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

live.staticflickr.com

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

live.staticflickr.com

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.

Articles

Here’s when vets should NOT buy franchises

Finance Friday: How to benefit from historically low mortgage rates


“Worry about the dollars and the pennies take care of themselves.” — anonymous

It’s worthwhile to keep that adage above in mind when you are being pitched to buy a franchise business.

One of the most costly mistakes veterans can make is paying too much upfront for a franchise that you can’t sell for the same price the next day.  It’s the venture equivalent of buying a used Chevy for the price of new BMW.

I hate it when I receive letters from veterans who “want out” of a franchise they just bought.  They feel snookered, trapped, and annoyed at themselves for not looking at the details before signing on the dotted line.

The best way to avoid buyer’s remorse is to become a smart shopper of franchise opportunities.  Here are five tips to help you assess if you are more likely to make money or lose money in the franchise world.

1. Set higher standards

If your objective is to merely “go into business for yourself” or “own a franchise” then your aspirations are not high enough to be a successful business owner.  After all, you will achieve your goal of business ownership the day you sign the franchise contract!  Then what?

A more purposeful objective is to own a franchise that will make money for you.  When you set high standards for your financial return on your invested time and savings your tire-kicking “due diligence” questions become more precise and purposeful.

2. Understand sales rep motivations

When you start to explore different franchise opportunities, you will come in contact with franchisor representatives and business brokers who have just one purpose—to sell you a franchise as fast as possible.  These individuals are not your trusted friends or unbiased financial advisors.  Certainly don’t sign any franchise agreement without prior review from an experienced corporate attorney who understands franchise valuations and royalty obligations.

3. Add up cost of acquisition

Sneaky franchise brokers are adept at hiding the true investment cost of a franchise purchase.  If you sign up to buy a franchise, your cost of acquisition is more than the down payment.  Include the amount you have to borrow to acquire the franchise plus other savings you may have to apply to the business until it achieves at least cash flow breakeven. (when net sales revenues exceed expenses every month)  This is the total amount you will have at risk in your new business.  How comfortable are you with this amount?  What would happen if you lost it all?

4. Evaluate owner’s compensation

Another trick of franchise sales reps is to present impressive financial projections of average franchise unit performance.  Look closely at these projections.  Do they include a budget allocation for the owner’s salary, healthcare, adequate insurance and other real world expenses associated with running a business?  If there is no allocation for an owner’s salary and benefits and you intend to work full time in the business, beware!

Remember, year-end profits should be your financial return on your invested capital, not your sole source of compensation for working 40 to 70 hours a week to keep the franchise alive!  Of course, the business could fail to generate a profit too which means you as the founder earns nothing for a lot of work.

5. Understand market value

Buy low, then sell high.  If you pay $25,000, $50,000, or $100,000 to buy into a franchise, then you should find evidence that other franchises can be sold at least for that much or more.  Unfortunately, the opposite is often true.

Research the market for this brand of franchise.  What are the average resale purchase prices in your state?  Who buys up franchises when the owner wants out?  Does the corporate office buy back franchises?  What does the franchise agreement call for?  Frequently, one regional franchise operator buys distressed properties at deep discounts.

Given all the risks associated with owning a business and personal obligation to repay debt, you should walk away from any franchise that cannot eventually be sold for at least two times your invested capital.

Unfortunately, I get too many letters from franchise buyers who are desperate to get out of a money-losing franchise.  They realize they overpaid for a franchise usually within a year of purchase.  They didn’t pay attention to the quantitative issues where they could lose hard cash because the sales reps kept their attention on how great it will be to at last be the boss of a money making business.   At the end of the day, they didn’t make any money and didn’t have any fun as a business owner.

Now you know better.

Susan Schreter is a devoted Yellow Ribbon Reintegration Program workshop presenter and founder of Start on Purpose, a service organization that empowers business owners anywhere in America to find and manage business funding with confidence.  Connect with her at Susan@StartonPurpose.

