USAA Magazine Fall 2006

Avoid beneficiarymistakesCruise intoretirementPHOTOGRAPH BY XXXXXXXXXXXXRetirement plans come in many forms, including IRAs, 401(k)s, 403(b)s,and the federal government’s Thrift Savings Plan. Each allows you to namea beneficiary who will receive your assets when you die. Avoid thesecommon and costly errors:Naming your estate as your beneficiary. Instead, name individuals.The tax code provides named beneficiaries with more tax-friendly choicesthan when they receive your IRA through the probate process.Failing to keep your designation current. Review and update yourbeneficiaries each time you experience a major life event such as marriage,the birth or adoption of a child, divorce, retirement, or the deathof a beneficiary.Naming minor children without also appointing a custodian. Minorscan’t own investments outright. They need an adult to serve as thecustodian until they reach the age of majority.60%of motorcycle fatalitiesoccur at nightwhen motorcycles are harder to see.— National Highway Traffic SafetyAdministrationHELMET PHOTO COURTESY OF AKUMA HELMETSSheddingnew light onmotorcyclesafetyKeeping a low profile may helpyou survive some situations, butnot motorcyclists, especially atnight. The latest National HighwayTraffic Safety Administrationstudy shows a 5.1 percentincrease in motorcycle deaths,while motor vehicle fatalitiesoverall dropped 2 percent. Untilrecently, reflective decalsand bright clothing providedthe best way tostand out after sunset.Today, helmet manufacturersare incorporatinghigh-visibility lightsinto their products to makeriders shine.Tell us in 100 words or less the bestpiece of advice you ever received aboutsaving for your future. Whether from afriend, family member, or financial advisor,what tip helped you get started onyour nest egg?First prize: A $5,000 gift certificate fora cruise from Explore Cruise Travel, plusa USAA Financial Planning ServicesRetirement Plan valued at $795.Second prize: A diamond pendant, valuedat more than $1,000, from the USAADiamonds and Jewelry collection, anda USAA Financial Planning ServicesRetirement Plan valued at $795.Three runner-up prizes: Each runnerupreceives a USAA Financial PlanningServices Retirement Plan valued at$795 each.How to enter: To submit your entry,log on to usaa.com and enterkeyword WinACruise. No entriesaccepted via regular mail.Deadline: Jan. 11, 2008.Winners will be announced in the Spring2008 issue of USAA Magazine.See additional legal disclosures on page 34.No purchase necessary to enter or win.To see official rules, log on to usaa.com and enterkeyword WinACruise.USAA Financial Planning Services® refers to financialplanning services and financial advice provided by USAAFinancial Planning Services Insurance Agency, Inc. (knownas USAA Financial Insurance Agency in California), aregistered investment advisor and insurance agency, andits wholly owned subsidiary.USAA.COM WINTER 2007 USAA MAGAZINE 9