Finance Flashcards
Which section on the LES records recent or upcoming changes
 remarks section
What are some common banking fees to watch out for
ATM withdrawal fees
Overdraft or nonsufficient fund fees
loan interest and origination fees
monthly service charges
‘low balance fees
Usage fees
What are the four steps to a spending plan
Step one understand your current situation
Step to know where your money should go
 Step three create a plan
Step four make adjustments
What are the five factors driving your credit score
Payment history 35%
Amount of debt owed 30%
Length of credit history 15%
New credit 10%
Types of credit at 10%
What are some healthy credit habits
Create and follow you spending plan
Pay bills on time
Pay off credit cards in for each month
Do not apply for credit you do not need
Keep credit card and loan information safe
Keep your receipts and compare charges
What does SCRA stand for
Servicemembers civil relief act
What is the military lending act
Limits the amount a creditor may charge on a wide range of credit products to 36% military annual percentage rate
Who is protected under the military lending act
Active duty service members
National Guard and reserves on active duty for 30 days or longer
Spouses and cover dependence
What is covered under the military lending act
Credit cards
Payday loans
Vehicle title loans
Refund anticipation loans
Certain installment loans
What are some ways to reduce identity theft
Safe guard wallet debit cards ID cards credit cards mail
Electronic statements
Review credit report
Computer security settings are up-to-date
Avoid unsecured Wi-Fi networks
True or false under the military lending act active duty soldiers including members of the garden reserve on active duty for 30 days or more and cover dependence cannot be charged interest rate higher than 36% on most consumer loans along with other protections
True
What are the three separate deals when purchasing a vehicle
Purchase price
Finance
Trading
True or false the public service loan forgiveness program forgives the remaining balance on your direct loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for qualifying employer
True
How do you interpret different types of insurance
Deers
TRICARE or TRICARE reserve select
Elect plan
How do you get dental and vision and what are the requirements
Optional to enroll
Additional monthly cost
Federal employee dental and vision
What are the different types of property insurance
Auto
High value items
Homeowners
Liability
Renters
What is the purpose of life insurance
Offers protection for your family
Marriage affects Insurence needs
Reduce his financial hardship for loved ones
What is the name of the army’s life insurance
Service members group life insurance or SGLI
How to calculate total need for life insurance
Add liabilities add income add final expense and education and other goals then subtract current coverage and assets and that equals your total need
What does Deers stand for
Defense enrollment eligibility reporting system
True or false dental insurance is free for military dependence
Foss additional monthly cost
You are automatically insured for $_________ Under the service members group life insurance SGLI
$500,000
What should you include when planning your estate in the event of your dad or becoming incapacitated
 Writing a will
Power of attorney
Creating a living wheel or medical directive
Establish trust
Titling your assets
Determining a home of record or state of residence
Guardianship and conservatorship for children
Update beneficiaries
What are the types of investments
Cash
Bonds
Stocks
Mutual funds
Exchange traded funds
True or false compound interest is the cycle of earning interest on interest
True
A _________. ___________ Is a type of investment made up of a pool of money collected from mini investors to invest in securities like cash bonds stocks and other assets
Mutual funds
What is the army’s retirement plan name
Blended retirement system
How do you calculate your monthly retired pay
2.0% X Years of service X high 36 Month Average of Base pay
What are the benefits of the TSP
Minimum administrative fees
Automatic deduction
Various investment options such as traditional Roth combination both
What is the TSP contribution under BRS
Under BRS Contributions are 5% to TSP for full matching benefit
If you were to automatically enroll in BRS after October 1, 2020, _______% Is automatically deducted from your base pay or an active duty pay into your TSP account
5%
After 60 days of service the army will begin contributing and amount equal to ____% Of your base pay into your TSP account each month
One percent
True or false if you were automatically enrolled in BRS and you zero out your TSP contributions you will be automatically reenrolled at 5% of your basic pay each calendar year
True
What is the traditional TSP
Pretax income tax paid at withdraw
What is the Roth TSP
Post tax income tax free at withdrawal
How many phones are there to customize based on comfort level and what are they
Five individual funds the C fund the S fund the I fund the F fund that G fund
If you were automatically enrolled in the BRS the money from your pay will automatically go into Wichita TSP fund
Lifecycle fund
True or false when you make Roth contributions your taxable income is not reduced now but withdrawals from these accounts can be tax free later as long as a few rules are followed
True
Oh automatic one percent and matching contributions go into the ______ tax treatment
Traditional
