Guest Post: How For-Profit Colleges Hoodwink the GI Bill

Brittany Thompson has created this graphic discussing how for-profit colleges are targeting the post 9/11 GI Bill funding.  According to the research, for-profit colleges have a lower completion rate.  One of the conclusions, the graphic points out that with every $1 of military funding (GI Bill) the college receives, it can charge up to 9X that in federal and private loans, and grants.  The bottom line I got, is that for-profit colleges are targeting GI bill funding to increase their ability to raise other government funding.  I experienced a lackluster education from my for-profit college.  The one thing this graphic doesn't touch on, is that when these colleges focus on profit, the quality of educated offered decreases.  What are your thoughts?


Source: Affordable-Online-Colleges.net

How to Set and Complete Financial Goals: Work in Reverse

A lot of people have difficulties setting goals and then completing them.  I read a lot of biographies and self-improvement books as well as practice this theory myself and I think one of the best ways to set and complete goals is to work in reverse.  Think about 60 years from now or think about your obituary (seems a little morbid right?) and then set goals of what and where, financially or otherwise, you want to be at that point.  Once you’ve done that, then work in reverse on what you need to do to get to that point and then start completing each task in order to get to your goals.  Instead of just preaching about, I will let you know mine goals; letting people know about my personal life is something I rarely do.  My goal at 60 or when I pass away is to build a multi-headed Empire.  I want to own everything.  So here is each task, how I plan to get there and where I’m at now.  The goals are incredibly high, so if I miss a mark I still hope to achieve major success.

· Hedge Fund Manager – I would like to retire as a hedge fund manager.  I want to own so many investments, including all possible types of assets, that I can affect political policy, change corporate strategies.  I want to own stocks, bonds, gold, art, real estate, land, etc.  To get to that point I have to have displayed success with my own portfolio, once I retire from the Air Force, I will have to work up the corporate ladder and then sell myself to potential investors.  I’m currently an Air Force Finance Officer and plan to get my CPA, Accounting Certification, or the required mutual fund/stockbroker licenses.

· Real Estate Empire – I want to own several properties and land in several cities in several states.  My goal is to be a major player in America’s real estate future.  At 31, I’m starting late in the game, but my wife and I plan to purchase our first house when we PCS to Barksdale AFB, Louisiana.  I will have to keep purchasing homes at the right time, taking advantage of the greed-to-fear cycles American continuously has.  To have a real estate empire, I’m going to have to learn a lot about multi-property management and ensure I balance the risk-to-reward ration that I’ve been comfortable with.

· Media Empire – A person’s relevancy is increasingly becoming more dependent on his or her success on social media.  I DO NOT want to be famous at all.  I would like a large following of people who share my values and/or want to learn from my mistakes and successes.  I want to educate people on what I believe (some may call it brainwashing) through normal media, social media and fictional novels.  Frequency and persistence is the key to success in forming a solid following.  Currently, I have this blog, Military Finance Report, that I try to spread around.  I’m frequently offer financial advice and discuss politics on my personal Facebook page.  Lastly, I self-published my own fictional novel called Blood Flows Like Wine, that I’m currently re-writing.  I hope to make a series out of it called, The Vampire Wealth Chronicles, and is a covert and overt attempt at pushing my ideological beliefs through fictional Vampire novel.  Check out the books Facebook page at www.facebook.com/vampirewealthchronicles and the Twitter page @vwcbooks.  You can purchase it on Amazon here: http://www.amazon.com/dp/ASIN/B00AEFFHRW or on Smashwords here: https://www.smashwords.com/books/view/300393.

This is just a small sampling of what my future goals are.  As you can see, I set the main goal in the future, then I identify all the milestones needed to execute each one and then I start completing each milestone.  I continuously review them and check my progress and adjust as needed.  Your goals can have shorter time horizons or not be as grandiose.

Military Financial Tips on Yahoo! Finance's Main Page

Wow, I'm impressed.  On Yahoo! Finance's main page, I actually saw some military specific financial information on it.  I had to share it.

Three Financial Tips For Military Members

Should I Invest in the Traditional TSP or the ROTH TSP

Here is some information about the two types of Thrift Savings Plan (TSP) contribution options you can invest in.  They are the Traditional TSP and the ROTH TSP (started in 2012/2013).  If you want a short answer in which one you should invest in, then I suggest that people under 50 should do the ROTH TSP.  This is because ROTH accounts aren't taxed when the money is finally withdrawn.  But there are many variables before making this decision.

