ARMY MARINE CORPS NAVY AIR FORCE COAST GUARD LEAVING THE MILITARY. A Guide to Assist in Transitioning to Civilian Life

Transcription

1 ARMY MARINE CORPS NAVY AIR FORCE COAST GUARD LEAVING THE MILITARY A Guide to Assist in Transitioning to Civilian Life

2 CONTENTS ASSESS Changes to Your Military Benefits...3 PLAN Financial Considerations...14 Health and Life Insurance...26 Starting Your Civilian Career...32 Relocating...35 EXECUTE Solutions for an Easier Transition...40 Finding the Right Bank...40 Investing in Your Future...41 Moving with Ease...42 Protecting Your Family and Your Legacy...43 Other Helpful Websites...44

3 ASSESS 3 Understanding Changes to Your Military Benefits Understanding how your benefits will change after separation or retirement is crucial to mapping out your plan for a smooth transition. Four critical areas of consideration include Servicemembers Group Life Insurance (SGLI) and Veterans Group Life Insurance (VGLI), Dependency and Indemnity Compensation (DIC), Survivor Benefit Plan (SBP), and TRICARE. SGLI and VGLI* SGLI stops/expires 120 days after you separate or retire. SGLI coverage can be converted to VGLI, but enrollment isn t automatic. Coverage must be elected. During the first 120 days following retirement or separation, applicants can t be denied because of poor health. SGLI coverage for your family cannot be converted to VGLI. DIC* DIC assists surviving spouses and dependent children of veterans who die while on active duty or from a service-connected injury or disability when certain criteria are met. *For more information, please visit the Department of Veterans Affairs at benefits.va.gov.

4 ASSESS 4 Assistance is paid to the spouse until remarriage (unless it occurs after the age of 57) and to any unmarried children under the age of 18 (or the age of 23 if they re in school full-time). SBP* Available for military retirees, SBP provides up to 55% of your military retirement income to your survivors. Provides a monthly income to survivors of retired military personnel when retirement pay stops. Automatically covers survivors of retirement-eligible members who die while on active duty and survivors of members recalled to active duty from retirement who die while on active duty. Includes an annual cost-of-living allowance increase and is subsidized, so it s a good choice for most retirees. Can be used in combination with a private insurance plan. TRICARE* TRICARE will pay a portion of health-care costs, and you ll need to choose which program is best for you and your eligible family members. 1 *For more information, please visit the Department of Veterans Affairs at benefits.va.gov.

5 ASSESS 5 At the age of 65, TRICARE For Life becomes a supplemental health policy, acting as a secondary payer to Medicare. 2 This benefit is available if you retire from the military, but not if you separate. Use the charts on the following pages to understand how your benefits will change, and see if you ll be eligible for additional benefits. Your eligibility will depend on whether you are on active duty, in the National Guard or Reserve, or separating or retiring.

6 ASSESS 6 Active Duty Benefits BENEFITS Medical Dental ACTIVE DUTY Full coverage for active duty member; eligible family members covered under TRICARE Full coverage for active duty member; family members can elect to join the TRICARE Dental Program for a fee Commissary Full privileges PX/BX Full privileges/unlimited Insurance Eligible for SGLI Survivor Benefits Eligible for DIC; eligible for SBP Housing Government Quarters or BAH (Basic Allowance for Housing) Space Available Travel Eligible (active duty have higher priority)

7 ASSESS 7 Active Duty Retiree Benefits BENEFITS RETIRED Medical Most retirees up to age 65 and eligible family members are covered under TRICARE. Retirees and eligible family members age 65 and over are covered under TRICARE For Life as a secondary payer to Medicare 2 Dental DoD TRICARE Retiree Dental Program (DRDP) available Commissary Full privileges PX/BX Full privileges/unlimited Insurance Eligible for VGLI Survivor Benefits Could be eligible for DIC; optional SBP Housing Not applicable Space Available Travel Eligible (retirees have lower priority)

8 ASSESS 8 Active Duty Separated Benefits BENEFITS SEPARATED Medical Not available Dental Not available Commissary No privileges PX/BX No privileges Insurance Eligible for VGLI Survivor Benefits Not available Housing Not applicable Space Available Travel Not applicable