MIGHTY CULTURE

You’ve never seen this many military discounts in one place

Every one who’s ever work the uniform loves that military discount. No matter how hard you try to deny it or blow off a small discount, that extra ten percent ain’t bad. In California, that’s like not paying sales tax. While we all love them and appreciate them when it happens, many of us don’t really go looking for them. Let’s be real: shopping purely for military discounts can be a lot of work. Now you can find everything you’ll ever need discounted in one place.

And what’s more, your shopping spree will go toward helping your fellow veterans.


Finance Friday: How to benefit from historically low mortgage rates

Then you can keep your savings in one place.

GovX has access to the products and brands everyone loves, not just veterans. From outdoor gear by The North Face to Ray-Ban accessories, this site covers most anything you can think of wanting or needing for work or play. Like the A-10 being a tough plane designed around a giant gun, GovX is a retailer designed around providing amazing discounts to military, veterans, and first responders.

The site is like the exclusive Costco for the military-veteran and uniformed community. A membership with GovX provides access to discounts on brands like 5.11 Tactical, Propper, Vortex Optical, Under Armour, and – amazingly – Yeti.

Finance Friday: How to benefit from historically low mortgage rates

If you’re unfamiliar with this miracle brand, I suggest you head to the Google posthaste.

But wait. That’s not what really makes GovX stand out. The real power of this site is that every month, the company selects a new nonprofit organization who does work related to first responders, military members, veterans, and their families and donates a portion of its revenues to the chosen groups. This is what GovX calls “Mission: Giveback.”

Previous Mission: Giveback recipients include the Iraq and Afghanistan Veterans of America, Firefighter Aid, National Law Enforcement Officers Memorial, the Semper Fi Fund, Team Rubicon, The Pat Tillman Foundation, and the Green Beret Foundation.

In 2019, GovX is supporting the Military Influencer Conference, a three-day event that brings together entrepreneurs and veterans from all walks of life to share knowledge, build one another up, and help mentor each other through the rigors of starting their own businesses. Learn more about it by visiting the website and look for a Military Influencer Conference near you.

Now feel free to splurge on those yoga shorts you were iffy about buying – and feel good about doing something for your brothers and sisters in arms.

Articles

6 things to know about the VA home loan

The Veterans Affairs home loan can be incredibly confusing, and it’s easy to get overwhelmed with all of the information found on the VA website. So we have broken it down into six basic questions for you: who, what, when, where, why, and how?


*As always, when making decisions that impact your personal finances, make sure you’re sitting down with a financial advisor. Most banks have financial advisors on staff who are always willing to work with customers.

Finance Friday: How to benefit from historically low mortgage rates
Veterans Affairs employs assessors and appraisers to ensure that each home purchased by service members is priced correctly.(U.S. Army photo by Sgt. Eric Glassey, 4th Inf. Div. PAO)

1. Who:

Lendee eligibility is determined by service status:

Active duty personnel must have served a minimum of 90 continuous days to be eligible

Reserve or guard members must:

  • have six years of service in the selected reserve or National Guard, and
  • be discharged honorably, or
  • have been placed on the retired list, or
  • have been transferred to Standby Reserve or to an element of Ready Reserve (other than the Selected Reserve after service characterized as honorable), or
  • still be servicing in the Selected Reserve

Spouses can be eligible as well.

2. What:

The VA home loan program is a benefit for eligible service members and veterans to help them in the process of becoming homeowners by guaranteeing them the ability to acquire a loan through a private lender.

Utilizing the VA home loan, lendees do not make a down payment and are not required to pay monthly mortgage insurance, though they are required to pay a funding fee. This fee varies by lender, depends on the loan amount, and can change depending on the type of loan, your service situation, whether you are a first time or return lendee, and whether you opt to make a down payment.

The fee may be financed through the loan or paid for out of pocket, but must be paid by the close of the sale.

The fee for returning lendees and for National Guard and members of the reserve pay a slightly higher fee.

The fee may also be waived if you are:

  • a veteran receiving compensation for a service related disability, or
  • a veteran who would be eligible to receive compensation for a service related disability but does not because you are receiving retirement or active duty pay, or
  • are the surviving spouse of a veteran who died in service or from a service related disability.

