MAGAZINE - USAA

USAA.COM WINTER 2008 

MAGAZINE 

A MEMBER’S GUIDE TO FINANCIAL SECURITY 

Common 

Sense for 

Uncommon 

Times

MORE SECURITY FOR YOUR FINANCIAL FUTURE. In tough economic times, the 

value of our strength shines. We have secure products that provide guaranteed growth 

in any economic environment. Achieve your short-term goals with an FDIC-insured CD or 

take advantage of our tax-deferred Extended Guarantee Annuity that provides interest 

for your retirement savings up to 5.7% with a minimum guaranteed rate of 1-3%. Put our 

strength to work for you. 

GO TO USAA.COM OR CALL A USAA ADVISOR AT 800.235.1898 

USAA.COM 

Annuities - Not FDIC Insured • Not Bank Guaranteed. 

Annuity rate shown applies to 10-year Extended Guarantee Annuity. Rates effective 10/1/2008; subject to change. Extended Guarantee Annuity earns interest at the rate in effect at the time of purchase. Rate guaranteed for the 

period selected. Afterwards, interest rates may change monthly, but not below the minimum guaranteed interest rate. The minimum guaranteed interest rate is subject to change and may vary by product and state. The minimum 

guaranteed interest credited to the contract will be 1%-3%. The minimum guaranteed rate is xed and will not change after the contract is issued. Extended Guarantee Annuity: AEG37641ST 05-01 (varies by state); in NY, 

NEG38001NY 05-01. Call for details on specic costs, benets, limitations and availability in your state. 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. Each company has sole nancial responsibility for its own products. 

CDs require a $1,000 minimum opening deposit. Penalty for early withdrawal may reduce earnings. Availability restrictions apply. CDs provided by USAA Federal Savings Bank, Member FDIC. © USAA 2008. All rights reserved. 

89172-1008

MESSAGE FROM THE PRESIDENT 

WE’VE WEATHERED 

THIS KIND OF STORM 

BEFORE 

IS THERE ANYBODY WHO ISN’T REELING from the 

economic events of 2008? Those of us who have retirement in our 

sights are nervous about dwindling account balances. It all may 

seem out of our control, and we can sit and watch it happen, or we 

can take charge. 

Keep investing for your retirement. This is a very good time to 

be investing because there are solid investments at lower prices. Do 

review your time frame and objectives, and make sure that your risk 

tolerance matches your investment mix. You may want to consider 

investing in a target or asset allocation fund that will rebalance for you 

as the market changes. If you have access to an employer-sponsored 

retirement program, maximize your contributions to $15,500 with a 

$5,000 catch-up for individuals age 50 and over in 2008. Traditional 

and Roth IRAs, if you qualify, let you put away $5,000 with a $1,000 

catch-up for individuals age 50 and over in 2008. 

If you’re worried about debt, the Debt Analyzer on USAA.COM 

can help establish a clear picture of your situation. You’ll learn ways 

to pay off the debt faster. Then you can re-establish a budget, and 

gain the peace of mind that comes from knowing you are living 

within your means. 

Get advice from someone you can trust 

Your financial situation is personal and deserves individualized 

solutions. Seek financial advice from someone who is salaried 

and focused on your interests. Many investors have made a “flight 

to quality” over the last two months and USAA members are no 

different. Members are moving their money to us and opening a 

record-breaking number of new investment and bank accounts 

because they recognize the quality of USAA products, service and 

advice — and they know they can trust USAA. 

Josue (Joe) Robles, Jr. 

Major General, USA (Ret.) 

President & CEO 

USAA is strong 

And make sure the financial products you buy are from a company 

that not only has a history of financial strength, but is strong today. 

If it sounds like I’m describing USAA, you’re right. Unlike so many 

financial services companies today, USAA is conservative, strong 

and growing — just as we have been for more than 86 years and 

through countless economic downturns. Our employees care about 

your financial security, and they are eager to help you. ■ 

USAA means United Services Automobile Association and its affiliates. Financial advice 

provided by USAA Financial Advisors, Inc., registered broker dealer. 

USAA.COM WINTER 2008 USAA MAGAZINE 

3

USAA 

A MEMBER’S GUIDE TO FINANCIAL SECURITY 

WINTER 2008 • VOLUME 44 • NUMBER 4 

In Every Issue 

Common 

Sense for 

Uncommon 

Times 12 

In a year of unprecedented 

financial crises, get USAA’s 

perspective before you 

make your next move. 

By John Gilliam 

Mail Call 6 

USAA members share 

thoughts on military life 

and pesky ATM fees. 

FYI 7 

Get a vacation checklist, 

smartphone safety tips 

and other handy advice. 

On the Money 10 

Our experts answer 

questions on refinancing, 

payday loans and more. 

FEATURES 

’Tis the Season for Tax Prep 16 

Take actions this fall that may pay off next spring. 

By Dennis McCafferty 

7 Essentials 

for Security 18 

Here’s the lowdown on the 

latest ways to help secure your 

home computer. 

By Christopher Null 

Member Savings 25 

Check out our guide to 

products and services 

especially for you. 

Member Snapshot 32 

Meet an Army marksman 

who targeted gold in 

Beijing and won. 

On Course 20 

Managing finances as parents age 

can be a challenge, and adult children 

may have to step in to help. Get our 

tips for easing the burden. 

By Kerry Hannon 

Teach Your Children Well 24 

Your kids are watching. Make sure that the way they see 

you manage money reinforces good financial habits. 

By Teri Cettina 

Save energy 

and money with 

our timely tips. 

4 

COVER PHOTO: JEFFREY COOLIDGE/GETTY IMAGES 

USAA MAGAZINE WINTER 2008 USAA.COM 

8

Financial news 

mobile.usaa.com 

Head style 2 

USAA ON 

THE ROAD 

Use MOBILE.USAA.COM to: 

■ Check account balances. 

■ Transfer funds. 

■ Make stock trades. 

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got you down? 

GET FREE ADVICE from USAA to help 

you weather the economic storm 

USAA can send financial tips to your inbox — 

at no charge. Stable, secure and financially 

strong, USAA offers three e-newsletters filled 

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personal finances. 

■ Financial Services Update — Offers insightful market 

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Twice monthly. 

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■ The Retirement Report — 

Gives guidance on how 

to secure your financial 

future with timely advice 

and tips. Monthly. 

SUBSCRIBE TODAY 

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USAA Magazine is published quarterly 

by USAA as an informational and educational 

service to members. Material in this 

magazine may not be reproduced, stored 

in a retrieval system or transmitted in any 

form or by any means (electronic, mechanical, 

photocopy or otherwise) without permission 

from the publisher. The post office 

does not forward copies from incorrect 

addresses. © 2008 USAA. 

EXECUTIVE EDITOR: Sarah Plaster 

MANAGING EDITOR: 

Jennifer Chappell Smith 

CONTRIBUTORS: Shari Biediger, 

Lee Brookman, Nancy McAllister, 

Brian P. McGlinchey, Susan Speer 

PRODUCTION AND 

CIRCULATION MANAGER: 

Lisa Severson 

VICE PRESIDENT, 

MEMBER COMMUNICATIONS: 

Rhonda Crawford 

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MISSION: USAA’s mission is to 

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of a full range of highly competitive 

financial products and 

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5

mail call 

Feels like 

home 

I really enjoyed your article 

“Growing Up Military” (Fall 2008). 

It brought back lots of memories 

of being a Navy brat. The story 

of Kevin and Brian Calhoun could 

Send your feedback 

Visit USAA.COM/USAAMag and click “Contact Us.” Or, mail letters 

to USAA Magazine, Mail Call, E-1-E, 9800 Fredericksburg Road, 

San Antonio, TX 78288-3533. Please include a daytime phone number. 

 

 

Donna Musil relaxing in the backyard 

in Fort Bragg, N.C., in the late 1960s. 

have been mine. I had to learn how to blend in. 

My brother stayed at his high school while my 

dad took an unaccompanied tour. Our family 

loved our military experiences, and I, like the 

author, have “military markers” that “speak the 

language of home to me.” Thanks for taking all 

those nameless feelings and experiences and 

putting them into wonderful words. I’m going to 

answer “I’m from the Navy” whenever asked! 

■ Johanna Wood, Littleton, Colo. 

Saving on ATM fees 

In response to “Attack of the Killer Fees” (Fall 2008): I used 

to go to my local bank ATM weekly to get pocket money. 

Then bank fees jumped to $3 per transaction; and, even 

though USAA Federal Savings Bank returns most of these 

fees, 1 I started looking for cost-saving alternatives and 

found two. 

First, rather than going to the ATM weekly, I started going 

every other week and getting twice as much spending 

Jacey Eckhart’s family 

bound for Korea. 

Jacey Eckhart 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USAA MAGAZINE FALL 2008 USAA.COM 

OTOA O AC CAT A AMI COUTS O AC CAT 

Donna’s father, Louis “Bud” Musil, then a major and 

JAG officer with the 8th Infantry Division in Bad 

Kreuznach, Germany, sees his youngest daughter, Tisa, 

off to school in 1970. Musil, now deceased, retired from 

the U.S. Army as a lieutenant colonel. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTOA A 

Kevin, Brian and their mom, Brenda, 

on the steps of the Royal Hawaiian 

Hotel in Honolulu in November 2005. 

Brian led the University of Wisconsin 

football team to a win over the University 

of Hawaii by rushing for 

149 yards and a touchdown. 

