4 simple ways to start saving money - We Are The Mighty
MIGHTY MONEY

How this US soldier is the new Nigerian Prince

“Oh, beautiful friend,” begins an email from Nigeria, “I am in need of your help to move the sum of 30,987,544.36 out of my country but, alas, I cannot.” This email scam is old as email itself but is a spin on an even older scam, one that involves a man claiming to be a political prisoner during the Spanish-American War. Apparently, he’s hidden money away and is desperate to get it before the Spanish find it. Thankfully, through friends, he’s found you, a person of considerable trust. Now if you could just send him some money…

Well, the Spanish-prisoner-turned-Nigerian-prince has transformed yet again. This time, he’s turned into an American soldier… In Nigeria.


This letter con is actually even older than the Spanish-American War. The resurgence of the scam in 1898 was just a play on American anti-Spanish sentiment. In the 1700s, it was a different kind of Spanish prisoner who needed money to smuggle a wealthy family member into or out of a country. Then there’s the 1800s’ “Frenchman in Jerusalem,” or the 1920s’ “German Winemaker Investment.”

These are all different flavors of the same scam. You pay a comparatively small amount up front for the promise of a great windfall down the road, but nothing ever comes. Like all of these schemes, the fraudster is taking advantage of a political situation, economic frustrations, or the recipient’s general lack of knowledge about the subject or region.

4 simple ways to start saving money

This is the new Nigerian Prince.

He’s back. 

Now, schemers are looking to take advantage of all three of those weaknesses. Americans love their military, but don’t always know where the U.S. military is operating — sometimes because it’s undisclosed and sometimes because Americans don’t really care where U.S. combat troops are deployed (before anyone gets indignant about this statement, ask yourself if you really know).

In reality, U.S. troops are deployed to anywhere between 177 and 195 countries in the world. And those are just the missions with 50 or more troops deployed. Meanwhile, as the U.S. economy has been more or less booming for the last 9 years, it really hasn’t translated into an increase in wages or quality of life for most middle-class and blue-collar Americans. And Americans, even American students, tend to be bad at geography.

4 simple ways to start saving money

This is not a trick. That’s really where Nigeria is.

But the latest scam isn’t coming from Nigeria. It’s coming from Syria. Well… it claims it’s coming from Syria.

“How are you doing my friend, great I guess! Now I know this mail will definitely come to you as a huge surprise, but please kindly take your time to go through it carefully as the decision you make will probably go a long way to determine my future and continued existence. First, let me introduce myself. I am Capt. Christopher Townsend, assigned to 2nd Battalion, 3rd Marine Regiment, 3rd Marine Division, 3rd Marine Expeditionary Force in Syria.”

For civilians who may be susceptible to this scam, I hope you tried to show this to a military friend because there are many glaring irregularities between this first paragraph and the photo of the ID sent along with it.

4 simple ways to start saving money

Blurring the edges of an ID photo is something no one does ever.

Aside from a clearly photoshopped ID photo, the CAC card above was taken from a U.S. Army Sergeant Major, not a captain of Marines. Secondly, unless that captain was also a journalist, it’s unlikely that he would abbreviate his rank using the Associated Press style. Military personnel have many different ways of abbreviating ranks, but the Marines don’t use a period. Finally, no sergeant major or captain I have ever met talks or writes like that.

And a Marine isn’t likely to make that kind of mistake, even in an informal email. Are the Marines in Syria really with the 2nd Battalion, 3rd Marine Regiment? That doesn’t matter.

4 simple ways to start saving money

It matters, but not for the purposes of deciding to send them money.

(U.S. Marine Corps photo by Sgt. Donald Holbert)

“Some money in various currencies was discovered and concealed in barrels with piles of weapons and ammunition at a location near one of President Assad’s old Presidential Palaces during a rescue operation and it was agreed by all party present that the money be shared amongst us.”

Do dictators just leave money around, hiding in barrels with arms caches? My guess is that President Assad probably keeps his money in a bank, like most of the world. Keeping illicit cash in barrels laying around one of your many houses is a surefire way to lose it. Besides, rich dictators don’t have to horde cash — they don’t care if people know they’re stealing.

The Syrian Presidential Palaces are located in Damascus and if U.S. Marines are/were in Damascus, even on a rescue mission, we probably would have heard about it by now. Most importantly, Assad never lived there.

4 simple ways to start saving money

It would not be this clean after a visit from United States Marines.