Traditional - The traditional option takes money out pre-tax and lowers your taxable income for that year.  So if you make $25K a year and invest $5K in a traditional TSP, then you will only have $20K of taxable income.  This benefit can be very useful for people that need to lower their taxable income to qualify for financial aid, have variable student loans or annuities and anything else that benefits you to have a lower taxable income.  Once you invest, then you can choose the fund allocation you want and your money will grow tax free.  Once you withdraw the money, it will be taxed as income that year.  Being taxed in retirement is unfavorable because you need to maximize your income as a retiree.  As time goes by, you will become  more dependent on that income which I why recommend the ROTH option.

ROTH - The ROTH option takes money out post taxes and has no affect on your taxable income.  Your money will also grow tax free and WILL NOT be taxed when you withdraw your money.  This option is amazing for people that start investing early in their career because they are currently at a low tax bracket and will get to be tax free when they are in a larger tax bracket because their money grew so much with so much time.

Both TSP accounts are retirement accounts and act like 401(k)s more than IRAs.  There are no income limits to invest in the TSP like IRAs, but most people in the military or civil service don't have to worry about that.  This is an important choice for anyone.  Seek advice or do your own research before making the final choice; however, most financial advisers will recommend the ROTH option for those under 50.

For more detailed information go here: https://www.tsp.gov/PDF/formspubs/tspbk08.pdf

5 Tips to Increase Your Credit Score

Here are 5 tips to increase your credit score.  Some people get a pay raise, a new job or get some extra cash and want to know how to increase their credit score.  These tips should help and I'll post more about each one in detail later.  Increasing your credit score could save you hundreds, thousands or hundreds of thousands of dollars in your future.  A small investment of time and money now may pay off big time both financially and emotionally.

1. Keep good standing with all current debts - You can't change the past.  If you are struggling to make ends meet, then you should stick with this step until you have some extra money to tackle previous debts or trying to increase your credit score.  Your credit score weighs the most recent activity higher, so keeping good standing with current debts will maintain or increase your score more than going into past credit troubles.
2. Make sure your credit reports are accurate - There are a number of reasons why there maybe something incorrect on your credit report.  Go to www.annualcreditreport.com and get your free credit reports and make sure everything is accurate.  If something is wrong, the credit bureau should have a phone number to challenge an item.  I'll tell you upfront that it's not easy to change something and the burden is on the member, not the company who did something wrong or a person that may have used your identity.
3. Pay off any outstanding prior debts - Now that you have your free credit reports, you can try and pay off anything you may have in collections.  Call only one agency at a time because collection agencies are aggressive.  If you have a lump sum, then great, pay it in full.  If you want to make payments, then call the collection agency and be firm.  Use ultimatums like, "Take this payment plan or else I'm walking away."  They may threaten to garnish your wages, but they won't because you calling them to make payments debunks any legal case against you.  Also, try the old "Let me talk to your supervisor" line to make payments.  Go in order of smallest balances so you can get it off your record sooner.
4. Maximize your score - If you have nothing in collections, your credit reports are all accurate and you are current on everything, then it's time to maximize your credit score.  Credit scores are made from "corrupt" math that us humans have decided to make to oppress other humans.  Sorry, that's a little of my own ideologies coming out.  But really, it helps to get help from the source with credit scores.  I recommend going to www.myfico.com and paying $14.95 for their credit report & score.  At the end of the report, there are summaries, tips, recommendations and simulators that you can use to maximize your credit score.
5. Get professional help - Sometimes getting professional help is the best way to increase your credit score.  For military members, USAA offers great free financial advice. Most Airman Family Readiness Centers (or whatever other non-Air Force services call it) have trained or certified financial planners that give free financial advice.  Other civilian-based companies may charge for an hour or two of time.  Either way, sometimes professional help is a great investment.

Best Finance Quote

"Saving 3% in a retirement account is like going to the gym for six minutes," says Stuart Ritter, a financial planner and vice-president of T. Rowe Price Investment Services.  I think this is a great quote because sometimes people save a small amount and think, "it's better than nothing," but as retirement gets closer the amount is much less than they hoped and/or planned for.

I wish all people could start saving 10% the day they enter the workforce as teenagers and continue until retirement.

Clark, J.B., (July, 2013) Retirement Setbacks. Kiplinger's Personal Finance.