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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
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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>
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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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Click and drive. Keyword: <strong>USAA</strong>AutoEasy<br />
with usaa auto Loan,<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 />
Up to 100% financing with<br />
no down payment.<br />
Flexible terms and payment options.<br />
The ability to sign for your<br />
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leave your home.<br />
Keyword: <strong>USAA</strong>AutoEasy
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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No monthly service fees and no minimum balances.<br />
Free <strong>USAA</strong> Deposit@Home SM , lets you make fast, easy<br />
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from your PC or Mac. 5<br />
Free usaa Web BillPay ® , plus the ability to move<br />
money, check balances and download statements.<br />
usaa.<strong>com</strong><br />
Start Saving<br />
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Open a <strong>USAA</strong> Savings Account and<br />
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ENT-<strong>2007</strong>-2685<br />
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Super Low Rates, Super Fast<br />
Rewards<br />
<strong>USAA</strong> Total Rewards SM MasterCard®<br />
<strong>USAA</strong> Total Rewards SM American Express®<br />
<strong>USAA</strong> Total Rewards credit cards are the fastest way<br />
to earn rewards and still get a great rate — right now as<br />
low as 7.75% 7<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.