(Flickr/Jacobdugo)

Finally, this is something more akin to the plot of Three Kings than something U.S. Marines would really do. The Marine Corps is renowned for its discipline and adherence to its core values on the battlefield. If they came across a cache of million dollars in a Presidential palace, you’d see Marines posing with it and their small arms on Instagram right before you read about it in the New York Times. Then, they’d turn it in.

If you ever have a question about something fishy sent from someone claiming to be a U.S. troop, just ask a veteran. We all need a good laugh.

Articles

National Guard chief says ‘tie goes to the soldier’ in California re-enlistment bonus scandal

The head of the National Guard said Oct. 26 that the Pentagon will continue to investigate re-enlistment bonuses paid to thousands of California National Guard soldiers a decade ago and will force those who wrongfully accepted them to pay the money back.


Chief of the U.S. National Guard Bureau Air Force Gen. Joseph Lengyel said his office is looking into more than 13,600 cases that could be fraudulent, but he admitted investigators have to prove that the soldier knew they were accepting upwards of $15,000 they didn’t qualify for.

4 simple ways to start saving money
Sgt. Jeffrey Nelan, a Infantryman with the 184th Security Force Assistance Team, California National Guard, plays with Afghan children during a leadership engagement at the Afghan Uniformed Police headquarters in Uruzgan Province, Afghanistan, Sept. 25, 2013. | U.S. Army photo by Cpl. Harold Flynn

“The tie goes to the soldier,” Lengyel said at a breakfast meeting with defense reporters in Washington. “If their hands are clean where this soldier is doing their duty and doing their job, it is not our intent to try to enforce this hardship on them 10 years later.”

A nationwide furor erupted after a Los Angeles Times story revealed the California National Guard was demanding repayment with interest for some bonuses it doled out to its Guard troops as an incentive to re-enlist during the height of the Iraq war. The former head of the  state’s Guard incentive program was later convicted of filing over $15 million in false claims and the bureau began looking into the scope of the problem in 2012.

Some soldiers, the Times story alleges, have been forced to pay pack tens of thousands of dollars to the government after nearly a decade — some who sustained severe injuries during their subsequent deployments and have been financially ruined by the errors.

President Obama weighed in on the scandal Oct. 25 and reportedly ordered the Pentagon to speed up the audits, but he stopped short of asking for a blanket amnesty, the Times said.

Pentagon chief Ash Carter said in a statement the next day that he’s ordered a suspension of the paybacks and has asked his office to establish a more streamlined process to investigate fraud claims and allow Guard soldiers a speedier appeal.

“This process has dragged on too long, for too many service members,” Carter said. “Too many cases have languished without action. That’s unfair to service members and to taxpayers.”

[poll id=”7″]

Guard officials claim over 13,600 questionable bonuses were paid out to California soldiers in the mid-2000s — some for re-enlistment incentives, others for education reimbursement. About 1,100 bonuses were given to soldiers who officials allege were not entitled to them, about 4,000 were error free and about 5,300 had paperwork errors. There are still about 3,200 that Guard officials are still trying to track down.

So far about 2,000 soldiers have been asked to pay back all or part of their bonus cash, Guard officials say.

Lengyel explained some of the more egregious cases included officers who took the cash to re-up when the money was intended to help fill the enlisted ranks, some who took bonuses to stay in certain jobs even though they were already in the process of changing their roles in the Army Guard and others who took re-enlisted bonuses despite being on track to take a slot at officer candidate’s school.

“Was there an intent to trick the system, to take advantage of the fact that apparently there’s some new sheriff in town who’s handing out bonuses?” Lengyel wondered. “Unfortunately with all of this was mixed in some proven intent to defraud the government, in some cases. There was some intent to take money knowingly that you weren’t entitled to by some people.”

But he added that likely the vast majority of soldiers who took the bonuses didn’t have any intent to illegally work the system.

“We think there are a lot of people out there who were 22-year-old soldiers who were given information that they thought by all means they were entitled to the money,” Lengyel said. “They were told they could take this money, they were told that they were entitled to this money, they took the money, the re-enlisted and they went about whatever they were doing and they were given bad data.”

Guard officials say there are more cases of alleged fraud in the re-enlistment bonuses for National Guard troops in other states, but that they pale in comparison to the California errors. Lengyel said in all about $50 million in questionable bonuses were paid out in California during the period, and the Guard is investigating each one individually.

The National Guard is granting exceptions, he added, particularly for those who were paid bonuses without submitting records that they were actually eligible. Lengyel said, for example, a bonus paid out to a soldier that didn’t forward a copy of a high school diploma will likely be given a pass since he couldn’t have joined the Guard without it in the first place.

