military retirement

your guide to an easier transition

Ensure a lifetime of benefits from USAA.

Be sure to establish your USAA membership1 before you retire. Once youve joined, your spouse and children can also enjoy the benefits of membership. Enjoy great rates on financial products, world-class service and guidance through lifes major changes.

Call (800) 771-9960 or visit usaa.com to establish USAA membership.

Cheryl M. Bosco
Lt. Col., U.S. Air Force (Ret.) USAA member since 1981

Thank you for making complicated choices so easy its USAA for me!
You were there when I spent seven years overseas. The service never wavered thousands of miles from home.

contents
Get organized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

assess

Calculate your retirement pay . . . . . . . . . . . . . . . 10 Understand changes . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 to your military benefits

Adjust your finances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

plan

Find the right second career . . . . . . . . . . . . . . . . . 24 Arrange your final PCS . . . . . . . . . . . . . . . . . . . . . . . . . . 25

USAA is here to help . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

execute

Solutions for an easier transition . . . . . . . . . . 31 Glossary of usaa.com search words . . . . . . 32 Other helpful resources . . . . . . . . . . . . . . . . . . . . . . . . 33

assess

Im excited to retire, but I want to make sure Im prepared. How can I get organized?

Assess

Get organized

Get organized
Use this pre-retirement checklist to get organized. Its based on the Army Career and Alumni Program (ACAP) and the Air Force Transition Assistance Program (TAP) models. The page numbers after items on the checklist refer to useful tips or USAA2 solutions throughout this guide.

Retirement countdown checklist

Determine eligibility and benefits for retirement pay (pg 10) Assess your finances, begin paying down debt and investigate your IRA options (pg 18-21)

3 years to 6 months out

Focus on your financial situation; consider contacting a CERTIFIED FINANCIAL PLANNERTM practitioner Begin researching career choices and job options (pg 24) Take advantage of career evaluation services Start saving for relocation expenses and contact a real estate agent (pg 25) Create your resume (about a year out) (pg 24)

Schedule your pre-retirement counseling appointment Attend an ACAP or TAP workshop

10-150 days out

Develop your Individual Transition Plan Schedule your final dental examination Research the job market and assess your skills and interests (pg 24)

Make a financial plan for your transitional period (pg 18) Schedule your physical examination

150-120 days out

Start networking; contact friends in the private sector Attend job fairs Research job possibilities, markets and economic conditions (pg 24)

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Get organized

Assess

Meet with a Veterans Affairs (VA) counselor to file a VA claim for disability, if applicable Receive your verification of Military Experience and Training document

120-0 days out

Visit your Education Counselor Consult with your Health Benefits Adviser regarding military retiree benefits and options Submit a Leave/Permissive TDY request

Obtain retirement orders Arrange transportation counseling Review insurance and types of coverage to replace SGLI and DIC (pg 12-15) Make copies of personnel and medical records

0-60 days out

Obtain free legal advice from Judge Advocate/Legal Assistance office Review Survivor Benefit Plan choices; attend retirement seminars (pg 12-15) Consider rolling over Thrift Savings Plans or spousal retirement plans into an IRA (pg 21) Send out resumes

Retirement day congratulations!

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Assess

Calculate your retirement pay

Calculate your retirement pay

Active Duty Retirement Pay Plans
The military provides three retirement pay plans, based on when you entered active duty: If you entered prior to September 8, 1980, youre eligible for the Final Pay Plan. If you entered the military between September 8, 1980, and July 31, 1986, your benefits come under the High-Three Plan. If you entered after July 31, 1986, you elected one of the following: the High-Three Plan or the Career Status Bonus (CSB)/REDUX Plan. Its important that you understand your retirement pay arrangement, because it will affect your standard of living for the rest of your life. Refer to the chart below to compare plans at a glance.

