MAGAZINE - USAA

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