“That’s a technicality by which this member shouldn’t be levied a fine,” Lengyel said. “The blanket rule is to do the right thing.”

Lawmakers on both sides of the aisle have been outraged by the story, with some already calling for an investigation into the issue and forwarding language to an upcoming defense bill that would give some bonus recipients amnesty. National Guard officials say they did notify Congress of the potential for bonus fraud but nothing was done.

Vet groups have been quick to side with California guardsmen, arguing it’s unfair to put so many soldiers in financial peril due to a former military official’s malfeasance.

“If any of these people were misled about their own eligibility for the bonus with the intent to keep them on, they shouldn’t be held responsible for that,” said John Hoellwarth, National Communications Director for AMVETS. “We think the benefit of the doubt has to be with the soldiers,”

Lengyel said his office is sending investigators to California to help speed up the process of determining whether a bonus or incentive was paid in error in hopes of helping affected soldiers get on with their lives.

“We’re focused on helping those service members who were doing the right thing and served their country and thought they were entitled to a bonus to get this out of their past and out of their way,” Lengyel said. “And we want to help California do that, and help the service members do that as quickly as we possibly can.”

MIGHTY MONEY

Apple just announced a game-changing new credit card

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

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

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


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

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

4 simple ways to start saving money

(Apple)

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

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

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

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

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

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

Articles

Commissary savings overhaul might cost shoppers extra

A recent overhaul of the defense commissary program aboard military installations will result in higher costs for its customers, according to a recent MilitaryTimes report.


New rules, which were put in place as part of the latest annual defense authorization act allow the defense commissaries, or DeCA, to up the prices on about 1,000 products in 10 stores. Additionally, all 238 commissaries were authorized to raise prices on national brand products.

According to MilitaryTimes, this will allow officials to explore how the overall impact of raising these prices might help them to reduce operating costs that taxpayers cover, which currently sits at about $1.3 billion annually.

Before the rollout of the overhaul, DeCA was able to sell items at the commissaries at cost plus 5 percent. Under the new system, DeCA is able to purchase items at a reduced rate, but sell them at their previous rates or higher.

For example, if DeCA purchases a product at $.10 cheaper than before, it might not sell that product for the reduced price at the commissary, MilitaryTimes explains.

That extra cash might go, instead, toward operating costs or toward lowering the price of a different product, or both.

One of the issues with this new system, according to MilitaryTimes, is that the consulting company who designed it may be benefitting financially. MilitaryTimes claims that “unofficial reports from members of industry” say that Boston Consulting Group (or BCG) stands to make between 50 and 60 percent of the amount prices are reduced.

So that dime savings per sale of a particular item might net BCG between a nickel and 6 cents per unit sold.

DeCA officials are unable to confirm those claims, saying instead that the details of extra awards, fees or incentives for BCG won’t be available until they are “determined at a later date”, MilitaryTimes says.

Chris Burns, the executive director of business transformation at DeCA, told MilitaryTimes that the money DeCA saves is going toward reducing product prices or toward operating costs, but MilitaryTimes could not determine if consulting fees were included in those operating costs.

The effects of the overhaul are being felt elsewhere, as well. Some national brands who are pressured to lower prices below cost are pulling their items from the commissary altogether, MilitaryTimes reports. They claim that “multiple sources” are saying that other programs, like scholarship donations, could be cut.

Some good news does come out of the overhaul, however. DeCA will begin rolling out store brand items later this month that should be cheaper than national name brands.

While Congress approved the Department of Defense’s DeCA program, they are keeping a close eye on it and on whether it actually saves anyone money, MilitaryTimes says.

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.

4 simple ways to start saving money

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.

Articles

This military spouse grew her own business despite 2 PCS moves

4 simple ways to start saving money
Lakesha Cole was named the 2014 AFI Military Spouse of the Year in a ceremony in Washington, DC in May, 2014


In many ways, Lakesha Cole is the typical military spouse. A mother and wife, Cole has spent the last five years like many other military spouses: focused on a passion while juggling her family responsibilities.

But it’s the way she’s done it that sets her apart. Recently, Cole and her husband, Gunnery Sgt. Deonte Cole, and their children completed a Permanent Change of Station from Okinawa, Japan, to Camp Lejeune, North Carolina.

And along with their kids and personal effects, the Coles also took their successful business inside the Okinawa Exchange with them.