Final Pay Plan

High-Three Plan 50% of the average of your 3 highest years of basic pay

CSB/REDUX Plan 40% of the High-Three Plan basic pay

Basic retirement pay at 20 years

50% of the final pay

Additional retirement pay for every year over 20

2.5% (Maximum 75%)

2.5% (Maximum 75%)

3.5% (Maximum 75%)

Bonus

None

None

$30,000 in the 15th year

Cost of living allowance

Equal to the increase in the CPI

Equal to the increase in the CPI

1% less than the increase in the CPI (one-time catch up at age 62)

Eligibility: date entered active duty

Before 8 Sep 80

After 7 Sep 80

After 31 July 86

For more information about these retirement options, log on to dod.mil/militarypay a government Web site.

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Calculate your retirement pay

Assess

Call USAA for help calculating your pay.

tip

Call USAAs FREE Financial Advice Center at (00) 771-9960 to have a professional Financial Advisor help you determine what your retirement pay will be and discuss other issues regarding retirement.
Financial advice provided by Financial Advice Center as a service of USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California), and USAA Financial Advisors, Inc., a registered broker dealer.

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Assess

Understand changes to your military benefits

Understand changes to your military benefits

Understanding how your benefits change after retirement is crucial to mapping out your plan for a smooth transition. Four critical areas of consideration are: Servicemembers Group Life Insurance (SGLI) and Veterans Group Life Insurance (VGLI) Dependency Indemnity Compensation (DIC) Survivor Benefit Plan (SBP) TRICARE Use the following charts to understand how your benefits will change and if youll be eligible for additional benefits. Your eligibility will depend on whether you are active duty, National Guard or Reserve and what stage youre at in your military career.

Active duty retiree benefits

Benefits Active Duty Retired
Most retirees up to age 65 and eligible family members are covered under TRICARE Retirees and eligible family members age 65 and over covered under TRICARE for Life as secondary payor to Medicare

Medical

Full coverage for active duty member; eligible family members covered under TRICARE

Dental

Full coverage for active duty member; family members can elect to join the TRICARE Dental Program for a fee Full privileges Full privileges/unlimited Eligible for SGLI Eligible for DIC; eligible for SBP Government Quarters or BHA (Basic Housing Allowance) Eligible (Active duty higher priority)

DoD TRICARE Retiree Dental Program (TRDP) available

Commissary PX/BX Insurance Survivor Benefits Housing Space Available Travel

Full privileges Full privileges/unlimited Eligible for VGLI Could be eligible for DIC; optional SBP Not applicable

Eligible (Retirees have lower priority)

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Understand changes to your military benefits

Assess

National Guard & Reserve benefits

Benefits Inactive Duty Training Assembly
AD, ADSW, AT, ADT, IADT Retired Reserve (under age 60) Retired Reserve (age 60+)

Pay

Basic pay, special pay (if authorized)

Basic pay, BAS, BAH, special pay (if authorized)

Not eligible

Retired or retainer pay (if applied for)

Medical

Only if duty-related

Full

Not eligible

Full for retiree and eligible family members

Dental

Not eligible

Full for service member

Not eligible

Full for retiree and eligible family member

VA Medical

If injury or illness sustained in line of duty

If deceased or injured in line of duty

Eligible if prior service

Eligible if prior service

Commissary PX/BX Insurance

Full privileges

Full privileges

Full privileges

Full privileges

Full privileges

Full privileges

Full privileges

Full privileges

Eligible for SGLI

Eligible for SGLI

Eligible for VGLI

Eligible for VGLI

Survivor Benefits

Eligible, with 20 years service, if elected

Eligible, with 20 years service, if elected

Eligible, with 20 years service, if elected

Eligible, with 20 years service, if elected

TRICARE

30 days coverage for member and family post-release from contingency operation

Eligible, dependents eligible if on AD; ADSW for more than 30 days

Not eligible

Eligible until age 65, then eligible for TRICARE for Life

Space Available Travel

CONUS, Hawaii, Alaska, Puerto Rico, Virgin Islands, Guam

Worldwide

CONUS, Hawaii, Alaska, Puerto Rico, Virgin Islands, Guam

Worldwide

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Assess

Understand changes to your military benefits

Are you covered? USAA can help.

tip
14 |

SGLI, VGLI, DIC, SBP, TRICARE. Assessing coverage can be difficult. How do you know if you have what your family needs? Call USAAs FREE Financial Advice Center at (00) 771-9960 to speak with a Financial Advisor about your options and what they mean.