Donna Musil 

Brian Calhoun 

Kevin and Brian 

Calhoun, ages 6 

and 3, at Disney 

World in Orlando, 

Fla., with their dad, 

Andrew, in 1987. 

USAA.COM FALL 2008 USAA MAGAZINE 

money. Second, I started using the ATM at Wal-Mart stores. 

Every Wal-Mart store I’ve ever been to has an ATM and all 

charge only $1.40 per transaction. With these two changes, 

I cut my ATM fee charges to our bank from around $156 per 

year to only $36.40 per year, a $119.60-per-year savings. 

Imagine if hundreds, or even thousands, of our members 

adopted these two simple behavioral changes. 

■ Steve Likins, U.S. Army, Lt. Col. (Ret.), Memphis, Tenn. 

Editor’s Note: Thanks for sharing your tips. Keep in mind that 

you can also avoid ATM fees by using the cash back option on 

your debit card during checkout at stores that offer that feature. 

Military housing: big benefit 

Your article “Spending Smart” (Fall 2008) ignored one of 

the primary benefits of military service: a free house. 

When I was on active duty 20 years ago, U.S. commissioned 

and warrant officers and many noncommissioned 

officers qualified for a housing allowance that is not taxable 

by any government entity. I’ve been told that policy 

hasn’t changed. Coupled with the deductibility of home 

mortgage interest for income tax purposes, this practically 

equates to free housing. 

Only under the most extraordinary of circumstances 

should this benefit be ignored. 

■ Thomas Smith, Fairfax, Va. 

Donna and 

Tisa Musil 

on a layover 

in Hawaii 

on their 

way from 

Fort Mason, 

Calif., to 

Seoul, 

Korea, 

in 1973. 

OTOA O IA CAOU A AMI COUTS O A CAOU OTOA O OA MUSI A AMI COUTS O OA MUSI 

All or part of your letter may be printed in an upcoming issue. It may be edited for clarity and 

length. • The opinions expressed here are those of individual members and not necessarily of 

USAA. If you have comments regarding an individual claim or concerns that do not pertain to 

items in the magazine, please refer to USAA.COM for a comprehensive list of contact numbers. 

1 

Free ATMs: USAA does not charge a fee for the first 10 ATM withdrawals and 

refunds up to $15 in other banks’ ATM usage fees each month. Currency conversion 

charges may apply when using ATMs outside the United States. 

6 

USAA MAGAZINE WINTER 2008 USAA.COM

F 

Drawing 

it out 

An Air Force wife gets 

kids to share how they feel 

about deployed parents 

MAIN PHOTOGRAPH BY THERESA CASSANGE; INSET PHOTOS COURTESY OF DALONNA RIMSKY 

Y 

I 

Kids say the darndest things when you 

put a crayon in their little hands. Such 

as how much they miss their daddies. 

And when they finish, they might have 

more contented smiles. 

Coloring books by Color The Memories developed 

when USAA member DaLonna Rimsky 

A snapshot of the Rimsky family transforms into a coloring book page. 

sought a creative way to help her son while his dad 

was deployed overseas. Rimsky used her computer 

to transform family photos into line drawings. 

“Kids love to color. It’s a familiar thing,” Rimsky 

says. “But talking about their feelings is not. As my 

son started coloring, he started opening up.” 

Now, she makes Color The Memories books 

for other families. The order she 

remembers best came from a woman 

who had lost her 30-year-old 

son. She ordered coloring books 

for her three granddaughters. “It 

really captured the memories for 

these girls who didn’t have their 

dad anymore,” says Rimsky. 

Between teaching her own two 

children at home and working as 

an after-school care director, Rimsky 

operates Color The Memories 

out of her kitchen in Louisiana — 

hoping to help other families like 

she helped her own. 

When I 

said, ‘OK, let’s 

sit down and 

color Daddy,’ 

he started 

coloring and 

opening up, 

saying, ‘I really 

miss Daddy. I 

can’t believe 

he’s away.’ 

THE ROSTER 

Enjoy these events, sponsored by USAA. For more, visit USAA.COM/Events. 

DECEMBER 6 

Army-Navy Game 

Philadelphia 

JANUARY 23 

Military Appreciation Night — 

San Antonio Spurs vs. New Jersey Nets 

San Antonio 


7

F 

Y 

I 

Vacation-proof your home 

BEFORE SETTING OUT 

to see the Seven Wonders of the 

World — or your brother-in-law’s 

house for the holidays — mark off 

this checklist to help keep your own home 

safe and secure. 

Ask the post office to hold your mail. 

SLASH YOUR 

ENERGY 

BILL 

HERE’S HOW: 

■ Replace incandescent lighting 

with Energy Star bulbs. 

■ Find drafty windows, doors 

and baseboards and seal them 

with caulk. 

■ Unplug coffee makers, DVD 

players, phone chargers and 

Stop newspaper delivery. 

Adjust your thermostat — in winter, no 

lower than 55; in summer, no higher 

than 85. 

Set automatic timers for your lights to 

mimic your normal patterns. 

Unplug sensitive appliances such as computers, 

televisions and microwave ovens. 

Turn off water supply to toilets and your 

washing machine. 

Let your security service and/or the local 

police know your house will be empty. 

Source: Institute for Business and Home Safety 

video games. They act as energy 

vampires — sucking up electricity, 

even when powered off. 

■ If you’re replacing a fridge 

that’s more than 10 years old, 

consider choosing a new Energy 

Star model. 

■ Choose flat-screen computer 

monitors, which are sleek savers. 

■ Consider purchasing an LCD 

TV, which uses about half the 

energy of its plasma counterpart. 

Source: U.S. Department of Energy 

PHOTOGRAPHY: THIS PAGE: (TOP) IMAGE SOURCE, (BOTTOM) LAUREN NICOLE/GETTY IMAGES; NEXT PAGE: (TOP) MURIEL DE SEZE/GETTY IMAGES, (LEFT) VINCE PENMAN/ISTOCKPHOTO, (BOTTOM RIGHT) JON PATTON/ISTOCKPHOTO 

8 


MORE THAN SENTIMENTAL VALUE 

PROTECT YOUR FAVORITE THINGS 

What’s on your holiday wish list? A 

painting by a favorite artist? Something 

sparkling and emerald cut? Make sure 

that such items don’t fall through any 

gaps in your insurance. 

A Valuable Personal Property 

insurance policy protects items that 

have coverage limitations or are 

not covered under a homeowners 

The pocket-size wonder is as 

much a mobile computer as it 

is a phone. We love the convenience 

of keeping up with family 

and friends. We love mobile 

banking and investing. And we 

love having everything in one 

device that goes where we go. 

But what do you do if your 

device is lost or stolen? “People 

don’t realize how vulnerable 

they are,” says Denise Richardson, 

consumer advocate 

and identity theft risk management 

specialist. “Most of us sit 

down at a restaurant and put 

the phone on the table,” she 

explains. “Thieves are waiting 

for you to look the other way, 

and when you do, your phone 

is gone.” 

or renters policy — from furs and jewelry 

to fine art. Have a special work of 

art, your grandmother’s silverware or 

another such item that you want to 

insure? With this kind of policy, you’ll 

get 100 percent replacement cost up 

to the amount you insure each item. 1 

Log on to USAA.COM and enter 

keyword “VPP.” 

SMARTPHONE SAVVY 

USAA offers secure access to 

member accounts from mobile 

devices. But it’s wise to protect 

yourself, too, with tips from 

Richardson and consumer advocate 

and cell phone expert David 

Wood of ConsumerAffairs.com: 

DO 

■ Keep a record of what’s stored 

in your device. 

■ Note the phone’s make, model 

and serial number. 

■ Password-protect your phone. 

■ If your phone is lost or 

stolen, contact your service 

provider immediately and 

file a police report. 

DON’T 

■ Store Social Security, bank 

account or credit card numbers 

in the device. 

USAA offers secure access to USAA 

accounts from mobile devices. Check 

out our mobile capabilities at USAA.COM/ 

Mobile. To make a transaction or take care 

of other business with USAA on a site created 

for mobile devices and computers with low 

bandwidth, visit MOBILE.USAA.COM. 

Conversion 

confusion? 

You probably know about 

the digital television conversion 

coming in February 

2009, but here’s the 

lowdown. 

If your TV was manufactured before 

2003 and you use an antenna to 

get a signal, you’ll need a converter 

box, costing between $40 and $70. 

You can apply for coupons, worth 

up to $40 toward the purchase of 

the box, on the official digital conversion 

Web site: dtv2009.gov. 

Cable and satellite customers can 

avoid the cost since providers will 

automatically convert the signal. But, 

in a service outage, the box allows 

you to get local stations, which could 

be valuable in an emergency. 

Newer TVs have the digital signal, 

so no conversion is needed. 

Did you 

know? 

If you need a tow truck 

after an accident, 

USAA can send 

one directly to the 

scene. Call (800) 531-8722 and 

we can get your vehicle directly to a 

repair facility — reducing the time 

you’re without it. If you can’t call from 

the accident scene, report the claim 

promptly so that USAA can move your 

car from a storage yard to a repair shop 

sooner rather than later. 

WINTER 2008 

USAA MAGAZINE 

9

on the money 

Smart solutions 

From the pitfalls of payday loans to 

easing estate tax burdens, USAA 

answers your questions 

My 84-year-old mother has $250,000 

in stock and mutual funds. Now she 

wants to start giving me and her 

grandchildren cash gifts by liquidating 

her investments. Should she just cash 

in/sell her investments and give the 

gifts, $12,000 per person, per year, to 

each of us? — Michael, Mechanicsburg, Pa. 

