in very different outcomes.”

An example from Vasileff: “Let’s be happy and say we have million and we’re going to divide million between the two of us. I could probably live off of the interest on million, which then kind of impacts what kind of alimony I receive because it’s taken into consideration. However, if we have 0,000 in debt, no savings and we’re paycheck people, alimony becomes even more critical as an element in this calculation. It’s case specific.”

5. Plan for contingencies

“If you’re dependent for the moment on your other spouse supporting you, you need to make sure that you’ve planned for contingencies, that you have an emergency fund in case something happens and you don’t receive support for that month or six months or if he or she falls off the face of the earth,” says Vasileff. You also want to make sure that their obligations to you are secured in case they die or something unforeseen happens. Vasileff stresses that it’s important to protect yourself against any unwanted surprises.

6. Think twice before waiving alimony

In some divorce cases, one party may choose to waive alimony, figuring that they’re earning enough on their own that they don’t need anything from their ex to get by. However, Vasileff suggests that keeping the door open slightly, even with a small amount like a dollar year, allows for renegotiation if something catastrophic happens. “If you have waived alimony, it is waived forever,” she notes. “The door has closed and you can never go back for support under any circumstances. So waiving alimony is a huge deal. There are reasons to waive alimony, but for the average person who’s on a paycheck, I would think twice about it.”

7. Don’t agree to anything out of court

Once the alimony is finalized in a judgment, one party cannot change it unilaterally and decide that, for example, they’re now only going to pay once every other month. A decision like that can only be made by going back to court. However, some couples might come to some kind of a handshake agreement and allow one partner to skip a payment here and there. This is something Vasileff advises against because of the slippery slope it leads to. “What if it becomes routine behavior?” she asks. “‘This month I don’t want to pay you but I’ll pay you in three months as a catchup.’ And then in three months they go on a vacation while you’re waiting for your check. Once you start to slip and allow that and enable it, it’s much harder to enforce.”

8. Keep emotion out of it

The notion of taking someone for “everything they’ve got” in court has become a cliche in divorce-related conversations, but the truth is, you don’t want to approach an alimony negotiation with anything like malice or greed, as it’s only going to fuel more negatively. “You’re telling me you’re going to go after everything I have and go for my jugular. What do you think I’m going to do?” Vasileff says. “I’m going to strike back. You need to come back to, ‘How does this transaction get executed and what’s in my best interests to make that happen?'”

9. Do your homework

Even if you think you’ve read everything there is read about alimony, read more, and then read it again. The better prepared you are, the less likely you are to be tripped up by something unexpected. “Preparation is the best defense you can possibly have. Because managing expectations will save you money, it’s going to save you in legal costs, therapy costs, everything. And it sets the tone for you to understand that it’s a process. It’s not a sprint. It’s going to be a marathon. And you’re going to have to last and preserve your energy at different points in time.”

This article originally appeared on Fatherly. Follow @FatherlyHQ on Twitter.

Articles

Here’s how to join the 2.4 million vets who own their own businesses

Finance Friday: How to benefit from historically low mortgage rates
(Photo:DVNF.org)


The business world seems to have realized that veterans make great entrepreneurs. Profiles of vets starting coffee shops, tech support companies, landscaping services, security firms, and a whole host of other businesses appear across the web on a frequent basis these days.

This should not be a great surprise. There are nearly 2.4 million veteran-owned businesses in the U.S., representing almost 9 percent of all businesses nationwide.

And, a study by the Kauffman Foundation, a well-respected entrepreneur support organization, indicates that approximately 25 percent (some say as high as 45 percent) of all active duty personnel want to start their own businesses upon leaving the service.

So, what makes veterans such successful entrepreneurs?

It is finally being recognized that the attitude, training, and skills gained from military service, such as discipline, hard work, a commitment to accomplishing the mission, the ability to both lead a team and function as a member of a team, and, most important, the almost innate ability to immediately pivot from plans that aren’t working to plans that do, are valuable traits that make for a successful entrepreneur.