(800) 771-9960 usaa.com

Understand changes to your military benefits

Assess

More About Your Military Benefits

SGLI and VGLI SGLI is automatically extended 120 days after you retire. Your coverage can be converted to VGLI, but enrollment isnt automatic. So, if interested, you must elect this coverage. Its important to understand that VGLI costs more, but during the first 120 days following retirement applicants cant be denied because of poor health. If youre in good health, private term insurance policies may be more affordable. SGLI coverage for your family cannot be converted to VGLI. DIC DIC assists surviving spouses and dependent children of veterans who die while on active duty or from service-connected disability when certain criteria are met. It is paid to the spouse until remarriage (unless it occurs after age 57) and to the children up to age 18 (or age 23 if theyre in school full time). SBP Provides up to 55% of your military retirement income to your survivors. Provides a monthly income to survivors of retired military personnel when retirement pay stops. Automatically covers survivors of members who die while on active duty and survivors of members recalled to active duty from retirement who die while on active duty. Includes an annual cost-of-living allowance increase and is subsidized, so its a good choice for most retirees. Can be used in combination with a private insurance plan. TRICARE Still available, but youll have to choose which program is best for you and your eligible family members. TRICARE will pay a portion of health care costs. At age 65, TRICARE for Life becomes a supplemental health policy acting as a secondary payor to Medicare.

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plan

Theres so much to do where should I start?

Plan

Adjust your finances

Adjust your finances

Retiring from the military can have a major financial impact if youre not prepared. The first step in preparing is to adjust your budget to your new way of life. Once you know where your day-today budget stands, you can take steps to prepare for other financial goals such as your second retirement or education funding for your children.

Develop or Adjust Your Budget

You may have to make temporary adjustments on spending during the transition period. Developing a budget will help you: Determine whether youre living within your means. Manage your finances wisely. Assess the gap between your ideal retirement lifestyle and what you can afford. Identify future income needs. Use the following worksheet to identify your spending patterns and your cash flow.

Income
Estimated Retirement Income Military Retiree Spouse Veterans Benefits Social Security Pensions IRAs Bond Interest Stock Dividends Other Investment Income Annuities Life Insurance Cash Value Rental Income Other Income Total Income Monthly Yearly

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Adjust your finances

Plan

Expenses
Estimated Retirement Expenses Mortgage/Rent Property/Local Taxes Food/Dining Out Utilities Telephone Home Improvement/Repair Clothing Life Insurance *Homeowners Insurance Health Insurance Long-Term Care Insurance *Automobile Insurance Education Medical Expenses Elder Parent Care Income Taxes Commuting Vacation Entertainment Loans Credit Cards Gifts Dues Other Total Expenses SURPLUS or DEFICIT
(Total Income minus Total Expenses)
* If you plan to move, call to receive a quote for your new location.

Monthly

Yearly

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Plan

Adjust your finances

Tips for Budgeting

Whether youre right on track with your budget or have some catching up to do, here are some things to keep in mind: Reduce your monthly spending. Pay down or pay off credit cards with any lump-sum retirement payments. Cut back on unnecessary spending. Consolidate your debts. Be prepared for unexpected expenses. Keep an emergency fund of three to six months of expenses for things such as unexpected medical bills, sudden repairs or assistance for your children and/or family members. Review your budget regularly. Regular budget reviews can help you anticipate changes and problems, as well as keep your finances in line with your goals. Consolidate debt. A home equity line of credit or loan allows you to consolidate your high-interest-rate debt and save at tax time.3 Keep in mind, however, that borrowing against your homes value puts the home itself at risk.