As you mention, your mom can 

give you and your kids up to 

$12,000 each, per calendar year, 

without taxes, or gift tax implications, 

according to the IRS. But keep in mind 

that her gifts don’t have to be in cash. 

“Seniors who are trying to reduce the size of 

their estates often implement a gifting strategy,” 

says J.J. Montanaro, a Ce r t i f i e d Fin a n c i a l Pl a n n e r tm 

practitioner with USAA. “If they sell the appreciated 

assets and give cash gifts it might benefit all 

parties.” The recipients would receive a gift without 

any capital-gains implications, and the givers 

would further reduce the size of their estates by 

paying the capital-gains tax. “When you make 

lifetime gifts of stock, land or other securities, you 

don’t pay capital gains tax. But when the recipients 

sell such assets, they will pay tax on the 

difference between what they sell them for and 

what you originally paid,” says Montanaro. 

Your mom is a great example of how smart 

investing can contribute to a comfortable 

retirement and help create financial security for 

future generations. Making sure her money goes as 

far as possible can be tricky business, however. So 

consult a tax advisor if you have further questions. 

I have an adjustable-rate 

mortgage with 12 months 

left at my current rate. 

Should I refinance now? 

— Ronald, Faye, N.C. 

As of this writing, interest rates 

are still well below average, and 

there’s no guarantee they’ll drop 

again soon. So as long as you’re 

10 

usaa magazine winter 2008 usaa.com

CTA HEAD 

My husband keeps CTA taking copy cta copy cta copy cta 

out payday loans, copy even cta copy cta copy cta copy 

though I have done cta everything 

but leave him copy to cta make copy cta copy cta copy 

copy cta copy cta copy cta 

him understand they cta copy are cta copy. 

bad. I feel like I am never going to get 

out of this hole he put us in. What can I 

do to get rid of these loans instead of 

getting rid of him? — Tera, Lawton, Okla. 

planning to stay in your home for at least a few 

more years, go ahead and look into refinancing, 

says June Walbert, a Cer t i f i e d Fi n a n c i a l Pl a n n e r tm 

practitioner with USAA. 

While you’re at it, consider switching from 

your adjustable-rate mortgage, or ARM, to a 

fixed-rate loan. 

“ARMs have their benefits, but I usually recommend 

fixed-rate mortgages because they’re 

a predictable expense for the entire life of the 

loan,” says Walbert. 

As with any financial product or service, 

it pays to shop around. Start with your current 

lender to set a benchmark, and then check 

with others. Don’t forget to look at points, lenders 

fees and other closing costs, so you get an 

apples-to-apples comparison. 

First, you’re right to take a stand 

against payday loans. These 

lenders are notorious for preying 

on people who are desperate 

for quick cash, assessing outrageous interest 

charges and huge penalties for the slightest 

misstep. And it sounds as though you’re in one 

of many families who are stuck in a destructive 

cycle of habitually borrowing money to pay off 

other loans. 

“People who take out payday loans often 

feel they have no other choice, but there are 

almost always better alternatives,” says USAA’s 

Montanaro. “Some creditors may be willing to 

offer revised payment plans to keep borrowers 

from defaulting. And if you have to borrow more 

money, using a low-interest credit card or even 

asking a family member for help is probably better 

than another payday loan.” 

As for trying to change your husband’s ways, 

help him understand that his decisions have 

long-term consequences. He may be robbing 

your family of the opportunity to own a home, 

send kids to college or retire one day. If he won’t 

listen to you, hopefully he’ll listen to a financial 

or family counselor. n 

Get 

Expert Help 

For more financial advice, turn to USAA Cert i f i e d 

Fi n a n c i a l Pl a n n e r t m practitioners. Log on to USAA.COM 

and use keyword “Financial Planning Services.” 

See other important legal disclosures 

on page 30. 

Certified Financial Planner 

Board of Standards, Inc. owns 

the certification marks CFP® 

and Certified Fi n a nc i a l Pl a n n e r tm 

in the United States, which it 

awards to individuals who successfully 

complete CFP Board’s 

initial and ongoing certification 

requirements. 

Financial planning services and 

financial advice provided by 

USAA Financial Planning Services 

Insurance Agency, Inc. 

(known as USAA Financial 

Insurance Agency in California), 

a registered investment advisor 

and insurance agency and its 

wholly owned subsidiary, USAA 

Financial Advisors, Inc., a registered 

broker dealer. 

usaa.com winter 2008 usaa magazine 

11

12 


COMMON 

SENSE FOR 

UNCOMMON 

TIMES 

BY JOHN GILLIAM 

In a year of unprecedented financial crises, 

get USAA’s perspective before you make 

your next move 

This summer, before the bear 

market and credit crisis morphed into a global 

financial meltdown, I wrote an article about my 

terrible decisions in the 2000-2002 bear market. 

Back then, I rode the market down and threw 

in the towel with a 50 percent loss — just as the 

market was bottoming. Then I sat in cash for 

two years into the next bull market before getting 

back into stocks. It was a classic, portfoliodecimating 

case of buy high, sell low and then 

buy high again. 

Embarrassed I’d behaved so emotionally, I 

put most of my retirement assets into a conservative, 

professionally managed portfolio and 

promised myself I’d leave it alone. 

Then came the deluge of once-unimaginable 

news: Fannie Mae, Freddie Mac, Lehman 

Brothers, Merrill Lynch, AIG, Washington Mutual, 

Wachovia — an incredible list of proud American 

financial institutions — either went under or 

were taken over. And the Dow kept plummeting, 

with no end in sight. 

With my portfolio down more than 30 percent 

in one year and still falling, my promise 

to “leave it alone no matter what” seemed 

quaint. Had the investing fundamentals underpinning 

my philosophy collapsed? Was it time 

to get out of the markets once and for all? Like 

every investor in America, I was scared, angry 

and confused. 


13

When Everything Goes Down 

The thing that’s been so disturbing since 

the summer is that the prudent investor’s 

best friend — diversification through asset 

allocation — hasn’t worked. Instead of 

stronger asset classes balancing weaker 

ones, virtually every asset class has lost 

serious money. As bad as the U.S. stock 

market has been, overseas markets — 

especially emerging markets — have 

been much worse. Bonds not backed by 

the U.S. Treasury have also had losses. 

Real estate continues to be a disaster, 

while commodities have crashed, 

admittedly bringing the silver lining 

of lower gas prices. 

“The only thing asset allocation has 

done recently is make sure you don’t 

Gain may be 

temporary and 

uncertain, but 

ever while you live, 

expense is constant 

and certain. 

—Poor Richard’s Almanac by Benjamin Franklin 

do as badly as the worst asset class,” 

USAA Investment Group’s Ron Sweet 

states. “Outside of Treasury securities, 

there’s been no place to hide. That’s 

what happens when you have a credit 

crisis combined with a recession, a 

depressed housing market, a financial 

system meltdown and a global crisis 

of confidence.” 

After they opened their third-quarter 

investment statements, my retired mother 

and business-owning brother had their 

own take on the situation. She asked me 

if she’d have to go back to work at 71. He 

told me he was going to stop contributing 

to his 401(k). They are like people all 

over America, making crucial decisions 

in the midst of a national crisis of confidence 

about the future. 

Unraveling the Big, Scary Ball 

Before making another big decision 

about my portfolio, I decided to sit 

back and unravel the ball of fear. While 

the “financial crisis” has become an allencompassing 

term for today’s ills, it’s 

not that simple. There are several key 

elements in play, and they have to be 

considered individually. 

The first is the credit bubble that 

drove the housing boom and the subsequent 

housing bust that froze the credit 

markets. The critical factor turning the 

housing bust into a credit crisis was 

leverage. Just as homeowners were 

borrowing against rising home values, 

banks and hedge funds were borrowing 

against the inflated value of the 

mortgage-backed securities on their 

balance sheets. 

As home prices declined and foreclosures 

skyrocketed, it sparked a 

second key element that led to the 

overall crisis: banks and consumers 

alike scrambling for cash. That reaction 

created huge holes in bank balance 

sheets, which is what the government is 

currently attempting to fix by directly 

investing capital into the banks and taking 

a partial ownership position. 

A third big problem is the lack of 

trust between banks. And, again, the 

government has stepped in and is 

guaranteeing many types of common 

financial transactions. 

In fits and starts, the government’s 

bold action, along with coordinated 

steps overseas, is slowly unfreezing the 

credit markets. Further, concrete steps 

and programs are in place to support 

the housing market, such as the Hope 

for Homeowners Act of 2008 and the 

FHASecure plan. 

So does it still make sense to invest in 

the credit markets? Will bonds resume 

their traditional role as portfolio balancers 

and stable income 

providers? According to 

USAA’s Cliff Gladson, “The 

losses in the bond market 

were directly related to 

the credit crisis. With 

investment banks and 

hedge funds liquidating 

their bond holdings, we’ve 

had supply and demand 

imbalances that have 

very little to do with the 

essential element in the 

bond market — that is, 

the bond issuers’ ability to 

repay. With the exception 

of Lehman and WaMu, for 

example, the other big factor 

that can impact bonds 

is inflation, and the good 

news is that the combination of global 

recession with falling energy and other 

commodity prices will likely wring out 

whatever inflation exists. Many types of 

bonds are on sale, especially municipal 

and corporate securities.” 

