TC 11 Leadership Training Internal

TC 11 Leadership Training Internal

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

Personal Financial Management Set financial goals Financial readiness is mission readiness Create an estate plan Create a spending plan Save and invest for your future Save for emergencies Insure self, loved ones, possessions The Need for Personal Financial Management Handout Available Internal What is personal financial management? Don’t wait to get started Security clearances Understand training requirements

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

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

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

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

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 Internal Overdraft fees Not granted credit Bad credit report Low credit score Repossession Foreclosure Bankruptcy

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

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

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 Yes Pay Formula TSP (25% or 50% with reduced annuity until age 67) Internal

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 contribution and matching funds will be deposited into the traditional TSP **Automatic contributions are vested after 24 months of service Internal

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 Withdrawing funds early Review fund options annually Leave in TSP Transfer into an IRA or employer retirement plan Thrift Savings Plan Handout Available Internal may result in penalties and tax implications Withdrawal when eligible at age 59½ without penalty

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

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

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

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