Budgeting is easy at usaa.com.

You can:

tip

Open an emergency savings account. Manage your budgeting and pay bills online with a no-fee checking account. Apply for a Home Equity Line of Credit4 to consolidate debt. For more information, visit usaa.com.

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Adjust your finances

Plan

Prepare Now for Your Second Retirement

Now that youre approaching military retirement, its time to kick savings into high gear for your final retirement. While on active duty, you may have participated in the Thrift Savings Plan (TSP). When you leave active duty, you will be eligible to roll over your TSP account into an Individual Retirement Account (IRA). Rolling over your TSP to an IRA will give you: More control over your retirement investments. Greater variety of investment options to match your needs. Greater flexibility for your heirs. To help you better understand your TSP withdrawal options, you can download the booklet, Withdrawing Your TSP Account After Leaving Federal Service, from www.tsp.gov. You can also call a USAA Financial Advisor for free advice and guidance.

Types of IRAs
Traditional IRA Offers the opportunity for tax-deferred earnings and growth of retirement assets. You may qualify for tax-deductible contributions. TSP rollovers are made into this type of IRA. Roth IRA An account for after-tax contributions, with tax-free earnings and potentially tax-free withdrawals. SEP-IRA A retirement plan generally for small businesses and self-employed individuals. Employers make tax-deductible contributions into SEP-IRAs for their eligible employees. SIMPLE IRA Allows eligible employers with 100 or fewer employees to offer the benefit of a tax-advantaged retirement plan. SIMPLE IRAs are funded by the employer for eligible employees and sometimes also by the employee. SIMPLE IRAs are also available for self-employed persons.

Consider the investment objectives, risks, charges and expenses of the USAA Fund Marketplace funds carefully before investing. Contact us for a prospectus containing this and other information about the funds from USAA Investment Management Company. Read it carefully before investing.
Nondeposit investment products are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by USAA Federal Savings Bank or USAA Savings Bank, are subject to investment risks and may lose value.

Roll over your TSP to a USAA no-fee IRA.

tip

Youll gain control, greater flexibility and more choices for retirement savings. While the TSP offers five investment fund options, there are thousands of fund options available through USAAs Fund Marketplace5. And you have access to other IRA options, like tax-deferred annuities and guaranteed certificates of deposit (CDs). Visit usaa.com and enter keyword IRARollover, or to compare USAAs IRA investment options enter keyword IRA Investments. Or, call a USAA Financial Advisor at (00) 771-9960 for free advice on which IRA option may be best for your unique situation.

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Plan

Adjust your finances

Juggling Retirement with College Savings

Preparing for retirement often brings to light other financial goals, such as college savings for your children. Heres a breakdown of the different college savings options.
Uniform Gifts/ Transfers to Minors 529: Prepaid Tuition 529: Savings Plan

Coverdell ESA

Highlights

Investment account (Contributors must earn less than $110K for single filers and $220K for joint filers.)

A way to gift money to children for all future expenses

Contributions today are guaranteed to cover tuition costs in the future.

Investment account for the benefit of anyone your child, your grandchild, etc.

Offered by

Brokerages, mutual fund companies, banks

Brokerages, mutual fund companies, banks

States

States

Tax treatment of withdrawals

Tax-free for qualified expenses

Tax-exempt or taxed at the childs rate

Tax-free for qualified expenses

Tax-free for qualified expenses* Tuition, fees, room and board (with limitations), books and supplies at qualified highereducation institutions

Qualified expenses

Tuition, room, board, fees, supplies and some special needs for K-12 and college

Any as long as used for the benefit of the child

Tuition at a college within the plan (some plans cover room and board)

Tax-deductibility for donor

None

Tax-free up to $11,000 ($22,000 for married tax payers, filing jointly) each year, per beneficiary, so there is potential to reduce a donors taxable estate

Some states allow contributions to be partially or completely deductible.

