New 'MoneyU' financial program reduces impact on mission

  • Published
  • By Staff Sgt. Olufemi Owolabi
  • 65th Air Base Wing Public Affairs
LAJES FIELD, Azores --  Similar to an unending need to stay healthy and be physically fit, many people sometimes wonder if the struggle for total financial success will ever end.

There is good news. The Airman and Family Readiness Center's financial advisors, assigned to the 65th Force Support Squadron, here help members reach their financial goals.

According to James McDaniel, an accredited financial counselor at Lajes, 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 was selected as a "test-bed" for the training program.

This program requires airmen basic to senior airmen to volunteer and participate for six weeks, and complet the entire program, Mr. McDaniel said.

Apart from the "MoneyU" program, the A&FRC also offers other personal financial readiness programs at Lajes that have helped many Airmen who are on the road to building wealth and achieving their financial goals. 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' personal financial advice and training programs, said a visit with his spouse to a financial counselor at Lajes changed his financial status.

Sergeant Berry, assistant chief controller at the air traffic control tower, shared his experience during his visit to the financial counselor.

"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.

"Of course, this situation depends on the length of your life and inflation," Sergeant Berry added. "In any case, he made it obvious the smart financial move would be to not take the REDUX."

Furthermore, the sergeant said he implemented this as soon as they got home from talking with the financial counselor.

"I changed which funds I currently had my TSP contributions going into, to the ones that he suggested and also upped my monthly contribution to meet my long term goals," Sergeant Berry said. "I never planned on taking REDUX, but after speaking with him about it, that plan became even more cemented."

He said after understanding more about financial planning, it was clear to him that setting money aside for savings should not be an impedance for setting some aside for family vacations and special events.

"In other words, save enough to be comfortable when you retire, while keeping enough to be comfortable now," he advised.

Sergeant Berry was not the only person who benefited from a visit--six other Airmen also said they had a financial success story after their meeting with the counselor.

Apart from offering financial classes each week, Mr. McDaniel said more briefings, such as "Take Complete Control: Avoid Drowning in Debt," "Financial Preparedness: Safeguard Your Assets," "Better than a Budget" and "Raising Financially Fit Kids," among others, are scheduled between May and June-- and the counselor urged everyone to take advantage of them.

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 from FICO," he explained.

In order 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. 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.

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, he said. It's a real plan for building wealth, instead of a life full of debt.

"Financial fitness directly affects personal readiness and therefore has a serious impact on military readiness," Mr. McDaniel said. "If Airmen are in debt, have no money in an emergency fund and are not saving and investing money for personal important goals, then their minds are often diverted from their military mission to their own money problems and issues. The financially successful Airmen are personally ready for any contingency, just as every Airman must be ready for any military contingency."