9 ASSESS 9 National Guard and Reserve Benefits BENEFITS Pay INACTIVE DUTY TRAINING ASSEMBLY Basic pay, special pay (if authorized) Medical Only if duty-related VA Medical If injury or illness sustained in the line of duty Commissary Full privileges PX/BX Full privileges Insurance Eligible for SGLI Survivor Benefits Eligible, with 20 years service, if elected TRICARE TRICARE Reserve Select for premium Space Available Travel CONUS, Hawaii, Alaska, Puerto Rico, Virgin Islands, Guam

10 ASSESS 10 National Guard and Reserve Benefits BENEFITS Pay AD, ADSW, AT, ADT, IADT Basic pay, BAS, BAH, special pay (if authorized) Medical Full privileges VA Medical If deceased or injured in the line of duty Commissary Full privileges PX/BX Full privileges Insurance Eligible for SGLI Survivor Benefits TRICARE Space Available Travel Eligible, with 20 years service, if elected Eligible, dependents eligible if on AD; ADSW for more than 30 days Worldwide

11 ASSESS 11 National Guard and Reserve Benefits BENEFITS Pay RETIRED RESERVE (UNDER AGE 60) Not eligible Medical Not eligible VA Medical Eligible if prior service Commissary Full privileges PX/BX Full privileges Insurance Eligible for VGLI Survivor Benefits Eligible, with 20 years service, if elected TRICARE TRICARE Retired Reserve for premium Space Available Travel CONUS, Hawaii, Alaska, Puerto Rico, Virgin Islands, Guam

12 ASSESS 12 National Guard and Reserve Benefits BENEFITS Pay RETIRED RESERVE (AGE 60 AND OVER) Retired or retainer pay (if applied for) Medical Full for retiree and eligible family members VA Medical Eligible if prior service Commissary Full privileges PX/BX Full privileges Insurance Eligible for VGLI Survivor Benefits TRICARE Space Available Travel Eligible, with 20 years service, if elected Eligible until age 65, then eligible for TRICARE For Life Worldwide

13 ASSESS 13 National Guard and Reserve Benefits BENEFITS SEPARATED Pay Not applicable Medical Not available VA Medical Eligible if prior service Commissary No privileges PX/BX No privileges Insurance Eligible for VGLI Survivor Benefits TRICARE Space Available Travel Not eligible 180 days coverage for member and family post-release from contingency operation Not applicable

14 14 Financial Considerations Identify Short-Term Needs Get a handle on separation/retirement pay. Understanding your income from the military is the first step in setting up your financial road map. The type of separation and conditions under which you leave the military will determine if you qualify for separation and/or retirement pay. If you do qualify, it may come in the form of a lump sum or regular payments. Calculate your retirement pay.* The military provides three retirement pay plans, based on when you entered active duty: If you entered prior to September 8, 1980, you re eligible for the Final Pay Plan. If you entered the military between September 8, 1980, and July 31, 1986, your benefits come under the High-3 Plan. If you entered after July 31, 1986, you elected one of the following: the High-3 Plan or the Career Status Bonus (CSB)/ REDUX Plan. *For more information, please visit dfas.mil/retiredmilitary/plan/estimate.html.

15 15 It s important you understand your retirement pay arrangement, because it will affect your standard of living for the rest of your life. Refer to the charts starting on page 16 to compare plans at a glance. Calculate your separation pay. (If eligible see your local personnel office.) Unemployment compensation. If you are unable to find a job after you retire or separate, keep in mind you may qualify for unemployment compensation. However, receiving separation or retirement pay may influence your eligibility. Your state employment office handles unemployment compensation. Benefits vary from state to state; therefore, only the office at which you apply will be able to tell you the amount and duration of your entitlement.

16 16 Calculate Your Retirement Pay: Final Pay Plan FINAL PAY PLAN Basic retirement pay at 20 years Additional retirement pay for every year after 20 50% of basic pay 2.5% (maximum 100%) Bonus None Cost-of-living allowance Equal to the increase in the CPI Eligibility: date entered active duty Before 8 Sep 80

17 17 Calculate Your Retirement Pay: High-3 Plan FINAL PAY PLAN Basic retirement pay at 20 years Additional retirement pay for every year after 20 50% of the average of your three highest years of basic pay 2.5% (maximum 100%) Bonus None Cost-of-living allowance Equal to the increase in the CPI Eligibility: date entered active duty After 8 Sep 80