Some states allow contributions to be partially or completely deductible.

Investment flexibility

Assets can be invested in stocks, bonds, mutual funds and cash equivalents. Investments can be bought and sold as often as desired.

Assets can be invested in stocks, bonds, mutual funds and cash equivalents. Investments can be bought and sold as often as desired.

Plan administrators invest all assets.

Assets are professionally managed. Depending on the plan, participants can choose from various mutual fund-type investments.

*Tax-free earnings and withdrawals are for qualified educational expenses. Other withdrawals are subject to income tax and an additional 10% penalty on earnings. Unless the current law is extended, earnings withdrawn from your USAA College Savings Plan after 2010 to pay qualified higher education expenses will be subject to federal income tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.

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Adjust your finances

Plan

tip

Open a USAA College Savings Plan account for just $250, and boost your savings when you join Upromise.6
When you open a USAA College Savings PlanSM account for just $250 and link it to a free Upromise rewards account, you can earn additional college savings on qualified purchases of everyday items like groceries and gas. To get started, visit usaa.com and enter keyword College Plan.

Consider the investment objectives, risks, charges and expenses of the USAA College Savings Plan (Plan) carefully before investing. Call (800) 292-8825 to request a Plan Description and Participation Agreement containing this and other information about the Plan. Read it carefully before investing. If you or the beneficiary are not residents of the State of Nevada, consider before investing whether your or the beneficiarys home state offers a 529 plan that provides its taxpayers with state tax and other benefits not available through this Plan. Please consult your tax adviser. (800) 771-9960 usaa.com | 23

Plan

Find the right second career

Find the right second career

If you decide to pursue a second career, conduct your job search in an organized way, with as much energy as you put into the job itself.

Identify your skills

Decide what type of job youd really like and whether you have the abilities and/or experience the job requires. Take advantage of career evaluation services to help you determine the career that suits you best. Find out about qualifications. Enroll in classes or go back to school to improve or learn new skills. Read books, manuals and reference materials about your new career. To research salary ranges for positions you are interested in, view job-related Web sites, such as:

Focus on a specific job

Research your career choice

www.monster.com www.hotjobs.yahoo.com dod.jobsearch.org www.careerbuilder.com Let family, friends, former teachers, retired colleagues, professional peers, alumni groups and former employers know youre looking for a job. A personal introduction to someone in a company youre interested in gives you a definite advantage. Include your work history, experience, special skills and achievements. Be concise and truthful. Ask ACAP/TAP transition staff to assist in translating military experience into civilian terms.

Network with family and friends

Develop a resume

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Arrange your final PCS

Plan

Arrange your final PCS

Relocation Assistance
Take advantage of the Relocation Assistance Program (RAP) office at your Family Service Center. It is there to help you with the following services: Needs assessment related to your move. Automated information on military communities worldwide, including a database (SITES) describing housing options available near military installations. Assistance obtaining information on relocating to non-military communities, including Web sites that allow you to easily compare the cost of living among cities. Help developing a relocation plan. Workshops and individual sessions on managing relocation stress for both adults and children.

Moving from Government Housing

If your final move is from military quarters, contact your Housing Office as soon as you receive your retirement orders. Housing personnel can explain the procedures for inspecting, cleaning and vacating your quarters. Theyll also be able to tell you if youre eligible for an extension on your quarters or if space is available.

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Plan

Arrange your final PCS

Transportation to Your New Home

Contact your Transportation Office to schedule an appointment. A representative will survey your belongings and help you decide whether to let the office handle your move or make your own arrangements for a complete or partial Do-It-Yourself (DITY) move.

