Endless opportunity in the face of enormous loss - We Are The Mighty
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

10 back-to-school deals for military families

As summer camps wind to a close and kids make their final splashes at the pool, parents have one thing on their minds: back-to-school shopping.


But when you add up the cost of all the items on your kids’ classroom supply lists, backpacks, clothes and shoes, back-to-school is expensive! The following is a list of discounts to help military families get the kids off to school in style while staying within your budget.

Endless opportunity in the face of enormous loss
U.S. Air Force photo by Staff Sgt. Chris Willis

1. Operation Homefront’s Back-to-School Brigade

Operation Homefront partners with Dollar Tree to collect school supplies for military children as part of their Back-to-School Brigade. Dollar Tree stores put out collection barrels from July 5 through August 11, and then Operation Homefront volunteers distribute them to military children at events throughout the country during the back-to-school season. Click here for more information and to find programs in your area.

2. Tax-Free Shopping Days

For a few days each year, some states offer a “sales tax holiday” right around back-to-school time when shoppers can buy specified items tax-free. This is a great way to save on back-to-school necessities like clothes, shoes, and other school supplies. To see if your state participates in the sales tax holidays, click here.

3. Clothing and Accessories

By the time summer is over, the kids have either outgrown all their school clothes or worn them ragged from vacation and camp. Update their wardrobe with new clothes and accessories using military discounts at Banana Republic, Claires, eBags, New York and Company and Old Navy. If you’re mall shopping, be sure to ask for a military discount in every store you stop in. Some malls, like the MacArthur Center in Norfolk, Virginia, offer military discounts in many of their stores. And outlets like Tanger Outlets offer discounts and free coupon books.

4. Shoes

No back-to-school wardrobe is complete without new shoes. So take advantage of the military discounts offered by Payless and Rack Room Shoes.

5. Classroom Supplies

Most schools now expect parents to help stock classroom supplies like pencils, crayons, notebooks, folders, scissors, glue, and binders, as well as necessities like tissues and hand sanitizer. Find these supplies and use military discounts as Michaels, Jo-Ann Fabric and AC Moore.

6. Backpacks and Lunch Bags

Looking for backpacks and lunch bags? Pottery Barn Kids has an adorable collection of both, and they offer a 15% in-store military discount.

7. Tutoring and Test Prep

Does your child need a little extra help with homework and studying?Tutor.com, where expert tutors are online 24/7, offers free tutoring for military families.

Do you have older kids getting ready for college testing? eKnowledge donates their SAT and ACT College Test Preparation Programs to service members and their families. You pay only a minimal price per standard program to cover the cost of materials, processing, distribution and customer service.

8. Computers

If you’re looking to buy a computer or other necessary electronics, check out the military discounts offered by Dell.

Need tech support? My Nerds offer military discounts as well.

9. Wireless Communication

AT&T Wireless, Boost Mobile, Sprint, US Cellular and Verizon all offer military discounts, so if you’re in the market for new cell phone plans to keep in touch with your active student, you have a great variety to choose from. (Some offer military discounts on devices and accessories as well.)

10. Exchange Price Match Policy

Don’t forget that the Navy Exchange (NEX), the Marine Corps Exchange (MCX) and the Army and Air Force Exchange (AAFES) all offer price matching. That means if you see a lower price for the same item at another store, bring proof to the Exchange and you can buy that item for the competitor’s price.

MIGHTY BRANDED

Why now is the perfect time for military families to refinance home loans

In recent weeks, Wall Street has talked a lot about the fears of a coming recession, fueled by a drop in government bond yields. The casual investor may have no idea what this means for them, but for homeowners in the military and beyond, it means now is the perfect time to refinance a mortgage.


What any potential refinancer needs to know is that the falling bond yield is pushing mortgage rates to their lowest levels in three years. In November 2018, the interest rate was steady at five percent. Eight months later, the interest rate in now at 3.6 percent and looking to fall further.

This isn’t some shady internet ad, promising easy money on Obama-era mortgage laws or new Trump-era government home loans – those certainly exist and everyone should be wary about trusting easy money. But the drop in mortgage rates comes directly from Freddie Mac, whose rate on a 30-year, fixed-rate mortgage fell to 3.6 in August 2019. The reason is that the 30-year rate is linked to 10-year Treasury Bonds. The rate of return on those bonds just fell to their lowest since October 2016.

Endless opportunity in the face of enormous loss

(St. Louis Federal Reserve)

What this means is that suddenly your homeowner dollar goes a little bit further, considering the cost of taking out a new loan or refinancing an old one just dropped. According to Caliber Home Loans, a lending company who specializes in military and veteran homebuyers, the rule of thumb used to be that the interest rate for a new mortgage must be about two percentage points below the rate of a current mortgage for refinancing to make sense.

With new low- and no-cost refinancing from Caliber and other lenders, refinancing could make sense any time – especially right now, given the latest interest rates. A refinance could reduce overall interest while reducing a monthly payment. If you acted right now, you wouldn’t be alone, not by far. Falling rates boost the U.S. housing market.

Endless opportunity in the face of enormous loss

It’s important to think of your home as an investment, too.