Indeed, the Kauffman Foundation states that veterans’ “commitment to excellence, attention to detail, strategic planning skills and focus on success are the same traits that make business owners successful.” And, Dan Senor and Saul Singer, in their book, “Start-Up Nation,” say the main reason Israel is one of the most entrepreneurial nations on earth on a per capita basis is the country’s compulsory military service, which creates an environment for hard work and a common commitment to accomplish the mission.

But, even though veterans have received excellent training in the military in the skills necessary to be successful entrepreneurs, not enough younger veterans returning from the Iraq and Afghanistan wars are choosing to start their own businesses. And, we don’t know why.

After World War II, nearly one-half of all returning veterans started their own businesses—but, by 2012, that rate had dropped to less that 6 percent. Even more important, just over 7 percent of all current veteran-owned businesses are started by veterans under 35 years of age. The rest are started by older vets.

This makes some sense. Personnel mustering out of the Armed Forces after 20 years or so have a pension that gives them a financial cushion to take the risk of starting a new business. And, older vets retiring from a traditional job at around 65 years of age, and who are looking for something else to do, would most likely have their house paid off and their kids out of college, giving them the financial means to start a new business without risking their family’s financial future.

But, it is the lack of younger veterans who are choosing entrepreneurship as a viable career path that is the critical issue in veteran entrepreneurship today.

Fortunately, over the past several years, there has been a burgeoning industry that has sprung up to help veterans who want to start their own businesses. Veteran led incubators and accelerators, as well as university and community college programs, government services, online resources, and community-based organizations have all answered the call to help aspiring veteran entrepreneurs realize their dream of owning and operating their own businesses.

While it is not possible to list all of the resources available to help veterans–and, particularly, younger veterans–who want to start businesses, a small sample of these programs in each of the categories mentioned is provided below:

  • Veteran Led Incubators—Bunker Labs (https://bunkerlabs.org) is probably the best known and most successful veteran led incubator in the country. While headquartered in Chicago, it has expanded to eleven cities around the nation. Its Chicago location is in the 1871 incubator facility, which gives veterans the crucial opportunity to interact with non-veterans who are creating new businesses. The “Bunker in a Box” program (http://bunkerinabox.org) enables veterans who are not near one of its urban locations to get some of the basic tools necessary to start a new business.
  • Veteran Led Accelerators—Vet-Tech (http://vet-tech.us) is the nation’s leading accelerator for veteran-owned businesses. Located at Silicon Valley’s Plug and Play Tech Center in Sunnyvale, CA, it has an extensive network of financial, government, and management resources to bring a veteran-owned business to its next level of success.
  • University Programs—Syracuse University’s Entrepreneurial Bootcamp for Veterans with Disabilities (http://ebv.vets.syr.edu) is one of the most extensive programs in higher education for veteran entrepreneurship. This program is offered at eight other colleges and universities around the nation.C
  • Community Colleges—Community colleges around the nation offer veteran entrepreneurship courses and programs, typically through their small business development centers. Wake Tech Community College in North Carolina offers a Veterans Entrepreneurship Advantage Course (http://www.waketech.edu/programs-courses/non-credit/build-your-business/entrepreneurship-initiatives) that is representative of these types of programs.
  • Government Services—The SBA’s Boots to Business program (http://boots2business.org) is an example of the type of program offered by the government to transitioning service members to give them the basics in starting a new business.
  • Online Resources—VeToCEO (http://www.vettoceo.org) is a free online training program that assists veterans in leveraging their skills to start or buy a business and run it successfully. The American Legion Entrepreneur Video Series (
    ) is another no-cost source to give aspiring veteran entrepreneurs at least a basic introduction to starting and running a business.
  • Community-Based Organizations—SCORE, the Service Corps of Retired Executives, is an example of a community-based organization that is supporting veteran entrepreneurs with their Veteran Fast Launch Initiative (https://www.score.org/content/veteran-fast-launch-initiative).

Veterans interested in starting a business should research what resources are available to them in their local communities, and then pick a program that fits the type of business they are interested in creating.

Given all of the resources that are currently available to veterans interested in starting businesses, what does the future of veteran entrepreneurship look like?

It looks pretty robust.

There are only two cautions that need to be mentioned about support for entrepreneurship initiatives for veterans:

The first is that many of these veteran entrepreneur support programs are relatively new—within the last couple of years, or so. The proof of their efficacy—of their value and worth—will be when they produce long-term, sustainable and profitable veteran-owned businesses—and, by long-term, I mean businesses that are in existence for at least five years, at a minimum. Some of these support programs are so new that not enough time has passed where this can be determined.

The second “caution”, if you will, would actually be a good problem to have. While there is no evidence that this is presently occurring, there could come a time in the future when there are actually more veteran entrepreneur support programs than there are veterans to fill them. This will become evident when these programs begin to admit non-veterans in order to maintain their viability.

But, for now, it’s all “blue skies and smooth sailing” for veterans who want to start businesses and the programs that support them.

Finance Friday: How to benefit from historically low mortgage rates
Paul Dillon is the head of Dillon Consulting Services, LLC, a firm that specializes in serving the veteran community with offices in Durham and Chicago. For more visit his website here.

MIGHTY MONEY

Apple just announced a game-changing new credit card

At an event on March 25, 2019, at its Cupertino, California, headquarters, Apple announced the next stage in the evolution of Apple Pay: a rumored Apple rewards credit card.

The card, issued by Goldman Sachs called “Apple Card,” will offer cash rewards and various features and integrations with Apple’s Wallet and Apple Pay apps.

The card will earn “Daily Cash,” Apple’s version of cash back. Daily Cash is issued to the user’s Apple Pay Cash balance each day. From there, it can be spent on purchases using Apple Pay, applied as a credit toward the user’s Apple Card balance, or transferred to contacts through Apple’s peer payment feature in iMessage.


It was not immediately clear whether Daily Cash could be withdrawn to an external bank account, including Goldman Sachs accounts.

The card will earn 3% Daily Cash back on purchases made with Apple, 2% cash back on purchases made with Apple Pay, and 1% Daily Cash on purchases made with the physical card, or online without Apple Pay. It was not immediately clear if purchases made online through Apple Pay would qualify for the 2% back.

Finance Friday: How to benefit from historically low mortgage rates

(Apple)

According to Apple Pay VP Jennifer Bailey, who presented at the event, the new card is “designed for iPhone.” People can apply directly on the iPhone, and start using the digital card immediately upon approval. Cardholders can update information and review transactions through iMessage as the card uses machine learning to recognize transactions.

iPhone users can view their balances and transactions within the Wallet app, including automated breakdowns of spending by category and merchant.

The card will have no annual fee, late payment, or foreign transaction fees. The Apple Card features in Wallet will show various payment options, and help users calculate “the interest cost on different payment amounts in real time,” according to a news release. The Card app will also offer automated suggestions to pay down any carried balances sooner.

The card has several built-in security features, including some that are native to Apple Pay, and offers various privacy features. While users will get a physical card to use at point-of-sale terminals that do not accept Apple Pay, it won’t have a printed number, expiration date, or security code. For online purchases, that information can be accessed in the Wallet app, with Touch or Face ID used to authenticate the user.

The card runs on MasterCard’s payment network and will be available summer 2019.

This article originally appeared on Business Insider. Follow @BusinessInsider on Twitter.

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What is Career Incentive Pay and why do you need it?

Finance Friday: How to benefit from historically low mortgage rates
The Seawolf-class fast-attack submarine USS Connecticut (SSN 22) departs Puget Sound Naval Shipyard for sea trials following a maintenance availability.


Career Incentive Pay is another part of the U.S. military’s Special and Incentive pay system and is intended to help the Services address their manning needs by motivating service members to volunteer for specific jobs that otherwise pay them significantly more in the civilian sector.

Each career incentive pay amount is in addition to base pay and other entitlements.

Title 37 U.S. Code, chapter 5, subchapter 1 outlines several types of S&I pay, and sections 301a, 301c, 304, 305a and 320 address incentive pays that are career specific.

Section 301a

1. Aviation Career Incentive

Who: Military pilots

How much: $125 to $840 per month, dependent on number of years serving as an aviator. This lasts the duration of the pilot’s aviation career.

Section 301c

2. Submarine Duty Incentive (SUBPAY)

Who: Navy personnel aboard submarines.

How much: The Secretary of the Navy has the ability to set SUBPAY up to $1,000 per month, but it is currently between $75 and $835 per month.

Section 304

3. Diving Duty

Who: Service member divers.

How much: $340 for enlisted personnel and $240 for officers per month.

Section 305a

4. Career Sea

Who: Naval officers who’ve been assigned duties above and beyond what might be typical for an officer in the same rank and which are critical to operations.

How much: $50 – $150 per month, dependent on rank. There is a limit on payments made to O-3s to O-6s, and only a certain percentage of personnel in each rank can qualify for the pay.

Section 320

5. Career Enlisted Flyer

Who: Enlisted personnel on flight crews for the Air Force and Navy.

How much: $150 – $400 depending on years in the aviation field.

For more information on hazardous duty incentive pay and other S&I pays, check out Military Compensation.

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Defense budget spotlight: What do weapons really cost?

Editor’s note: With news of the Air Force potentially awarding the contract for the next-generation bomber and Congressional Republicans reaching an agreement with the White House on the defense budget, WATM presents a short primer by our friend Winslow Wheeler on how the Pentagon tends to complicate how much things actually cost.


Finance Friday: How to benefit from historically low mortgage rates

On Wednesday March 25, 2009, an F-22 crashed near Edwards Air Force Base in California. Sadly, the pilot was killed. The news articles surrounding this event contained some strange assertions about the cost of the crashed airplane. Based on the price asserted in the Air Force’s “fact” sheet on the F-22 that was linked to a Pentagon news release on the crash, the press articles on the crash cited the cost per aircraft at $143 million.

It was incomplete, to put it charitably, but the media passed it on nevertheless. The extant “Selected Acquisition Report” (SAR) from the Defense Department is the definitive DOD data available to the public on the costs for the F-22. The SAR showed a “Current Estimate” for the F-22 program in “Then-Year” dollars of $64.540 billion. That $64.5 billion was for 184 aircraft.

Do the arithmetic: $64.540/184 = $350.1. Total program unit price for one F-22 calculates to $350 million per copy. So, where does the $143 million unit cost come from? Many will recognize that as the “flyaway” cost: the amount we pay today, just for the ongoing production costs of an F-22. (Note, however, the “flyaway” cost does not include the pilot, fuel and other consumables needed to fly the aircraft away.)

The SAR cost includes not just procurement costs, but research and development (RD) and some military construction, as well. At about the same time as the crash, a massive lobbying effort had started to buy more F-22s, to reverse Secretary of Defense Robert Gates impending announcement (in April 2009) that he wanted no more. F-22 advocates were asserting the aircraft could be had for this bargain $143 million unit price. That was, they argued, the “cost to go” for buying new models, which would not include the RD and other initially high production costs already sunk into the program.

Congressional appropriations bills and their accompanying reports are not user-friendly documents, but having plowed through them for decades, I know many of the places and methods that Appropriations Committee staff like to use to hide and obscure what Congress and the Pentagon are actually spending. Let’s check through the 2009 congressional appropriations for the F-22. Most – but not all – of the required information is contained in HR 2638, which contained the Department of Defense Appropriations Act for fiscal year 2009.

In the “Joint Explanatory Statement” accompanying the bill, the House and Senate appropriators specified that $2.907 billion was to be appropriated for 20 F-22s in 2009. The math comes to just about what the Air Force said, $145 million per copy. So, what’s the problem?

Flipping down to the section on “modification of aircraft” we find another $327 million for the F-22 program. Switching over to the Research and Development section, we find another $607 million for the F-22 under the title “Operational System Development.” Some will know it is typical for DOD to provide “advance procurement” money in previous appropriations bills to support the subsequent year’s purchase.