Shipment and Storage of Your Household Goods

If youre eligible, you can store a shipment of household goods for up to one year, then ship your items anywhere in the continental United States or to your home of record outside the United States. In some instances, the storage period can be extended up to four years.

tip: 3 Steps to an Easier Move

USAAs MoversAdvantage real estate assistance program helps you buy or sell a home anywhere in the United States. A real estate coordinator to act as your advocate and oversee the entire home-buying process.

USAA MoversAdvantage

Access to a national network of local licensed real estate agents, specially selected and certified to work with USAA members. A cash bonus up to $1,000 when you buy or sell a home using our MoversAdvantage real estate services up to $2,000 if you do both.7 Log on to usaa.com and enter keyword MoversAdvantage. Get the home you want, along with exclusive member benefits that save you time and money guaranteed.

Offered a better mortgage rate? Well beat it

Guaranteed closing date when you buy your home with a USAA conventional loan, or we will reduce your closing costs by up to $500.9 Options to fit your needs including VA10 loans, fixed-rate mortgages, adjustable-rate mortgages, interest-only loans and more. 100% financing available no down payment required. Log on to usaa.com and enter keyword Mortgage. USAAs FREE PCS Guide provides helpful information for your final PCS, such as moving tips, logistics and DITY move guidance. Theres also a week-by-week checklist of things to do before a move. To order, visit usaa.com and enter keyword OrderGuide.

USAAs FREE PCS guide

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Arrange your final PCS

Plan

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execute

What steps can I take to ease my family through the stress of transitioning?

Execute

USAA is here to help

USAA is here to help

For more than 80 years, USAA has helped military families through major life changes. Many of our credentialed Financial Advisors also served in the military, so they know the ins and outs of your unique military benefits. They will provide you with insightful answers and honest recommendations.

FREE Financial Advice

Call an expert Financial Advisor for FREE straightforward guidance. Youll get honest answers and practical advice on issues like: Calculating your retirement pay. Understanding changes in your military benefits. Budgeting for the transition. Lining up your retirement accounts. Arranging your final PCS. Or start with a FREE Financial Assessment on usaa.com. In about 10 minutes, youll identify the strengths and weaknesses of your current financial picture and get ideas and solutions for improvement.

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Solutions for an easier transition

Execute

Solutions for an easier transition

USAA builds ease, convenience and flexibility into all of our products and services to accommodate your military lifestyle. Call (800) 771-9960 or visit usaa.com for more information on any of the following: Auto Homeowners Renters Condominium Antique & Classic Car Aviation Watercraft No-fee Checking Account Free Electronic Bill Payment Service Competitive Savings Accounts Certificates of Deposit Credit Cards Home Loans Level Term Whole Life Variable Universal Life11 Universal Life Medicare Supplement Long-Term Care12

Insurance

Banking

Home Equity Loans4 Auto Loans Lines of Credit Trust Services13 MoversAdvantage Real Estate Services Certified Cash Buyer ProgramSM

Investing & Retirement Financial Planning Services

Mutual Funds Brokerage Services14 Personal Asset Management Services

Individual Retirement Accounts (IRAs) Annuities College Savings (529) Plan

CERTIFIED FINANCIAL PLANNER Practitioners Retirement Planning Military & Patriotic Collectibles Diamonds & Jewelry Cruises & Land Tours FedEx

Estate Planning Asset Allocation Risk Management Avis Budget & Hertz , Teleflora ADT Home Security ADT Companion ServicesSM

Shopping & Discount

15

Consider the investment objectives, risks, charges and expenses of the USAA mutual funds and/or USAA College Savings Plan (Plan) carefully before investing. Contact us to request a prospectus and/or Plan Description and Participation Agreement containing this and other information about the funds and/or the Plan from USAA Investment Management Company, Distributor. Read it carefully before investing. For the USAA College Savings Plan, if you or the beneficiary are not residents of the State of Nevada, consider before investing whether your or the beneficiarys home state offers a 529 plan that provides its taxpayers with state tax and other benefits not available through this Plan. Please consult your tax adviser.
Nondeposit investment products are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by USAA Federal Savings Bank or USAA Savings Bank, are subject to investment risks and may lose value.