18 18 Calculate Your Retirement Pay: CSB/REDUX Plan CSB/REDUX PLAN Basic retirement pay at 20 years Additional retirement pay for every year after 20 40% of the High-3 Plan basic pay 3.5% for first 10 years, 2.5% thereafter (maximum 100%) Bonus $30,000 in the 15th year Cost-of-living allowance 1% less than the increase in the CPI (one-time catch-up at the age of 62) Eligibility: date entered active duty After 31 July 86

19 19 Adjust Your Finances/ Set Up Your Budget Leaving the military can have a major impact on your finances. Adjusting your budget to align with your new circumstances is key to setting yourself up for financial stability. Once you ve established your day-to-day budget, you can take steps to prepare for other financial goals, such as a second retirement or education funding for your children. You may have to make temporary adjustments on spending during the transition period. Developing a budget can help you: Determine whether you re living within your means. Manage your finances wisely. Assess the gap between your ideal lifestyle and what you can afford. Identify future spending needs.

20 20 Select Your Banking Services A household spending plan can be your road map to financial stability, along with selecting a bank that provides easy-to-use budgeting tools and services that meet all your financial needs to help you stay on track. When choosing your bank, consider one that offers flexible banking solutions that fit your lifestyle, including: Free ATMs nationwide. Free online bill paying. 24-hour access to your account. An easy-to-navigate web page for convenient online banking. No monthly service fees. Free checks. Savings accounts with competitive savings rates. Free online statements. Identity theft and fraud protection services. Credit cards with flexible rewards programs. Credit card or savings account that can be used as overdraft protection with no overdraft fees.

21 21 Start/Continue Your Savings Plan To avoid borrowing or drawing prematurely on your long-term investments, it s a good idea to establish an emergency fund. As a general rule, you should aim to save enough to cover three to six months worth of expenses. If you haven t already started your emergency fund, start saving now and set your first goal to have at least $1,000. Because emergency funds are considered a short-term solution, do not tie the money up in investments. Instead, consider conservative alternatives such as a bank savings account. Since you may be able to sell or cash in unused leave within service guidelines when you separate, consider saving some of your leave days to help supplement your emergency fund account during this transition. In the case of an employment gap or paycheck delay, you'll need 6 to 12 months' worth of savings to cover basic living costs. Your fund should cover: Rent or mortgage Medical expenses Auto costs Groceries Action Plan: Start saving 2 years before your expected transition date. Review your current budget to find savings opportunities. Automatically deposit some of your paycheck into your savings account.

22 22 Also, if you haven't set up an investment plan yet, now is the time. You don t need a lot of money to start investing. Some financial companies will accept monthly investments as low as $20. While it takes a lot of money just to cover the necessities of life, it is important to save for the future and contribute as much to your retirement savings as possible. It s essential to choose the best vehicles to help you reach your goals. To create a retirement portfolio that s best for you, you ll need to: Identify your objectives. Review your tax considerations. Determine your time horizon. Know your tolerance for risk. Create a properly allocated portfolio. Depending on your needs, your portfolio may utilize several different vehicles, including mutual funds, IRAs, brokerage accounts, CDs and annuities, each of which can play a role in helping you meet your long-term goals. Pay attention to how you re investing. Your best course of action is to choose a portfolio that combines the best potential for returns and a degree of risk with which you are comfortable.

23 23 Living in Retirement With longer life expectancies, making the most of your retirement income is common sense. Here are a few tips that may help you enhance your income sources. Before making any decisions, consider your own financial circumstances and consult with your tax, legal or financial planning professional. Consider setting up a check for life. A fixed annuity is a contract with a life insurance company designed to provide income for a lifetime, or a specified number of years, depending on the terms you select. Fixed annuities can provide guaranteed asset growth and income for life, which can serve as a hedge against market volatility and economic downturn. You can think of annuities as a way to give yourself extra retirement income. So, along with Social Security, pensions and military retired pay, you could have enough guaranteed income to help pay your bills for the rest of your life.