“My applications are up across the board,” said Angela Martin, a Nashville, Tenn.-based loan officer told the Wall Street Journal. “Every time the Fed starts talking is when my phone starts ringing off the hook.”

What Martin means is the Federal Reserve just cut the benchmark interest rate after a few successive rate hikes. This is when people start looking for a better deal. But be wary – lenders will sometimes employ different perks after a rate drop to entice customers to accept things like credits at closing instead of a lower rate.

For military families and veteran homeowners, look into military-oriented lenders like Caliber Home Loans. Caliber and companies like it specialize in the needs and benefits afforded to military members and veterans. Caliber is also a proud sponsor of the 2019 Military Influencer Conference, a three-day conference of service members, veterans, and spouses who work to elevate the military veteran community.

MIGHTY CULTURE

What to do with your TSP after the military

Leaving the military means making a lot of decisions — big decisions — often in a short period of time. One important decision, thankfully, doesn’t have a time limit: What should you do with the balance in your Thrift Savings Plan account?

Several myths and rumors surround the answer to that question, with plenty of salesmen wanting you to believe that you should move your money out of the TSP. Five clear options exist for service members and their TSP account assets after transitioning from the military. Even though there’s no single answer for everyone, three choices are more optimal for most people, and two choices are less right for most people.


The usually-better options include:

  1. Leave the money in your TSP account.
  2. Roll your TSP account balance into an Individual Retirement Arrangement.
  3. Roll your TSP account balance into your new employer’s 401(k) plan.

The rarely-better options include:

  1. Withdraw your TSP account balance in a lump sum.
  2. Transfer your TSP account balance to a qualified annuity.

Leave the balance in your TSP account

Once you have a TSP account, you can leave your money in there until you have to take required minimum distributions. There is no requirement to move it anywhere, at any time. In fact, most military-savvy financial planners recommend that you leave your retirement funds in TSP.

“As an entering argument, we don’t advocate doing anything different with your TSP,” says Sean Gillespie of Redeployment Wealth Strategies. “Just because you can’t contribute to it any more doesn’t mean you have to move it. And with low cost being one of the leading predictors of maximizing your returns, it’s darned difficult to do better than you will with TSP.”

Pros: Leaving your money in the TSP is by far the easiest option, and it’s a good option for many situations. The TSP has very, very low fees. You can move the money elsewhere later. TSP understands tax-free contributions from a Combat Zone Tax Exclusion. You can roll new money from other qualified plans into your TSP account to take advantage of the low costs.

Cons: TSP offers limited distribution options, though they are scheduled to expand this fall. You have limited investment options in TSP. You can’t roll from Traditional TSP to Roth TSP, so if you are trying to move your Traditional money into Roth accounts, it will have to be out of TSP. You can’t take multiple partial withdrawals out of your TSP account.

Roll your TSP balance into an Individual Retirement Arrangement

Pros: You have total control of how you invest your money, and unlimited investment options. You can still roll the money into a 401 (k) in the future. You can convert money that is currently in a Traditional account into a Roth account, but it will be a taxable event. And it’s really nice to put everything in one place!

Cons: IRAs don’t have any loan options, and will probably have higher fees.

Endless opportunity in the face of enormous loss

Roll your TSP balance into your new employer’s 401 (k) plan

Pros: Moving your TSP balance will streamline your accounts, and that balance will be available for borrowing with a 401 (k) loan. (But don’t do it!)

Cons: Most 401 (k) plans have higher costs than TSP. You’ll still be limited to the investment options in the new plan. There may be a waiting period to participate in your new employer’s 401 (k). Not all 401 (k) plans have a Roth option.

Forrest Baumhover, a certified financial planner with Lawrence Financial Planning, suggests caution when moving your TSP to a 401(k).

“When you leave military service, don’t be quick to jump out of TSP. It has better and lower-cost investment options than 401 (k) plans.”

Withdraw your TSP account balance in a lump sum

Pros: Cash in hand.

Cons: Withdrawing money from your TSP account may be subject to withdrawal penalties (10%) and taxes (probably in the 20% range). More importantly, you’ll lose all future earnings on that money, and you can’t replace that money into a tax-advantaged account because they have yearly contribution limits.

Transfer your TSP account balance to a qualified annuity

Pros: Predictable, guaranteed income stream for life.

Cons: It is a permanent decision. There may be high fees involved. You may not get anywhere near the full value of your contribution. If it isn’t indexed for inflation, the purchasing power of your monthly benefit will decrease each year.

This is a relatively short overview and can’t possibly cover every possible situation. As with everything, there are exceptions and nuances for many different scenarios. If you are considering moving your TSP to another investment, you may find value in consulting a financial advisor to figure out which choice is right for you and your specific situation.

Lacey Langford, AFC ®, The Military Money Expert ®, suggests several reasons why you might want to consider using a fee-only financial planner vs. the advisor offered through a bank, insurance company or investment company.

“Fee-only allows you to have a clear picture of what you’re paying for and how the advisor is being compensated for the advice and recommendations they’re giving you,” Langford added.

This article originally appeared on Military Families Magazine. Follow @MilFamiliesMag on Twitter.