3. When:

Lendees may utilize the loan program during or after honorable active duty service, or after six years of select reserve or National Guard service.

4. Where:

Eligible lendees may use the VA home loan in any of the 50 states or United States territories

5. Why:

Veterans Affairs helps service members, veterans and eligible surviving spouses to purchase a home. The VA home loan itself does not come from the VA, but rather through participating lenders, i.e. banks and mortgage companies. With VA guaranteeing the lendee a certain amount for the loan, lenders are able to provide more favorable terms.

6. How:

Eligible lendees should talk to their lending institution as each institution has its own requirements for how to acquire the loan.

Articles

Wells Fargo illegally repossessed hundreds of US troops’ cars

While Army National Guardsman Dennis Singleton was getting ready to deploy to Afghanistan, Wells Fargo suddenly repossessed his car. Now Singleton is getting some retribution.


The Justice Department says the repossession was illegal under the Servicemembers Civil Relief Act, which requires Wells Fargo to get a court order before repossessing a military member’s vehicle. DOJ also says the bank didn’t stop there. According to the Los Angeles Times‘ Jim Puzzanghera, Wells Fargo charged Singleton and his family a $10,000 balance and then reported the repossession to credit agencies.

Wells Fargo allegedly did the same thing 413 times, according to the Justice Department — more in a series of misdeeds and misuses of customer information that now has the bank and its CEO in hot water, especially with the U.S. Congress.

CNN’s Jackie Wattles reports the bank will pay $10,000 to each service member, with interest. They will also pay for the lost equity on the cars and repair their credit for a total of $4.1 million.

Wattles’ report says the Office of the Comptroller of the Currency also fined Wells Fargo $20 million for denying federally mandated protections for active duty military members, which includes capping interest rates at 6 percent.

Finance Friday: How to benefit from historically low mortgage rates
This is Wells Fargo making off with your credit rating.

“In those instances where some service members did not receive the appropriate benefits and protections, we did not live up to our commitment and we apologize,” the company said in a statement. “We have been notifying and fully compensating customers and will complete this work in 60 days.”

Aside from its infractions against military members, Wells Fargo is also accused of creating millions of fake bank and credit card accounts over five years. The bank allegedly set up an incentive system for its employees who falsified customer accounts to reach sales targets.

Finance Friday: How to benefit from historically low mortgage rates

In its largest fine to date, the Consumer Finance Protection Bureau fined Wells Fargo $185 million for opening 1.5 million fraudulent deposit accounts and more than 560,000 credit card accounts in its customers’ names. The bank repaid $5 million to its affected customers.

Since the story broke, Wells Fargo fired 5,300 of its employees, withheld $41 million of CEO John Stumpf’s unvested stock awards, and denied him an annual bonus as well as a chunk of his $2.8 million salary.

Finance Friday: How to benefit from historically low mortgage rates
Wells Fargo CEO John Stumpf testifies before the House Financial Services Committee. (Photo: CSPAN)

The New York Times reports that in recent years, the bank has paid $10 billion in fines for violations like subprime loan abuses, discrimination against African-American and Latino mortgage borrowers, and various home foreclosure violations.

Articles

Republicans urge POTUS for a defense budget increase

Members of Congress are urging President Trump to begin rebuilding the U.S. military, starting with a 2018 defense budget of at least $640 billion, most of which would go to buying more aircraft, ships, and other hardware.


That ambitious number would be about $50 billion above the spending caps set by the 2011 Budget Control Act, which enacted the process called sequestration to enforce the limits.

But House Armed Services Chairman Mac Thornberry and Senate Armed Services Chairman John McCain are ready to lead fights to eliminate the BCA caps so they can pay for the hardware, the additional personnel and the maintenance needed to restore a defense they say has been badly weakened by six years of reduced spending.

Finance Friday: How to benefit from historically low mortgage rates
Thornberry and McCain’s plan calls for $640 billion in defense spending for fiscal year 2018, a $54 billion increase.