24 24 Consider long-term care. Few medical expenses hold as much financial risk as an extended stay in a nursing home or assisted-living facility. An appropriate long-term care insurance policy should: Provide the appropriate amount of coverage. Full-time custodial care can exceed $200 a day. Get the most coverage you can without stressing your current finances. Allow for inflation protection. Consider the effect if costs for this type of care increase an average of 5% a year. In 20 years, the national average cost could be nearly $200,000 per year. Provide a wide range of care. There are many forms of long-term care. Select a plan with benefits that, for example, include home health care, assisted living and adult day care. Ask a retirement advisor. A retirement advisor can help you put together a plan for your retirement or review your existing plan. He/she should also be able to help address the issues of most concern to you. Whether it s health care, retirement income, taxes or leaving a legacy, a financial advisor dedicated to serving your interests may be a possible solution.

25 25 Saving for College As a retired or separated servicemember, you may be eligible for a variety of educational benefit programs that can help offset the expense of higher education. The Montgomery GI Bill, for example, provides up to 36 months of benefits for up to 10 years after you retire or separate; plus, Post-9/11 GI Bill benefits may be transferred to a family member. Visit gibill.va.gov for a complete guide to eligibility and benefits. In addition to military-sponsored programs, there are several types of accounts that can help you efficiently build savings to help fund a college education for you, your spouse or your children. There are different college savings alternatives available, such as: Coverdell ESA Uniform gifts/transfers to minors 529: prepaid tuition 529: college savings plan Visit usaa.com/educationandtraining to learn more about these options.

26 26 Health and Life Insurance Health Insurance As you leave military service behind you, it is critical to make health insurance arrangements to protect yourself and your family. If you are retiring from the military, you will be eligible for TRICARE to cover your medical expenses. This eligibility could allow you to save money by forgoing health insurance from a new employer. If you are separating and beginning a new career, your employer may provide a health insurance program. If you are not eligible for TRICARE and do not have private employer-provided health care, you should consider your health insurance alternatives both during your transition into civilian life and beyond.

27 27 Transitional Health Care Military Coverage * If you separate/retire voluntarily, you may not be eligible for health-care coverage through the military. However, under certain circumstances, you may be eligible for 180 days of transitional health-care benefits through the Transitional Assistance Management Program (TAMP). For example, you may be eligible for TAMP if you are: Involuntarily separating from active duty under honorable conditions. Separating from active duty following involuntary retention. Receiving a sole survivorship discharge. Separating from active duty and agreeing to become a member of the Selected Reserve. Within 60 days of your TRICARE or TAMP eligibility ending, you may also purchase transitional health insurance coverage for three months at a time for an additional months through the Continued Health Care Benefit Program (CHCBP). This program provides coverage similar to TRICARE standard medical insurance. Keep in mind that CHCBP can be expensive. *For more information, please visit tricare.mil/chcbp.

28 28 Transitional Health Care Private Coverage If you choose to not enroll in CHCBP, you will need to select another option. For example, if you get a job that offers health insurance, that could be a great choice. If not, you can get coverage through USAA, military associations and other organizations that participate in the Health Insurance Marketplace. Available coverage includes: Major medical insurance Short-term medical insurance 3 Student health insurance Dental insurance Vision insurance Be mindful of deadlines for choosing a plan that come soon after you separate. Failing to do so could limit your options. Get more details at usaa.com/healthcare.

29 29 Life Insurance While on active duty, you may have been covered by life insurance through Servicemembers Group Life Insurance (SGLI). However, once you retire or separate, you won t be able to continue this coverage. You should give careful consideration to your life insurance needs before leaving the military. Upon separation, your SGLI policy can be converted to a five-year renewable term policy with Veterans Group Life Insurance (VGLI) without a medical exam. You can get up to $400,000 in coverage, but cannot exceed the amount of SGLI coverage you have when you separate. If you apply and pay your first VGLI premium within 120 days of separating/retiring, your coverage is guaranteed. If you miss the 120-day window, you can still apply for VGLI up to one year after separation, but you may be required to have a medical exam. While some people, particularly those in poor health, may find VGLI coverage a good value, those who are healthy may find costs high when compared to an individual life insurance policy. If you decide to purchase a policy, apply before you leave the military; it can take four to six weeks to underwrite a life insurance policy.

