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Winter 2007 USAA.com Magazine

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<strong>USAA</strong>.COM<br />

usaa<strong>com</strong><br />

protect your <strong>com</strong>puter get a good deal on a cell phone smart holiday spending winter <strong>2007</strong><br />

L I N K I N G Y O U T O F I N A N C I A L S E C U R I T Y<br />

Car-Buying<br />

Secrets<br />

A former car salesman offers tips<br />

to steer you to the best deal<br />

<strong>USAA</strong> member Marquis Willis<br />

shares his car-buying tips<br />

gleaned from his six months<br />

working the lot.


stuff Happens.<br />

Cover your assets.<br />

The average break-in costs a victim $20,000. But with <strong>USAA</strong> renters insurance you get 100%<br />

replacement value for any of your stuff that gets stolen, soaked, burnt or broke – including<br />

TVs, <strong>com</strong>puters, stereos, clothes, furniture and more. All for as little as five bucks a month.*<br />

Which means, if you have <strong>USAA</strong>, somebody’s always watching your backside.<br />

Protect your stuff at usaa.<strong>com</strong>/coveryourassets or call 800.563.8904.<br />

Property and casualty insurance products are available to military members and their families who meet certain membership eligibility criteria. *Coverage descriptions are brief and subject to the terms and conditions of your policy. Annual policy providing $2,500 of property coverage.<br />

Rates may vary due to location. © <strong>USAA</strong> <strong>2007</strong>. All rights reserved. 1635:27460


4<br />

6<br />

8<br />

10<br />

12<br />

14<br />

16<br />

18<br />

20<br />

contents<br />

<strong>Winter</strong> <strong>2007</strong> • VOLUME 1, NUMBER 4<br />

To the Point<br />

Put a stop to spam, stay safe on the road, weigh<br />

the advantages of debit versus credit.<br />

Car-Buying Secrets<br />

A former car salesman offers his tips from the lot<br />

to steer you toward the best deal.<br />

Super Cell<br />

What you should know about minutes and limits<br />

before you sign up for a new phone.<br />

Holiday Change<br />

Strategies for smart spending in the spirit of the<br />

holiday season.<br />

A Rookie’s Guide to Investing<br />

Paralyzed by fear of the stock market Tremble no<br />

more! Our tips help you get started.<br />

Who’s Watching<br />

Use these strategies to protect your home <strong>com</strong>puter<br />

from unwanted hack attacks.<br />

Party Smarts<br />

Throw an unforgettable shindig, no matter how<br />

much — or how little — you have to spend.<br />

Financial Solutions<br />

Whether it’s help buying a new car, high-reward<br />

credit cards, or no-hassle free checking, <strong>USAA</strong> has<br />

just what you need.<br />

Giving Back<br />

A Canadian native honors fallen U.S. heroes.<br />

Low prices, best values<br />

on usaa.<strong>com</strong><br />

At usaa.<strong>com</strong>, you can manage your <strong>USAA</strong> accounts<br />

anytime and anywhere, in an online environment that is<br />

safer and more secure than the U.S. mail. And usaa.<strong>com</strong><br />

is where you will find our very best values, including:<br />

›› A $50 “Online Driver Discount” in most states —<br />

and even in some foreign countries — for members<br />

who obtain quotes and purchase their auto<br />

insurance online.<br />

›› Our lowest interest rates on auto loans.<br />

›› A $100 credit toward closing costs on home<br />

mortgage loan applications <strong>com</strong>pleted online.<br />

›› Reduced brokerage <strong>com</strong>missions for online trades.<br />

What else can you do online You can do your<br />

banking; pay your <strong>USAA</strong> bills, and any other bills, with<br />

<strong>USAA</strong> Web BillPay®; get a free financial assessment;<br />

buy and sell mutual funds and stocks; make changes<br />

to your auto policy; and file insurance claims.<br />

Sign up to receive your statements, policies, and<br />

bills electronically, and securely store some of your<br />

<strong>USAA</strong> documents for up to seven years.<br />

You’ll find our best values, exclusive offers, and<br />

low prices at usaa.<strong>com</strong>. And you can conduct business<br />

24 hours a day, safely and securely. Not near a <strong>com</strong>puter<br />

No problem — check your account balances and make<br />

trades directly from your mobile device at mobile.<br />

usaa.<strong>com</strong>. And remember: If you get stuck or need<br />

advice, you can still call <strong>USAA</strong>’s best-in-class member<br />

service advisors for guidance.<br />

Sincerely,<br />

Robert G. Davis<br />

Chairman and Chief Executive Officer<br />

<strong>Winter</strong> <strong>2007</strong><br />

<br />

usaa.<strong>com</strong><br />

See legal disclosures on page 19.<br />

c o v e r p h o t o b y r i c k d a h m s<br />

usaa.<strong>com</strong> magazine is published<br />

four times a year by <strong>USAA</strong> as an<br />

informational and educational service<br />

to members. The post office does<br />

not forward copies from incorrect<br />

addresses. Copyright <strong>2007</strong> by <strong>USAA</strong>.<br />

All rights reserved.<br />

executive editor Sarah Plaster<br />

senior editor Suzanne McAuliffe<br />

contributors Elizabeth Lewin, Nancy<br />

McAllister, Brian McGlinchey, Joseph<br />

Montanaro Jr., and David Wood<br />

production and circulation manager<br />

Lisa M. Severson<br />

vice president,<br />

member <strong>com</strong>munications<br />

Rhonda A. Crawford<br />

design McMurry Inc.<br />

editorial services <strong>USAA</strong>, 9800<br />

Fredericksburg Road, San Antonio, TX<br />

78288-3533; (800) 531-8646 (magazine<br />

business only). For information about<br />

<strong>USAA</strong>’s products and services, log on to<br />

usaa.<strong>com</strong> or call (800) 531-8100. For<br />

information about reprinting material<br />

from usaa.<strong>com</strong> magazine, please write<br />

to Lisa Severson at the San Antonio<br />

address. Requests must be in writing.<br />

mission <strong>USAA</strong>’s mission<br />

is to facilitate the financial<br />

security of its members, associates,<br />

and their families through the provision<br />

of a full range of highly <strong>com</strong>petitive<br />

financial products and services; in so<br />

doing, <strong>USAA</strong> seeks to be the provider of<br />

choice for the military <strong>com</strong>munity.<br />

<strong>USAA</strong> products and services are<br />

available only in those jurisdictions<br />

where <strong>USAA</strong> is authorized by local law<br />

to promote and sell them.