Articles

Feds allege business scammed $100 million in TRICARE drug fraud case

Endless opportunity in the face of enormous loss
An airman in the pharmacy at Ramstein Air Base in Germany mixes a compound drug. No military pharmacies were named in the fraud indictment.


More than a dozen civilians are accused of scamming over $100 million dollars from TRICARE by writing prescriptions that weren’t medically necessary and then overcharging for them.

Earlier this month the Department of Justice and the U.S. Attorney’s Office announced that they had added 10 people to an indictment originally handed down in February.

Named in the updated indictment are two businessmen, three marketing specialists, two doctors, and five pharmacy owners.

Also Read: TRICARE beneficiaries have one month to transfer prescriptions

The 36 page indictment outlines a massive scheme to defraud the government through a series of kickbacks, money laundering, and medical malpractice.

The feds allege the conspiracy began in 2014 when Richard Cesario and John Cooper founded CCMGRX, LLC (later renamed CMGRX). The premise of the company was to market compounded prescriptions to service members, retirees, and their dependents, documents show.

Compound prescriptions are drugs which are mixed in an effort to provide a unique prescription that meets the specific needs of the patient. They are not approved by the FDA, but may be prescribed when a patient is unable to have a specific ingredient in a drug, or the drug is not available in a specific form, such as prescriptions for children who can’t swallow a pill and must have a liquid version of the medication.

Cesario and Cooper enlisted the help of three marketers, Joe Straw, Luis Rios, and Michael Kiselak, to recruit pharmacies and patients, the indictment shows.

The patients allegedly were oblivious to the scam, instead being told that they were taking part in a medical study being done by an independent non-profit organization, the Freedom From Pain Foundation. The company was operated by Cesario and Cooper, who used the company to launder the money they received from TRICARE, Justice says.

Money was allegedly paid to five different pharmacy owners and two doctors.

After paying beneficiaries for participating in the study, kickbacks were allegedly sent in the form of checks to the doctors, pharmacy owners, and marketers. The rest was pocketed by Cesario and Cooper, the feds say.

More than 30 separate counts were filed against the men, including conspiracy to commit healthcare fraud.

The indictment also outlines some of the punishment the men will face should they be found guilty, beginning with a list of properties in Texas, Florida, and Costa Rica that the men will have to turn over to the government.

Additionally, 32 vehicles, including Ferraris; Maseratis; Aston Martins, Corvettes; Mercedes-Benz; Jaguars; Porsches; Hummers; Cadillacs; BMWs and several trucks and SUVs will be seized by the government upon conviction of any single offense.

The indictment goes on to list multiple boats and recreational vehicles, bank accounts in the names of the men and family members, cash, investment accounts, firearms, jewelry, other property, and “working interest” in several oil companies, as well as a “money judgement” that could all be seized by the government in an effort to recoup the over $100 million scammed by the group.

According to the press release regarding the indictment, Cesario and Cooper, who were placed in custody earlier this year, are being held until trial. The other 10 men all made bail until their trial.

Each of the charges against the men is punishable by between 5 and 10 years, and a $250,000 fine.

The FBI and the Defense Criminal Investigative Service helped investigate and breaking up the alleged conspiracy ring.

Articles

A Fort Bragg soldier won $2 million and definitely won’t blow it on these 9 things

On Jan. 13, Fort Bragg Army Reserve soldier Johnny Charlestin was celebrating his birthday when he learned that a $3 Powerball ticket he bought was a $2 million winner.


“I didn’t believe it, it was a feeling I’ll never forget,” Charlestin said in a press release from the N.C. Education Lottery. “It’s the best birthday present I’ve ever had.”

Charlestin then decided to leave the public spotlight, which is one of the things experts recommend lottery winners do. Hopefully this means he’s smart enough to invest the money wisely.

But since he’s a Fort Bragg soldier, there’s also a real chance he’ll spend his money this way:

1. Taxes will be taken out

Endless opportunity in the face of enormous loss
Photo: flickr/Ken Teegardin, Senior Living Center

30.75 percent, or $615,000 goes right back into government coffers. That leaves the enterprising soldier with $1,385,000.

2. Dip and jerky

Endless opportunity in the face of enormous loss
Photo: Wikimedia Commons/OAC

The winner’s first stop will be base shoppette where he’ll pick up the proper amount of dip for millionaire soldiers, as well as a little jerky to much on.

3. New car

Endless opportunity in the face of enormous loss
GIF: Giphy

This is an obvious stop, but for some reason, the new millionaire will still take out loans of 20 percent or more. Over the next five years, that b-tchin’ Corvette will cost him as much as a Lambo would’ve if he’d paid cash.

4. Electronics store

Endless opportunity in the face of enormous loss
Photo: Wikipedia/Chris McClave

Every new video game console, 10-20 games for each, a huge TV, and surround sound. A few movies will round out the purchase, about 500 of them. Most of the movies are about World War II paratroopers.

5. Adult “book” store

Endless opportunity in the face of enormous loss
Photo: flickr/leyla.a

This is for other movies. We will not explain further.

6. House

Endless opportunity in the face of enormous loss
Wikipedia/Andrew (Tawker)

Finally, the soldier will find a new place to live. Unfortunately, he’ll only realize after the fact that his surround system doesn’t properly fill the new entertainment room with sound. Since he threw away the receipts, he’ll buy a new one and give the old system to a groupie (he’ll have those now).