30 30 Whatever option you choose, be sure never to cancel an existing policy until a new policy has been issued and the first premium has been paid. This will ensure you don t have a gap in coverage. If you are nearing the end of the 120-day nonmedical application period and require, but have not yet obtained, a private life insurance policy, it may make sense to apply for VGLI. Coverage for Your Spouse Don t forget about coverage for your spouse. Your spouse is an important part of your family s financial security. Even if he or she does not earn income, the monetary cost of replacing household contributions such as child care, meal preparation and household tasks would be significant. While you are in the military, Family Servicemembers Group Life Insurance (FSGLI) provides up to $100,000 in insurance for spouses, not to exceed the amount of the servicemember s SGLI coverage. But it s important to know that this coverage is not convertible to VGLI, so when you separate or retire, make sure you replace coverage for your spouse.

31 31 Protection for Your Children Another benefit you ll want to replace when you leave the military is insurance for your children. FSGLI offers $10,000 in life insurance for each child free of charge as long as the servicemember carries SGLI. This coverage is not convertible to VGLI. To replace this coverage, you may want to consider purchasing a small permanent policy or adding a child rider to your or your spouse s individual policy. A child rider not only provides coverage for your children while they are dependent on you, it should also guarantee they will have the option of purchasing their own policies when they reach the age of 25, regardless of their health at that time. Compensate for Lost Coverage In addition to SGLI, you may also have had Dependency and Indemnity Compensation (DIC) coverage. DIC is designed to assist surviving spouses and dependent children of veterans who die while on active duty or as the result of a service-connected injury or disability. DIC benefits are no longer available to you after you leave the military. Therefore, you may need additional life insurance coverage to compensate for this lost benefit.

32 32 Starting Your Civilian Career The Department of Defense offers a Transition GPS to help guide you through the career transition process. The program is free and addresses skills assessment, résumé preparation, job counseling, interviewing skills, relocation information and veterans benefits. Additionally, it may be helpful to contact former servicemembers who are pursuing civilian careers to ask about their experiences. They can become valuable sources of support and advice. You can also access the DoD Transition Bulletin Board (TBB) for a computerized listing of jobs, career workshops, job fairs, support services, and educational and training opportunities. It also contains information about franchises and starting a business. Another option you may want to consider is seeking employment with an organization or company that provides services to the military community. Your military experience and knowledge can often be a plus and could help you get an interview. There are many organizations that value and need former military members.

33 33 Find the Right Second Career Identify your skills. Focus on a specific job. Research your career choice. Network. Develop a résumé. You can do it all in one place with the Job Finder Tool at usaa.com.

34 34 Furthering Your Education Throughout your military service, you may have had a lot of experience in your field, but do you have the required education needed to secure the job you desire? College, vocational training or a specialized course may help you earn your job of choice, and you may qualify for financial assistance or other forms of financial aid. Here are some tips that may help you: 1. If you are interested in the GI Bill or would like more information, call your installation s Education Office or local Department of Veterans Affairs (VA) office, or go to gibill.va.gov. 2. Financial aid varies from state to state; check with the financial aid offices of colleges and universities or your nearest VA office. Some states even have special education programs for those who entered the military in that state or who are residents. 3. Check with your installation s Education Office or local community college counseling office, and look at college catalogs for schools and courses that interest you. 4. Ask an academic advisor whether any of your military training may be substituted for course credit. 5. Take an academic entry exam, college admission test or challenge exam. Remember this is free to servicemembers on active duty. 6. If you aren t able to go to school full-time or during the day, consider taking night or weekend classes.

35 35 Relocating Whether you are relocating from overseas or across town, this move is unique. You are moving out of the military into civilian life, and it is especially important to understand the services that are available. If you plan on moving, visit the Relocation Readiness Program (RRP) office at your Military and Family Readiness Center. They can help you prepare for your final military move and offer many services, including: Needs assessment related to the circumstances and requirements of your move. Automated information about military communities worldwide, including a database (SITES) describing the housing options available near military installations. Assistance obtaining information about nonmilitary communities. Help developing a relocation plan. Workshops and individual sessions on managing relocation stress for adults and children. Your upcoming move is not a normal PCS it is your final move out of the military. With the help of RRP, libraries, bookstores, the Internet and chambers of commerce, your last move can be a smooth one.

36 36 Moving from Government Housing If you live in Government Quarters, you need to contact the Housing Office as soon as you know your departure date so they can inspect your residence before you move and explain the cleaning and vacating requirements. If you need an extension on your government housing, you may be eligible for up to 180 days after you leave the military, depending on space availability. Moving from Rental Housing If you are living in a rental property, let your landlord know as far in advance as possible when you will be moving. In the event you have any problems with your landlord regarding your move, call your local Housing Office for assistance. Transportation to Your New Home Once you have decided where you are moving, schedule an appointment with your installation s Transportation Office to determine whether travel will be arranged to your new destination or if you will make your own arrangements and be reimbursed.

