In response, USAA and Military.com have commissioned a list of Best Places for Military Retirement: Second Careers. Among the top ranking cities in this year’s list are: Oklahoma City, Okla.; Norfolk, Va.; Richmond, Va.; Austin, Texas; and San Antonio, Texas.  

In addition to location, there are other factors that can help or hurt a veteran’s transition. June Walbert, a certified financial planner practitioner with USAA, offers these helpful tips to ensure a smooth transition.

* Deliver the goods. Many military retirees haven’t interviewed for a civilian job in decades, if at all. Government programs such as the Transition Assistance Program and Transition Boot Camp are a must. Hiring a resume-writing pro, enrolling in an interviewing skills class and using tools such as Military.com’s skills translator can help summarize military skills and experiences that will make sense to a civilian hiring manager. Also, don’t underestimate the power of friends and acquaintances. Networking with them can produce tips and ideas, maybe even a job.

* Know that all paychecks are not created equal. In the military, stacked on top of base salary is an array of allowances including a generous tax-free housing benefit. Military retirees have access to TRICARE, but civilian vets may now have to pay for life, medical, dental and disability insurance – expenses that could put a significant dent in a paycheck.

* Build a transition fund. A job hunt should start well before one retires from service. It’s a wise idea to have nine to 12 months of living expense money saved to bridge any potential financial gaps.

* Get it covered. Life insurance is often overlooked during transition, likely because it’s unpleasant to consider one’s premature demise. But it should be evaluated as a component of a financial plan. The military offers a maximum of $400,000 Servicemembers’ Group Life Insurance (SGLI) and $100,000 for spouses while serving. Veterans’ Group Life (VGLI) insurance is an option upon leaving the service and if applied for within 120 days of retirement, no medical underwriting is required. But due to cost, VGLI is generally a good option only for tobacco users and the chronically ill or injured. Retirees in good health should consider a commercial life policy at least six months before retirement to help them get the coverage they need to protect their family at a more affordable price. An added benefit of a non-employer-provided policy is it’s portable, meaning if there’s a lapse in employment the policyholder’s family is still covered. The life insurance calculator at va.gov can help calculate the amount of life insurance needed.

* Take care of the one you love. In addition to evaluating life insurance, retirees need to consider whether the Survivor’s Benefit Plan makes sense for their situation. In many cases, it can provide a cost-effective way to provide a monthly income from their retired pay for a surviving spouse in the event something should happen to the policyholder.

* Roll it over. Many military members take advantage of the Thrift Savings Plan, a tax-advantaged way of saving for retirement, and wonder what to do with the investment account upon leaving the service. Vets have basically three tax-free courses of action to consider:

–Leave the funds within their TSP account.
–Roll their TSP into a traditional Individual Retirement Account.
–Roll their money over to their new employer’s plan.

All of these choices are initially tax-free and allow for the continuation of possible tax-deferred compounding. Any tax-free combat pay contributions included in their TSP balance can be rolled directly into a Roth IRA to maintain its tax-free status and, over time, accumulate tax-free earnings. This would not generate any income taxes.

This transition period also is an ideal time to take a retirement snapshot. Putting a financial plan in place helps everyone understand what their true retirement’s lifestyle expenses will be. But for vets, they’ll have a clearer picture regarding how much debt to pay down or how much needs to be saved and invested during their remaining work years. The good news is their military retirement paycheck could be effectively leveraged to do just that.

The post Tips for a Smooth Military Transition first appeared on The How Do Gardener.

If you’ve set yearly financial goals in the past, but have failed to achieve them, now is a great time to re-evaluate your process. And don’t let past failures discourage you, because you are not alone – only 12 percent of consumers reached their financial goals in 2011, according to a recent Zogby IBOPE survey commissioned by TransUnion, one of the three major credit reporting companies.

“Even though you may have been busy with the holidays, now is the perfect time to appraise your current financial situation and make goals for where you want to be at the end of 2012,” says Heather Battison, TransUnion’s senior director responsible for consumer education.

So what can you do to ensure financial success in the coming year? TransUnion offers five tips for planning and achieving your goals:

* Check your credit reports every three months. Monitoring your credit can help you recognize bad financial habits, like making late payments, which can affect credit score. Regularly checking your credit report is also a way to protect yourself against identity theft. If you ever run into a situation where you suspect identity theft, TransUnion provides a guide for what to do next.

Federal regulations allow everyone to receive one free credit report per year from each of the three main credit reporting agencies, Experian, Equifax, and TransUnion.

* Check for accuracy.  Make sure the information on your credit reports is up-to-date and reflects your current credit history. Give yourself at least 30 days to resolve any issues. Online dispute forms are available at TransUnion.com.

* Know your score. Your credit score helps determine your interest rates on credit purchases. A healthier credit score can help you receive the best interest rate, ultimately putting more money in your pocket as your work toward achieving your financial goals.