to the point<br />

stop me<br />

b4 i txt<br />

agn<br />

winter <strong>2007</strong><br />

<br />

usaa.<strong>com</strong><br />

Windshields:<br />

Repair Instead of<br />

Replace<br />

<strong>Winter</strong> weather can make your windshield<br />

more vulnerable to cracking. Small cracks can<br />

quickly turn into big ones if you don’t get them<br />

fixed right away. Keep this in mind:<br />

■ Repairs typically take about 30 minutes — a<br />

lot less time and hassle than it takes to<br />

get a total replacement.<br />

■ Repairing it keeps one more windshield out<br />

of a landfill.<br />

■ Because repairs are less expensive than<br />

replacement, <strong>USAA</strong> will cover the cost of a<br />

repair without charging a deductible.<br />

42 %<br />

of all the riders who<br />

died in 2005 weren’t<br />

wearing helmets.<br />

—National Highway Traffic and<br />

Safety Administration<br />

easy (to see) rider<br />

Sixty percent of motorcycle<br />

deaths occur at night, when<br />

motorcycles are harder to<br />

see, reports the National<br />

Highway Traffic and Safety<br />

Administration.<br />

The latest study shows<br />

a 5.1 percent increase in<br />

motorcycle deaths <strong>com</strong>pared<br />

with an overall<br />

2 percent drop in motor<br />

vehicle fatalities.<br />

If you’re texting while<br />

driving, you’re not alone.<br />

66 %<br />

64 %<br />

89 %<br />

The NHTSA offers these<br />

suggestions to make sure<br />

other drivers see you:<br />

■ Don’t ride in a car’s<br />

blind spot.<br />

■ Anticipate what may<br />

happen more than other<br />

vehicle drivers may.<br />

■ Be extra careful and<br />

aware at intersections,<br />

where most motorcycle<br />

crashes occur.<br />

Drivers who’ve used text<br />

messaging and admit to<br />

reading text messages while<br />

cruising down the road.<br />

Drivers between the ages<br />

of 18 and 34 who admit to<br />

texting behind the wheel.<br />

Americans who think it’s<br />

distracting and dangerous and<br />

should be outlawed.<br />

Washington became the first state in the nation<br />

to ban the practice. Others are quickly following suit.<br />

Source: Pinger Inc.; Harris Interactive<br />

■ Use your headlights, day<br />

and night.<br />

Until recently, reflective<br />

decals and bright clothing<br />

offered the best way to<br />

stand out after sunset. Today,<br />

helmet manufacturers are<br />

putting high-visibility lights<br />

into their products to really<br />

make riders shine. Insist on<br />

a helmet that meets federal<br />

safety standards.<br />

T e x t i n g i m a g e : g e t t y i m a g e s ; s n o w w i n d s h i e l d : M i c h a e l B e t t s / g e t t y i m a g e s ; m o t o r c y c l e : I S t o c k p h o t o s


Stop<br />

Junk E-mail<br />

w o m a n a t c o m p u t e r : p u n c h s t o c k ; s p a m b u t t o n : I S t o c k p h o t o s<br />

Almost 3<br />

out of 4 U.S.<br />

consumers<br />

under age 30<br />

report using<br />

debit cards –<br />

more than<br />

any other<br />

age group.<br />

Source: “Changes in the Use of Electronic<br />

Means of Payment: 1995–2004,” by<br />

Loretta J. Mester (Business Review, Federal<br />

Reserve Bank of Philadelphia, Q2 2006)<br />

Paying with Plastic<br />

Debi t c ards have exploded in popularity, and<br />

Americans under 30 are leading the way.<br />

There’s one important difference between debit<br />

and credit cards: Credit card issuers offer processes<br />

to help you resolve disputes with merchants, but<br />

with some debit cards you may be on your own.<br />

That doesn’t mean you should retire your debit<br />

card — just be selective about when you use it.<br />

The debit card provides safe access to your<br />

cash (without having to carry it in your<br />

wallet or purse), a great tool to track regular<br />

expenses while remaining a “cash buyer,” and<br />

interest-free purchases and rewards points or<br />

cash-back programs.<br />

Favor your credit card when you’re traveling,<br />

shopping online, or buying big-ticket items.<br />

Next time you<br />

receive an unsolicited<br />

e-mail,<br />

think twice<br />

before clicking<br />

the link at the<br />

bottom that lets you remove yourself<br />

from the sender’s distribution list<br />

unless you know it is a valid e-mail<br />

from a reputable <strong>com</strong>pany.<br />

Unscrupulous spammers deceptively<br />

offer these links as a way of<br />

validating your e-mail address and<br />

then proceed to spam away.<br />

To defend yourself against the<br />

100 billion unwanted e-mails that<br />

The New Yorker reports are fired<br />

at the world’s <strong>com</strong>puters every day,<br />

try these tips from the Federal Trade<br />

Commission and Microsoft ® :<br />

■ Turn off read receipts in your<br />

e-mail account. This function<br />

also gives spammers confirmation<br />

that your e-mail address is valid.<br />

■ Be selective about sharing your<br />

e-mail address, especially in online<br />

discussions or bulletin boards.<br />

■ Open an additional e-mail<br />

account for use outside of friends<br />

and family.<br />

■ Use spam filters offered by your<br />

Internet Service Provider or your<br />

e-mail software.<br />

■ Don’t forward chain e-mails.<br />

They put your address, and your<br />

friends’ addresses, into the hands<br />

of countless strangers. For other<br />

tips, see “Who’s Watching” on<br />

page 14.<br />

usaa.<strong>com</strong><br />

For regular money tips and advice,<br />

log on to usaa.<strong>com</strong>/magazines and<br />

sign up to receive Your Money, a<br />

monthly e-mail newsletter.<br />

winter <strong>2007</strong><br />

<br />

usaa.<strong>com</strong>


CAR-BUYING<br />

You don’t have to choose between the car you want and a stress-free shopping<br />

By Sean McCollum • photograph by rick dahms<br />

winter <strong>2007</strong><br />

6<br />

usaa.<strong>com</strong><br />

Ma r q u i s w i l l i s has seen the underbelly of car sales. And it’s not pretty. After six months in the business, the 24-year-old<br />

Florida-based <strong>USAA</strong> member got out. Now, he’s sharing his experiences to help you the next time you’re in the market for a new ride.<br />