This was the second time Cole packed up her company, She Swank Too, and hauled it overseas. Two years after debuting their company aboard Camp Pendleton, California, the Cole’s took on a PCS to Okinawa, embarking on a mission to open the first brick and mortar She Swank Too there.

Cole spoke with We Are the Mighty about her experience just trying to get a meeting with the retail manager in Okinawa.

“He was reluctant to do business with me,” she recalled, after waiting for six months to secure a meeting with the manager. He argued that military spouses didn’t believe “the rules apply to them,” citing spouses who formerly ran businesses in the retail space with poor business practices.

Cole says she presented her business plan, complete with financial reports, customer data and testimonials, and samples, to the manager. They agreed to a 30 day trial run of a brick and mortar She Swank Too. Three years later, the store accompanied the Coles on their PCS.

When asked what steps an entrepreneur should take during a PCS, Cole was quick to answer, “Stay active and… communicate with your customers.” Customer interaction is one of the focal points of the company. “We tapped into the hearts and homes of our customers,” Cole said.

The motivation behind the company was simple. “We debuted our first children’s collection … to introduce entrepreneurship to our daughter,” Cole recalled.

Cole’s husband is equally involved in the business. “The least recognized role in a business is … that person’s spouse,” Cole said. Cole’s husband is not only an active participant in the company, but a financial investor as well.

Cole isn’t just a business owner. In addition to She Swank Too, Cole is a military spouse retail coach, the founder, CEO and owner of Milspousepreneur, and an active advocate for military affiliated entrepreneurship in hopes of reversing high milspouse unemployment.

“My focus remains in using this business as a vehicle to give back,” Cole said

MIGHTY MONEY

USAA to Return $520 Million to Members

SAN ANTONIO – USAA, the country’s fifth largest property-casualty insurer, will be returning $520 million to its members. This payment is a result of data showing members are driving less due to stay-at-home and shelter-in-place guidance across the country. Every member with an auto insurance policy in effect as of March 31, 2020, will receive a 20% credit on two months of premiums in the coming weeks.

As a member-owned association, USAA historically returns a portion of profits to members. In 2019, we returned $2.4 billion in dividends, distributions and bank rebates and rewards. This brings the total amount returned to members since January 2019 to nearly $3 billion.


4 simple ways to start saving money

“We understand the impact this pandemic is having on our country, and especially our military community and their families, many of whom also are working on the front lines of the crisis. Returning premiums provides timely help for our members,” said USAA President and CEO Wayne Peacock. “USAA has been facilitating the financial security of military members for nearly 100 years, and this is another way we can serve them well.”

Early data trends show USAA members are heeding the calls to suspend nonessential travel, leading to fewer miles driven and fewer accidents.

How it works

Members will automatically receive a credit applied to their bill. They do not need to call, and no additional action is required.

Ways USAA is providing financial relief for members

This is just one of several steps USAA has taken to provide financial assistance to members, including:

  • Special payment arrangements are available to assist members experiencing financial difficulties. USAA will not cancel members’ auto or property insurance policies or charge fees due to late payments on USAA auto and property insurance coverage through June 17, 2020.
  • Expanded auto insurance coverage for members who use their personal vehicles to deliver food, medicine and other goods for commercial purposes.
  • USAA Bank is offering special payment assistance programs for eligible members including a 90-day credit card payment deferral, a 60-day payment extension on consumer loans, and special mortgage and home equity line of credit payment assistance.
  • USAA Life Insurance Company is offering special payment arrangements on life and health insurance policies, including a 60-day extension to the 30-day grace period.
  • USAA Life Insurance Company is waiving and reimbursing deductibles and co-payments for coronavirus-related testing received on or after Feb. 4, 2020, for members who have USAA Medicare Supplement plan.
  • USAA Investment Management Company is reducing managed portfolio fees 50% (effective April 1 through May 20‚ 2020).
4 simple ways to start saving money

Additionally, USAA has taken steps to help ensure its employees stay safe and able to serve members by enabling nearly all 35,000 employees to work from home and committed .4 million to help military-focused and other nonprofits respond to this pandemic.

More information is available at www.usaa.com/coronavirus.

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.


4 simple ways to start saving money

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.

4 simple ways to start saving money

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.

MIGHTY MONEY

A full picture of interest rates: why points and fees matter

“What is your interest rate?” This is the most frequently asked question in the lending world. Without a doubt, personal experience compounded with all of the social media questions prove the point every single day. Because I take an educator-first mindset, it is imperative to explain why this is only one small piece of a much larger puzzle when comparing lenders.


