TC 11 Leadership Training

TC 11 Leadership Training

Agenda Personal Financial Management Why Are Service Members Vulnerable? Consumer Protection Laws Financial Warning Signs Retirement Leadership Training Counselee Checklist Available

Personal Financial Management Financial Readiness Is Mission Readiness What is personal financial management? Don’t wait to get started Security clearances Understand training requirements The Need for Personal Financial Management Handout Available

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

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 Handout Available

Financial Warning Signs Know your role Know the common risk factors Learn how to identify Service members at risk Financial Warning Signs Handout Available

Financial Warning Signs Unable to pay bills Spouse lost job Unable to afford car Divorce / separation Insufficient funds charges Facing foreclosure Not enough money Can’t sell your home No savings Need to start saving and investing No emergency fund Over your head in debt

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

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

Retirement Understand the benefits of each system Understand the importance of retirement planning Understand and review TSP options Military Retirement Handout Available

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 COLA Full Full 20 YOS 50% 40% 30 YOS 75% 60% 40 YOS 100% 80% Yes but without government contributions Yes with government contributions Continuation Pay No Yes, 12-yr. mark Lump-Sum at Retirement No Pay Formula TSP Yes (25% or 50% with reduced annuity until age 67)

Defined Contribution Thrift Savings Plan (TSP) Service Auto Contribution* Service Matching Contribution* (after 60 Days) (after 24 months of service) 0% 1% 0% 1% 1% 1% 1% 3% 2% 1% 2% 5% 3% 1% 3% 7% 4% 1% 3.5% 8.5% 5% 1% 4% 10% You Contribute Total *Automatic and matching contributions are made to your Traditional TSP account

Understand 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 periodically TSP and withdrawal options Review fund options annually Leave in TSP Transfer into an IRA or employer retirement plan Thrift Savings Plan Handout Available Withdrawing early has penalties and could have tax implications Withdrawal when eligible at age 59 ½ without penalty

Update Estate Planning Documents Visit Installation Legal Office Wills Powers of Attorney Trusts Advance Directives Beneficiaries 14

Summary Congratulations on reaching this important milestone! You are taking on a leadership role in the military and the responsibility for ensuring individual financial readiness in order to sustain mission readiness for your command. Let’s recap what you learned. Personal Financial Management Why Are Service Members Vulnerable? Consumer Protection Laws Financial Warning Signs Retirement

Resources Checklist and Handouts Financial Education and Support Command Financial Specialists (CFS) Personal Financial Managers (PFM) Installation Family Support Center or Health, Safety, Work-Life (HSWL) Regional Practice Relief Societies Military OneSource or CG SUPRT Financial Literacy Mobile Apps MyNavy Financial Literacy Sen e

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