Why the Stock Market Kept Falling 

Many people, me included, assumed 

that the government bailout would have 

a positive effect on stocks, but instead 

they just kept falling. USAA’s Ron Sweet 

explains why: “One big reason for the 

huge sell-off since mid-September — 

even after the bailout — is uncertainty 

14 


about capitalism and the capital markets 

moving forward. There are questions 

about the banking system and the 

impact of a less freewheeling capital 

environment. The market needs to see 

what earnings will be in the post-crisis 

world. Once that becomes clear, stock 

prices should find a new equilibrium 

that we can build from.” 

So is it time to get out of stocks and 

wait until things get better? Warren 

Buffett doesn’t think so. “A simple rule 

dictates my buying,” Buffett wrote 

in October. “Be fearful when others 

are greedy, and be greedy when others 

are fearful.” 

He continued, “I haven’t the faintest 

idea as to whether stocks will be higher 

or lower a month — or a year — from now. 

What is likely, however, is that the market 

will move higher, perhaps substantially 

so, well before either sentiment or the 

economy turns up. So if you wait for the 

robins, spring will be over.” 

America the Resilient 

If you are a long-term investor, a decision 

to get out of stocks is really a bet 

against the American (and now global) 

economy. Again Buffett’s words are 

If you would 

be wealthy, 

think of saving 

as well as 

getting. 

—Poor Richard’s Almanac 

by Benjamin Franklin 

comforting, as he explained that in the 

20th century the Dow rose from 66 to 

11,497. “You might think that it would 

have been impossible for an investor 

to lose money during a century marked 

by such an extraordinary gain,” he 

wrote. “But some investors did; the 

hapless ones bought stocks only when 

they felt comfort in doing so and then 

proceeded to sell when the headlines 

made them queasy.” 

As I climb off the ledge of fear, and 

invite you to join me, does this mean that 

we should all leave our investment statement 

envelopes unopened and do nothing? 

Absolutely not, says USAA’s Sweet. 

“The 1980s and 1990s gave people 

exaggerated ideas about the stock 

market, leading to this very humbling 

decade with its two deep bear markets. 

People who are nearing or in retirement 

need to review the risks that they are 

taking, because they won’t have time to 

make up bear market losses, especially 

if they are forced to make withdrawals 

in a falling market.” 

As for younger members, Sweet 

counsels that you should be investing on 

a regular basis, mostly in stocks, using 

tax-advantaged retirement vehicles such 

as 401(k)s and IRAs and educational 

vehicles such as 529 plans and Coverdell 

Education Savings Accounts. “Systematic 

investing is the best way to go, but to 

make it work you have to keep buying 

when stocks are cheap — that’s when you 

get the biggest bang for your buck.” ■ 

Systematic investment plans do not assure a profit 

or protect against loss in declining markets. 

NEED 

REASSURANCE? 

Call USAA at 800-531-USAA (8722). 

PHOTOGRAPH BY JENSEN LARSEN PHOTOGRAPHY 

Financial writer John Gilliam 

USAA: IT DOES 

MAKE A DIFFERENCE 

By way of full disclosure, I am a freelance investment writer, and USAA is my 

biggest client. It also manages my retirement assets. 

If you’re not ready to give up on your own financial future, call USAA and 

speak to a person who will take the time to get a comprehensive picture of 

your situation, explain your options, and make a recommendation. 


15

’Tis the Season — 

FOR TAX 

BY DENNIS M C CAFFERTY 

EASY, END-OF-THE-YEAR actions can help 

reduce your tax burden on April 15, 2009. 

Here’s how. 

FIND 

THE IRA 

FOR YOU 

For information 

on USAA’s IRA 

offerings, log on 

to USAA.COM 

and use keyword 

“IRA.” 

INVEST YOUR HOLIDAY 

BONUS IN AN IRA. 

You were getting by without the bonus, 

right? So why not use whatever you get in 

December to reduce taxes? Depositing all of 

it immediately into an IRA may do just that. 

You may also be able to deduct the full 

or a partial amount of your IRA contribution 

on your federal taxes, if you meet IRS 

income requirements. 

Not everyone has an IRA. But people in 

certain income brackets can get a tax credit 

on contributions to a retirement savings plan 

through the Saver’s Credit. For more details, 

visit irs.gov and enter keyword “Saver’s Credit.” 

A GIVING NOTION. 

One of the easiest ways to reduce 

your payment to the IRS is to go into your 

closet, toss any unused clothes and items into 

a box and drop them off at a local charity. Cash 

donations count, too. This isn’t just spreading 

“goodwill to men” during the holidays — it’s a 

wise tax move. To get credit for the deduction, 

follow IRS requirements for documenting contributions. 

Some noncash contributions require 

more documentation than others. For example, 

a noncash donation under $250 generally 

requires a receipt or letter from the recipient 

charity outlining certain aspects of the gift. 

The giver should also make sure the items are 

in good condition, according to the IRS. Cash 

contributions have different rules. For more 

details, check IRS Publication 526 at irs.gov. 

16 


PREP 

Sure, taxes are the last 

thing on your mind during 

the holidays. But spending a 

little time now can pay 

off next spring 

Don’t forget to consider your volunteer efforts. 

You generally can deduct 14 cents a mile for 

travel to and from each event where you give 

of yourself and your time. 

PAY DEDUCTIBLE 

EXPENSES BY CREDIT 

CARD IN DECEMBER. 

If you use your credit card late in the year to pay 

a business expense, make a charitable donation 

or charge another cost that can be itemized, it 

will still count toward the current tax year. 

“The IRS considers the expenses deductible 

in the year that the charge is incurred, 

not necessarily when you pay the credit card 

charge,” says Tammie Hendricks, CPA, of 

the Henssler Financial Group in Kennesaw, 

Ga. That way, you may reduce your taxable 

income for the tax year, but don’t have to 

actually pay the bill until your credit card 

statement comes in January. 

INCREASE YOUR 401(K) 

CONTRIBUTION. 

Sure, it’s been a tough year 

financially. And the stock market has been 

horrific. But if you’re not contributing at 

all to your 401(k), you’re turning away free 

money from your employer with respect to 

company matches, which are often at least 

50 cents on the dollar up to a specified percentage 

of your salary. 

Even if you are contributing, consider adding 

to the percentage of salary you set aside, because 

any reduction in your paycheck is a way to reduce 

your reported current income, thereby potentially 

decreasing your tax burden. And you don’t have 

to invest your contributions in the stock market 

either. Many plans have relatively safer bond and 

money market funds as options. 

Don’t forget that you can increase contributions 

at the end of the year to make the most of 

the company match; you’ll reduce your taxable 

income and save toward your future. 

If you’re over 50, take advantage of “catch up” 

provisions that allow you to make extra 401(k) 

and IRA contributions. 

INCORPORATE YOURSELF. 

Many folks — including those in the 

military — maintain second incomes 

with weekend jobs such as landscaping, a homeimprovement 

gig or other means. If you fall into 

that group, consider incorporating your small 

business as an “S” corporation before the year 

ends and possibly reap immediate benefits. 

“The law still allows, within limits, for Social 

Security/Medicare tax advantages,” says Fred Imel, 

a certified public accountant based in Yukon, Okla. 

“The tax reduction, say, for a reservist with his 

own small business can be $3,000 to $8,000 per 

year, depending on the volume of the business 

and type of industry. Nearly all of my clients use 

this. In 15 years, many have saved enough to buy 

a house with the savings.” 

MAKE AN EXTRA 

MORTGAGE PAYMENT. 

This is a great move, especially if you’re paid by an 

employer every two weeks and either November 

or December happens to be a month where you 

receive three paychecks instead of the normal two. 

Instead of blowing your extra cash on something 

you don’t need, make your January 2009 mortgage 

payment now. That way, you can deduct the interest 

on that payment in the current tax year. ■ 

The preceding discussion is not tax advice. 

Consult your tax advisor regarding your 

specific situation. 

MEMBER 

DISCOUNT! 

For a 25 percent USAA 

member discount on 

TurboTax Online federal 

and state products, log 

on to USAA.COM and use 

keyword “TurboTax.” 

Post- 

Holiday 

Prep 

Want tax tips for 

after the holidays? 

Go to USAA.COM/ 

USAAMag and click 

“New Year’s Resolutions: 

What to Do as 

Tax Season Starts.” 


17

7 SECURITY 


Works to 

Protect Your 

Information 

Our Web site uses 

sophisticated encryption 

and virus-detection 

software to protect 

your information. To 

protect against unauthorized 

access, your 

personal information 

resides behind a secure 

firewall monitored by 

our security experts. 

For more, log on to 

USAA.COM and use 

keyword “USAA Online 

Security Guarantee.” 

If you call in to do 

business with USAA, 

you may be asked to 

establish a phone password 

to authenticate 

your identity — for that 

call and all future calls. 

BY CHRISTOPHER NULL 

Essentials for 

YOU DON’T HAVE TO be a computer 

expert to help protect your computer from hackers, 

viruses and black-masked thieves. Here are 

the must-have tools and actions to take today. 

1USE ANTIVIRUS SOFTWARE. 

Installing basic antivirus protection 

should be your first move. 

Today’s antivirus package options do 

more than just help protect you from basic 

virus attacks. Most also ward off attacks from 

malware — short for malicious software — 

such as spyware, rootkits, keyloggers and other 

Web-based interlopers. 

McAfee VirusScan Plus, Symantec Norton 

Antivirus, Trend Micro Antivirus and Kaspersky 

Anti-Virus are capable applications. Avira Anti- 

Vir (free-av.com) is a good, free antivirus option. 

2RELY ON ANTI-SPAM PROTECTION. 

Spam isn’t just a nuisance, but a major 

avenue for security breaches, whether you 

open an infected attachment or click on a malicious 

link. Stop spam outright to avoid these risks. 

Most major e-mail applications, Internet service 

providers and Web-based mail services now 

offer anti-spam services for free. Turn these on by 

using the Web-based tools given by your e-mail 

provider; they are usually easy to find. 

One risk is that perfectly innocent e-mail will 

be flagged and deleted as spam. If you’re concerned 

about false positives, try a third-party 

application, which gives you more control over 

spam flagging, but which will likely let in a few 

more junk messages. Outlook users can consider 

the third-party application SpamBayes, a free 

plug-in found at SpamBayes.sourceforge.net. 

3KEEP YOUR FIREWALL ACTIVE. 

A firewall is simply a barrier between you 

and the rest of the world. It filters out unwanted 

traffic — mostly attacks that troll random 

computers looking for security holes. Without a 

firewall, you’ll likely be attacked within minutes of 

connecting an unsecured computer to the Internet. 

The good news is you’re probably already 

running a firewall: Almost every wireless router 

has one, and Windows XP and Windows Vista 

include one, too, turned on by default. There’s 

no need to configure your firewall further or to 

invest in expensive additional firewall software. 

Just make sure you never turn off your firewall. 

4TAKE ANTI-PHISHING MEASURES. 

Beware of phishing, which occurs when 

phony Web sites designed by scam artists 

get you to give up your personal information. 

Modern Web browsers can help protect you 

against phishing attacks. Firefox 3, the latest 

version, has a very robust anti-phishing system 

that causes an enormous red page to pop up if 

you stumble onto a known malicious site. Internet 

Explorer 7 also checks Web sites automatically 

as you browse. Upgrade to the latest version 

of either browser and you should be fine. 

USAA provides phishing alerts on its Web 

site home page if a scammer ever targets USAA 

members. See “USAA Works to Protect Your 

Information” on this page for more on USAA’s 

online security measures. 

5TURN TO ANTI-SPYWARE TOOLS. If a 

malware application does creep past all 

your defenses and your antivirus software 

can’t clean it, consider more specialized spyware 

defense tools. You can pay for any number of 

spyware cleaners, but you really don’t need to: 

18 


USE COMMON SENSE AND A LITTLE KNOW-HOW 

TO HELP KEEP YOUR MAC OR PC SAFE AND SECURE 

Free anti-spyware tools are capable of cleaning 

any infection that the paid tools can. 

6PROTECT AGAINST THEFT. All the 

software in the world won’t protect you 

from simple theft. One estimate says that 

5 percent of all laptops are stolen in the first 

year after purchase.* Follow these tips: 

■ Never leave your laptop unattended. 

■ Don’t lock it in your car where it can be seen. 

■ Invest in an inexpensive cable lock to secure 

your computer to your desk. 

■ Consider a computer theft recovery 

and identity theft protection service, such as 

Computrace ® LoJack ® for Laptops, so that your 

computer can be tracked and perhaps recovered 

by law enforcement if it gets swiped. 

7BACK UP YOUR DATA. Drop your 

laptop in a pool? Get it snatched on 

the street? Plan for such misfortunes 

by backing up data early and often. How? 

■ Buy an inexpensive external hard drive. 

■ Back up multiple computers to a single, 

giant disk with little effort. 

■ Check out online backup services, such 

as Mozy.com, which automatically copy files 

to secure servers over the Internet, where 

even a house fire can’t destroy your data. ■ 

*Source: Switched.com, 

“Five Most Stolen Gadgets,” 

Jan. 31, 2008 

SPECIAL 

OFFER 

USAA has teamed with McAfee 

to offer its VirusScan Plus 

software at a 50 percent discount 

for USAA members. For 

details, log on to USAA.COM 

and use keyword “McAfee.” 

ILLUSTRATION BY JACK UNRUH 


19

On Course 

Find out how planning now can help you and 

your parents navigate financial waters later 

BY KERRY HANNON 

On his 70th birthday, USAA 

member Leonard Ratzman didn’t have a 

will or any kind of estate plan. “I suddenly 

realized that the worst thing I could do as 

a father is to pass away and leave my only 

heir, my daughter, without a list of things 

to do, people to contact and so forth,” the 

now-75-year-old recalls. 

He created “The Turnover” document, a 

two-inch-plus binder that contains a whopping 

60 sections of detailed information to 

help her manage his estate after his death. 

While not everyone will go to such 

lengths, learning what’s in Ratzman’s guide 

can help you think about information parents 

can compile and organize to help their 

grown children manage their affairs, not just 

after they die but as they age and require assistance. 

Follow these tips to make managing 

their affairs easier for them — and for you. 

20 


ALL IN THE FAMILY 

It may not be easy to ask your parents if they need 

your assistance with day-to-day finances. “Money 

is the last bastion of privacy for many people,” says 

Sharon Burns, co-author of How to Care for Your 

Parents’ Money While Caring for Your Parents. “There 

are all sorts of control and trust issues involved.” 

In the end, helping older parents manage their 

money may be a necessity and can serve as a gratifying 

way to give back. 

Start the money conversation. The death of a 

first parent or a serious medical condition, such as 

a broken hip, often spurs the discussion. Stay tuned 

in to signals that you may need to get involved: 

■ unpaid bills that generate late fees, second notices 

and utility cutoffs 

■ noticeable changes in spending habits 

■ checking account problems, such as bounced 

checks 

■ credit card problems, such as late payment 

charges 

■ confusion about what bills have been paid or 

about a particular charge 

If you spot one of these red flags, schedule a 

frank talk. 

Get the full financial picture. If your parents 

welcome your involvement, ask them to share key 

legal and financial papers. They should have in 

place several essential documents, including a will, 

PHOTOGRAPHY BY JEFF NEWTON • PHOTO ILLUSTRATION BY RYAN ETTER 


21

“I wanted to 

make the overwhelming 

task of 

taking over as 

efficient and 

painless as 

possible.” 

—USAA MEMBER AND DAD 

LEONARD RATZMAN 

living will and separate durable Powers of Attorney 

for health care and financial decision-making. 

Compile other critical papers, such as deeds, 

insurance policies, investment accounts, bank accounts, 

income statements, retirement accounts, 

all outstanding loan documents and current bills. 

Decide who should manage your parents’ 

money. In big families, think about who lives 

nearby and who has the know-how. One sibling 

might be a financial whiz, but make sure he’s 

ready to take on the responsibility. “This isn’t 

fun work,” Burns says. “You’re dealing with not 

only the financial paperwork, but at times allconsuming, 

emotional handholding.” 

For only children, the burden can seem 

heavy. Don’t hesitate to get help from your own 

spouse, a knowledgeable friend or even a professional 

financial advisor. USAA has CER T I F I E D 

FIN A N C I A L PL A N N E R practitioners and trust services 

team members at USAA Federal Savings 

Bank who can help. 

Understand their budget. Get a handle on 

monthly income and expenditures and make 

sure a usable budget is in place. 

Streamline accounts. Consolidate 

redundant bank accounts and consider canceling 

unused credit cards. Next, consider 

combining current credit card accounts and 

PHOTOGRAPH BY SETH JOEL PHOTOGRAPHY 

22 


transferring outstanding balances to a 

lower-interest card. 

Introduce online banking. If your 

parents are comfortable transacting business 

on their computer, online banking 

with automatic bill pay is probably the 

easiest way to help with daily finances, 

particularly from a distance. Arrange for 

direct deposit for income and set up automatic 

bill pay from your parents’ checking 

account. You can also request that 

dividends and interest payments be reinvested 

automatically or deposited directly 

into the checking account. 

If computer use isn’t part of the picture, 

develop a bill-paying calendar and remind 

your parents to write the checks, Burns 

advises. Or, you can suggest taking over the 

task yourself. 

Hire a pro. If your parents refuse to 

let you get involved with their finances, or 

if managing their money gets too complicated, 

consider hiring a financial advisor. 

USAA has Cer t i f i e d Fi n a n c i a l Pl a n n e r 

practitioners ready to help. If a bill-payer 

is all that’s required, check out the American 

Association of Daily Money Managers, 

at aadmm.com. 

Depending on your parents’ situation, 

you may also need to hire an elder care 

attorney to help with estate planning and 

the health care insurance system. The 

National Academy of Elder Law Attorneys, 

at naela.org, can point you to local experts 

in the field. 

Remember the details 

Ratzman’s “Turnover” document contains 

the essentials, including a will, a living 

will, durable Power of Attorney and a 

Health Care Power of Attorney. But it goes 

way beyond the basics, revealing details 

in a sequential order, beginning with a 

priority list of contact data for insurance 

companies and funeral arrangements. 

There’s a list of important passwords; a 

list of friends and business contacts; and 

scans of all the active keys he carries for 

his home, cars and the safe-deposit box. 

The document provides a list of all 

credit card numbers, utilities accounts, 

savings and checking accounts, investment 

photo illustration by Ryan etter 

accounts, insurance policy numbers, user 

IDs and so forth. His daughter will even 

have instructions on how to care for his 

hanging plants. 

Ratzman also tips off his daughter to 

the potential value of some of his possessions, 

including a vintage Hawaiian shirt 

that might be a collector’s item. “She would 

never know that,” he says. And he supplies 

the name of a trusted car dealer to call if 

she wants to sell his ’72 Corvette. 

Ratzman continually updates the document. 

