“Financial Planning to Secure your Career and Retirement Goals.”

Thank you for joining the Embry-Riddle Aeronautical University Webinar!

The session will begin at 7:30 p.m. Eastern Time (GMT-4)

6:30 Central Time/4:30 Pacific Time

A few session pointers

• We will use the text chat for questions• You can interact with icons• You control the size of your screen• Emails will be provided at the end• A link to the recording will be emailed to you

Today’s Agenda

• Personal Financial Planning—Dr. Mark Bellnap• Military TA and VA Benefits—Drew Hill• Financial Aid—Annamarie Garcia• Question and Answers

Personal FinancialPlanning

Presented by Dr. Mark S. Bellnap

• Planning

• Retirement

• Insurance

• Legal

Agenda

You should seek advise from your tax advisor,

legal advisor, or retirement advisor

before making any related decisions.

Disclaimer

RETIREMENTSome Things to Consider

• Health

• Structuring of Time

• Other Considerations

-Desire

-Money

-Time

Employee Retirement 403(b) and 401(k) Contribution Limits

• $17,500 for employees under age 50

• $23,000 for employees age 50 and above

• All contributions are tax deferred

RETIREMENT401-(k) and 403-(b)

• Stocks

• Bonds

• Limited Partnership

• Mutual Funds

Other Retirement Options Traditional IRA

• Tax deductible contribution (depending upon income level)

• Withdraws can begin at age 59 ½ and are mandatory by age 70 ½ (subject to exceptions)

• Taxes are paid on earnings when withdrawn from the IRA

Other Retirement Options Roth IRA

• Contributions are not tax deductible

• No Mandatory distribution age

• All earnings and principal are 100% tax free if rules and regulations are followed

• Funds can be used to purchase a variety of investments, e.g., stocks, bonds, and certificates of deposit

Other Retirement Options Roth IRA

• Full contributions available only to single-filers making up to $114,000 or married couples making a combined maximum up to $181,000 annually

• Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions)

Other Retirement Options Social Security

• When should I start taking social security?

• Retirement Benefits

• Disability Benefits

• Survivors Benefits

Insurance

What are my Insurance Needs?

Insurance

• Life

• Health

• Disability

• Automobile

• Home Owner’s

Insurance

• Educator’s

• Nursing Home

• Renters

• Umbrella

Legal

What are my Legal Needs?

Legal

-Wills

-Trusts

-Medical Power of Attorney

-Directives to Physicians

-Durable Powers of Attorney

Military TA and VA Benefits

Drew Hill

Military & Veteran Student Services

wwva@erau.edu

855-785-0001

Military Tuition Assistance

• An education benefit paid by the branch of service to a College or University.

• Each branch sets their policies regarding:

– Eligibility

• Minimum time in service

• Rank

• Degree Program

– Per Credit & Annual Limits

– Application Procedures

Tuition Assistance Rates

• Army – $250 per credit, $4000 per year, or 16 credits, whichever comes first.

• Navy – $250 per credit, $4500 per year.

• Marines – $250 per credit, $4500 per year.

• Air Force – $250 per credit, $4500 per year.

• Coast Guard – 75% of course cost or $187.50 per credit hour, whichever is greater, for a total of $2250 per year.

*Rates are determined by each Military Service and are subject to change, funding permitted.

Tuition Assistance Continued…• All rules governing TA implementation and approval are governed by the

military services.

• Because eligibility and funding may change at any time, planning for an alternate funding method is recommended (VA or FA).

• TA must be approved by service prior to the first day of class.

• Services require degree plans to approve TA, and require grades after the completion of each course.

• *Unsatisfactory or missing grades cause the service to initiate recoupment procedures.

*It is the student’s responsibility to ensure grades are submitted accurately and timely, failure to do so may cause the service to recuperate the TA funding from the service member's regular military pay.

Applying for Tuition Assistance

• The Navy, Marines and Coast Guard use the webTA Portal.

• The Army and Air Force maintain separate portals.

To get started contact your Education Service Officer (ESO)

or visit your Base Education Center.

VA Education Benefits

• There are currently 6 different VA Education benefits (GI Bill®).

• Most common:

– Ch. 33 – The Post 9/11 GI Bill®

– Ch. 30 – The Montgomery GI Bill®

• The following slides will explain the differences in all 6.

Ch. 30 – The Montgomery GI Bill®

• To be eligible:

– Must serve at least 2-3 years on Active Duty.

– Must contribute $1200 to participate in the program.

– Can use as a veteran or while serving on active duty.

• Delimitating Date: 10 years from separation

Ch. 30 – The Montgomery GI Bill® cont.

• While on active duty:

– If not using TA, Ch. 30 reimburses the service member up to the cost of their tuition and fees.

– If using TA, the service member must submit their TA authorization form to their VA Regional Processing Office to be reimbursed for the portion of the tuition not covered by TA, this is called Tuition Assistance Top-Up.

Ch. 30 – The Montgomery GI Bill® cont.

• As a veteran who has separated from Active Duty, the benefit pays:

• $1648* per month for full-time enrollment.

• $824 per month for half-time enrollment

• There is no difference in benefit rates with online vs. on campus modalities for this benefit

*Monthly Rate effective 10-1-2013

Ch. 33 – The Post 9/11 GI Bill®

• Benefit Rate - based on months of active duty for purposes other than training since 9-11-2001.

• Transferability – The active duty service member can elect to transfer part or all of their entitlement to spouses or dependent children.

• Three payments associated with Post 9/11:

– Tuition benefit

– Books and Supplies Stipend

– Housing Benefit

• Note: Only dependent children, veterans, and spouses of veterans are eligible for the housing benefit. Active Duty service members and their spouses are not eligible.

• Delimitating Date: 15 years from separation

Transferability

• The service member may elect to transfer some of all of their entitlement to their spouse or dependent child.

– