MILITARY FINANCIAL SUPPORT, PhD, Commander USN - Retired Fall 2016 ASEC Partners Meeting Wednesday, October 19, 2016 Washington, DC, 20001
Military-Related 2 Active Duty, Coast Guard National Guard, Reserves for all services Veterans Retired, Not retired, with disability Spouse and Dependents Active Duty and Veteran's With or without Veteran s benefits health, education, home buying, other By FY 2017-1,281,900 active duty Service members, with an additional 801,200 people in the seven reserve components. By FY 2017: 21,065,561 veterans
3 Active Duty Financial Education All services provide: Financial education and services starting at boot camp Have mandatory during stages in Service members careers Have command financial specialist in commands Have financial specialist available Department of Defense has an all service programs providing Accredited Financial Counselors (AFC) and Certified Financial Planners Community for-profit & non-profit support Service provided in person and online
4 Navy Administrative Discharges 75 % of Navy personal that receive administrative discharges is for personal financial reason. Key loose their security clearance. Approximately 1,500 per yr
Personal Financial Education Return on Investment - ROI 5 Department of the Navy Center Adjudication Facility Number of Active Duty Servicemembers Potential Loss Based on 1,184 LOIs $s per Servicemember lost Cost of LOSS # of planning sessions at $50 # of planning sessions at $150 1,184 $450,000 $532,800,000 10,656,000 3,552,000 1,184 $350,000 $414,400,000 8,288,000 2,762,667 1,184 $250,000 $296,000,000 5,920,000 1,973,333 1,184 $150,000 $177,600,000 3,552,000 1,184,000 1,184 $50,000 $59,200,000 1,184,000 394,667
Personal Financial Education Return on Investment - ROI 6 Number of Active Duty Service members retained to pay for program Based on 1,400,000 active duty and $450,000 per Servicemember Price for professional solution plan $ s for Servicemember to have a plan # needed to retain $30 $42,000,000 93 $50 $70,000,000 156 $70 $98,000,000 218 $90 $126,000,000 280 $110 $154,000,000 342 $130 $182,000,000 404 $150 $210,000,000 467
Military Compensation/Retirement: 2016 Enlisted Military Compensation/Retirement Calculations Years of Service Year Month Base Salary Hourly Based on 2016 Pay Tables Regular Military Compensation http://militarypay.defense.gov/calculators/rmccalculator.aspx E-3 3 $45,269 $3,772 $24,984 $12.01 E-4 4 $48,787 $4,066 $28,584 $13.74 E-5 6 $57,541 $4,795 $33,574 $16.14 E-6 16 $73,664 $6,139 $44,636 $21.46 Retirement Calculation http://militarypay.defense.gov/calculators/finalpaycalculator.aspx E-7 20 $26,226 $2,186 $53,672 $25.80 E-8 25 $39,270 $3,273 $64,296 $30.91 E-9 30 $61,290 $5,108 $83,621 $40.20 7 Officers Years of Service Year Month Base Salary Hourly Regular Military Compensation http://militarypay.defense.gov/calculators/rmccalculator.aspx O-4 6 $104,255 $8,688 $71,604 $34.43 O-4 10 $113,384 $9,449 $80,950 $38.92 Retirement Calculation http://militarypay.defense.gov/calculators/finalpaycalculator.aspx O-5 20 $49,230 $4,103 $103,406 $49.71 O-6 25 $75,475 $6,290 $124,430 $59.82 O-7 30 $108,945 $9,079 $148,172 $71.24 O-8 30 $122,823 $10,235 $167,868 $80.71 O-9 30 $135,558 $11,297 $189,792 $91.25 http://militarypay.defens e.gov/c alc ulators.as px Based on 2016 Pay Tables Based on 2016 Pay Tables
Guidance from Financial Counselors and Planners 8 Education and training is needed while on active duty and as veterans to have the earning power for economic security. Financial Counselors and Planners need to help with choices in college selection, degrees, and certifications Fully understand GI Bill education benefits Understand return on investment (ROI) for their education and training.