In the case of the 2009 buy of 20 F-22’s, the previous 2008 appropriations act provided “advance procurement” for “long lead” F-22 items to enable the 2009 buy. The amount was $427 million.  Here’s the math: $2.907 + $.327 + $.607 + $.427 = $4.268 billion for 20 aircraft. That’s $213 million each.

Do not think these data represent an exceptional year. If you check any of the annual buys of F-22s, you will find the same pattern: in addition to the annual “procurement” amount, there is additional “modification,” RD” and advance procurement.

A few weeks later, F-22 advocate Sen. Saxby Chambliss, R–Ga., attempted to amend the 2010 DOD “authorization” bill coming out of the Senate Armed Services Committee to buy seven more F-22s for $1.75 billion, or $250 million each. The Chambliss effort, almost certainly worked out in close association with Lockheed Martin – a major F-22 plant is in Marietta, Ga. – surely sought to pay Lockheed the full amount to procure more aircraft: not $143 million each, but $250 million.

Clearly, Chambliss and Lockheed knew about some additional F-22 costs not included in my estimate of $213 million. The pathology of low-balling a weapon’s costs goes far beyond the F-22 example cited here; it is a basic tenet of bureaucratic behavior; it helps a program acquire support by top DOD management and Congress.

Understatement of cost does not occur in isolation in the Pentagon; it is accompanied by an overstatement of the performance the program will bring, and the schedule articulated will be unrealistically optimistic. Once the hook is set in the form of an approved program in the Pentagon (based on optimistic numbers) and an annual funding stream for it from Congress (based on local jobs and campaign contributions), the reality of actual cost, schedule and performance will come too late to generate anything but a few pesky newspaper articles.

(This post was excerpted from The Pentagon Labyrinth: 10 Short Essays to Help You Through It.)

Finance Friday: How to benefit from historically low mortgage rates
About the author: Winslow T. Wheeler focuses on the defense budget, why some weapons work and others don’t, congressional oversight, and the politics of Pentagon spending. Before joining the Center for Defense Information in 2002, he worked on Capitol Hill for four U.S. Senators from both political parties and for the Government Accountability Office. At GAO and the Senate, Wheeler focused on Pentagon budget issues, weapons testing, the performance of U.S. systems in actual combat, and the U.S. strategic “triad” of nuclear weapons.

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The 9 worst scams targeting military veterans

Numerous scams often target military members due to their consistent paychecks and many troops being young and financially inexperienced. From predatory lending to online scams, it’s important for service members to learn how to protect themselves from being taken advantage of. Here are 9 scams every military service member needs to be aware of.


1. Social Media Scams (Card Popping)
Finance Friday: How to benefit from historically low mortgage rates

Fake accounts are being created on social media platforms such as Instagram and Twitter, where scammers often impersonate military personnel. They will then friend military troops and begin building a relationship through direct messaging. Eventually they will claim they can make you quick money by depositing money in to your account and in exchange you just send them a fee. They will ask for personal banking information such as your username, password, bank card number, and pin. Once the information is exchanged they deposit fraudulent checks and withdraw the cash, leaving you without money and possibly liable for the losses.

2. Rental Housing Scams

Finance Friday: How to benefit from historically low mortgage rates

Scammers will post fake rental properties on classified websites in areas around military bases and communities targeting troops. Service members moving in to the area will be offered fake military discounts and be asked for a security deposit by wiring money to the landlord.

3. Military Loans

Finance Friday: How to benefit from historically low mortgage rates

Military car and personal loans that require no credit check, have instant approval, upfront fees, or promise guarantees are highly likely to have hidden fees and terms that take advantage of service members, leaving them with crippling debt.

4. Veterans’ Benefits Buyout Scam

Military veterans hard pressed for cash may be lured into this buyout plan offering a cash payment in exchange for their future disability pension payments and benefits. However, these payouts are only about 30 to 40 percent of what their value is and structured in ways harmful to veterans’ finances.