1<br />

Pack your papers. When<br />

customers showed up with printouts<br />

listing market values, trade-in values,<br />

financing options, rebates, and other<br />

information they'd gathered, we knew<br />

we wouldn’t make much money off<br />

the deal. So, arrive at the dealership<br />

with research in hand.<br />

5<br />

Wear your poker face. To get<br />

the best deal, act as if you’re not quite<br />

ready to buy. I sold a car to a young<br />

engaged couple who both worked. The<br />

woman really wanted a new Mustang<br />

GT, and I could tell after the test drive<br />

that she loved the car. At that point,<br />

she lost all her negotiating leverage.<br />

9<br />

Don't fall for last-ditch deals.<br />

Sales managers sometimes make departing<br />

customers an offer so low, no<br />

one else can match it. This is usually<br />

just a ploy to get them to <strong>com</strong>e back.<br />

Call their bluff and you may <strong>com</strong>e out<br />

a winner. But if you leave, don't expect<br />

the offer to be there when you return.<br />

usaa.<strong>com</strong><br />

2<br />

Know the score. Dealers make a<br />

lot of money on financing. Being ignorant<br />

of your credit score and borrowing<br />

options can be like handing them<br />

a blank check. A point or two of extra<br />

interest adds up over time. When you<br />

have preapproved financing, it shows<br />

you’ve done your homework.<br />

6<br />

Stick to your budget. A car<br />

payment and expenses, including<br />

insurance and maintenance, should be<br />

12 percent or less of take-home pay.<br />

New cars depreciate quickly. You may<br />

soon owe more than the car is worth<br />

(being “upside-down” on the loan). Avoid<br />

this by putting at least 20 percent down.<br />

10<br />

Avoid trade-in shenanigans.<br />

A customer wanted to trade in a car<br />

worth $7,000 for a new car. The dealer<br />

discounted the new car but offered<br />

only $2,500 for the trade-in. In the<br />

end, the dealer came out ahead. Always<br />

nail down the new car price before<br />

discussing your trade-in.<br />

3<br />

Look the part. If you’re dressed<br />

too nicely, the dealer might think you<br />

have money to burn. Too sloppy You<br />

won’t be taken seriously. Choose something<br />

casual, clean, and unwrinkled.<br />

7<br />

Draft a quarterback. That’s the<br />

nickname dealers have for someone<br />

who <strong>com</strong>es along to coach you. The<br />

big thing in car sales is building rapport<br />

with customers. A sidekick can<br />

run interference, and the salesperson<br />

can’t be as aggressive.<br />

11<br />

Avoid yo-yos. You finalize the purchase<br />

with dealer financing and drive<br />

the vehicle home. The dealer calls<br />

later to say the financing fell through<br />

and you need to <strong>com</strong>e back. When<br />

you return, the interest rate is higher.<br />

To avoid this, arrange for financing<br />

before you ever hit the lot.<br />

To research new or used car prices, log on to usaa.<strong>com</strong>/magazines and click "Car-Buying Service."<br />

4<br />

Skip the add-ons. This includes<br />

service contracts and extended warranties.<br />

Know clearly what you need<br />

and want by doing research beforehand<br />

— online and on the lot. If you<br />

buy an extended warranty, read carefully<br />

the sections that include items<br />

not covered.<br />

8<br />

Never believe the sticker. The<br />

sticker price of a car isn’t the actual<br />

price. There’s always room to negotiate.<br />

I sold a $50,000 Ford F-250 pickup<br />

to a couple who paid the sticker<br />

price and never even tried to cut a<br />

deal. The truck had about an $8,000<br />

markup so I had room to negotiate.<br />

12<br />

Inspect before you buy. When<br />

shopping for a used car, take your<br />

potential purchase to your mechanic<br />

for an independent inspection. A<br />

good tech will spot hidden problems.<br />

Independent inspections usually run<br />

$75-$100. It’s the best 100 bucks<br />

you’ll ever spend on a car.


SECRETS<br />

experience. Our tips help you navigate the lot.<br />

7<br />

usaa.<strong>com</strong><br />

winter <strong>2007</strong><br />

Take<br />

the<br />

Wheel<br />

If you've done your<br />

homework, you can be<br />

in the driver's seat when<br />

it <strong>com</strong>es to wheeling<br />

and dealing.<br />

Here are some car-related Web sites<br />

worth a surf before you shake hands<br />

with a dealer.<br />

>> cars.<strong>com</strong> Find one-click research<br />

of new and used cars, with Top 10 lists<br />

and financing tips. This site also has<br />

an up-to-date tracker of rebates and<br />

incentives that offer insider knowledge<br />

that saves money.<br />

>> edmunds.<strong>com</strong> Check out this<br />

respected clearinghouse of vehicle<br />

reviews and research tools.<br />

>> kbb.<strong>com</strong> Kelley Blue Book publishes<br />

asking and trade-in values for new and<br />

used autos.<br />

>> carfax.<strong>com</strong> Look up vehicle damage<br />

and ownership history.<br />

>> carbuyingtips.<strong>com</strong> This site walks<br />

you through the financing process and<br />

offers links to online loan applications<br />

with reputable financiers, no matter<br />

your credit history.<br />

TIP<br />

On average, vehicles sold at<br />

car dealerships have a $1,500<br />

to $3,000 markup. Also, the<br />

more upgrades a vehicle <strong>com</strong>es<br />

with (not ones you request),<br />

the more you can negotiate the<br />

price. Dealers can add extras<br />

such as fancy rims or leather<br />

seats cheaply, so don’t let them<br />

charge you full price for them.


fall winter <strong>2007</strong> <strong>2007</strong><br />

86<br />

usaa.<strong>com</strong><br />

super cell<br />

c a l l a h e a d f o r t h e b e s t d e a l s o n c e l l p h o n e s a n d m o r e .<br />

e d i t e d B y s h a r i b i e d i g e r


when young and old lined up at AT&T® and Apple stores over<br />

the summer, it wasn’t the latest-greatest wireless plan they were after.<br />

The iPhone mania is just one more example of consumers’ endless appetite<br />

for high-tech wireless gadgets loaded with features. Before you<br />

run out to buy the next hot item, your first priority should be choosing<br />

the carrier and plan, says David Wood, a consumer tele<strong>com</strong>munications<br />

expert with ConsumerAffairs.<strong>com</strong>. If you time it right, you may be able<br />

to get that latest-greatest device on sale. Follow these tips to make sure<br />

you get what you want at a price you can afford.<br />

iPhone TM is a trademark of Apple, Inc.<br />

O p p o s i t e : d r e a m s t i m e ; T h i s p a g e C l o c k w i s e f r o m t o p : i S t o c k , D r e a m s t i m e , i s t o c k<br />