An interest rate can be manipulated to look better than it actually is by throwing on origination fees, processing fees, underwriting fees and points to lower the rate. All of these things mean you are actually paying to have a lower interest rate. The VA regulations allow for up to one percent of the loan amount to be charged by the lender in addition to reasonable discount points. This one percent is outside of the other fees paid to outside parties such as an appraisal, credit report, title examination, title insurance and more. This flat (up to) one percent is specifically designed to cover the lender’s services.
4 simple ways to start saving money

While the VA may allow up to a one percent fee, that doesn’t mean that it is necessary. Many lenders, including myself, will never charge a veteran a fee for doing a VA loan. It’s just not how we envision taking care of each other looks like. Additionally, many financial institutions that typically do charge this fee will occasionally run promotions that eliminate it for a short window of time. It is important to read the fine print when looking up any advertised interest rates, as many will have a disclaimer such as “Rates quoted above require a 1.00% loan origination fee. The origination fee may be waived for a 0.25% increase in the interest rate”.

The origination or other lender fees like in the above scenario are similar to discount points, but are not tax deductible. This is yet another downside of lender fees. Discount points, however, are a tax deductible fee in exchange for a lower interest rate. One point is equal to one percent of the loan amount, and will reduce the interest rate by .25%. Let’s practice some mortgage math on a scenario I pulled up today from an undisclosed lender’s website:

“VA 30 yr fixed loan – Interest rate as low as 3.625% – discount points 2.00

*Rates quoted above require a 1.00% loan origination fee. The origination fee may be waived for a 0.25% increase in the interest rate”

As the disclaimer states, to not pay an origination fee of 1%, the rate goes up by .25%. Now the rate is at 3.625 +.25 = 3.875 … but we still have those two points to deal with!

2 points *.25 each = .5 increase to rate without paying for them. 3.875 +.5= 4.375

That 3.625 advertised rate comes with so many points and fees that it is actually a TRUE rate of 4.375 – a far cry from what was seen on the surface. In a 0,000 home loan, this would make the difference of 9 each and every month if you chose not to pay any of those fees, OR ,000 upfront, out of pocket in addition to the regular closing costs.

Even if you have a motivated seller offering to pay your closing costs, you have a choice to use that money to pay a lender’s fee or you could use that money to buy down points with a lender that doesn’t charge. That 1% lender’s fee could actually be you saving .25% off of the interest rate elsewhere if the seller’s contributions aren’t already maxed out. This is just one way to make your closing cost contributions work for your bottom line instead of your lender’s. All financial matters are based on trust, and this is likely your largest life purchase, so it’s important to be in the know!

MIGHTY MONEY

How to make $1 million with your military pay

Getting your first paycheck on active duty is awesome — because getting paid is the best. But most of us don’t know what to do with that money. Buy a Camaro? Stuff it in a mattress? Maybe…but what about turning it into a million dollars?

It might sound too good to be true, but it actually isn’t. Let’s talk about a simple financial product for beginning investors: the Roth IRA.


4 simple ways to start saving money

First: Some good news for service members. America’s new tax plan combined with a military pay raise is giving troops a nice little bump in their wallets.

Pay grades E-1 to E-6 are now in a new, lower Federal tax bracket.

This could be add up to 00 a year in savings — and that’s before you start making those deductions, so your newfound wealth might even be higher.

PLUS you got a pay raise of up to 00 so that’s an extra two grand a year right off the bat. Baller.

4 simple ways to start saving money

But before that wad of cash burns a hole in your pocket, consider the smart way to spend this money – money you won’t even miss. The Roth IRA is one easy way to do it — and it could make you a millionaire.

You can take that post-tax income and make non-taxable money while you sleep. This is literally the least you can do for retirement — and again, it’s super easy.

With a Roth IRA, you contribute to an individual retirement account (IRA) after taxes (meaning there is no tax benefit) BUT you are not taxed when you withdraw the funds. And those funds are going to growwwwww.

4 simple ways to start saving money

That’s an investment of 8.33 per month.

Nerd Wallet

So if you max out your Roth IRA from age 18 to 65, you’ll be taxed against the 0,000 you invest…but you’ll retire with id=”listicle-2626415708″.5 million that you can withdraw tax-free.

Here’s how it works.

The Roth IRA is an account that holds your investments — you can select the investment options and risk strategies yourself or seek advice from the brokerage entity you’re investing with.

Each year, you can max out the yearly contributions the government allows, which in 2018 is ,500 (It’s ,500 if you’re over the age of 50, but for now, we’re just going to do the math for the fifty-five hundred dollar bracket).

