Soldier of Finance: Take Charge of Your Money and Invest in Your Future

191 Pages·2013·1.44 MB·English

by  Jeff Rose

SOLDIER OF FINANCE
TAKE CHARGE OF YOUR MONEY AND INVEST IN YOUR FUTURE
JEFF ROSE, CFP®
American Management Association
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Library of Congress Cataloging-in-Publication Data
Rose, Jeff (Business writer)
Soldier of finance : take charge of your money and invest in your future / Jeff Rose.
pages cm
Includes index.
ISBN 978-0-8144-3328-7 (pbk.) — ISBN 0-8144-3328-6 (pbk.) 1. Finance, Personal. 2. Investments. I.
Title.
HG179.R647 2013
332.024--dc23 2013007813
© 2014 Jeff Rose
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ABOUT AMA
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Printing number
10 9 8 7 6 5 4 3 2 1
DEDICATION
To my wife, Mandy, who supports and inspires me in everything I do. Without your constant
encouragement this book would continue to be just another “big idea.”
To my three boys, Parker, Bentley, and Sloane, who give me the drive to be a better father, provider, and
leader.
To all our U.S. military service men and women who continue to fight for our freedom.
In memory of SSG Joshua Melton, a true American hero who volunteered to defend the country he loved
so that his wife, daughter, and future generations would always know freedom.

The test of success is not what you do when you are on top. Success is how high you bounce when you hit
bottom.
—GEORGE S. PATTON
CONTENTS
ACKNOWLEDGMENTS
INTRODUCTION
The Soldier's Handbook
The Purpose of Soldier of Finance
PART ONE
DISCOVERY PHASE: WHAT IS YOUR WHY?
1 WHY ARE YOU HERE?
Shaky Beginnings
What's Your Story?
What Is a Soldier of Finance?
Debriefing: A Soldier of Finance Success Story
Go/No Go
Summary
2 TIME TO ENLIST AND TAKE AN OATH
Soldier of Finance Creed
Finding a Battle Buddy
Identifying Blue Falcons
Down to Basics
Summary
PART TWO
INITIAL TRAINING PHASE (WEEKS 1–5)
3 WEEK 1: THE ARMY PHYSICAL—MEASURE YOUR DEBT
Your Financial Status: Stop Being in Denial
Debriefing: The Meaning of “Not Much Debt”
The Situation Report
P/X Rangers (or Living Beyond Your Means)
Summary
4 WEEK 2: ROSTER NUMBER—YOUR CREDIT SCORE FOR LIFE
740 Is the New 720
Credit Scores and Your Mortgage
Finding Your Credit Score
Summary
5 WEEK 3: LAND MINES—YOUR CREDIT REPORT
My First Credit Report
Where to Get Your Free Credit Report
Carefully Verify the Information
Set Up Your Recon
Summary
6 WEEK 4: THE LOW CRAWL—CREDIT REPAIR
Stop the Bleeding
My Unnecessary Debt
Pay Down Your Debt
Debriefing: No Credit to Good Credit
Get the Most Out of Your Credit Cards
Watch Out for Credit Card Company Dirty Tricks
Summary
7 WEEK 5: LAND NAVIGATION CERTIFICATION—IDENTIFY YOUR
GOALS
Define Your Mission Objectives
Op Orders: How to Achieve Your Mission
Summary
PART THREE
CAMPAIGN PHASE (WEEKS 6–12)
8 WEEK 6: ACCOMPLISHING GOALS—FROM CHAOS TO PRECISION
Into Action
Execute the Mission
Twenty-One Days to Change
Dealing with Setbacks
Review the Mission
Summary
9 WEEK 7: DESTROYING THE ENEMY—PAYING OFF DEBT
Field Artillery: Matching the Cannon to the Objective
Ammunition for Targeting Debt
Debriefing: Operation Motherhood
Don't Be Content with Debt
Getting Cash Flow Positive
Summary
10 WEEK 8: SENSITIVE ITEMS REPORT—TACTICAL BUDGETING
Tie Budgeting to Your Goals
The Sensitive Items Report
The Basic Training Budget: Identify Your Unnecessary Spending
Online Resources
Debriefing: Operation Budget
Practice Makes Perfect: Why Soldiers Drill
Family Battle Drills
Summary
11 WEEK 9: FRAGO—THE SAVINGS ACCOUNTS SURVIVAL GUIDE
The FRAGO Fund
Watch Out for Imposters
Making the Most of Your Savings Account
You Are Now Ready for Anything
Summary
12 WEEK 10: MANUALS AND ORDERS—GETTING STARTED IN
INVESTING
Why Haven't You Started?
Are You Ready?
The Magic 10 Percent: A Guideline for Investing
Get the Right Advice
Secure Your Base of Operations
Summary
13 WEEK 11: FROM BOOTS TO HUMVEES—BEGINNING INVESTMENT
VEHICLES
Remember the Mission
Use Boots, Not Buses, for Short Distances
Middle-Distance Humvees: Investment Accounts (Individual or Joint)
Peer-to-Peer Lending
Summary
14 WEEK 12: FIVE-TON TRUCKS AND MRAPs—LONG-DISTANCE
INVESTMENT VEHICLES
Take an Active Role with a Roth IRA
Follow the Roth IRA with a 401(k)
The 401(k) for Military Personnel
The Stock Market: Be Careful of the Risks
Diversify Based on the Size of Your Portfolio
Investing for Your Future
Summary
PART FOUR
CONSOLIDATION PHASE (WEEKS 13–14)
15 WEEK 13: BASIC HOUSING ALLOWANCE—MORTGAGE BASICS
Debriefing: J. Money's House
How Much House Can You Really Afford?
What Types of Loans Are Best for You?
Housing Traps to Avoid
Summary
16 WEEK 14: YOUR BODY ARMOR—YOU NEED INSURANCE
Auto Insurance
Homeowners/Renters Insurance
Medical Insurance
Life Insurance
Umbrella Liability: Covering the Gaps
Summary
CONCLUSION
RESOURCES
INDEX
ABOUT THE AUTHOR