question your motives. Before choosing<br />

or renewing a plan, answer these<br />

questions:<br />

• How often will you use the phone<br />

• Where will you use it<br />

• What percentage of your use will<br />

be calls vs. texting<br />

• Will the majority of your calls<br />

be during the day, evening, or<br />

weekend<br />

• Will people be calling or texting<br />

you often<br />

usaa.<strong>com</strong><br />

When you know the answers to<br />

these questions, you’ll have a better<br />

idea of what you really need.<br />

Use it or lose it. If you won’t be using<br />

the phone often, consider a prepaid<br />

plan. You won’t be required to sign a<br />

contract or pass a credit check. But<br />

you should still read the small print.<br />

Some plans charge $1 a day even if<br />

you don’t use the phone.<br />

read the fine print. Ignore the sales<br />

pitch or online bargain, and read the<br />

terms and conditions before you do<br />

anything else. It seems obvious, but<br />

if there are problems later, the only<br />

thing that will matter is what’s in the<br />

contract. Do your homework upfront<br />

to avoid disappointment later.<br />

try it out. A carrier’s coverage map<br />

is only a basic guide and not a guarantee<br />

of service in every area. In fact,<br />

service is not guaranteed at all. Most<br />

carriers offer a 14- to 30-day trial.<br />

Test it everywhere you plan to use it.<br />

If you return the phone during the<br />

trial, you won’t pay a cancellation fee.<br />

If you return the phone within three<br />

days, the activation fee is usually<br />

waived as well.<br />

know thy minutes. You can<br />

get in trouble fast by<br />

underestimating<br />

how many minutes<br />

you’ll need. Each<br />

minute over your plan<br />

can cost as much as 45 cents, so it’s<br />

better to overestimate. The same goes<br />

with other services. If you use text<br />

messaging, learn about the different<br />

package deals and charges. Many<br />

consumers are shocked when they<br />

receive a bill for hundreds of dollars<br />

due to text messages they send and<br />

receive. If you text a lot, unlimited<br />

texting may be the way to go. Your<br />

phone might already be activated for<br />

text messaging and Internet service.<br />

If you don’t want these options, have<br />

them deactivated.<br />

make a deal. You can almost always<br />

get a better deal on electronics such<br />

as cell phones and mobile devices<br />

through a dealer or online, as opposed<br />

to buying directly from the carrier’s<br />

Web site. A dealer, however, might<br />

have different terms and conditions<br />

Log on to usaa.<strong>com</strong>/magazines to sign up for e-mail alerts to keep track of your <strong>USAA</strong> account activity.<br />

Hold the phone !<br />

remember that any price quoted<br />

won't include taxes, fees, and<br />

other service charges, which can<br />

bump up your monthly cost by<br />

more than 15 percent.<br />

for the plan than the carrier. Make<br />

sure you read the details.<br />

prepare for change. Know what<br />

happens if you change your plan<br />

in any way because it might extend<br />

your contract. What happens if you<br />

want to cancel your contract early<br />

Some plans charge fees as high as<br />

$200 per phone number to get out<br />

of your contract. Some dealers<br />

will add their own termination fee,<br />

which can take your termination<br />

fee as high as $600.<br />

"Free" can cost you. Some carriers<br />

offer a free phone when you sign up<br />

for their plan. You might discover this<br />

free phone is free only after a customer<br />

loyalty rebate. So you might have to<br />

wait as long as six months to submit<br />

the rebate (if you remember), and then<br />

it might take another three months<br />

to receive the rebate. Some rebates<br />

require that you’ve been a customer in<br />

good standing for 12 months before<br />

you can submit the rebate. Miss a payment,<br />

and you’ll lose the rebate.<br />

winter <strong>2007</strong><br />

9<br />

usaa.<strong>com</strong>


10<br />

usaa.<strong>com</strong><br />

winter <strong>2007</strong><br />

Almost 1 in 4 consumers<br />

surveyed by Consumer<br />

Reports in December<br />

2006 said they didn’t<br />

expect to pay off holiday<br />

debt until March or later.


Holiday<br />

Change<br />

Jingle all the way to the bank this holiday season.<br />

edited By shari biediger • Photographs by Kathleen Dooher<br />

t hi s ye a r , you’re going to shop<br />

the day after Thanksgiving, buy all<br />

your presents for family and friends<br />

at 50 percent off, pay with cash, giftwrap<br />

them with paper and bows you<br />

got on sale last year, and still have<br />

money to spare. Get real.<br />

Hanging on to your loot this<br />

jolly season (and the next) requires<br />

planning. And lots of discipline. So,<br />

before you press the start button on<br />

your holiday shopping, review these<br />

10 cash-saving tips.<br />

save receipts. Keep<br />

an envelope in your purse<br />

or wallet for receipts. You<br />

might find a lower price or better<br />

gift and need to return the item.<br />

shop from home. Finding<br />

just the right gift for Uncle<br />

Joe, and <strong>com</strong>paring prices and<br />

features, is sometimes easier online.<br />

And, if you shop early enough, you<br />

might be able to take advantage of<br />

free shipping offers.<br />

keep it simple. Retailers<br />

typically offer sales promotions<br />

to get you into their<br />

stores, betting you will buy more<br />

(or better) stuff while you’re there.<br />

Don’t fall victim to this scheme.<br />

And remember that all those<br />

bells and whistles on bicycles, electronics,<br />

and cameras add to the<br />

cost. Consider giving gift cards for<br />

these items so the recipient can<br />

choose whether or not to get the<br />

options and upgrades.<br />

winter <strong>2007</strong><br />

11<br />

usaa.<strong>com</strong><br />

budget for all. And then<br />

some. Holiday happiness <strong>com</strong>es<br />

not just with presents, but also<br />

with all the trimmings — parties,<br />

decorations, cards, donations, and<br />

travel. Predict and pay for what you<br />

can; just say no to the rest.<br />

make a list. Even Santa<br />

has one. Include the person’s<br />

name and what you want to<br />

spend. After you buy, make a note of<br />

it on your list. If it’s not on the list,<br />

don’t buy it!<br />

charge with care.<br />

Don’t charge your purchases<br />

unless you plan to pay off<br />

your credit card bill the following<br />

month. Otherwise, you can quickly<br />

rack up big post-holiday debt.<br />

shop at home. Recycling<br />

gifts or re-gifting is considered<br />

OK as long as you give something<br />

you think the person really<br />

would like or need. Just make sure<br />

you remove the gift tags and don’t<br />

give the item to the person who gave<br />

it to you in the first place.<br />

give thoughtfully.<br />

Draw names from a hat<br />

instead of buying for everyone,<br />

give the gift of time or self,<br />

buy only for the children, agree to<br />

exchange cards rather than gifts,<br />

or give to a charity. Homemade<br />

gifts are always appreciated too.<br />

Do whatever you can to creatively<br />

remember others during the holiday<br />

season with a focus on not<br />

breaking the bank.<br />

procrastinate<br />

early Some shoppers<br />

are done by October,<br />

saving money by discovering<br />

bargains all year long. Others<br />

wait until the last minute<br />

and find the best deals of all.<br />

Decide which approach works<br />

better for you. You could end<br />

up spending more than you<br />

planned either because you<br />

bought (and forgot) or because<br />

you’re in a mad rush to get<br />

home with the perfect gift in<br />

hand, no matter the cost.<br />

don’t get stuffed.<br />

Those little stockingstuffers<br />

can break the<br />

budget. Resist the temptation<br />

to go overboard.


winter <strong>2007</strong><br />

12<br />

usaa.<strong>com</strong><br />

A Rookie’s<br />

Guide to<br />

Investing<br />

By Jeff Wuorio<br />

At one time, every investor<br />

was a newbie. If that’s you,<br />

we’ve got you covered. Use<br />

this simple guide to get ready,<br />

get set, and get going.<br />

Ready<br />

set<br />

There are three<br />

basic investment<br />

accounts, but many<br />

different types of<br />

investments. Find<br />

which ones work<br />

best for you.<br />

Investment Accounts<br />

➊employer-sponsored<br />

retirement plans<br />

These allow you to save<br />

and invest without much effort.<br />

They’re funded by deducting a<br />

certain amount of money from<br />

your paycheck before taxes are<br />

calculated. The investment grows<br />

tax-deferred, which means you<br />

don’t pay taxes on the funds until<br />

you withdraw them. The 401(k),<br />

403(b), 457, and Thrift Savings<br />

Plan (for federal employees and<br />

the military) are all examples of<br />

this type of plan.<br />

TIP: Some <strong>com</strong>panies offer a dollarfor-dollar<br />

match up to a certain<br />

percentage. Never leave that “free<br />

money” on the table.<br />

➋individual retirement<br />

accounts There are two<br />

types: traditional and Roth.<br />

A traditional IRA may offer certain<br />

investors annual tax breaks for contributions.<br />

A Roth IRA offers no<br />

upfront tax break for money you<br />

put in but lets you withdraw the<br />

money tax-free after you retire, if<br />

you held the account for at least<br />

five years and are 59½ or older.<br />

Both accounts grow tax-deferred<br />

until you take out the money.<br />

TIP: Generally, you must leave<br />

your money in these accounts<br />

until age 59½ to avoid penalty<br />

fees. Additional limitations<br />

will apply.<br />

Before you invest,<br />

educate yourself, and<br />

take an honest look<br />

at your finances. You<br />

can’t invest if you<br />

haven’t taken care<br />

of these essentials.<br />

• create your cushion<br />

Keep three to six months’ living<br />

expenses in a money market or<br />

savings account for emergencies.<br />

• pay down debt Pay more on<br />

credit cards than the monthly<br />

amount due, and tackle ones with<br />

the highest interest rates first.<br />

• take free money Invest<br />

enough in your employer’s retirement<br />

plan to get any matching<br />

dollars offered.<br />

• max it out Put the most<br />

amount allowed by law into any<br />

Individual Retirement Accounts<br />

you own.<br />

• know your spending<br />

habits Track your spending and<br />

cut out the extras so you can<br />

free up cash for financial goals.<br />

• read up Don’t invest in anything<br />

without some education.<br />

Pick up a book or magazine about<br />

money or read a prospectus to<br />

learn as much as you can about<br />

money and investing.<br />

• know your goals Need<br />

$30,000 for a down payment<br />

on a house in three years<br />

Certificates of deposit (CDs)<br />

and money market funds may<br />

be best because they tend<br />

to have lower risk than other<br />

types of investments. Of<br />

course, an investment in a<br />

mutual fund, unlike a CD,<br />

is not insured and may lose<br />

money. Want to retire by age<br />

60 That would likely call for<br />

something more aggressive,<br />

such as stock or bond mutual<br />

funds. These typically<br />

have higher returns but<br />

incur greater risk.<br />

A l l i m a g e s : g e t t y i m a g e s


Invested<br />

Interest<br />

Here’s what you’ll<br />

earn in 30 years by<br />

investing $50, $100,<br />

and $150 per month<br />

at 7 percent interest.<br />

Go<br />

When you’re ready<br />

to take action,<br />

follow these steps:<br />

What’s<br />

a mutual<br />

fund<br />

A mutual fund is not a<br />

specific investment. Think<br />

of it as a <strong>com</strong>pany that pools<br />

investors’ money and puts<br />

it into stocks, bonds,<br />

or other types of<br />

investments.<br />

❸non-retirement<br />

accounts These are simply<br />

brokerage, bank, or<br />

mutual fund accounts held in your<br />

own name. They receive no special<br />

tax treatment and provide no tax<br />

breaks but are always available.<br />

TIP: This could be used for a down<br />

payment on a house or potentially<br />

to build up a pool of funds.<br />

Investment Types<br />

• money market fund A type<br />

of mutual fund required by law<br />

to invest in low-risk, short-term<br />

debt instruments. A money market<br />

fund is considered one of the<br />

safest mutual funds and pays<br />

dividends that generally reflect<br />

short-term interest rates.<br />

TIP: Many currently pay yields<br />

around 5 percent.<br />

• certificates of deposit<br />

Federally insured deposits<br />

issued by banks and savings<br />

and loan institutions that pay a<br />

specified amount of interest.<br />

TIP: Many five-year CDs currently<br />

pay around 5 percent interest.<br />

• bonds A type of debt. When<br />

you buy a bond, you’re lending<br />

money to a government, city,<br />

town, or corporation. In return,<br />

you receive specified interest<br />

payments and the value of the<br />

bond, known as the principal,<br />

when it matures or <strong>com</strong>es due.<br />

TIP: Bond prices typically rise when<br />

interest rates fall, and vice versa.<br />

• stocks A share of ownership<br />

in a <strong>com</strong>pany. Companies raise<br />

funds by selling shares of stock.<br />

How well the stock does depends<br />

on how well the <strong>com</strong>pany performs,<br />

overall market conditions,<br />

and other factors.<br />

TIP: New<strong>com</strong>ers should avoid<br />

buying individual stocks. Picking<br />

a winning stock is a dicey business<br />

even for experienced investors.<br />

30<br />

Years<br />

$60,998<br />

20<br />

Years<br />

$26,046<br />

10<br />

Years<br />

$8,654<br />

$121,997<br />

$52,093<br />

$17,308<br />

$182, 996<br />

$78, 139<br />

$25,963<br />

• Treat investing as a bill Set<br />

up a system so that money is automatically<br />

moved from a checking or<br />

savings account into the investment<br />

of your choice. Even $50 a month<br />

can make a big difference in years to<br />

<strong>com</strong>e. Of course, systematic investing<br />

plans do not assure a profit or protect<br />

against loss in a declining market.<br />

• Know how everything fits<br />

together The less time you have<br />

to invest, the less risk you can afford.<br />

If your goal is less than three years<br />

away, a certificate of deposit or money<br />

market fund at your bank may be<br />

the safest bet. For longer-range goals,<br />

such as retirement or saving for a<br />

child’s college education, go with<br />

stock mutual funds. Visit Web sites<br />

such as morningstar.<strong>com</strong> to<br />

research mutual funds.<br />

• Look to the pros A Certified<br />

Financial Planner practitioner<br />

can help you build the right investment<br />

plan. Ask friends for referrals<br />

or consult professional organizations<br />

such as the Financial Planning Association<br />

at fpanet.org.<br />

winter <strong>2007</strong><br />

13<br />

usaa.<strong>com</strong><br />

usaa.<strong>com</strong><br />

Scared to invest Log on to usaa.<strong>com</strong>/magazines<br />

and read “5 secrets to tackle your fear of investing.”<br />

$<br />

50 $ 100 $ 150<br />

This chart is hypothetical and does not<br />

represent any <strong>USAA</strong> product.