At a media briefing Feb. 6, 2017, to preview the upcoming congressional session, Thornberry (R-Texas) first urged Congress to pass an appropriations bill to cover the six remaining months of the 2017 fiscal year “as soon as possible.”

The federal government currently is being funded under a continuing resolution that runs until April 28 and limits most spending to the prior year levels.

“There’s no reason in the world to wait until April,” Thornberry said.

The HASC chairman then urged Trump to send the supplemental funding bill he has promised to increase defense spending this year. “The sooner the better,” he said.

When asked what the supplemental should cover, Thornberry said it should start with “the things that were in the House-passed NDAA (National Defense Authorization Act) that were not in the final bill. I think they should be at the top of the list.”

The NDAA cut $18 billion that the House wanted to add, which would have gone mainly to increased weapons.

Finance Friday: How to benefit from historically low mortgage rates
The U.S. Air Force F/A-18F has an estimated flyaway cost of $98.3 million. | U.S. Air Force photo by Staff Sgt. Andy M. Kin

The deleted add-ons included 14 additional F/A-18 Super Hornets, another Littoral Combat Ship, and an extra LPD-17 amphibious warship for the Navy, plus 11 more F-35s split among the Navy, Marine Corps, and Air Force. It also would have bought the Army additional AH-64 attack helicopters and UH-60 utility choppers.

The deleted funds also would have allowed the services to hire even more troops than the 16,000 Army soldiers and the 3,000 additional Marines allowed by the final bill.

Funding the current fiscal year would clear the way for Congress to work on a fiscal 2018 budget, which should include an even bigger increase in defense spending, Thornberry said.

Asked what amount he wanted, Thornberry said, “Our view is about a $640 billion base budget to meet the increased end strength, the increased number of ships, to turn the readiness around, and deal with a lot of those problems.”

McCain (R-Arizona) used that same number in his opening statement at a Jan. 24 hearing of his committee.

“We have to invest in the modern capabilities necessary for the new realities of deterring conflict,” he said.

“We also have to regain capacity for our military. It does not have enough ships, aircraft, vehicles, munitions, equipment, and personnel to perform its current missions at acceptable levels of risk.”

“It will not be cheap,” McCain added. “In my estimate, our military requires a base defense budget for fiscal year 2018, excluding current war costs, of $640 billion.”

Both of the chairmen insisted the BCA caps must be removed, but only for defense, not for the domestic programs that also are limited.

MIGHTY MONEY

Here’s a 9-step guide to calculating your credit card interest

When it comes to credit cards, understanding your interest rate and how it works can be the difference between staying out of debt with an excellent credit score and falling behind in your payments and dipping to sub-par credit score ratings.

Your interest rate is the amount your credit card charges you to borrow money. If you pay your credit card balance in full and on time, you generally don’t need to worry much about your interest rate, which is expressed as an annual percentage rate (APR).

But if you’re carrying a balance on your credit card, you’ll notice you owe more over time, and that’s because of the interest rate. Credit cards are notorious for being one of the most expensive types of consumer debt, with an average interest rate of about 17%.


While in most cases you probably don’t need to calculate your credit card card interest rate — your statements should clearly reflect how much interest is owed on any unpaid balance and your APR should be clear on your statement and your bank’s website — you may want to get an idea of how much your balance is costing you on a day-to-day basis.

Finance Friday: How to benefit from historically low mortgage rates

Here’s a quick cheat sheet to help you when it comes to calculating your own credit card interest rate.

1. Pull up your credit card information

Log on to your financial institution’s website or pull out your latest statement (if you haven’t switched to paperless billing yet, get on that!) to find the pertinent information you’ll need to calculate your credit card interest.

You’ll need to find:

  • your purchase APR
  • the number of days in your billing cycle

2. Get to know the terms

The way your credit card works boils down to a few different terms, two of which include annual percentage rate (APR) and, more generally, your interest rate.

Although APR stands for annual percentage rate, your credit card company uses this percentage number to determine the interest you’ll be charged each month when you don’t pay your credit card off in full and carry a balance.