37 37 Shipping and Storing Household Goods If you re eligible, you may be authorized for storage and shipment of household goods for up to one full year. You can ship items to: Anywhere in the United States. Your home of record outside the United States. The place where you were initially called to active duty. For more information about eligibility and the shipment and storage of household goods, contact your local Transportation Office.

38 38 Buying a Home If you are buying a home and are worried about the down payment, a Veterans Administration (VA) loan may be right for you. Eligible veterans may obtain loans guaranteed by the VA to purchase or refinance homes, condominiums and manufactured homes. VA home loans feature a competitive interest rate and lower down payment or if you qualify no down payment at all. VA loans are available for either 15- or 30-year terms. You can find information about eligibility and program specifics on the VA website at va.gov. Insuring Your Home Whether you are buying a house or condo, joining a co-op, or renting an apartment, you will need to insure your residence, your furnishings and your personal possessions. Homeowners, renters and valuable personal property insurance are just some of the insurance policies you ll want to consider to protect yourself from the financial burden you would incur if your home were damaged or destroyed or your possessions were stolen.

39 39 LOOK TO USAA FOR HELP Investing & Retirement Mutual funds Brokerage services Managed money services Individual retirement accounts (IRAs) College savings plan Financial Planning Services CERTIFIED FINANCIAL PLANNER practitioners Retirement planning Estate planning Asset allocation Risk management usaa.com/investments Investments/Insurance: Not FDIC Insured Not Bank Issued, Guaranteed, or Underwritten May Lose Value Investments provided by USAA Investment Management Company and USAA Financial Advisors, Inc., both registered broker dealers. USAA Managed Portfolios-UMP (UMP) is an advisory service of USAA Investment Management Company (IMCO), a registered investment advisor and broker dealer. Brokerage accounts are introduced and brokerage services provided by USAA Financial Advisors, Inc. (FAI), and IMCO, both registered broker dealers, Members Securities Investor Protection Corporation (SIPC) Clearing, custody, and other services provided by National Financial Services, LLC (NFS), Member NYSE, SIPC, USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California, License # OE36312), a registered investment advisor and insurance agency licensed in all 50 states and D.C. Asset allocation does not protect against a loss or guarantee that an investor s goal will be met. Certified Financial Planner Board of Standards, Inc., owns the certification marks CFP and CERTIFIED FINANCIAL PLANNER in the United States, which it awards to individuals who successfully complete the CFP Board s initial and ongoing certification requirements.

40 EXECUTE 40 Solutions for an Easier Transition Finding the right bank With USAA Bank, it s easy to handle all of your business in one place. Tools like USAA Money Manager,* a personal online budgeting tool, will help you keep your personal budget on track, see all of your accounts and track your daily spending. Plus, USAA Bank offers banking services that enable you to bank from anywhere, anytime.** Free checking solutions with no monthly service fees regardless of balance and free ATM use nationwide. 4 Convenient deposit solutions from a smartphone.*** Credit cards with competitive rates, no annual fees 5 and flexible rewards programs. *USAA Money Manager is not an investment advisory service of USAA. Information on non-usaa accounts is governed by the User Agreement. USAA s personal financial management services are not sponsored or endorsed by any third party. **Account access restrictions may apply to mobile/web access in certain countries. ***Eligibility for USAA Deposit@Mobile will be based on your account history with USAA Bank. Deposits may not be available for immediate withdrawal.

41 EXECUTE 41 Investing in Your Future Whether you're just starting to invest or planning to retire, USAA has the resources to help you take the next steps with confidence. They are ready to help you: Build a strategy for your retirement plan. Implement solutions for college savings. Create a retirement income plan. Identify and set up the investment vehicles that may help you reach your goals. USAA also provides informative articles and online tools to help you do your own financial research. You can find more information about investing for your future at usaa.com/investments. Investments/Insurance: Not FDIC Insured Not Bank Issued, Guaranteed, or Underwritten May Lose Value Financial planning services and financial advice provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California, License # 0E36312), a registered investment advisor and insurance agency and its wholly owned subsidiary, USAA Financial Advisors, Inc., a registered broker dealer. Investments provided by USAA Investment Management Company and USAA Financial Advisors, Inc., both registered broker dealers.