7. Energy drinks

Endless opportunity in the face of enormous loss

This will take up more money than any non-soldiers would expect.

8. All the booze

Endless opportunity in the face of enormous loss

There are roughly infinity liquor stores at the Fort Bragg perimeter, as well as a Class VI store on base. These will become empty.

9. Noise citations

Endless opportunity in the face of enormous loss
Photo: Wikipedia/Highway Patrol Images

Once the party starts, Fayettnam police officers will be visiting every 15 minutes or so and writing a ticket. By the end of the night, the lottery money will be almost played out.

By the second week, the former millionaire will be attending finance classes on base and applying for an Army Emergency Relief loan to make his payments for the Corvette.

Articles

Filing for effect: some troops’ tax refunds may not come quickly

Many taxpayers plan their holiday shopping and other purchases around getting their tax refunds from the Internal Revenue Service at the earliest possible date.


Endless opportunity in the face of enormous loss

In 2017, that may no longer be the case.

The Protecting Americans from Tax Hikes Act, signed into law in December 2015, requires the IRS to hold tax refunds for people claiming Earned Income Tax Credit and Additional Child Tax Credit until at least Feb. 15, 2017.

Also, new identity theft and refund fraud safeguards by both the IRS and individual states may mean some tax returns and refunds face additional review.

Beginning in 2017, the IRS must hold the entire refund — even the portion not associated with the EITC and ACTC. The IRS said the change helps ensure taxpayers get the refund they are owed by giving the agency more time to help detect and prevent fraud.

“This is an important change, as some of these taxpayers are used to getting an early refund,” said IRS Commissioner John Koskinen. “We want people to be aware of the change for their planning purposes during the holidays. We don’t want anyone caught by surprise if they get their refund a few weeks later than in previous years.”

As in past years, the IRS will begin accepting and processing tax returns once the filing season begins. All taxpayers should file as usual, and tax return preparers should submit returns as they normally do.

Although the IRS cannot issue refunds for some early filers until at least Feb. 15, it reminds taxpayers that most refunds will be issued within the normal timeframe: less than 21 days after being accepted for processing by the IRS.

The Where’s My Refund? tool on IRS.gov and the IRS2Go phone app remain the best way to check the status of a refund.

Articles

There’s no business like the arms business — here’s how defense giants are doing

Nobody spends money on arms like the US of A.


Starting with a base of $534 billion in discretionary funding, coupled with another $51 billion for Overseas Contingency Operations funding (aka the “war budget”), the Pentagon’s spending power comes to a grand total of $585 billion.

Defense industry giants, Boeing, General Dynamics, Northrop Grumman, and Raytheon posted second-quarter earnings on Wednesday (Lockheed Martin earnings released last week).

Here’s a look at how they did…

Boeing

Endless opportunity in the face of enormous loss
Boeing KC-46 Tanker program first test aircraft (EMD1) flies with an aerial refueling boom installed on its fifth flight. | Boeing

Boeing, the world’s largest plane maker, reported a smaller-than-expected second Q2 loss on Wednesday. The company’s first quarterly net loss in nearly seven years amounted to $234 million.

Boeing’s KC-46 tanker program for the US Air Force is delayed from August 2017 until January 2018 due to test flight problems. Modifications to the aircraft are expected to cost Boeing an additional $393 million (after taxes).

What’s more, Boeing could end production of its most iconic aircraft.

“If we are unable to obtain sufficient orders and/or market, production and other risks cannot be mitigated, we could record additional losses that may be material, and it is reasonably possible that we could decide to end production of the 747,” Boeing said in its filing on Wednesday.

Earlier this year, Boeing won a US Air Force contract worth $25.8 million to start work on the next fleet of Air Force One aircraft.

The aging Air Force One and it’s twin decoy will be replaced with two Boeing  747-8 and are expected to be operational in 2020.

Up to Wednesday’s close of $135.96, the company’s shares had fallen about 6% since the start of the year.

Highlights from Boeing’s quarterly earnings report:

•Operating cash flow of $1.2 billion (with 28.6 million shares repurchased for $3.5 billion)

•Cash flow of $3.2 billion, (down 2% from 2015)

•Core earnings per share loss of $0.44

•Revenue rose 1% to $24.8 billion (from earlier estimate of $24.5 billion)

• Demand still high with more than 5,700 commercial plane orders still in the works

Reuters contributed to this report.

General Dynamics

Endless opportunity in the face of enormous loss
The littoral combat ship USS Independence operates off the Hawaiian Islands during exercise RIMPAC 2014. | General Dynamics

General Dynamics began their earnings conference call on Wednesday highlighting their “very good second quarter.”

The Falls Church, Virginia-based company announced $7.6 billion in Q2 revenue and achieved $758 million in net earnings.

General Dynamics recognized their aerospace unit (with a revenue of $2.13 billion) and maritime division.

At the end of June 2016, the defense giants’ National Steel and Shipbuilding division won a $640 million Pentagon contract to construct a T-AO 205 Class Fleet Replenishment Oiler. The contract could be worth up to $3.16 billion if the Pentagon decides to buy an additional five ships.