“My daughter was grateful when I 

told her about it, but didn’t want to know 

the details,” he says with a laugh. “It’ll 

be there when she needs it most, safely 

stored in a safe-deposit box.” 

Such letters of instruction also can be 

stored in a fire-proof safe at home. Make 

sure your loved ones have the code to open 

it, or that they’re named on a safe-deposit 

box so they can access it. n 

See legal disclosures on page 30. 

Turn 

to USAA 

Financial Planning. 

Work with a USAA Cert i f i e d 

Fin a n c i a l Pl a n n e r practitioner. 

Log on to USAA. 

COM and use keyword “Financial 

Planning Services.” 

Trust Services. You can 

name the USAA Federal 

Savings Bank as acting, or 

successor, Trustee. A team 

of Trust administrative 

professionals can help manage 

your parents’ finances. 

Log on to USAA.COM 

and use keyword “USAA 

Trust Services.” 

Medicare-Related 

Help. USAA Life Insurance 

Company offers Medicare 

Supplement Insurance and 

USAA Life General Agency 

has contracted with Humana 

to provide Medicare prescription 

drug plans and 

Medicare Advantage plans. 

Call (800) 531-0909, or log 

on to USAA.COM and use 

keyword “Medicare.” 

Long-Term Care Insurance. 

USAA Life Insurance 

General Agency makes 

available Long-term Care 

Insurance that potentially 

can help keep your parents’ 

nest egg intact. Log on to 

USAA.COM and use keyword 

“Long-term Care.” 

Power 

Play 

For more on Power of 

Attorney, visit USAA.COM/ 


“Power Play.” 

GHA03DCRR 

usaa.com WINTER 2008 usaa magazine 

23

TEACH YOUR 

CHILDREN 

WELL 

MAKING 

ALLOWANCES 

For ideas on the best way 

to dole out allowance, 

log on to USAA.COM/ 


“Making Allowances.” 

BY TERI CETTINA 

Your kids learn their 

money habits from 

you. Make sure 

they’re good ones 

24 

EVERYChristmas, USAA 

member Susan Beacham gives her 

teenagers coupons for family outings. 

A Milwaukee Brewers game. A purse 

with an invitation to meet the refugee 

women-turned-entrepreneurs who made 

it at a local nonprofit. “It’s important that 

my daughters — and all kids, really — 

see that charity isn’t just writing a check. 

It’s about helping real people,” says 

Beacham, a former banker who founded 

Money Savvy Generation for kids. 

Read on for more tips. 

TEACH THE VALUE OF SAVING 

USAA member and veteran teacher 

Karyn Hodgens and her husband created 

a spreadsheet to explain the concept 

of compound interest to their freespending 

son. “Something clicked. He 

said, ‘You mean I’ll earn more money 

just by letting it sit there?’ He was an 

instant convert,” Hodgens says. Soon, 

she and husband John, a software engineer, 

developed KidsSave, a software 

program that creates virtual accounts 

to track the real money in piggy banks. 

USE TECHNOLOGY 

Tech-savvy kids have plenty of options 

for online money-education sites, such 

as kids.gov. But before they play with 

virtual money, they must be comfortable 

with the real thing. “They need to touch 

dollars and coins, count them, stack 

them and learn that they’re concrete 

things,” says Neale Godfrey, author of 

Money Doesn’t Grow on Trees. 

WALK THE WALK 

Kids watch, more than they listen to 

lectures, Godfrey says. Agrees Beacham: 

“You may be the greatest money manager 

in the world, but if you don’t show 

and tell your children what you’re doing, 

they can’t learn from you.” 

MAKE ALLOWANCES COUNT 

Beacham suggests kids pay for actual 

expenses with part of their allowances — 

such as schoolbook orders. “[It] teaches 

kids how to make hard choices,” she says. 

GO BEYOND SPENDING LESSONS 

Require kids to save, invest and donate. 

“They need to learn that money isn’t just 

for spending,” says Godfrey. 

CREATE MONEY-MATCHING 

PROGRAMS 

Matching your kids’ savings — the 

way employers match money in a 

401(k) plan — can be a powerful motivator. 

Grandparents might also offer 

matching funds. 

DON’T BE TOO GENEROUS 

Even if you can afford to give your teens 

a comfortable allowance — don’t, suggests 

Godfrey. “By about age 12, kids 

should do small, paying jobs for friends 

and family members,” she says. “By 16, 

they’re capable of getting summer jobs 

and saving for year-round expenses.” ■ 

Bank products provided by USAA Federal 

Savings Bank, Member FDIC. 

YOU, USAA AND YOUR KIDS 

To add your children to your USAA profile, log on to USAA.COM 

and use keyword “Preferences.” Click My Profile and Preferences 

> Personal Information. 

Help your teens open a USAA Teen Checking or Savings 

account online. Go with them to a Web site created just 

for them: MYUSAA.COM. There, they can log on to make 

transactions or subscribe to USAA youth magazines. 

USAA MAGAZINE WINTER 2008 USAA.COM 

PHOTOGRAPHY BY JEFF NEWTON • ILLUSTRATIONS BY ZELA LOBB

member savings | Exclusive Products and Services for USAA MEMBERS ONLY 

find out how USAA can 

help you, too 

The day Rick Deese found out that under 

new eligibility requirements he could 

become a USAA member, he took action. 

“I joined that night,” says the retired Air 

Force chief master sergeant. Now he’s 

saving about $3,700 per year on auto 

insurance and enjoying other benefits. 

His family has: 

■ USAA Auto Insurance Policies 

on three vehicles. Deese could hardly 

believe his low rate quote on USAA.COM. 

“Switching to USAA was a no-brainer,” 

he says. 

■ USAA Checking and Savings 

Accounts. Deese and his wife like using 

direct deposit, USAA Web BillPay ® and a 

debit card that allows them to get ATM 

fees reimbursed and to receive points for 

debit card purchases. 

■ USAA Homeowners Policy. Deese 

enjoys accessing this policy and his other 

USAA accounts on USAA.COM. 

Deese will share the USAA legacy with 

his four children, and he appreciates 

USAA’s support of military families: “When 

I retire from my current job in the civilian 

world,” he says, “I’d like to be the doorman 

at USAA.” 

Photograph by Kemp Davis 

PAGE 26 

Banking Services 

You Can Trust 

PAGE 27 

Great rates on 

retirement tools 

PAGE 28 

usaa home 

services can save 

you up to $4,300 

Tell your family and friends that they might be 

eligible for USAA membership. 

go to usaa.com, go to My Accounts page, and click 

“Share USAA” in the bottom right corner. 


25

BANKING 

THE BANK YOU CAN TRUST 

HOME EQUITY LINE OF CREDIT 

New Year’s Solution 

A Home Equity Line of Credit from USAA can help. 

With variable Annual Percentage Rates as low 

as 5.29% and no prepayment penalties, you can 

lower your monthly payments, accelerate your 

debt consolidation plan or free up the cash your 

family needs to make 2009 its best year ever! 2 

Restrictions apply. See page 30 for details. 

Apply in minutes online. 

GO TO USAA.COM 

(keyword: USAAHomeEquity) 

USAA BANKING 

Are You with the Right Bank? 

Been meaning to make the switch to 

USAA? We’ve made it simple to transfer 

to a USAA checking or savings account. 

Start the process online and soon you can 

take advantage of it all: 

✓ USAA free checking with no minimum 

balance requirements 

✓ USAA savings account with interest 

rates that grow with your balance 

✓ No monthly fees 

✓ Free worldwide ATM usage* 

✓ Free transfers from non-USAA accounts 

✓ Free online bill payment 

✓ Mobile access: Check account balances 

at MOBILE.USAA.COM 

✓ And much more! 

*USAA does not charge a fee for the first 10 ATM withdrawals 

and refunds up to $15 in other banks’ ATM usage fees each 

month. Currency conversion charges may apply when using 

ATMs outside the U.S. 

See how easy it is to sign up! 

GO TO USAA.COM 

(keyword: EasySwitch) OR CALL 

(800) 531-USAA (8722) 

PHOTOGRAPH BY IMAGE SOURCE 

USAA MASTERCARD 

A Chance to Give AND Receive 

With no annual fees and your choice of rewards programs, the 

benefits of a USAA MasterCard ® card are among the industry’s 

best. Now, it has another benefit. Sign the sales slip for every 

purchase made with your USAA MasterCard ® * between Nov. 1, 

2008, and Jan. 2, 2009, and you’ll be automatically 

entered for a chance to win. 

This holiday season MasterCard is giving you 

the chance to win two matching holiday gifts 

in the Overjoy of Giving Sweepstakes. One to 

give away and one to keep for yourself. You 

could win two cars, two trips, two Home Depot ® 

home makeovers or two shopping sprees. 

Current USAA MasterCard holders can visit 

priceless.com/overjoy. Don’t have a USAA MasterCard yet? 

Log on to USAA.COM and use keyword “MasterCard” to apply. 

Hurry, the promotion ends Jan. 2, 2009. 

All USAA MasterCard cardholders are winners with 

your choice of cash rebates or merchandise or travel 

discount; industry-leading fraud protection; and 

combined rewards points** on debit and credit cards 

to earn rewards faster. 

Get a USAA MasterCard card. 

GO TO USAA.COM (keyword: MasterCard) 

ENJOY 

LOW 

RATES! 

*NO PURCHASE NECESSARY. Max. $70,000/prize package. Shopping Spree: 

MasterCard Gift Card & Home Makeover: Home Depot Store Credit. Void where 

prohibited. PIN-based & international transactions ineligible. Starts 11/1/08. 