42 EXECUTE 42 Moving with Ease The right tools and resources can make a huge difference through your final PCS. We offer solutions to help find the best home for you and the guidance you need to make informed decisions. Get a $350 $6,000 reward when you buy or sell your home, and work with a USAA-dedicated real estate agent who understands your unique needs, with the USAA Real Estate Rewards Network. 6 Look to USAA Bank to help you find the right mortgage for you, including one with competitive rates and fees. Search millions of MLS and rental listings, and get information about area schools, shopping and dining.

43 EXECUTE 43 Protecting Your Family and Your Legacy Determining your family s life and health insurance needs can be challenging, and you ll need to consider many factors. Our licensed financial advisors can help you determine the type and level of coverage that s best for your family. We also offer: Competitive rates for a variety of term and permanent insurance policies. Health solutions for every stage of life. High financial strength ratings in the industry, so you can be confident we ll be here when you need us.* *A.M. Best: A++, Superior (highest of 16 possible ratings); Moody s Investors Service: Aa1, Excellent (second highest of 21 possible ratings); Standard & Poor's: AA+, Very Strong (second highest of 21 possible ratings). Company ratings represent an opinion of financial strength and the company s ability to meet ongoing obligations to policyholders.

44 EXECUTE 44 RESEARCH OTHER HELPFUL WEBSITES Transition Assistance DoD Transition Assistance Program dmdc.osd.mil/tgps/ Army Career and Alumni Program acap.army.mil Defense Finance and Accounting Service dfas.mil Military retirement issues and Army retirement services armyg1.army.mil/retirees.asp Pay and Benefits Coast Guard uscg.mil Coast Guard retirement uscg.mil/ppc/ras/ retirementprocessing.asp Retirement pay system choice (calculator) militarypay.defense.gov/ retirement/index.html

45 EXECUTE 45 RESEARCH OTHER HELPFUL WEBSITES SBP information militarypay.defense.gov/survivor/ sbp/index.html Social Security ssa.gov/retire2/index.htm Pay and Benefits TRICARE tricare.osd.mil TRICARE Retiree Dental Program tricare.mil/coveredservices/ dental/trdp Veterans Affairs va.gov

46 Investments/Insurance: Not FDIC Insured Not Bank Issued, Guaranteed, or Underwritten May Lose Value 1 TRICARE is a registered trademark of TRICARE Management Activity. All rights reserved. TRICARE policies and benefits are governed by public law and federal regulations. Changes to TRICARE programs are continually made as public law and/or federal regulations are amended. For the most recent information, contact your TRICARE regional contractor, TRICARE Service Center, or local military treatment facility. 2 For services payable by both Medicare and TRICARE For Life, Medicare pays first and the remaining liability may be paid by TRICARE For Life. For services payable by TRICARE For Life, but not Medicare, such as overseas care, TRICARE For Life pays the same as for TRICARE Standard beneficiaries. Beneficiaries are responsible for the TRICARE Standard fiscal-year deductible and cost shares. 3 Short-term medical insurance is not minimum essential coverage. You may be subject to a tax penalty. Plans are medically underwritten and do not cover pre-existing conditions USAA Bank does not charge a fee for the first 10 ATM withdrawals. Subsequent withdrawals will be charged $2 each, except when made at any USAA Bank owned ATM. USAA Bank also refunds up to $15 in other banks ATM usage fees for transactions at ATMs in the United States. The ATM fee refund does not apply for the month in which the account is closed. The ATM fee refund does not apply to USAA Cashback Rewards Checking. A 1% foreign transaction fee applies to withdrawals outside the United States. 5 "Offer subject to approval. The APRs may increase or decrease monthly based on the Prime Rate published in The Wall Street Journal. There is no limit on the amount of any increase. Any increase in the APR may increase your minimum payment and amount of interest you pay. The information contained in this advertisement was accurate when printed in April 2018 and is subject to change. To obtain current information, please call us at or visit us at usaa.com. There is a balance transfer fee of 3% of the amount of each balance transfer and each convenience check (maximum $200 per transfer/check). There is no grace period for Cash Advances or Balance Transfers." Reward offer limited in some states. Reward amount is based on sale price of home sold or purchased and cannot exceed $24,000 per transaction. Get a $350 to $24,000 reward when you buy and/or sell your home, and work with a USAA-selected real estate agent who understands your unique needs when you use the USAA Real Estate Rewards Network. As of August 2017, the average member closing in the program received $1,228. Real estate agent fees still apply. The reward is not available in Alaska or Louisiana. In Kansas and Tennessee, a gift card will be issued that is accepted at specific retailers. In Oregon, Mississippi and Oklahoma a credit or commission reduction may be available. In New Jersey, a commission reduction or rebate may be available at closing. Please check with the program coordinator for details. You must be enrolled in the program and be represented at closing by an approved agent with a participating real estate firm in order to qualify for the reward. Reward not available to sellers in a short sale transaction. In certain states, buyers may need seller cooperation in order to participate in the reward program. Availability restrictions apply.