winter <strong>2007</strong><br />

14<br />

usaa.<strong>com</strong><br />

Update your software with the<br />

latest security fixes. The easiest<br />

way to do that is to turn on<br />

the auto update feature in your<br />

operating system. Or, go to the<br />

software makers’ Web sites and<br />

download new fixes.<br />

Run antivirus, antispyware, and firewall software.<br />

Make sure to use all three. Some software <strong>com</strong>panies,<br />

such as McAfee and Symantec, make full-blown<br />

suites with all three types. You can buy individual<br />

ones from <strong>com</strong>panies such as Sunbelt Software.<br />

Or, look for free ones such as Microsoft’s Windows<br />

Defender antispyware, the Windows Firewall, the<br />

ZoneAlarm firewall, avast! antivirus, and Ad-Aware<br />

antispyware. Choose only one antivirus and one firewall<br />

program. Having more than one of each on your<br />

system can cause problems. You can, however, run<br />

multiple antispyware programs without difficulty.<br />

Avoid instant messaging viruses.<br />

Viruses and malicious software<br />

can spread through instant<br />

messaging. To pre-empt this,<br />

don’t accept file transfers in<br />

your instant messaging software,<br />

and turn off the file transfer<br />

feature <strong>com</strong>pletely.<br />

Avoid suspicious e-mail attachments<br />

and links. Never open an<br />

attachment or follow a link from<br />

a stranger. And don't even trust<br />

friends — nasty software can<br />

masquerade as e-mail <strong>com</strong>ing<br />

from someone you know. If a<br />

friend sends you a file or link you<br />

didn’t ask for, confirm that he or<br />

she actually sent it to you.<br />

Beware of phishing<br />

expeditions.<br />

These are perhaps<br />

the most lucrative<br />

scams on the<br />

Internet. Phishing<br />

occurs when your<br />

login information<br />

for a financial<br />

site is stolen. It<br />

happens when<br />

perpetrators send<br />

you a link in e-mail<br />

pretending to be a<br />

legitimate financial<br />

services <strong>com</strong>pany.<br />

Never click an<br />

e-mail link and<br />

then give out<br />

your personal information.<br />

Instead,<br />

launch your browser<br />

separately from<br />

the e-mail, go to<br />

the site, and then<br />

log in.<br />

Protect your home network.<br />

Hackers who break in to your<br />

home network have free reign<br />

over all the <strong>com</strong>puters in your<br />

house. Use the encryption built<br />

into your router and <strong>com</strong>puters<br />

so that no one can sneak in.<br />

You can also use a filtering<br />

feature that will allow only<br />

certain <strong>com</strong>puters to connect<br />

to your network.


Your home <strong>com</strong>puter is your<br />

window to the world. But hackers<br />

bent on mischief can crawl in<br />

through it if you don't protect it.<br />

By Preston Gralla<br />

Use free Wi-Fi with caution. It’s easy to log wirelessly<br />

on to free “hot spots” at cafés and airports — and it’s<br />

very easy to get hacked while there. You even need to<br />

be careful at hotels. Turn off file sharing, make sure<br />

your firewall is turned on, and watch out for “shoulder<br />

surfers” — people who peer over your shoulder to try<br />

and steal your passwords.<br />

Block pop-ups. If you’ve ever<br />

clicked on a pop-up window<br />

while visiting a Web site, you’ve<br />

endangered your <strong>com</strong>puter. Why<br />

Because pop-ups can be used<br />

to download malicious software.<br />

Never click pop-ups. Better yet,<br />

block them before they launch.<br />

winter <strong>2007</strong><br />

Choose friends wisely. Don't trust<br />

all your messages and downloads<br />

on social networking sites<br />

such as MySpace and Facebook.<br />

Recently, malicious software was<br />

embedded in video and audio<br />

files on some of them. Be wary<br />

about downloading files, and<br />

don’t click links sent by people<br />

you don't know well.<br />

Watch out for modern pharmers. In a pharming attack,<br />

when you type in the address of a Web site in your<br />

browser, the browser is hijacked and sent to a scam<br />

site. To protect against this, look at the Web site<br />

address — it should start with https://, instead of<br />

http://. The “s” means secure. If you have a device<br />

called a router, which creates a home network, change<br />

its password from the default password it <strong>com</strong>es with<br />

to a new one. Pharmers often hack the default password<br />

as a way to launch pharming attacks.<br />

Beware of wireless<br />

dangers.<br />

Cell phones and<br />

other mobile<br />

devices are vulnerable<br />

to many<br />

of the same dangers<br />

that threaten<br />

your <strong>com</strong>puter.<br />

Take the same<br />

kinds of precautions<br />

you would<br />

when using a personal<br />

<strong>com</strong>puter:<br />

Make sure the<br />

sites are legitimate<br />

and don’t<br />

open attachments<br />

from strangers.<br />

15<br />

usaa.<strong>com</strong><br />

usaa.<strong>com</strong><br />

usaa.<strong>com</strong><br />

Want to learn more about protecting personal information on your<br />

laptop or home <strong>com</strong>puter Log on to usaa.<strong>com</strong>/magazines and read<br />

“Lockdown” for a list of security devices your <strong>com</strong>puter should have.<br />

Or, click “Privacy and Security” for tools and suggestions.


Budget<br />

$50<br />

or Less<br />

Approximately<br />

12 to 20 Guests<br />

winter <strong>2007</strong><br />

16<br />

usaa.<strong>com</strong><br />

party<br />

smarts<br />

By shelley levitt<br />

How to<br />

entertain<br />

with pizazz...<br />

whatever<br />

your budget.<br />

M a n y a f a b u l o u s p a r t y hasn’t been thrown because would-be hosts fretted they couldn’t<br />

afford it. That’s a pity, since money has little to do with memorable fêtes. “Great parties aren’t about<br />

impressing your guests with fanciness, but offering warmth and hospitality,” says Lauren Purcell,<br />

co-author with her sister, Anne Purcell Grissinger, of Cocktail Parties, Straight Up! Here’s a guide to<br />

entertaining with style, whether you’re feeling thrifty or you’re in the mood to splurge:<br />

usaa.<strong>com</strong><br />

Need help with your overall budget Log on to usaa.<strong>com</strong>/magazines<br />

and e-mail a financial advisor for free advice.<br />

I m a g e s c l o c k w i s e f r o m t o p l e f t : G e t t y , i s t o c k ( 3 ) , d r e a m s t i m e ( 1 ) , i s t o c k ( 1 )<br />