5. Car Purchase Scams

Finance Friday: How to benefit from historically low mortgage rates
Photo: Marine Corps Staff Sgt. Jennifer Brofer

Using websites that offer classified ads, scammers will create car ads targeting military members. They will pretend they are a service member who is being deployed or moving because they are being stationed somewhere else and need to get rid of their car quickly. They will ask for wire transfers or up front fees and will offer fake claims such as free shipping or discounts.

6. Employment Scams

Veterans and active duty members searching for jobs may come across employers who offer special consideration for their military service. Be wary of employers asking for personal information such as bank account numbers or that want to conduct a credit or background check. Some are scams that use your personal information to steal your identity and/or expose you to fraud.

7. Jury Duty Scam

Finance Friday: How to benefit from historically low mortgage rates
Photo: Marine Corps Sgt. Rebekka Heite

Military members will be targeted by callers who claim they work with the court system and tell the service member has a warrant out for their arrest due to not showing up for jury duty. Fearing they can get in trouble by their command, the caller says it can be taken care of by providing personal information such as a social security or credit card number.

8. Veterans Affairs Scam

Military veterans are being targeted by phone scammers who call claiming they work for Veterans Affairs and say they need to update their information with the VA. The VA never calls and asks for your private information by phone.

9. Military Life Insurance Scams

Hard sales tactics are used by agents who target military members. They will make false and inflated claims about life insurance policy benefits which are expensive and most likely unnecessary.

Learn how to protect yourself!

Finance Friday: How to benefit from historically low mortgage rates

To help military members and their families the Better Business Bureau has created a BBB Military Line to educate service members on how to protect themselves. Be sure to follow their Facebook page to keep up to date on all current scams and ways to protect yourselves.

(Note: The BBB has put out a warning about scammers trying to take advantage of the military and veteran community during Memorial Day weekend. Read how you can protect yourself.)

SEE ALSO: Army Captain saves 3 lives while wearing ‘Captain America’ t-shirt

MIGHTY MONEY

The similarity between physical and financial fitness

Mission-focused military life places a high priority on physical health. But for some, financial health may be an afterthought.

Navy veteran and fitness and lifestyle content creator, Austen Alexander, recognizes the benefits and challenges of both. When he went into the Navy, the military kept him fit. But during his first years of service, Alexander accumulated debts that impacted his financial wellbeing as well as his mental and physical health.

Alexander says he went “a little haywire” while at his first duty station. He admits there was a void he was trying to fill being away from home. He bought things he couldn’t afford…all on credit. The discipline he used in the gym didn’t translate to his finances.

“I was living the good life on money I didn’t really have,” says Alexander.

The military offered no training in finance to show him how to manage his money, how to open a savings account, or when to begin investing. At his low point, Alexander started to educate himself on financial fitness. He dove into books. He taught himself financial fitness and he decided to reduce his credit card debt.

He realized that many principles of physical fitness are similar to those of financial fitness. They both require patience, discipline and consistency to be successful.

By applying principles of physical fitness to his financial life, Alexander was able to pay down debt and start a business. Today, he is in the best shape of his life. The lessons Alexander learned along the way are an inspiration to others – both in and out of uniform.

His plan helped him to transfer the balance of his highest card to a new card with a 15-month, 0 percent interest rate. This allowed his payments to go directly toward principal, not interest. He also created a multi-tiered approach to quickly pay off debt. Here are some highlights:

1)      Make an Attack Plan

Create a monthly budget to track expenses and designate amounts spent in various categories and channel extra income to start paying back what you owe.

2)      Set Goals

Set financial goals that are practical, measurable and have a deadline.

3)      Pay early

Automate your monthly payments to arrive a day (or even a week) early to help reduce the risk of late payments.

4)      Pay more

Make more than just the minimum monthly payment on credit cards.

5)      Pay with a plan

Use available resources to create a financial plan to pay down debt, establish investment accounts like the Thrift Savings Plan (TSP), and consult with the finance officer at your deployment location.

The path to military financial readiness is paved with steps to show you how to make interest work for – not against – you. For more information and useful financial tools visit Victory Capital.