Ends 1/2/09. Restrictions apply. Visit priceless.com/overjoy for Official Rules & 

complete details. 

**Earn 1 point for every $1 credit card purchase or $2 debit card purchase. 

Select ‘credit’ at checkout; PIN-based purchases do not earn points. Other 

restrictions apply. 

26 


RETIREMENT 

security you deserve 

annuities 

Safe Havens 

Reach for retirement goals with no market risk. All our 

annuities are backed by the strength of USAA Life Insurance 

Company or USAA Life Insurance Company of New York, 

both rated AAA — “Extremely Strong” by Standard & Poor’s. 

Savings Annuities 

■ Get peace of mind. The money you put in and your interest 

are guaranteed no matter what happens in the stock market 

■ Tax-deferred compounding interest helps you reach 

retirement goals faster 

■ Apply for rates as high as 5.7% with a minimum guaranteed 

rate of 1-3% with the Extended Guarantee Savings Annuity. 

Lock them in for 2, 5 or 10 years 3 

guaranteed Income Annuities 

■ Monthly fixed income for the rest of your life 

■ Structured payouts so you (or your beneficiary) get back 

all the money you put in 4 

Garrett Kost, Certified Wealth Strategist with USAA 

Photograph by karl gerber 

Lock in your rate. 

GO TO USAA.COM (keyword: USAAannuities) 

Certificates of Deposit 

Take Advantage: Great CD Rates 

Fixed Rate and Adjustable Rate Certificates of Deposit make 

great retirement savings tools. Why? Both are FDIC-insured 

and offer guaranteed growth. 

Adjustable Rate CDs 

■ If rates rise, you can opt to make a one-time adjustment 

and at the same time add more money. Then, the rate never 

goes down 

■ Lock in rates as high as 4.75% Annual Percentage Yield 

with a 5-year term 5 

Fixed Rate CDs 

■ 5 

Get 5% Annual Percentage Yield for a 5-year fixed-rate CD 

Secure your rate today. 

GO TO USAA.COM (keyword: USAACDs) 

Announcing the 

USAA Global 

Opportunities 

Portfolio 

management 

fees up to 

40% 

BELOW INDUSTRY 

AVERAGE 

Stocks are volatile. But you 

can’t avoid them altogether if you 

want your nest egg to potentially grow. The 

USAA Global Opportunities Portfolio is a 

managed account that invests your money 

in USAA Mutual Funds that have exposure 

to stocks from around the world as well as 

fixed income securities. 

It is designed for conservative members who 

want moderate growth potential and seek to 

limit their risk. 

Find out more from a USAA 

investment professional. 

CALL (800) 531-USAA (8722) 

Investments/Annuities: Not FDIC Insured • Not Bank Guaranteed • May Lose Value 

See page 30 for important information. 



27

HOME 

SMARTER WAYS TO FINANCE YOUR HOME 

USAA HOME SERVICES 

Are Your Mortgage Payments Hard to Make? 

Want to Re-Fi? USAA Can Help. 

In light of all the recent economic news, one thing is clear: You need 

a lender you can trust. That’s why thousands use our low-rate home 

loans to finance their dreams. In fact, now may be a good time to 

buy — USAA’s member-only mortgage rates and closing costs make 

it even easier. 

With a USAA Member-Only Mortgage, 

the Savings Add Up 

$1,200 

UP TO 

+$3,100 

YOU SAVE UP TO 

$4,300 

Average USAA member savings 

on points and lenders fees 6 

Your cash bonus when you buy and sell 

your home with USAA MoversAdvantage ® 

real estate services 

Mortgage specialists are on call. 

GO TO USAA.COM (keyword: MoveEasier) 

OR CALL (800) 531-1282 

USAA MO V E R SAD VA N T A G E ® 

Making Moving Easier 

Buying or selling your home should be exciting — not stressful. USAA 

ensures that the entire process runs smoothly by assigning you a 

MoversAdvantage 7 specialist who: 

■ Helps you select from a national network of USAA Preferred Real 

Estate Companies 

■ Monitors your agent’s performance, helping to make sure your needs are 

met every step of the way 

■ Acts as your advocate, dedicated to providing you with excellent service 

■ Provides you with a cash-back bonus of up to $3,100 when you buy and 

sell your home with MoversAdvantage 

Real estate services you can trust. 

GO TO USAA.COM (keyword: MoversAdvantage) 

PHOTOGRAPH BY TIM PANNELL/CORBIS 

28 


auto 

the right car for you 

USAA Car Services 

Someone 

on Your Side 

With our innovative suite of 

services, USAA helps you find the 

car you want, with the features 

you want, at the price you want. 

FIND 

The Power Of 

Choice The USAA Car 

Buying Service lets you search 

a massive “virtual lot” of new 

and used cars so that you can 

find the model that’s just right 

for you. Read reviews, customize 

extras, view multiple photos and 

get a price estimate — specially 

negotiated for members, with 

savings up to $2,600 off MSRP 8 

for a new car purchase. Find 

out what your trade-in could 

be worth, too! 

BUY 

The Power 

of Money 

Money talks, so you’ll definitely 

be heard when you enter a new 

car showroom holding one of our 

checks in your hand. Our member-only USAA Auto Loan rates are 

extremely competitive, approval takes only minutes online and 

up to 100% financing lets you drive away in your new car having 

used our cash! 9 The Power of Protection 

insure 

With low rates, it’s hard to believe that such a 

small amount of cash can blanket your car in coverage, but that’s 

exactly what our service does. You save up to $600, 10 enjoy a 

generous accident-forgiveness program 11 and get an automatic 

assessment of your claim online thanks to our Internet Loss 

Report system. 

Get it all done today. 

GO TO USAA.COM/AUTO OR CALL 

(800) 531-USAA (8722) 

Photograph by altrendo images/Getty 

ENTER THE 

1,000 

GALLONS OF GAS 

sweepstakes! 

Go to USAA.COM/ 

AUTO 

No purchase 

necessary to enter 

or win. A purchase 

will not increase your 

chances of winning. 

See complete rules 

at usaa.com/auto. 

See page 30 for important information. 



29

FINANCIAL PLANNING 

THE USAA 

EDUCATIONAL 

FOUNDATION ® 

PLANNING FOR RETIREMENT 

MONEY MANAGEMENT 

BUILDING AND MAINTAINING 

GOOD CREDIT 

INVESTING 

INDIVIDUAL RETIREMENT 

ACCOUNTS (IRAs) 

The USAA Educational 

Foundation, a nonprofit 

organization, has the 

resources to help make 

your life more manageable. 

Planning For 

Retirement #508 

Financial Planning 

And Goal Setting #511 

Mutual Funds #517 

Making Money 

Work For You #523 

Annuities #525 

Building And 

Maintaining 

Good Credit #536 

Stocks And Bonds #553 

IRAs #561 

To order free publications, 

just call (800) 531-6196 or 

visit usaaedfoundation.org. 

Have your USAA number and 

publication number ready 

when you call. 

The USAA Educational Foundation 

does not endorse or promote any 

commercial products or services. 

LEGAL DISCLOSURES 

The preceding articles should not be 

considered tax, legal or estate planning 

advice. Consult your tax, legal or estate 

planning professional regarding your 

specific situation. 

Certified Financial Planner Board of Standards, 

Inc., owns the certification marks 

CFP ® and CERT I F I E D FI N A N C I A L PL A N N E R in the 

U.S. which it awards to individuals who successfully 

complete CFP Board’s initial and 

ongoing certification requirements. 

Page 9 

1 

With replacement cost coverage, at our 

option and subject to policy limits, if you 

actually replace the property we will pay you 

the lesser of our cost to restore, repair or 

replace the damaged property or the amount 

you actually spent to restore, repair or 

replace the property. 

Page 23 

Trust Services offered by USAA Federal 

Savings Bank. 

Medicare supplement insurance by USAA 

Life Insurance Company, San Antonio, TX. 

Not available in MA, MN, NJ, NY, WI. Medicare 

supplement insurance and USAA Life Insurance 

Company are not associated with the 

federal Medicare Program. USAA Life General 

Agency, Inc. (LGA) (known in CA and NY 

as USAA Health and Life Insurance Agency) 

acts as an agent for select insurance companies 

to provide additional products to USAA 

members. LGA representatives are salaried 

and receive no commissions. However, LGA 

receives commissions from those companies 

which can include compensation based on 

the total quantity and quality of insurance 

coverage purchased through LGA. Plans not 

available in all states. 

Page 26 

2 

Subject to credit and property approval. 

Rates shown are APRs. Line of credit rates 

are variable and are based on The Wall 

Street Journal Prime Rate plus/minus a margin. 

As of October 21, 2008, line of credit 

APRs range from 5.29% to 14.59% based on 

the amount of equity in your home, the loan 

amount and your credit history. Offer based 

on a loan to value ratio of 70% or less. The 

maximum APR that may be imposed is 18%. 

Fees paid to third parties to open the line are 

estimated to range from $92 to $802.50 for 

a line amount of $50,000 with typical circumstances, 

depending on cost of evaluation, 

title work, and your state’s recording 

fees and mortgage taxes, if any. Property 

insurance is, and flood insurance may be, 

required. Rates subject to change. Consult 

your tax advisor regarding the deductibility 

of interest. Additional restrictions apply to 

Texas home equity loans/lines. Offer not 

available in all locations. You may have one 

rate lock at a time on your line of credit balance. 