In March, the US Navy announced that General Dynamics will be the prime contractor for development of 12 new submarines.

Shares rose less than 1% to $145.09 in the afternoon and since the beginning of this year, the company’s stock has climbed 5.2%.

Highlights from General Dynamics’ quarterly earnings report:

•Revenue fell to $7.67 billion (down by $217 million from the Q2 2015)

•Raised 2016’s full-year earnings forecast to $9.70 per share (from $9.20, analysts’ expect $9.52)

•Profit margins could be as high as 13.8% (up from January 2016 estimate of 13.3%)

Reuters contributed to this report.

Lockheed Martin

Endless opportunity in the face of enormous loss
Behold, the F-35. | Lockheed Martin

While the F-35 Lightning II continues its turbulent march to combat readiness, the jet’s manufacturer posted better than expected quarterly revenue earnings last week.

Lockheed Martin, the Pentagon’s top weapons supplier, also lifted its 2016 revenue and profit forecasts for a second time — despite significant snags in developing America’s most expensive arms program.

Considered a bellwether for the US defense sector, Lockheed Martin’s stock also posted  a record high of $261.37 in early trading on July 19. What’s more, the world’s largest defense contractor’s shares were already up approximately 18% this year.

“(The) consensus expectations are finally positive for the F-35 and for improvement in the defense budget, which has led to a higher valuation,” Bernstein analyst Douglas Harned wrote in a note, according to Reuters.

The now nearly $400 billion F-35 weapons program was developed in 2001 to replace the US military’s F-15, F-16, and F-18 aircraft.

Read more about the F-35 »

According to Lockheed Martin, sales in its aeronautics business, the company’s largest, rose 6% in the past three months due to delivery of 14 F-35s.

The company has said it plans to deliver 53 F-35 jets in 2016, up from 45 a year earlier.

Highlights from Lockheed Martin’s quarterly earnings report:

• Net sales rose to $12.91 billion (from $11.64 billion in Q2 2015)

•Net income rose to $1.02 billion (or $3.32 per share), which is up from $929 million (or $2.94 per share) in Q2 2015

•Generated $1.5 billion in cash from operations

•Raised 2016’s profit forecast to $12.15–$12.45 per share (from $11.50-$11.80)

•Raised 2016’s full-year sales of $50.0 billion-$51.5 billion (from earlier estimate of $49.6 billion-$51.1 billion)

Reuters contributed to this report.

Northrop Grumman

Endless opportunity in the face of enormous loss
Northrop Grumman/EADS Euro Hawk rollout on October 8, 2009 at Palmdale, CA, USA. | Northrop Grumman

Northrop Grumman’s earnings report showed sales reaching $6 billion with the company’s aerospace unit seeing a 4% increase in sales due to higher demand for drones and manned aircraft.

“Autonomous Systems sales rose due to higher volume on the Global Hawk and Triton programs, partially offset by lower volume due to the ramp down on the NATO Alliance Ground Surveillance program,” the company said in a statement.

“Manned Aircraft sales rose due to higher restricted volume and higher F-35 deliveries, partially offset by fewer F/A-18 deliveries and lower volume on the B-2 program.”

It should be noted that Lockheed Martin, is the prime contractor for the F-35 Lightning II, however, Northrop Grumman develops the fifth-generation fighter jets’ center fuselage, radar and avionics suite.

Northrop is also a subcontractor to Boeing on the F/A-18 Hornet.

Highlights from Northrop Grumman’s quarterly earnings report:

•Sales increase by 2% to $6 billion (compared to $5.9 billion in Q2 of 2015)

•Earning per share increase by 4% to $2.85

•Earning per share guidance increase to $10.75 to $11.00

•Cash from operations of $604 million

Raytheon

Endless opportunity in the face of enormous loss
A Patriot Air and Missile Defense launcher fires an interceptor during a previous test at White Sands Missile Range in New Mexico. The latest configuration of the system, called PDB-8, has passed four flight tests and is now with the U.S. Army for a final evaluation. | Raytheon

Raytheon, the world’s largest missile manufacturer, announced $6 billion in net sales for Q2 2016, which is up 3% compared to $5.8 billion in the second quarter 2015.

Earnings per share was $2.38 compared to $1.65, this time last year.

“We begin the second half of 2016 with continued confidence in our growth outlook, and we have increased our guidance for earnings and cash flow as a result of our strong year-to-date performance,” CEO and Chairman Thomas A. Kennedy said in a statement.

Highlights from Raytheon’s quarterly earnings report:

•Sales increase by 3% to $6 billion (compared to $5.8 billion in Q2 2015)

•Increase in operating cash flow to $746 million (compared to $376 million in Q2 2015)

•Backlog and funded backlog at the end of the Q2 2016 was $35.3 billion and $26.1 billion, respectively.

MIGHTY MONEY

Army reports lack of training as biggest setback to readiness

Earlier this month, the Army’s top general in charge of supplying units with troops blamed a lack of readiness on limited time for training, adding that lack of funding isn’t the biggest challenge.


Head of Army Forces Command Gen. Robert Abrams said the lack of training stems from lawmakers making policy that commits the service to engagements around the world without an eye toward keeping the force healthy and trained up.