* Create a monthly spending plan and stick to it. Breaking down your spending habits into smaller and more manageable increments can help you achieve your financial goals. Through breaking it down by month, you can also set aside a fixed amount each month to deal with unexpected financial emergencies that may come up later in the year. If you don’t have to spend this reserve fund, you can treat it as a year-end bonus, or, even better – put it toward next year’s goals.

* Take additional measures to minimize your exposure to identity theft. In addition to frequently checking your credit, you can sign up for a credit monitoring service that will alert you whenever something changes in your report.

Setting yourself up for a successful financial year means developing plans now that you can execute as the year goes on. Additional planning tools to help you understand your credit information, manage your debt load, protect your identity and help you achieve your financial goals can be found TransUnion.com.

The post Tips for Meeting your Financial Goals this Year first appeared on The How Do Gardener.

Experian, the leading global services information company, conducted a second annual assessment of credit scores in cities across the country and found that many cities have improved their scores since last year – albeit by small margins. With the average U.S. credit score at 749, or a “C” rating based on the VantageScore 501-990 scoring range, many consumers are taking small steps toward improving their economic situation, but there is still a great deal of room for improvement.

Maxine Sweet, vice president of public education at Experian, the leading global services information company, offers some tips to help consumers take proactive steps to help improve their credit and make smarter financial choices.

Check your credit score and report so you have a benchmark for improvement.
Credit scores translate the information in your credit report into a simple number. Check your credit report and purchase a credit score so you understand the baseline of where you stand and how your credit may have been affected by recent life events.

Understand the financial behaviors that influence the information contained in your credit report.
While it is important to know where your credit scores fall in the range of risk for lenders, the most important things to understand are the factors in your credit report that determine that risk. Once you understand the way your credit report is affected by your financial behaviors, you will be able to take the necessary steps to improve your credit history and subsequently improve your scores.

Pay your bills on time.
Paying your bills on time is the single most important contributor to good credit. Late payments negatively affect your ability to get credit since they indicate a stronger likelihood that you will make late payments again or will be unable to pay your debts in the future. Even if the debt you owe is a small amount, it is crucial that you make payments on time.

Keep balances low on credit cards and other revolving credit.
If you max out your credit card or charge balances that are very close to your limit, you will increase your “balance to limit ratio,” or utilization ratio. A high utilization ratio may indicate that you are tempted to charge more than you can pay and therefore, negatively affect your credit score.

Remember there is no overnight fix for a low credit score.
A credit score reflects credit payment patterns over time, with more emphasis on recent information. The fastest way to see an improvement in your score is to catch up on late payments and pay down your debts. If you have negative information on your credit report, time is your ally in improving your credit score.

Understanding how your financial behaviors influence your credit score will allow you to make more informed financial decisions and, ultimately, improve your financial future. To learn more about building and maintaining a strong credit history visit LiveCreditSmart.com.

The post Living Credit Smart in Tough Financial Times first appeared on The How Do Gardener.

The Federal Trade Commission (FTC) reported that identity theft – the unauthorized use of your personal identifying information, like your name, Social Security number or credit card number, to commit fraud or other crimes – is approaching 10 million incidents per year.

According to the FTC, on average, it takes a victim an estimated $500 and 30 hours to resolve each incidence of identity theft. No one wants to lose that kind of money at any time of year, but those time and monetary costs can be even more stressful during the holidays.

“The holidays present a wealth of opportunity for identity thieves,” says Heather Battison, TransUnion‘s senior director responsible for consumer education. “The hectic holiday season can potentially expose our personal information to theft in both high-tech ways like phishing scams, and in traditional ones, such as a stolen wallet or mail theft.”

Fortunately, there are proactive steps you can take now, that will help minimize your exposure to identity theft. While these tips from TransUnion are useful year round, they’re especially important during the holiday season:

* When holiday shopping, only carry essential documents with you. Only take your driver’s license and the credit card or cards you intend to use that day. Do not carry your Social Security card, birth certificate or passport, and consider leaving at home other types of cards that may have identifying information on them, like wholesale club cards or library cards.

* The holidays mean plenty of extra trash. Shred everything that contains personal, identifying information before throwing it out.

* Keep a close eye on your credit card bills. This is especially important during the holidays, when close attention can help you catch any charges you don’t recognize on your statement. An added bonus – you’ll also be more aware of how much you’re spending and be better prepared to stay within your holiday spending budget.

* Monitor your credit. Consider enrolling in a credit monitoring service that will alert you via email to changes in your credit report. This way you will know quickly if someone else has tried to open a new credit account in your name.

* When shopping online, only do business with websites that have security measures in place to protect you. Before you provide any personal or payment information, look for a URL that begins with https (not http) and a lock emblem on the page, typically next to the address bar.

* Before you surf the “Net” on Cyber Monday, consider changing your account passwords and keep a list of them in a secure place. Passwords and PIN numbers should be a random mix of letters, numbers and special characters, which makes it harder for identity thieves to guess.

Preventing identity theft is important year round, and especially during the holidays. By taking steps to protect yourself, you can help ensure your holidays remain bright – and secure.

The post Identity Theft Prevention Tips for the Holiday Season first appeared on The How Do Gardener.