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Execute

Glossary of usaa.com search words

Glossary of usaa.com search words

Visit usaa.com for more information on USAAs products and services, as well as informative articles and links to other military retirement-related Web sites.

Products & Services: ADT Home Security Annuities

.................................. .............................................

Search Word: ADT Annuities Auto Coverage Brokerage CDs Checking College Plan Credit Cruise Compare Homeowners IRA Life Loans LTC Military Retiring Mutual Funds Asset Management Renters Savings Discounts Trust

Auto Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brokerage Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Certificates of Deposit Checking Accounts College Savings Cruise Travel
............................... ...................................

......................................

Credit Cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
......................................... ....................................... ..............................

Financial Plans IRAs

Homeowners Insurance Life Insurance Loans

.................................................. ........................................

................................................

Long-Term Care Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . Military Retirement

...................................

Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Personalized Asset Management . . . . . . . . . . . . . . . . . . . . . Renters Insurance Savings Accounts Trust Services
................................... .................................... ...............................

Shopping & Discounts

........................................

Search words are also listed throughout this guide to assist you in getting to online information as quickly and easily as possible on usaa.com. To use a search word, enter the word into the search section on the member home page, then click the Search button.

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Other helpful resources

Execute

Other helpful resources

Educational Resources
Visit The USAA Educational Foundation16 online at usaaedfoundation.org. Youll get timely, objective information from a nonprofit organization, with interactive worksheets to assist you and your family before, during and after your retirement. Call TouchLine at (800) 531-0752 to order FREE informational publications such as: #508, Planning for Retirement #511, Financial Goal Setting #502, Buying a Home

Research Other Helpful Web sites

Transition Assistance: Army Career and Alumni Program
....................

www.acap.army.mil

Air Force Transition Assistance Program. . . . . . . . . . . . . . www.afpc.randolph.af.mil/famops Military Transition Assistance . . . . . . . . . . . . . . . . . . . . . . . . www.dodtransportal.org Pay & Benefits: Defense Finance and Accounting Service . . . . . . . . . . . . www.dod.mil/dfas Military Retirement Issues and Army Retirement Services . . . . . . . . . . . . . . . . . . . . . . . www.armyg1.army.mil/default.asp Coast Guard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.uscg.mil/HQ/PSC Coast Guard Retirement
.............................

tip

www.uscg.mil/HQ/PSC/ras.htm

Retirement Pay System Choice (Calculator) . . . . . . . . . . dod.mil/militarypay/ SBP Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.afpc.randolph.af.mil/sbp Social Security
.......................................

www.ssa.gov/retire2/index.htm

TRICARE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.tricare.osd.mil TRICARE Retiree Dental Program . . . . . . . . . . . . . . . . . . . . . www.ddpdelta.org Veteran Affairs

.......................................