Endless opportunity in the face of enormous loss
U.S. Soldiers of Rider Company, 2nd Battalion, 7th Infantry Regiment, 1st Armored Brigade record information while conducting a brief during exercise Combined Resolve VII at the U.S. Army’s Joint Multinational Readiness Center in Hohenfels Germany, Sept. 11, 2016. The exercise is designed to train the Army’s regionally allocated forces to the U.S. European Command. Combined Resolve VII includes more than 3,500 participants from 16 NATO and European partner nations. (U.S. Army photo by Pfc. Caleb Foreman)

Abrams explained that soldiers were expected to deploy more and have less time home because of downsizing.

“Our goal has always been … one month gone, two months back,” Abrams said, adding that the Army is currently experiencing a ratio of “deploy-to-dwell” that trends closer to one month gone, one month back.

“Our commitments worldwide across the globe in support of our combatant commanders remains at a very high level while we continue to simultaneously downsize the total force,” Abrams told an audience at the annual Association of the U.S. Army conference in Washington.

“Our number one constraint for training is time available.”

Recent budget cuts have forced the Army to reduce its total active duty soldiers to 450,000 while still meeting its obligations worldwide. As a result, the operational tempo for soldiers is higher and more demanding — ultimately requiring soldiers to train more, for longer periods of time, in addition to more and longer deployments, Army officials say.

“The impact of non-standard missions continues to have a degrading effect across our force in being able to sustain proficiency in combined arms maneuver,” Abrams said.

Because soldiers are experiencing a minimal deploy-to-dwell time, there isn’t enough time for soldiers to maintain the training the Army requires.

“We struggle today to maintain and meet Department of the Army standards in our critical combat fleets,” Abrams explained before highlighting unmet requirements within the Army’s aviation and ground fleets. He was quick to explain that in aviation in particular, the problems do not lie with the aviators. The problem stems, instead, with plans to restructure the way the Army finances those fleets, impacting training requirements, upkeep on aircraft, and overall readiness of aviators.

While Abrams was very careful not to blame funding shortfalls for the readiness issues facing the Army, he did not hesitate to blame the readiness of the National Guard in particular on lack of money.

“We’ve dug ourselves this hole because of funding,” Abrams said.

Despite the tough times, Abrams said the Army has made tremendous strides in the last year in terms of readiness and overall capabilities.

“Last year at this exact forum, one of underlying themes was that as an army in terms of our joint war-fighting capabilities, we were pretty rusty,” he said. “I’m happy to report today that we have made progress in our ability.”

MIGHTY MONEY

Coronavirus hit the stock market hard, but how worried should you be?

With thousands of confirmed cases of COVID-19 in China and South Korea, and a rapidly growing number in Europe and the United States, the question is no longer if the coronavirus will have an effect on the global economy but rather whether it’ll be a small scratch or a giant crater.


Increasingly, the latter appears to be a distinct possibility. On Monday, analysts at the Organization for Economic Cooperation and Development predicted that a continued spread of the novel coronavirus would cut worldwide GDP growth fully in half.

Endless opportunity in the face of enormous loss

This is a scary prospect for a lot of reasons, although the most immediate impact has been a hammering of 401(k)s and other investment accounts. Last week alone, the SP 500 took a nearly 12-percent hit as skittish investors ran for the exits. No doubt, many others are thinking about the same move.

That it’s a fool’s errand to time something as complex and unpredictable as the stock market is pretty much Retirement Planning 101. And yet there’s a basic human instinct to run for the nearest exit when danger looms. Surely, it’s better to jump before the ship sinks any further, right?

Well, no. The speed with which stocks plunged last week can lead one to conclude that the freefall is going to continue. But the fact is, no one knows whether that’s true or not. Stocks actually gained nearly five percent Monday on news that central bankers are ready to take serious counter-measures (although even that doesn’t mean the sell-off is over).

Certainly, emotions are going to run high when you open your online account and see a dramatically smaller balance than the one you glimpsed just a couple weeks earlier. Now, more than ever, it may be time to simply look away for a while. For long-term investors, in particular, it’s important to keep in mind that volatility is part of the game when it comes to stocks. The point is that, over periods of a decade or longer, the market has consistently rewarded patience.

You don’t have to look back very far to see what can happen when investors start hitting the panic button. As the housing market collapse started to expose some pretty egregious risk-taking from Wall Street banks in 2007, the stock market fell into its worst bear market in recent memory. In the span of 17 months, the SP 500 lost more than half its value, falling to 676.

But here’s the key point: those who kept buying during the downswing saw the biggest gains when things eventually turned around. Even after last week’s bloodbath, the index is now past the 3,000 mark.

Kevin Mahoney, CFP, of the Washington, DC-based financial planning firm Illumint says he’s telling his primarily Millennial-age clients to sit tight when it comes to their retirement accounts. “Whether this is the bottom or not, I’m not particularly concerned,” says Mahoney. “They’re keeping their money in for another 30 or 35 years.”

Indeed, this is the beauty of dollar-cost averaging, where you invest a fixed dollar amount from each paycheck, even when the financial news looks ugly. By continuing to buy when prices drop, you end up obtaining more shares with the same amount of cash. When the market eventually turns the corner, this steady-as-she-goes investing style ends up providing you with bigger gains.