Keep in mind that your credit card may have different types of APR, like a:

  • purchase APR (usually applied to the overall purchases you make with a card),
  • balance transfer APR (usually applied to any balances transferred from another credit card)
  • introductory APR (usually applied to purchases made during the promotional period after opening a new credit card)

3. Find your purchase APR

In order to calculate the interest you owe on any leftover balances on your credit card, you’ll need to find your purchase APR. If you can’t find this information readily, try calling your bank, or click on your card’s terms and conditions section.

Finance Friday: How to benefit from historically low mortgage rates

4. Determine your average daily balance (or balance subject to interest)

This is the aggregate total of what you spent and either paid off and/or were refunded every day throughout your billing cycle, divided by the number of days in your billing cycle.

If you’ve always paid your purchases in full by the due date, you won’t have any interest payments to make and your average daily balance isn’t really a factor. However, if you plan to carry a balance, to calculate your average daily balance when you need to determine interest, log onto your bank account online and track the charges and credits that went through on each individual day, creating a rolling total as you move through the days of your billing cycle.

This will provide you with an aggregate total that you can then divide by the number of days in your billing cycle (which you’ll find in step five).

5. Get the number of days in your billing cycle

Different credit cards have different amounts of time between billing cycles. A typical credit card statement is paid out in 30-day billing cycles.

6. Divide your APR by 365

Since your APR is your annual interest rate, you’ll need to divide your APR by the number of days in the year to get your daily interest rate. So for example, an APR of 13.99% would become: 0.1399/365 = .00038 daily interest.

7. Multiply your daily rate by your average daily balance

Once you know what you’re charged daily for interest, you can multiply that number by your average daily balance to find the daily interest you’ll owe. So for example, if your leftover balance after paying your credit card is id=”listicle-2639175991″,000, you would get: .00038 x id=”listicle-2639175991″,000 = .38.

Finance Friday: How to benefit from historically low mortgage rates

8. Multiply your daily interest rate by the number of days in your billing cycle

If you determined that you have a 30-day billing cycle, then the credit card interest you would owe on a balance for the 30-day cycle in this example would be: .38 x 30 days = .50 in interest.

9. Ask about your credit card’s grace period allowance

Some credit cards offer a grace period between when items are purchased and when they absolutely need to be paid off before accruing interest. Check in with your bank to learn if you have a grace period on your accounts and what the exact grace period is in order to better avoid paying interest.

Also read:

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

Articles

DoD extends online military exchange shopping privileges to veterans

The Department of Defense announced a policy change that will extend limited online military exchange shopping privileges to all honorably discharged veterans of the military.


The veterans online shopping benefit will be effective this Veterans Day, Nov. 11.

Also read: The VA is set to lower copays for prescriptions

While shopping privileges exclude the purchase of uniforms, alcohol and tobacco products, it includes the Exchange Services’ dynamic online retail environment known so well to service members and their families. This policy change follows careful analysis, coordination and strong public support.

“We are excited to provide these benefits to honorably discharged veterans to recognize their service and welcome them home to their military family,” said Peter Levine, performing the duties for the under secretary of defense for personnel and readiness.

“In addition, this initiative represents a low-risk, low-cost opportunity to help fund Morale, Welfare and Recreation programs in support of service members’ and their families’ quality of life. And it’s just the right thing to do,” Levine added.

The online benefit will also strengthen the exchanges’ online businesses to better serve current patrons. Inclusion of honorably discharged veterans would conservatively double the exchanges’ online presence, thereby improving the experience for all patrons through improved vendor terms, more competitive merchandise assortments, and improved efficiencies, according to DoD officials.

“As a nation, we are grateful for the contributions of our service members. Offering this lifetime online benefit is one small, tangible way the nation can say, ‘Thank you’ to those who served with honor,” Levine said.

NOW WATCH: Pentagon considers lifetime access to Exchange system for vets

Articles

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 BRANDED

5 ways USAA is still the leading financial institution for veterans

There are a lot of choice for veterans to leverage their time in the military to get great financial services at a competitive cost. The fact that so many businesses and bank are geared towards veterans is a blessing but one institution stands out among the rest – and has for nearly a century.