United States Veterans 9 EDUCATIONAL ATTAINMENT Civilian% Civiianl# Veteran% Veteran# Civilian population 25 years and over 199,029,326 11.2% 22,301,986 Less than high school graduate 15.0% 34,321,325 9.1% 2,061,377 High school graduate (includes equivalency) 29.0% 66,354,561 30.4% 6,886,359 Some college or associate degree 28.1% 64,295,282 34.9% 7,905,721 Bachelor's degree or higher 27.9% 63,837,664 25.6% 5,799,039 Gender Male 48.3% 110,514,665 93.1% 21,089,474 Female 51.7% 118,294,166 6.9% 1,563,022 Age 18 to 34 years 30.4% 69,557,885 7.8% 1,766,895 35 to 54 years 37.7% 86,260,929 26.3% 5,957,606 34.1% 7,724,501
Hampton Roads Veteran Separations Target Market for Colleges and Employers 10 Active Duty Separations from Hampton Roads - 2013 Army Air Force Navy Coast Guard # % # % # % # % Total 1,534 19.09% 791 9.84% 5,634 70.10% 78 0.97% 8,037 E1-E3 E4-E6 E7-E9 OFFICER TOTAL 1,556 4,644 982 855 8,037 19.4% 57.8% 12.2% 10.6% Total Separations % Less than Associate Less 2013 8,037 6,080 75.7%
Advising College Majors and Income 11 Retirement fund Nationally 10 Most Popular Majors Earnings Salary Per Year Make in 20 Years 8% per yr. 20 years Computer Science $75,000 $1,500,000 $6,000 $296,473 Finance $65,000 $1,300,000 $5,200 $256,943 Accounting $63,000 $1,260,000 $5,040 $249,037 General Business $60,000 $1,200,000 $4,800 $237,178 Nursing $60,000 $1,200,000 $4,800 $237,178 Business Management and Administration $58,000 $1,160,000 $4,640 $229,272 Marketing and Marketing Research $58,000 $1,160,000 $4,640 $229,272 Communications $50,000 $1,000,000 $4,000 $197,649 Psychology $45,000 $900,000 $3,600 $177,884 Elementary Education $40,000 $800,000 $3,200 $158,119 Source: Georgetown Center on Education and the Workforce
What is the ROI of your college degree? Occupation Marriage and family therapist News analyst, reporter, correspondent Minimum required years in college, graduate school and professional programs Cost of degree (tuition, fees, room, board) Median pay Annual repayment (if 10 percent of salary goes to repaying school loans) Years needed to repay education investment (assuming 6 percent student loan interest) 6 $68,010 $46,670 $4,667 34.67 4 $52,596 $37,090 $3,709 31.83 Veterinarian 8 $114,268 $84,460 $8,446 27.92 Librarian 6 $68,010 $55,370 $5,537 22.33 Teacher (full-time) 4 $52,596 $43,400 $4,340 21.75 English language/literature teacher: post-secondary 6 $68,010 $60,040 $6,004 19.08 Public relations specialist 4 $52,596 $54,170 $5,417 14.67 Political science teacher: post-secondary 6 $68,010 $72,170 $7,217 14 Dentist 8 $139,298 $149,310 $14,931 13.75 Lawyer 7 $103,677 $113,530 $11,353 13.33 Accountant 4 $52,596 $63,550 $6,355 11.5 Physician: family or general practitioner 8 $136,861 $172,020 $17,202 10.92 Pharmacist 7 $92,421 $116,670 $11,667 10.83 Civil engineer 4 $52,596 $79,340 $7,934 8.5 Advertising, marketing, promotions 4 $52,596 $107,950 $10,795 5.83 http://www.bankrate.com/finance/college-finance/roi-college-degree.aspx 12
It Is Not How Much Money You Make; It Is How Much Money You Keep 13 Four years at Average Public 4-Year Institutions $43,392 Four years at University of Virginia $52,522 Go to TCC first Saves $15,604 Go to TCC first Saves $19,904 Four years at For-Profit Technical Institute $65,094 Four years at For-Profit University $61,288 Go to TCC first Saves $25,824 Go to TCC first Saves $24,032 https://www.vawizard.org/vccs/finaidcostcompare.action https://www.vawizard.org/vccs/veteran.action
14 Economic Issues Facing Veterans Lack the financial resources to attend college full-time. VA benefits payments are received after bills are due. VA takes 25 business days to process and pay a claim. Lack the financial resources to pay tuition by the required date. Some colleges take tuition money from other financial aid. Student cannot pay bills - rent, mortgage, utilities, car. Stress, family conflict, evictions, bad credit reports.
15 If none of this works, marry for money.
Military Life to Educational & Employability Success 16