47 Consider your own financial circumstances carefully before making a decision and consult with your tax, legal, or estate planning professional. USAA or its affiliates do not provide tax advice. Taxpayers should seek advice based upon their own particular circumstances from an independent tax advisor. Obtaining a mortgage from USAA Bank is optional, not required to utilize the MoversAdvantage Program and can be acquired from other sources. Certified Financial Planner Board of Standards, Inc., owns the certification marks CFP and CERTIFIED FINANCIAL PLANNER in the United States, which it awards to individuals who successfully complete the CFP Board s initial and ongoing certification requirements. USAA Real Estate Rewards Network is offered by USAA Residential Real Estate Services, Inc., a licensed real estate broker and subsidiary of USAA Federal Savings Bank. Program may be unavailable for employer-sponsored relocations. Not available for transactions in Iowa or outside the United States. This is not a solicitation if you are already represented by a real estate broker. Use of the term member or membership refers to membership in USAA Membership Services and does not convey any legal or ownership rights in USAA. Restrictions apply and are subject to change. To join USAA, separated military personnel must have received a discharge type of Honorable. Eligible former dependents of USAA members may join USAA. 47 Property and casualty insurance is provided by United Services Automobile Association and its affiliate property and casualty insurance companies and is available only to persons eligible for P&C group membership. Each company has sole financial responsibility for its own products. USAA means United Services Automobile Association and its affiliates. Financial advice provided by USAA Financial Advisors, Inc. (FAI), a registered broker-dealer, USAA Investment Management Company (IMCO), a registered broker-dealer, and for insurance, USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California, License # OE36312). Investment products and services offered by IMCO and FAI. Life insurance and annuities provided by USAA Life Insurance Co., San Antonio, TX, and in NY by USAA Life Insurance Co of New York, Highland falls, NY. Other life and health insurance from select companies offered through USAA Life General Agency, Inc. (known in CA (license # ) and in NY as USAA Health and Life Insurance Agency). Banking products offered by USAA Federal Savings Bank and USAA Savings Bank, both FDIC insured. Trust services provided by USAA Federal Savings Bank. Health solutions provided by USAA Life Insurance Company and through USAA Life General Agency, Inc. (LGA) (known in CA and NY as USAA Health and Life Insurance Agency), which acts as an agent for select insurance companies to provide products to USAA members. LGA representatives are salaried and receive no commissions. However, LGA receives compensation from those companies, which may be based on the total quantity and quality of insurance coverage purchased through LGA. Plans not available in all states. Each company has sole financial responsibility for its own products. Life insurance and annuities provided by USAA Life Insurance Company, San Antonio, TX, and in New York by USAA Life Insurance Company of New York, Highland Falls, NY. All insurance products are subject to state availability, issue limitations, and contractual terms and conditions. Each company has sole financial responsibility for its own products. Credit cards issued by USAA Savings Bank, other bank products by USAA Federal Savings Bank, both Member FDIC.

48 Founded by military personnel, for military personnel. Since our first day in 1922, USAA has been dedicated to serving the financial needs of those in the military and their eligible family members. Today, we are one of the nation's largest financial service providers, offering fully integrated solutions to over 11 million active duty military members, veterans who have received a discharge type of Honorable and their eligible family members. USAA offers insurance, banking, investments, retirement solutions and advice all delivered according to our core values of service, loyalty, honesty and integrity USAA