The financial institution was founded in 1922 after a group of Army veterans took it upon themselves to secure their own need for auto insurance. In doing so, they provided for their fellow veterans. The USAA of today carries that tradition on, with 12.4 million members and offering auto insurance, along with insurance for homeowners and renters, retirement planning, and, of course, banking services. When other banks were teetering on the edge of failure during the financial crisis, USAA actually grew. This is an institution that is as solid as a dollar.


Finance Friday: How to benefit from historically low mortgage rates

Auto Insurance

USAA’s original purpose is still one of its best offerings – and one of the best offerings. Even in competition with the civilian world’s best insurers, going with USAA can save its membership at least 0 on their premiums, even for high risk drivers who may have a DUI or more on their records. JD Power even gave USAA a 5/5 rating on their customer service and satisfaction records.

They also offer a car buying service that can sometimes save their members money in buying any kind of vehicle.

Finance Friday: How to benefit from historically low mortgage rates

Credit Cards

Everyone knows too much credit debt is not a good thing, but having a card open with a low balance enlarges your purchasing power and is actually good for your credit report. Still, it’s important to be responsible with your credit. That being said, that kind of responsibility includes deciding which card is right for you. USAA offers a few credit cards designed to fit the lives of military members, veterans, and their families. The USAA Rewards American Express Card and Reward Visa offers the best cashback bonuses a military member can find. USAA’s credit cards also offer some of the lowest interest rates and APRs found anywhere.

Finance Friday: How to benefit from historically low mortgage rates

Easy banking services

Any bank or financial institution who says they offer the best interest rates on savings accounts may have a bridge to sell you. Most savings accounts can offer two percent at the most. While USAA doesn’t offer quite that much, its banking services are stellar. Since they have few physical locations or ATMs, the bank offers reimbursements on ATM fees and no monthly service fees. On top of that, there’s no minimum balance and their rates are still competitive. They also offer free funds transfers between accounts.

Finance Friday: How to benefit from historically low mortgage rates

Retirement services

If you’re planning for retirement and want a low-risk security, you could hardly do better than some of USAA’s mutual fund offerings. USAA manages its own mutual funds and, in the face of the 2008 financial crisis, the USAA Income Fund (USAIX) posted a 19 percent return while much of the rest of the market struggled to break even or even minimize their expected losses. The reason? While USAIX invests heavily in corporate debt, the fund’s mantra is still about minimizing risk.

Finance Friday: How to benefit from historically low mortgage rates

TV doctor pose!

Other services and support

There are a couple of life insurance options, including one for military members only if SGLI isn’t enough. On top of that, they can get great rates for health, dental, and vision insurance as well as umbrella insurance for protection against things not covered by other kinds of insurance, like legal judgements. For per month you can be protected from lawsuits up to id=”listicle-2640236181″ million. But this veteran-oriented financial institution does so much more

USAA sponsors amazing veteran-oriented events and organizations – like the Military Influencer Conference, a three-day conference of service members, veterans, and spouses who work to elevate the military veteran community. The 2019 Military Influencer Conference is sponsored by USAA and brings together the brightest stars in the military-veteran entrepreneurial community to learn and share their business-building knowledge.

Articles

Advocates rally to stop Senate plan to cut Basic Allowance for Housing

Military advocates are rallying to stop a proposal in the U.S. Senate to reduce military housing allowances.


The Senate Armed Services Committee’s version of the 2017 National Defense Authorization Act, which sets policy and spending targets for the fiscal year beginning Oct. 1, would curb the military’s Basic Allowance for Housing, or BAH, for new entrants beginning in 2018 by only covering what they actually pay in rent. It would also reduce the combined value of the benefit received by military couples or roommates.

“We’re not in favor of the language in there,” Michael Barron, deputy director of government relations at the Military Officers Association of America, an advocacy group based in Arlington, Virginia, told Military.com. “We’ve got some major concerns with it.”

