Programs help Airmen obtain financial success
Posted 4/15/2011 Updated 4/17/2011
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by Staff Sgt. Olufemi Owolabi
65th Air Base Wing Public Affairs
4/15/2011 - LAJES FIELD, Azores (AFNS) -- For Airmen wondering if the struggle for total financial success will ever end, there is good news.
The Airman and Family Readiness Center's financial advisers help members reach their financial goals.
According to James McDaniel, an accredited financial counselor here, financial readiness is a crucial part of military readiness, because it enhances mission success.
"Personal financial readiness has a direct impact on military readiness and mission accomplishment," Mr. McDaniel said. "Those Airmen who have financial problems and no plan to improve their financial situation often times feel hopeless, which has an adverse impact on military mission readiness."
Recently, a new online program called MoneyU was launched, and Lajes Field was selected as a "test-bed" for the training program.
This program requires Airmen in ranks from airmen basic to senior airmen to volunteer and participate for six weeks, and complete the entire program, Mr. McDaniel said.
Apart from the MoneyU program, the AFRC advisers offer other personal financial readiness programs that have helped many Airmen who are on the road to building wealth and achieving their financial goals, he said. Some of the programs are Riding Out The Storm, which teaches members on how to invest in a turbulent market, Money Management and Couples: (How to Make it Work!), and financial planning for home buying.
Tech. Sgt. Seth Berry, one of the beneficiaries of Lajes Field's personal financial advice and training programs, said a visit with his spouse to a financial counselor at Lajes changed his financial status.
"Mr. McDaniel talked to us about an array of different financial subjects," Sergeant Berry said. "But if I have to narrow it down to the most helpful (based on our financial goal), I would have to say his advice on the Thrift Savings Plan, and the repercussions of taking the REDUX installment, were the ones that stuck out the most."
Mr. McDaniel taught the Berrys about the different Thrift Savings Plan options and which funds would be best based on their goals.
"He showed us a projected path to retire as a millionaire," Sergeant Berry said. "He broke it down into simple and easy-to-understand terms; if we put X amount of dollars in per month, with X amount of return per year, the total would be this much at time of maturity."
For the Berrys, one of the repercussions of taking the REDUX installment is the $30,000 lump sum ($21,800 after taxes) would end up costing the family nearly $300,000 in retirement pay.
For Airmen with credit or debt issues who may have been denied credit, missed payments or have made late payments and have a low credit score, Mr. McDaniel said there is a comprehensive program that could help them if they commit to it.
"I have the authority, with their permission, to obtain a free credit report and credit score," he explained.
To participate in the program, the Airmen must present their spending plan (cash-flow), net worth, which includes debts with balances owed, and APR and minimum payments, he said. They must also commit to a plan to get out of debt and agree to go back for additional personal financial consultations until they are successfully on the road to getting out of debt.
This program has a lot of benefits, because it helps improve Airmen's self-confidence about making informed financial decisions, he said.
It gives them a true feeling of financial security with little or no debt, an emergency fund, and money to meet their important financial goals, Mr. McDaniel said. It's a real plan for building wealth, instead of a life full of debt. |
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