$4,000 minimum per lock. 

Page 27 

3 

Rate effective Nov. 1, 2008, subject to 

change. The rate shown applies to a 10-year 

Extended Guarantee Annuity with a balance 

of $1 million. Extended Guarantee Annuity 

earns interest at the rate in effect at the time 

of purchase. Rate guaranteed for the period 

selected. Afterwards, interest rates may 

change monthly, but not below the minimum 

guaranteed interest rate. The minimum guaranteed 

interest rate is subject to change and 

may vary by product and state. The minimum 

guaranteed interest credited to the 

contract will be 1%-3%. The minimum guaranteed 

rate is fixed and will not change after 

the contract is issued. Form AEG37641ST 

05-01 (varies by state); in NY, NEG38001NY 

05-01. Call for details on specific policy costs, 

benefits, limitations and availability in your 

state. 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. Each company 

has sole financial responsibility for 

its own products. Company ratings represent 

an opinion of financial strength and the 

company’s ability to meet ongoing obligations 

to policyholders. 

4 

Money not previously taxed is taxed as 

income when paid. 

5 

$1,000 minimum opening deposit. Annual 

Percentage Yield (APY) of 4.75% current as 

of 10/24/08, APY of 5% current as of 

10/31/08, and may change. Penalty for early 

withdrawals may reduce earnings. 

Page 28 

6 

$1,200 savings figure based on comparison 

of $200,000, 30-year fixed rate loan. 

7 

MoversAdvantage ® offered by USAA 

Relocation Services, Inc., a licensed real 

estate broker and subsidiary of USAA Federal 

Savings Bank. Not available for employer-sponsored 

relocations, or for transactions 

in Iowa or outside US. This is not a solicitation 

if you are already represented by a real 

estate broker. 

Cash bonus limited in some states. Bonus 

ranges from $350-$1,550 based on sale 

price of home sold/purchased. You must 

enroll in program before contacting participating 

real estate firm and be represented 

by that firm at closing to qualify for bonus. 

Qualify for an additional $100 when you 

also finance your home purchase with a 

USAA mortgage. 

Page 29 

8 

Based on actual member sales. 

Car buying service available for new car/ 

truck purchases, lowest possible price not 

guaranteed. Not available in all locations. 

9 

Loans and 100% financing subject to credit 

and property approval. Total loan amount 

cannot exceed USAA’s determination of vehicle’s 

retail value plus tax, title and license. 

10 

Annual savings based on countrywide survey 

of new customers from 12/01/06 through 

11/30/07, and includes a discount for online 

purchase or quote. Actual savings may 

vary. Savings do not apply in NJ and MA. 

Online discount not available in CA, FL, GA, 

HI, ME, and NC. Discount is up to $30 in MO 

and MA. Discount applies to new policies 

only. Restrictions apply. 

11 

Stay accident-free for five years as a USAA 

policyholder and your premium won’t go up 

if you have one at-fault accident. Accident 

forgiveness is not available in CA, HI, MA, NC, 

NY and PA. 

Page 31 

Free shipping offer: applies only to new 

orders placed on or before February 15, 

2009. 

Risk-Free purchase guarantee: Should any 

purchase not meet your expectations, 

please follow the instructions on the back of 

your packing slip. You may return your purchase 

within 30 days of receipt for a refund 

or exchange (less shipping, handling and 

return postage). We regret that personalized 

items may not be returned unless due to an 

error on our part or manufacturing defect. 

We will refund shipping and handling 

charges on damaged or defective merchandise 

returned to us. Loose diamond returns 

must be accompanied by the diamond grading 

report or a replacement fee of $150.00 

will be charged. Items that show signs of 

excessive wear, those that have been altered 

or resized by anyone other than USAA, and 

items damaged in any way cannot be 

accepted for return. 

Valuable Personal Property Insurance: $4 a 

month provides $2,500 of coverage on 

scheduled jewelry. Rates are subject to 

change and may vary due to location. Valuable 

Personal Property insurance provided 

by United Services Automobile Association, 

USAA Casualty Insurance Company, USAA 

General Indemnity Company, and Garrison 

Property and Casualty Insurance Company, 

USAA Limited (Europe). San Antonio, TX. 

Each company has sole financial responsibility 

for its own products. 

Member 

Use of the term “member” does not convey 

any legal, ownership, or eligibility rights for 

property and casualty insurance products. 

Ownership rights are limited to eligible 

policyholders of United Services Automobile 

Association. Eligibility may change 

based on factors such as marital status, 

rank, or military status. Contact us to update 

your records. Children of USAA members 

are eligible to purchase auto or property 

insurance if their eligible parent purchases 

USAA auto and property insurance. 

Eligibility restrictions apply to purchase of 

property and casualty insurance. To be eligible 

for auto and property insurance, separated 

military personnel must have been 

separated on or after 1/1/1996 with a discharge 

type of “Honorable.” Once eligibility 

is established, it is generally ongoing. Eligibility 

may change based on factors such as 

marital status, rank, or military status. Customers 

must be in good standing and meet 

underwriting guidelines. Rates and benefits 

may vary due to eligibility. 

Notice to USAA Members 

United Services Automobile Association 

(“USAA”) continuously works to attract and 

retain the services of highly qualified individuals 

to serve as directors. However, the 

potential exposure to corporate litigation 

and associated expense of defense can be a 

significant disincentive to serve. Accordingly, 

the Bylaws of USAA require USAA to indemnify 

its directors to the maximum extent 

permitted by law for matters arising out of 

their service to, or at the request of, USAA. 

Pursuant to that obligation, USAA will provide 

indemnification and has advanced expenses 

in a recent lawsuit that names all the directors 

as defendants. The Court recently dismissed 

the suit. Plaintiff has appealed. 

USAA Companies 

USAA means United Services Automobile 

Association and its affiliates. Property and 

casualty insurance provided by United Services 

Automobile Association, USAA Casualty 

Insurance Company, USAA General 

Indemnity Company, Garrison Property and 

Casualty Insurance Company, USAA County 

Mutual Insurance Company, USAA Texas 

Lloyds Company, San Antonio, TX, and 

USAA, Ltd. (Europe), and is available only 

to military members and their families who 

meet certain membership eligibility criteria. 

Each company has sole financial 

responsibility for its own products. Coverage 

descriptions are brief and subject to 

the terms and conditions of your policy. 

Read your policy for details. Applications 

subject to underwriting. To find out if you 

are eligible, contact USAA. Underwriting 

restrictions apply. Investments provided by 

USAA Investment Management Company 

and USAA Financial Advisors, Inc., both 

registered broker dealers. Life insurance 

and annuities offered by USAA Life Insurance 

Company, San Antonio, TX, except in 

NY; some life insurance may also be offered 

in most states by USAA Direct Life Insurance 

Company, Omaha, NE; in NY, life insurance 

and annuities offered by USAA Life 

Insurance Company of New York, Highland 

Falls, NY. Financial planning services provided 

by USAA Financial Planning Services 

Insurance Agency, Inc. (known as USAA 

Financial Insurance Agency in California), a 

registered investment advisor and insurance 

agency. Financial advice provided by 

Financial Advice Center as a service of 

USAA Financial Planning Services Insurance 

Agency, Inc. (known as USAA Financial 

Insurance Agency in California), and 

USAA Financial Advisors, Inc., a registered 

broker dealer. Credit cards provided by 

USAA Savings Bank, other bank products 

provided by USAA Federal Savings Bank, 

both Member FDIC. Alliance services provided 

through USAA Alliance Services, LP. 

Each company has sole financial responsibility 

for its own products. © 2008 USAA. 

XXXXX 88157 

30 USAA MAGAZINE WINTER 2008 USAA.COM

member snapshot 

PHOTOGRAPH BY ISSOUF SANOGO/AFP/GETTY IMAGES 

Spc. Vincent Hancock 

USAA member since 2006 

When Vincent Hancock first picked 

up a shotgun as a boy, he wanted to 

shoot. “I was too small, so my dad 

held the gun for me,” says the 2008 Olympic 

gold medalist. 

Now 19 and part of the U.S. Army Marksmanship 

Unit, Hancock garnered gold in men’s 

skeet for his country — and for his comrades. 

“Standing on the podium reminded me that I represent 

American soldiers everywhere,” he says. 

Hancock caught the Army’s attention when 

he was still in high school. At his first international 

competition in 2005, the 16-year-old won 

four gold medals, three silver medals and broke 

three world records. That year, he competed in 

seven international events and medaled in all 

of them. 

Hancock spoke with a recruiter in his 

hometown of Eatonton, Ga., and visited 

nearby Fort Benning, where the team is based. 

“These are the best training facilities and the 

best shooters,” says Hancock, who enlisted 

through the Army’s Delayed Entry Program as 

a high school junior. 

The Army helped Hancock mature as a competitor. 

Today his competition schedule takes 

him to countries such as Belarus. Wherever he 

goes, he tries to make personal connections 

with his opponents. “I want them to know that 

Americans are good people,” he says. 

Hancock has his sights set on at least the 

next five summer Olympics. He’ll be 39 for 

the 2028 games. “If your goals are high, you’re 

capable of anything,” he says. ■ 

USAA member Vincent Hancock, 

a specialist with the U.S. Army 

Marksmanship Unit, won gold in men’s 

skeet at the 2008 Summer Olympics. 

Standing on the 

podium reminded 

me that I represent 

American soldiers 

everywhere. 

61425-1108

MAGAZINE - USAA

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