$250<br />

or Less<br />

Approximately<br />

20 to 30 Guests<br />

$500<br />

or Less<br />

Approximately<br />

25 to 35 Guests<br />

Eat, Drink, and<br />

Be Safe<br />

If you’re planning to serve alcohol at<br />

your party, follow these tips to ensure<br />

your safety and that of your guests:


Food<br />

Drinks<br />

Invitations<br />

Decorations<br />

Tips<br />

■ Fresh popcorn sprinkled with<br />

Parmesan cheese and black pepper<br />

■ Bean or artichoke dip with chips<br />

or fresh veggies<br />

■ Mini grilled-cheese sandwiches<br />

Total: $25<br />

■ Iced tea<br />

■ Pitchers of ice water with fruit<br />

■ If you serve alcohol, go cheap.<br />

You can’t afford to spend more<br />

than about $15 on it.<br />

■ Free e-mail invites<br />

(Try evite.<strong>com</strong>,<br />

hallmark.<strong>com</strong>,<br />

bluemountain.<br />

<strong>com</strong>, or other<br />

e-card sites<br />

you like.)<br />

■ Work with what you have. Take a<br />

mirror off your wall, place it on a<br />

coffee table, and cover it with candles<br />

of all sizes and shapes, says Stacie<br />

Krajchir, a lifestyle/trend expert.<br />

■ For a holiday theme, pile ornaments<br />

or miniature pumpkins in glass<br />

vases or bowls.<br />

Tip: Instead<br />

of putting sliced<br />

asparagus, celery,<br />

and carrots flat on<br />

a tray, stand them<br />

up in a pretty bowl.<br />

Put a shallow dish<br />

in the center to<br />

keep them upright.<br />

Total: $10–$25<br />

Total: $0<br />

Total: $0<br />

■ Chilled asparagus spears with lemon<br />

dipping sauce<br />

■ Mini quiches<br />

■ Oven-roasted tri-tip (about $40 for<br />

6 to 7 pounds) or glazed baked ham<br />

(about $50 for 6 to 7 pounds) with<br />

dipping sauces or salsas<br />

■ Mixed nuts tossed with butter,<br />

salt, and pepper and roasted in a<br />

450-degree oven for 10 minutes<br />

Total: $150<br />

■ Herbal iced tea garnished<br />

with fresh mint sprigs<br />

■ Sparkling water with<br />

lime slices<br />

■ Expect your beverage<br />

budget to double —<br />

up to about $60 — if<br />

you choose to serve<br />

alcoholic drinks.<br />

Total: $30–$60<br />

■ Buy boxed invitations<br />

at a discount<br />

store. Plan<br />

to spend<br />

about $10<br />

in postage.<br />

Total:<br />

$20<br />

■ Float white<br />

tealight candles<br />

in pretty bowls, and<br />

color water with a few drops<br />

of food dye.<br />

■ Place colorful feathers, rather than<br />

pricey flowers, in vases and decorate<br />

tables with feather boas. Get feathers<br />

and boas at craft shops, floral<br />

supply stores, and Web sites such as<br />

createforless.<strong>com</strong>, floraltrims.<strong>com</strong>,<br />

and plumesnfeathers.<strong>com</strong>.<br />

Total: $15-$20<br />

Tip: Use small<br />

picture frames<br />

bought at discount<br />

stores to display the<br />

names of beverages<br />

you’re serving. Just<br />

put a frame in front<br />

of each pitcher or<br />

punch bowl to identify<br />

its contents.<br />

winter <strong>2007</strong><br />

17<br />

usaa.<strong>com</strong><br />

■ Steamed edamame (soybeans) tossed<br />

with salt and sesame seeds<br />

■ Marinated olives<br />

■ Baked brie and sourdough baguette<br />

■ Layered bean-guacamole-salsa dip<br />

■ Green salad sprinkled with goat cheese<br />

and dried cranberries<br />

■ Seafood lasagna<br />

■ Do-it-yourself pound cake<br />

bar with a variety of<br />

toppings<br />

Total: $250<br />

■ Sparkling cider punch<br />

■ Fruit-blend teas garnished<br />

with fresh fruit slices<br />

■ Fruit juice “mocktails”<br />

(For an elegant touch,<br />

serve iced white grape juice<br />

and club soda in cocktail glasses.)<br />

■ Coffee (regular and decaf)<br />

■ Remember: Alcoholic or specialty<br />

drinks could cost $100 or more.<br />

Total: $50–$150<br />

■ Create your own<br />

invitations using<br />

brightly<br />

colored paper<br />

or card stock<br />

and your printer.<br />

Remember to budget<br />

for postage!<br />

Total:$25<br />

■ Drape tables<br />

with bolts of<br />

brightly colored<br />

fabrics (unfinished<br />

is fine).<br />

■ Create a table<br />

runner with low<br />

vases filled with small<br />

bunches of flowers.<br />

■ Place a vase of large flowers<br />

(try lilies) in a focal point.<br />

Total: $50–$75<br />

Tip: Remnants<br />

go for as little as<br />

$2 to $3 per yard<br />

at fabric discount<br />

or outlet stores.<br />

■ Stock for a sleepover.<br />

Let guests know you’ll have<br />

places for them to sleep. To<br />

be extra safe, ask for their car<br />

keys when they arrive.<br />

■ Stay off the streets.<br />

Keep phone numbers of taxi<br />

services available and have<br />

designated drivers on hand.<br />

■ Make it a single.<br />

Premix the drinks before<br />

the party to save on cost<br />

and to make sure your<br />

guests limit the amount of<br />

alcohol they consume.<br />

■ Play it straight.<br />

Have as many nonalcoholic<br />

drinks as alcoholic ones, if<br />

not more.


winter <strong>2007</strong><br />

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Rates as low as 4.94% APR for<br />

qualified members when you apply online<br />

and set up automatic payments. 4<br />

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Flexible terms and payment options.<br />

The ability to sign for your<br />

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leave your home.<br />

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O p p o s i t e p a g e : g e t t y i m a g e s , d r e a m s t i m e , f o t o l i a ; T h i s p a g e : g e t t y i m a g e s<br />

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your free checking<br />

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view balances — all from the <strong>com</strong>fort of your home —<br />

and in the <strong>com</strong>fort of your PJs.<br />

No monthly service fees and no minimum balances.<br />

Free <strong>USAA</strong> Deposit@Home SM , lets you make fast, easy<br />

and secure deposits 24/7 by scanning your checks<br />

from your PC or Mac. 5<br />

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money, check balances and download statements.<br />

usaa.<strong>com</strong><br />

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Open a <strong>USAA</strong> Savings Account and<br />

you’ll receive one of the highest interest<br />

rates in the nation. Plus, the more you<br />

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get Free <strong>USAA</strong> Deposit@Home SM — all<br />