This article originally appeared on Victory Capital. Follow Victory Capital on Twitter.

MIGHTY MONEY

6 ways veterans and service members can get their taxes done for free

It’s time for taxes! Whether you are a single service member living in the barracks, a retired four star spending your days fishing in Hawaii, or a veteran with a family working your way through college, taxes have to be done.


I used to have this elementary school teacher, Mrs. West.

I remember Mrs. West standing in front of our class and telling us with extreme seriousness that only two things in America were guaranteed: eventual death and taxes.

Finance Friday: How to benefit from historically low mortgage rates
U.S. Air Force Senior Airman Holden Smith, 633rd Air Base Wing Judge Advocate paralegal, assists Senior Airman Terrence Eaton, logistics readiness squadron vehicle maintenance journeymen, in filling out a form at the Langley Air Force Base, Va., tax center Feb. 5, 2013. Joint Base Langley-Eustis tax centers are set to open Feb. 2 for the 2015 income tax season. (U.S. Air Force photo illustration by Senior Airman Aubrey White/ Released)

I remember that half of my class got super interested in science in hopes of figuring out how to one day live forever, and the rest of us just kind of groaned and decided that our parents were going to do our taxes forever if the other kids figured out that whole science thing.

And so far those damn science kids still haven’t come through for us, and we still have to pay taxes.

Adulting is hard AF, amiright?

Don’t have a heart attack yet, because there is hope — not for science, they still haven’t come through — but for taxes.

There are a lot of ways and places to get your taxes done for free or almost free, and this is really great because math and I got a divorce in my freshmen year of college and we haven’t spoken since.

Finance Friday: How to benefit from historically low mortgage rates
Army Spc. Coltin Jenkins, tax preparer, works with customers of the Joint Base Myer-Henderson Hall Consolidated Tax center in Building 205 on the Fort Myer portion of the joint base March 17, 2015. (Joint Base Myer-Henderson Hall PAO photo by Rachel Larue)

1. Volunteer Income Tax Assistance

VITA, is sponsored by the IRS. Most larger military installations have a VITA office on base during tax season. VITA isn’t military specific, but they generally help tax payers who make less than $54,000. Check out VITA, what you need to take with you on a visit, and where their offices are.

2. Military OneSource

This outfit prepares and files taxes for free for active duty service members, National Guard and Reserve, and their spouses; retirees who were honorably discharged and are within 180 days past their discharge date, eligible survivors of active duty, National Guard and Reserve deceased service members, and family members who are in charge of the affairs of eligible service members are also eligible.

3. IRS Free File

Get this, the IRS lets you do your own taxes. For free. Sweet deal? Or worst nightmare. You decide. Either way, the IRS will allow you to download software to do your taxes for free if you make below $64,000, and they’ll give you a free form if you make above $64,000. I guess the folks sitting right on $64,000 are just SOL.

4. TurboTax

Uber popular TurboTax has a sweet deal right now. You can download their 1040EZ or 1040A for free, and the rest of their products are fairly well discounted. E1 – E5 can get the Deluxe Edition from TurboTax for free (normally $54.99), and E6 and above get a discount on all products. The best thing about TurboTax is if for any reason the IRS comes back and says “You done effed up,” TurboTax will pay you for the IRS penalties.

5. TaxSlayer.com

This service has a great military discount. Currently, its website advertises 50 percent off classic or premium editions. They have free email and phone support, and boast about being 100 percent accurate. They do not, however, guarantee no penalties from the IRS if there is a mistake.

6. H&R Block

These guys have a cool thing for filing online for anywhere from free to $38.49. The program is called H&R Block More Zero (because “Taxes are Lame” and “You Think These Taxes are About You” was apparently taken). H&R Block does offer peace of mind. For a fee. And it really is called “Peace of Mind.”

Here’s how it works: You get your taxes done. You pay an additional fee, and they promise that if you’re audited, they’ll send one of their lawyers to court with you and pay up to $6,000 in fees if they lose. If you don’t pay the extra… no peace of mind for you.

Also, they don’t offer any kind of discount for military.

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