The Senate panel led by Sen. John McCain, a Republican from Arizona, wants the monthly BAH — which varies by paygrade, dependent status and region in the U.S. — to be more like the Overseas Housing Allowance — which covers only housing expenses.

Section 604 of the Bill S.2943 is titled, “Reform of Basic Allowance for Housing.”

Beginning Jan. 1, 2018, the legislation would set the allowance for new entrants at “the actual monthly cost of housing” or an amount “based on the costs of adequate housing” for each military housing area, according to a copy of the legislation. It also states two or more service members occupying the same housing would split the allowance.

Finance Friday: How to benefit from historically low mortgage rates
Senate Armed Services Committee Chairman Sen. John McCain, R-Ariz., Ranking Member Sen. Jack Reed, D-R.I., and Sen. Jim Inhofe, R-Okla., listen as retired Gen. David Petraeus testifies at a hearing in Washington, Sept. 22, 2015.

It’s unclear whether the full chamber will approve the language when it votes on the defense authorization bill at a later date. Republican Sens. Lisa Murkowski of Alaska and Susan Collins of Maine have already introduced amendments to strike the provision. The House didn’t include similar language in its version of the bill and the Defense Department hasn’t requested the change.

In addition, Congress is already supporting a Pentagon plan to slow the growth of Basic Allowance for Housing over five years so service members on average pay 2 percent of their housing costs this year, 3 percent in 2017, 4 percent in 2018 and 5 percent in 2019 and thereafter. Troops won’t see a modification in the allowance until they change duty stations.

Senators argue the housing allowance has become “bloated and ripe for abuse” and note the change could save an estimated $200 million, according to an article by Leo Shane III, a reporter for the Military Times newspapers who first reported the proposal.

Barron said the allowance is part of regular military compensation designed to retain and recruit talented people into the military. He also noted in the 1990s troops paid roughly 15 percent of their housing allowance out of pocket and that lawmakers in Congress had “done a lot of work” over the past decade to reduce that expense.

“We really don’t think they should be trying to make these reductions for new entrants coming in. We just don’t think it’s the right thing to do,” he said.

“You’re already asking a service member to pay more for retirement savings,” he added, referring to the recent overhaul of the military retirement system that incorporated a 401(k)-style plan. “You’re asking them also now to pay more for housing.”

MIGHTY MONEY

Market takes a dive on news of Trump victory

Finance Friday: How to benefit from historically low mortgage rates
The DOW took a hit after Trump was declared the President-Elect, a slump that was felt around the world.


The stock market took a massive dive just before and moments after Donald Trump was declared the President-Elect around 0230 today.

The Sydney Morning Herald reported that there was a moment of panic felt around the world as countries like Australia, Mexico, and Japan had market slumps in response to voting results showing Trump’s gradual climb.

Fortune reported that the Dow Jones Industrial Average dropped almost 650 points during after hour trading; SP 500 was down 4 percent, the Nikkei was down 5 percent, and the Mexican peso had plummeted almost 12 percent. The drop in the Mexican peso was the largest the currency has seen in over 20 years.

The Economist reports that “vague and erratic” statements from Trump in regards to trade and foreign policy have the rest of the world worried.

This might motivate some service members and veterans to pull their funds out of Thrift Savings Plans, 401(k)s, and other investment tools. Before they do that, take note that the dive was temporary and seems to be recovering. According to The Guardian, U.S. yields (interest rates) on U.S. debt is on the rise.

That bounce, according to The Guardian, is due in part to Trump’s acceptance speech.

Alex Edwards of UKForex wrote “[Trump’s] appeasing tone has definitely helped” the market response.

Jeremy Cook of World First writes “It’s because he sounded more presidential.”

That said, Paul Krugman from the New York Times writes “If the question is when markets will recover, a first-pass answer is never.”

So how does this impact your investment and retirement dollars?

Most experts would say don’t panic just yet. Right now, it’s still unclear how exactly Trump’s election will impact the U.S. and global economies in the long run. It would be premature to pull funds out of the TSP and other market investments, but should you decide to do that, consult a financial advisor.