So you select your investment options, probably with higher risk if you’re younger, and set up an automatic contribution of 8 per month.

Do this from age 18 to 65….

4 simple ways to start saving money

…with a decent compounded interest rate of… say …. 6 percent (the market actually did 8.3 percent in the last ten years but just to be safe…)

…and you will make 1.59 million dollars over your lifetime.

The most important thing to remember when investing is compound interest.

Investing consistently over time means you are increasing the amount invested AND earning interest on what you’ve invested AND earning interest on your interest.

This is why it’s critical to start early and be consistent. Even a small amount invested over time can yield greater results than a large amount invested later with no time to grow.

So if you’re getting a later start, don’t panic. If you begin at age 30 and max out your Roth IRA until age 65, you can still end up with 0,000 at retirement — and again, that’s just with a 6% rate of return, which is a conservative estimate based on lower-risk options.

The bottom line is to start as early as you can and be disciplined about it.

Spending 8 per month to max out your Roth IRA might seem like a lot when you’re an E-1 earning about 00 a month — but remember, that income is discretionary. The military has benefits like BAH and health insurance — it’s got the big stuff covered, so be wise with how you budget the rest of your income.

And again, if you set up automatic payments, you won’t even miss that money.

I know you want to buy video games and an 80-inch big screen for the barracks…but resist that urge and set yourself up to be a ballin’ millionaire later.

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This little known safety net can help service members and veterans in a pinch

Finances are stressful in emergency situations, and it doesn’t matter what rank you are. From an unexpected death in the family to a broken car courtesy of the deployment curse, financial emergencies happen no matter how well you plan for them.


Fortunately for service members, their spouses, and veterans, there’s a little safety net in place for each of the services to help when these things happen, dubbed the “Emergency Relief Fund.”

Army:

The Army has the Army Emergency Relief, a non-profit that helps soldiers, retirees and families with resources in a pinch. Additionally, AER provides access to interest free loans, grants, and scholarships.

The AER is endorsed and run by the Army.

National Guard:

The National Guard has the National Guard Soldier and Airman Emergency Relief Fund, which provides up to $500 to eligible households. For more information, check out the National Guard’s publication on its emergency relief fund.

Air Force:

The Air Force has the Air Force Aid Society, and it provides emergency assistance, education support, and community programs. While the AFAS is a private non-profit, it is “the official charity of the United States Air Force.”

Coast Guard:

The Coast Guard has Coast Guard Mutual Assistance, wich is a private non-profit organization that works closely with the Coast Guard to provide interest free loans, grants, and counseling.

Navy / Marine Corps:

The Navy and Marine Corps share a relief fund called the Navy-Marine Corps Relief Society. The NMCRS is a non-profit that, though unaffiliated with the Department of Defense, can be found on nearly all Navy or Marine Corps bases.

The NMCRS is completely funded by donations and on-base thrift stores, and it provides financial assistance and counseling, quick assist loans, education assistance, health education and post-combat support, budget for baby classes, emergency travel, disaster relief, and the on base thrift stores.

American Red Cross:

For service members, family members, and eligible veterans who are not near an installation, there is The American Red Cross. The Red Cross works alongside the above mentioned aid societies to provide assistance.

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How a Navy pilot-turned-Superbowl winner made it on Wall Street

4 simple ways to start saving money
Phil McConkey is not your average Wall Streeter.


His father worked three jobs to put him through private school. He served in the US Navy as a nuclear weapons transshipment pilot, before winning a National Football League Superbowl title with the New York Giants.

He is now president at Academy Securities, a broker-dealer founded in 2009 that employs veterans and service-disabled veterans in areas like investment banking and trading.

McConkey sat down with Skiddy von Stade, CEO of finance career services company OneWire, to talk about his background, and Academy Securities.

During that conversation, he laid out why experience with the military is valuable for those who want to break into the cutthroat financial services industry.

Military culture is honesty, integrity, loyalty, teamwork and by the way, service. We’re in a service industry. Who knows more about those qualities than military veterans? When those qualities and experiences come into helping our clients, it really resonates.

He added:

We’re a small company, growing. We’d like to be a bulge-bracket investment bank broker-dealer at some point. We don’t have the resources that the big banks have, but we’re nimble, we’re quick, and we have differentiated types of value that we add. We got nine senior-level retired generals and admirals, people who have fingers on the pulse of geopolitical macro world we live in. And that’s a value to customers if they’re in capital markets. If they’re managing money.

Watch the full interview with Phil McConkey here.

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