Endless opportunity in the face of enormous loss

For those who have money on the sidelines in, say, a savings account, this may actually be the perfect time to enter the market. Warren Buffett himself has used this contrarian approach to great effect, once declaring: “Be fearful when others are greedy and greedy when others are fearful.”

As long as people can tolerate a fair amount of volatility in the short term, Mahoney says the recent headlines shouldn’t cause would-be investors to lay low. “Stocks are now lower than in previous weeks, so if they need motivation to act on their savings, they can view this as a financial opportunity,” he says.

Things are a little trickier, of course, for couples who own brokerage accounts that they hoped to tap in the next few months for a new home or other big-ticket purchases. “These individuals may want to evaluate whether they can be flexible with the timing of their upcoming financial goal, such as funding a down payment,” says Mahoney. “If the market continues to struggle, they may be better off waiting and continuing to save.”

For anybody else, obsessing over the latest financial news isn’t going to do you any favors. Just ask the folks who exited the market the last time stocks took a nose-dive.

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

MIGHTY MONEY

4 basic things you should be doing with your money

Millennials as a group may be delusional about the future, but some are making good decisions with their money today.

Generally, many millennials have little to no credit-card debt, put a portion of their income toward retirement, and have a savings account, an INSIDER and Morning Consult survey found.

Of the 4,400 Americans polled, 1,207 identified as millennials, defined as ages 22 to 37 (237 respondents did not select a generation). The margin of error was plus or minus 1 percentage point.

Here are a few of the ways millennials are smart with their money, according to responses to our survey:


1. They have a savings account.

About 69% of millennials said they had a savings account, compared with 65% of Gen Xers, the survey found.

But while the existence of a savings account is inherently positive, it’s nothing without consistent contributions. A whopping 58% of millennials said they had under ,000 in a savings account, about 19% had between ,000 and ,000, and 11% had between ,000 and ,000.

Endless opportunity in the face of enormous loss

(Photo by Sharon McCutcheon)

Many financial planners recommend a high-yield savings account over a traditional savings account for an emergency fund or other short-term need. The best high-yield online savings accounts are offering an annual percentage yield between 2% and 2.5%, and many have no fees and low minimum deposits.

2. They have little to no credit-card debt

Millennials seem to know that keeping a balance on their credit cards isn’t going to make for a good credit score. About 32% said they had no credit-card debt at all — a greater share than Gen Xers (28%). Of the millennials who do have debt, a plurality (36%) said they had under ,000.

It might make sense that Gen Xers, who are older and presumably have more expenses, would be more likely to have credit-card debt, but in this survey the oldest millennials were 37 — and people’s 30s tend to come with houses, kids, pets, and expenses that are no longer limited to Gen X.

Two smart strategies to pay off credit-card debt, according to financial planners, are the “debt snowball,” which prioritizes paying off the smallest debts first, and the “debt avalanche,” which prioritizes paying off the highest-interest debt first. Either method is effective, so the best approach may be to pick the one you can commit to.

3. They would use a id=”listicle-2634449531″,000 windfall to pay off debt or save.

Given an extra id=”listicle-2634449531″,000 cash, 27% of millennials (a plurality) said they would choose to pay off debt, while 22% said they would save the windfall, the survey found. Only 6% said they would put it toward travel or shopping.

Endless opportunity in the face of enormous loss

(Photo by Artem Bali)

This is good instinct, as financial planners typically suggest stamping out debt with high interest rates first and foremost, even before saving for retirement or another financial goal. Carrying a balance on a credit card can erode your credit score, and fees and high interest rates can continually add to the overall debt load.

In the survey, the millennials who indicated they wouldn’t use the windfall to pay off debt or save said it would go toward outstanding bills (17%), necessities (12%), or an investment (9%).

4. They put more of their income toward retirement than Gen Xers.

Even though 52% of millennials said they didn’t have a retirement savings account, the ones who do are serious savers.

In the survey, nearly 16% of millennials said they set aside 11% to 20% of their income for retirement — more than any other generation. About 5% of millennials, the same share as Gen X, said they save more than 20% of their income for retirement.

A plurality (33%) said they put away between 1% and 10% of their income for retirement, which is a fine place to start. Experts recommend increasing savings rates annually or every time you get a raise.

One of the easiest ways to build wealth is through automatic and consistent contributions, starting with a retirement account. The contributions to a 401(k) or IRA are pretax, so the money will be taken out of your paycheck before it even hits your bank account. Many employers will match contributions up to a certain percentage or dollar amount. It’s basically free money, but you won’t get any of it unless you’re already contributing something on your own.

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

MIGHTY MONEY

5 GI Bill rates that will increase this year

The Department of Veterans Affairs has announced the Post-9/11 GI Bill rates for the 2019-2020 school year. These rates will be effective on Aug. 1, 2019. The Montgomery GI Bill and Dependents’ Education Assistance programs will see a rate change on Oct. 1, 2019.

By law, the GI Bill rate increase is tied to the average cost increase of undergraduate tuition in the U.S. For the 2019-2020 school year, that increase will average 3.4%.

