Financial Readiness for Service Members: Protecting Your Future

Enhance your financial management skills with this comprehensive training program designed for service members. Explore topics such as personal financial management, consumer protection laws, identifying financial warning signs, and understanding common risk factors. Be equipped to safeguard your financial well-being and mitigate potential consequences in the military. Take charge of your financial future today.

• Financial readiness
• Service members
• Personal finance
• Military training
• Consumer protection

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1. TC 11 Leadership Training Internal

2. Agenda Personal financial management Why are Service members vulnerable? Consumer protection laws Financial warning signs Retirement Leadership Training Member Checklist Available Internal

3. Personal Financial Management Set Financial readiness is mission readiness What is personal financial management? Don t wait to get started Security clearances Understand training requirements financial goals Create a spending plan Create an estate plan Save and invest for your future Save for emergencies Insure self, loved ones, possessions The Need for Personal Financial Management Handout Available Internal

4. Why Are Service Members Vulnerable? Young Away from home Deployments Frequent moves Spouse unemployment Internal

5. Consumer Protection Laws Servicemembers Civil Relief Act (SCRA) 6% APR for pre-Active Duty debt Student loans Leases Legal proceedings Default judgments Military Lending Act (MLA) 36% interest cap Covers most consumer loans Military Consumer Protection and Servicemembers Civil Relief Act Handouts Available Internal

6. Financial Warning Signs Know your role Know the common risk factors Identify Coast Guard members at risk Financial Warning Signs Handout Available Internal

7. Common Risk Factors Unable to pay bills Spousal job loss Unable to afford car Divorce/separation Insufficient funds charges Facing foreclosure No savings Two house payments No emergency fund Not saving or investing Overwhelmed with debt Internal

8. Consequences Financial Military Negative evaluation Loss of promotion Loss of overseas transfer Loss of security clearance Reduction in rank Non-judicial Punishment (NJP) Administrative discharge Overdraft fees Not granted credit Bad credit report Low credit score Repossession Foreclosure Bankruptcy Internal

9. Coast Guard Members at Risk Distracted on the job Sudden poor performance Unkempt appearance Change in life circumstances Missing work for appointments Creditors calling the command It takes communication and observation Internal

10. Retirement Understand the benefits of each system Recognize the importance of retirement planning Learn and review TSP investing options Internal

11. Understand the Benefits Legacy (High-3) Blended Retirement System (BRS) Years & months of service x 2.5% x average of 36 highest months of base pay Years & months of service x 2.0% x average of 36 highest months of base pay Pay Formula Full Full COLA 50% 40% 20 YOS 75% 60% 30 YOS 100% 80% 40 YOS Yes, but without government contributions Yes, with TSP government contributions No Yes, 12-yr. mark Continuation Pay No Yes Lump-Sum at Retirement (25% or 50% with reduced annuity until age 67) Internal

12. Defined Contribution Thrift Savings Plan (TSP) Service Service Matching Contribution* (after 24 months of service) You Contribute Auto Contribution* (after 60 Days**) Total 0% 1% 2% 3% 4% 5% 1% 1% 1% 1% 1% 1% 0% 1% 2% 3% 3.5% 4% 1% 3% 5% 7% 8.5% 10% *Automatic contribution and matching funds will be deposited into the traditional TSP **Automatic contributions are vested after 24 months of service Internal

13. Recognize and be an Advocate for Retirement Planning The importance of retirement planning Never too early (or late) to start The sooner you start the less you may have to save Gives more time to accumulate wealth Review retirement plan annually or after a major life event TSP and withdrawal options Review fund options annually Leave in TSP Transfer into an IRA or employer retirement plan Withdrawing funds early may result in penalties and tax implications Withdrawal when eligible at age 59 without penalty Thrift Savings Plan Handout Available Internal

14. Update Estate Planning Documents Visit nearest Legal office Powers of attorney Wills Trusts Advance directives Beneficiaries Internal

15. Summary Congratulations on reaching this important milestone! As a leader in the military, you are responsible for ensuring personal financial readiness in order to sustain mission readiness. Let s recap what you learned. Personal financial management Why are Service members vulnerable? Consumer protection laws Financial warning signs Retirement Internal

16. Resources Checklist and Handouts Financial Education and Support Command Financial Specialists (CFS) Personal Financial Managers (PFM) Health, Safety and Work-Life (HSWL) Regional Practice CG SUPRT Coast Guard Mutual Assistance (CGMA) Financial Literacy Mobile Apps Coast Guard Work-Life mobile app DoD FINRED Sen$e mobile app Internal

17. Thank You! The appearance of U.S. Department of Homeland Security (DHS) visual information does not imply or constitute DHS endorsement. Internal