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no minimum balance.<br />

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ENT-<strong>2007</strong>-2685<br />

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to earn rewards and still get a great rate — right now as<br />

low as 7.75% 7<br />

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no convenience check fee … no redemption fee — ever.<br />

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purchases. Plus, transfer balances, download monthly<br />

statements and pay bills.<br />

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Keyword: <strong>USAA</strong>RewardCard<br />

INVESTMENTS/INSURANCE: NOT FDIC<br />

INSURED • NOT BANK GUARANTEE • MAY<br />

LOSE VALUE<br />

1<br />

Annual savings based on countrywide<br />

survey of new customers from 1/1/07 through<br />

3/31/07 and include a discount for online<br />

purchase or quote. Actual savings may vary.<br />

Savings do not apply in NJ and MA. Online<br />

discount not available in CA, FL, GA, HI, MA,<br />

ME, and NC. Discount is up to $30 in MO.<br />

2<br />

To qualify for <strong>USAA</strong>’s best auto loan rate,<br />

you must have pristine credit, apply online,<br />

sign up for automatic payment and either<br />

have <strong>USAA</strong> auto insurance or sign up for<br />

automatic payments from a <strong>USAA</strong> checking<br />

account. Loans subject to credit and property<br />

approval. Auto loan rate is for a term of 36<br />

to 60 months and is available to qualifying<br />

borrowers when financing a 2006, <strong>2007</strong> or<br />

2008 auto loan. This offer may not be used<br />

to refinance an existing <strong>USAA</strong> car loan. Rates<br />

shown effective as of October 10, <strong>2007</strong>,<br />

and are subject to change without notice.<br />

Obtaining insurance from <strong>USAA</strong> is optional,<br />

not required to receive credit, and can be<br />

acquired from other sources.<br />

3<br />

All new cars arranged for sale are subject<br />

to price and availability from the selling<br />

franchised new car dealer. Car buying service<br />

available for new car/truck purchases, lowest<br />

possible price not guaranteed.<br />

4<br />

Online discount not available in CA, FL,<br />

GA, HI, MA, ME, and NC. Discount is up to<br />

$30 in MO.<br />

5 You must qualify for Deposit@Home; credit<br />

approval required.<br />

6<br />

<strong>USAA</strong> does not charge a fee for the first<br />

10 withdrawals and refunds up to $15 in other<br />

banks’ ATM fees each month.<br />

7<br />

Variable rate effective 10/15/07.<br />

8<br />

Earn 1 point for every $1 credit card purchase<br />

or $2 debit card purchase. Select “credit” at<br />

checkout; PIN-based purchases do not earn<br />

points. Restrictions apply. Points terminate if<br />

account is closed or program ends.<br />

INSURANCE<br />

Eligibility restrictions apply to purchase of<br />

property and casualty insurance. Eligibility<br />

may change based on factors such as marital<br />

status, rank, or military status. You must<br />

update status for proper rates. Underwriting<br />

restrictions apply. Use of the term “member”<br />

does not convey any legal, eligibility, or<br />

ownership rights.<br />

<strong>USAA</strong> COMPANIES<br />

<strong>USAA</strong> means United Services Automobile<br />

Association and its affiliates. Property and<br />

casualty insurance provided by United Services<br />

Automobile Association, <strong>USAA</strong> Casualty<br />

Insurance Company, <strong>USAA</strong> General Indemnity<br />

Company, Garrison Property and Casualty<br />

Insurance Company, <strong>USAA</strong> County Mutual<br />

Insurance Company, <strong>USAA</strong> Texas Lloyd’s Company<br />

and <strong>USAA</strong>, Ltd. (Europe), San Antonio, TX.<br />

Investment products and services provided<br />

by <strong>USAA</strong> Investment Management Company,<br />

a registered broker dealer. Life insurance<br />

and annuity products provided by <strong>USAA</strong> Life<br />

Insurance Company, San Antonio, TX. In New<br />

York life insurance and annuities provided<br />

by <strong>USAA</strong> Life Insurance Company of New York,<br />

Highland Falls, N.Y. Financial advice provided<br />

by Financial Advice Center as a service of<br />

<strong>USAA</strong> Financial Planning Services Insurance<br />

Agency, Inc. (known as <strong>USAA</strong> Financial Insurance<br />

Agency in California), and <strong>USAA</strong> Financial<br />

Advisors, Inc., a registered broker dealer. Merchandise<br />

services provided by <strong>USAA</strong> Merchandise<br />

Services Company. Alliance services provided<br />

through <strong>USAA</strong> Alliance Services, L.P. Credit<br />

cards provided by <strong>USAA</strong> Savings Bank, other<br />

banking products provided by <strong>USAA</strong> Federal<br />

Savings Bank, an equal housing lender, both<br />

Member FDIC.<br />

winter <strong>2007</strong><br />

19<br />

usaa.<strong>com</strong>


66585-0507<br />

PRSRT STD<br />

U.S. POSTAGE<br />

P A I D<br />

<strong>USAA</strong><br />

givingback<br />

9800 FREDERICKSBURG ROAD<br />

SAN ANTONIO, TX 78288<br />

Families don’t<br />

want their loved<br />

ones forgotten.<br />

An Act of<br />

Gratitude<br />

Canadian native honors<br />

fallen U.S. heroes.<br />

When t v anchor rebecca<br />

Pepin earned her U.S. citizenship<br />

last year, the judge challenged her<br />

to make a difference. She has done<br />

exactly that, in spades.<br />

Pepin used her own savings and<br />

time off to <strong>com</strong>pile Faces of Freedom,<br />

a book published in May that profiles<br />

52 U.S. military men and women who<br />

have died in Iraq and Afghanistan since<br />

9/11. She tapped a team of volunteer<br />

writers to honor one fallen hero from<br />

each of the 50 states, plus Puerto Rico<br />

and Washington, D.C.<br />

“Faces of Freedom is a tribute to<br />

everyone who has paid the ultimate<br />

price and all who are serving or<br />

have served,” says Pepin, who lives<br />

in Bristol, Va., with her husband,<br />

a former Army Black Hawk pilot.<br />

All proceeds from the book benefit<br />

veterans through the Wounded<br />

Warrior Project and the Fisher<br />

House program.<br />

“I couldn’t imagine making money<br />

from this book,” Pepin says. “The goals<br />

are to raise awareness — families<br />

don’t want their loved ones forgotten<br />

— and money for the wounded.”<br />

Though Pepin more than met the<br />

challenge presented at her citizenship<br />

hearing, she believes she’s received<br />

more than she’s given. “Their stories<br />

have touched me deeply,” she says.<br />

“It’s truly rewarding.”<br />

photo gr aphy by Joshua carpenter<br />

usaa.<strong>com</strong><br />

Know someone with an altruistic heart Log on to usaa.<strong>com</strong>/magazines and share that story with us.

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