More than 80 percent of those taking advantage of their GI Bill benefits are doing so through the Post-9/11 GI Bill.


Private & foreign school GI Bill rates

Effective Aug. 1, 2019, those using the Post-9/11 GI Bill at a private or foreign school will see their maximum yearly GI Bill rate increase from ,671.94 to ,476.79.

Flight training

Those who are enrolled in flight schools will see their annual maximum GI Bill benefit increase from ,526.81 to ,986.72.

Endless opportunity in the face of enormous loss

An F-22 Raptor from the Hawaii Air National Guard’s 199th Fighter Squadron returns to a training mission after refueling March 27, 2012, over the Pacific Ocean near the Hawaiian Islands.

(U.S. Air Force photo by Tech. Sgt. Michael Holzworth)

Licensing/certification/national testing

You can be reimbursed up to ,000 per test for licensing and certification tests. For national testing programs, there is no maximum amount of GI Bill reimbursement. Your entitlement will be charged one month for every ,042.06 spent; currently, that trigger point is id=”listicle-2634152786″,974.91.

Correspondence courses

You can be reimbursed the actual net costs, not to exceed ,888.70 annually. That’s up from ,497.78 currently.

Monthly housing allowance

The Monthly Housing Allowance is also scheduled to change on Aug. 1, 2019.

If you are attending classroom sessions, your housing allowance is based on the ZIP code of the campus location where you attend the majority of your classes.

If you are attending classes at a foreign school, not on a military base, your maximum housing allowance will be id=”listicle-2634152786″,789.00. This is prorated based on the length of your active-duty service and how many classes you are taking.

If you attend all your classes online, your maximum housing allowance will be 4.50. This is also prorated.

Keep up with your education benefits

Whether you need a guide on how to use your GI Bill, want to take advantage of tuition assistance and scholarships, or get the lowdown on education benefits available for your family, Military.com can help. Sign up for a free Military.com membership to have education tips and benefits updates delivered directly to your inbox.

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

MIGHTY MONEY

There is no one in NFL history more devoted to veterans than Jared Allen

During his 12-year NFL career, Jared Allen was a heavyweight defensive player, making his presence known on multiple teams, especially the Minnesota Vikings. It was as a Viking that Allen went on a trip that touched his heart and soul, touring with USO to visit servicemen and women deployed overseas. He even told the assembled troops as much.

That’s what led to Jared Allen’s Homes for Wounded Warriors (JAH4WW).


“It has been one of the best experiences of my life – something that I’ll never forget,” Allen said of his time visiting troops. “We, as players, probably get more out of it than you do as soldiers and Marines.” Even though his grandfather and younger brother were Marines, the experience changed Allen, inspiring him to create his own charity to support America’s wounded.

Even after he was traded to Chicago and later Carolina, Jared Allen’s Homes for Wounded Warriors carried on no matter where Allen was playing. Even though he’s listed as one of the 50 Greatest Minnesota Vikings of all time, the uniform he wore on the field wasn’t what defined him. If you ask the man himself, he’ll tell you what he does off the field is what matters most.

“Football is what I do, it’s not who I am. The things that we do today — to impact these lives, to change people’s lives — can last forever,” he told SB Nation. “We have a great responsibility to the community that supports us, and to our veterans who allow us to do what we do.”
Endless opportunity in the face of enormous loss

Former Vikings defensive end Jared Allen presents free Super Bowl LII tickets to eleven-year-old Tallon Kiminski, son of Minnesota Air National Guard member, Maj. Jodi Grayson.

(U.S. Air National Guard photos by Capt. Nathan T. Wallin)

When it comes to helping wounded veterans, Jared Allen is a godsend. On its website, the JAH4WW says, “Jared was moved by the commitment, dedication, and sacrifices that our soldiers make every day to protect our freedom. He wanted to say thank you to every soldier in the only way that Jared knows how. By embracing the conflict and making a positive life-changing difference in the lives of those who need it most, Jared and his JAH4WW will help make life for wounded vets just a little bit easier.”

Talk is big, but in practice, Jared Allen is much, much bigger than just words. Since its founding in 2009, his organization has helped raise funds to build or revamp homes for injured veterans of Iraq and Afghanistan, raised tens of thousands of dollars from corporations like Wal-Mart and Proctor Gamble to provide everyday household goods for veteran families in need, and on Veterans Day, you can always find the now-retired Allen doing something to help veterans in need.

Endless opportunity in the face of enormous loss

NFL player Larry Fitzgerald signs an autograph for troops from the Washington Army National Guard at Camp Ramadi, Iraq, along with Will Witherspoon from the St. Louis Rams, Jared Allen from the Minnesota Vikings, and Danny Clark from the New York Giants in 2009.

(U.S. Army photo by Staff Sgt. Emily Suhr)

“I knew I had to do something to serve our country,” Allen once said of the Jared Allen Homes for Wounded Warriors. “I feel the best way to do that is serve those who serve us.”

If you’re a veteran of the wars in Iraq or Afghanistan who is in need of housing or alterations to suit your disability, apply to Jared Allen Homes for Wounded Warriors on the organization’s website. Jared Allen is one guy you definitely want in your corner.

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