www.va.gov

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Nondeposit investment products are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, the USAA Federal Savings Bank or USAA Savings Bank, are subject to investment risks, and may lose value. 1. Membership is established in the USAA Property and Casualty group upon the purchase of a policy. Property and casualty insurance products are available only to persons eligible for group membership. Eligibility restrictions apply. All applications for property and casualty insurance are subject to underwriting. Some restrictions apply. Coverages and services described above are generally stated for purpose of promotion. The material does not modify or amend the terms, conditions or coverages of any policy. 2. USAA means United Services Automobile Association and its affiliates. Property and casualty insurance provided by United Services Automobile Association, USAA Casualty Insurance Company, USAA General Indemnity Company, USAA County Mutual Insurance Company, USAA Texas Lloyds Company and USAA, Ltd., and is available only to persons eligible for group membership. Investment products and services provided by USAA Investment Management Company, a registered broker dealer. Life insurance and annuity products provided by USAA Life Insurance Company, San Antonio, TX. In NY, life insurance and fixed annuities provided by USAA Life Insurance Company of New York, Highland Falls, NY. Financial planning services and financial advice provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California), a registered investment adviser and insurance agency and its wholly owned subsidiary, USAA Financial Advisors, Inc., a registered broker dealer. Merchandise provided by USAA Merchandise Services Company. Alliance services provided through USAA Alliance Services, L.P. Banking products provided by USAA Federal Savings Bank, an equal housing lender. Credit cards provided by USAA Savings Bank. Both banks FDIC-insured. 3. Consult a tax advisor regarding the deductibility of interest. 4. Home equity loans are available in all states. 5. Transaction fees for non-USAA funds can be avoided by purchasing directly from the fund family. 6. Interests in the USAA College Savings Plan (Plan) are municipal fund securities issued by the Nevada College Savings Trust Fund (Trust). The value of an investment in the Plan will vary with market conditions. The Plan is administered by the Board of Trustees of the College Savings Plans of Nevada (Board), which is chaired by Nevada State Treasurer Brian K. Krolicki. USAA Investment Management Company provides investment management services to the Portfolios, and markets and distributes the Plan. Upromise Investments, Inc. serves as the Program Manager as well as effects participant transactions in the Plan. Interests in the Plan are not guaranteed by the Trust, the Plan, the State of Nevada, the Board or any other governmental entities, or any USAA or Upromise entities and you could lose money. Upromise is a free rewards service offered by Upromise, Inc. and is a separate service from the USAA College Savings Plan Terms and conditions apply for each companys contributions. Transfers to your USAA College Savings Plan account are subject to the minimum subsequent contribution amount of $50. Upromise and the Upromise Logo are registered trademarks of Upromise, Inc. 2001-2005. All rights reserved. 7. USAA MoversAdvantage is offered through USAA Relocation Services, Inc., a subsidiary of USAA Federal Savings Bank. USAA Relocation Services, Inc. is a licensed real estate broker. The ability to pay a cash bonus is limited by state law in some states. 8. Mortgage rate-beat offer available only to USAA members eligible for USAA property and casualty insurance, and applies to conforming conventional and VA loans only. Limited to loan products offered by USAA. Applicable for rates (APR) quoted on the same day, for the same loan product and terms. Borrower must be qualified for the matching USAA loan product. Loans offered by an affiliate or captive of a homebuilding entity are excluded from this offer. Offer does not apply in situations where the borrower has already locked an interest rate with USAA. 9. Closing date guarantee applies to conventional purchase loans only; does not apply to refinance and VA loans. 10. VA loans are available only for the purchase of a primary residence. Visit the VA Web site at www.va.gov. 11. Consider the investment objectives, risks, charges and expenses of USAA Life Insurance Companys variable

products carefully before sending money. Contact us for a contract prospectus and underlying fund prospectuses containing this and other information about the funds. Read them carefully before sending money. Variable products are distributed by USAA Investment Management Company, a registered broker dealer.
12. USAA Life General Agency, Inc. (LGA) (known in CA and NY as USAA Health and Life Insurance Agency) acts as an agent for select insurance companies to provide long-term care insurance to USAA members. LGA representatives are salaried and receive no commissions. However, LGA receives commissions from those companies which can include compensation based on the total quantity and quality of insurance coverage purchased through LGA. Plans not available in all states. 13. USAA Trust Services are offered by USAA Federal Savings Bank. Its fee-based services are most appropriate for investable assets of $250,000 or more. 14. USAA Brokerage Services is a division of USAA Investment Management Company. 15. Available services provided by special service discounts for USAA members arranged through USAA Alliance Services, Inc. 16. The USAA Educational Foundation, a nonprofit organization, does not endorse or promote any commercial suppliers, products or services.

84118-0905 2005 USAA. All rights reserved.