MIGHTY MONEY

Why these female veterans will never struggle for work again

Female post-9/11 veterans are the fastest growing demographic within the veteran population, but they’re also the greatest risk of experiencing homelessness after their service ends. Just like their male counterparts, they experience all the financial trappings that come with leaving the military. As of this writing, the national unemployment rate stands at 3.9 percent and is falling. But for female post-9/11 vets, unemployment is a solid 5.5 percent.

That’s why the Institute for Veterans and Military Families at Syracuse University decided to change all of that — by showing women veterans how to start their own businesses and never have to look for a job again.


Female vets are a valuable, knowledgeable part of the workforce. More than half of transitioning women have a college education and are twice as likely as men to have a background in science, technology, engineering, or math career fields. Despite this, many women have difficulty transitioning to civilian life and navigating their benefits, taking up to three months longer than male counterparts to find a job once they leave the service.

With this in mind, Syracuse University’s Institute for Veterans and Military Families launched its premiere entrepreneurship training conference, Veteran Women Igniting the Spirit of Entrepreneurship (V-WISE), with the help of the U.S. Small Business Association. It helps female veterans and military spouses find their passions and teaches them the skills they need to turn passion into a profitable business venture in just three phases.

Finance Friday: How to benefit from historically low mortgage rates

65 percent of these women will start businesses after the V-WISE conference and 93 percent of those will still be in business five years later.

(Institute for Veterans and Military Families)

Phase I of the V-WISE program is a 15-day online learning experience designed to teach participants the “language of business,” how to understand opportunity recognition as it relates to growing a sustainable venture, and present actionable strategies related to new venture creation.

The conference phase of the V-WISE experience is a three-day training offered to cohorts of 200 women at locations across the country. Participants must complete Phase I before attending Phase II.

The conference includes more than 20 distinct modules of training (representing over 40 hours of coursework) designed for both new business owners and to support the needs of existing ventures. Topics addressed include business concepts, financing, guerrilla marketing, human resources, legal challenges, profit models, and more.

Phase III, V-WISE Biz Support, provides program graduates with technical assistance to start and grow their business. Graduates will have access to incorporation services, financing services, mentorship, and opportunities for further education and skill-building with the IVMF and its partners, often at a reduced or waived cost. These services are available through a password-protected website.

And the system works. The V-WISE program is only six years old and has many of the three-phase programs under its belt but can boast more than 3,000 entrepreneurs — 93 percent of whom are still in business to this day. On Sept. 14, 2018, the Institute for Veterans and Military Families will host its 20th event in San Diego, Calif., where the slate of speakers will include:

  • Remi Adeleke, Transformers actor and former Navy SEAL
  • Angie Bastian, Co-Founder of Boom Chicka Pop Popcorn
  • Larry Broughton, Co-Founder and CEO of BROUGHTONadvisory and Founder and CEO of broughtonHOTELS
  • Neale Godfrey, founder and CEO of Children’s Financial Network
Finance Friday: How to benefit from historically low mortgage rates

The V-WISE class in Phoenix, Ariz. in 2017.

(Institute for Veterans and Military Families)

The V-WISE conferences are open to all women veterans, active duty female service members, and female partners/spouses of active service members and veterans who share the goal of launching and growing a sustainable business venture. It is just one of a slate of eight national entrepreneurship programs and three resources offered by the Institute for Veterans and Military Families — a slate the IVMF calls, “The Arsenal.”

Syracuse University’s Institute for Veterans and Military Families is the first interdisciplinary national institute in higher education focused on the social, economic, education and policy issues impacting veterans and their families post-service. Its dedication to veteran-facing programming, research and policy, employment and employer support, and community engagement allows IVMF to provide in-depth analysis of the challenges facing the veteran community.This one-of-a-kind dedication to the military-veteran community creates real, sustainable changes in the lives of military veterans, as showcased by the successful women who have graduated from the V-WISE program.

To learn more about the V-WISE program and learn how you can be in the next cohort, visit the V-WISE website.

Do Not Sell My Personal Information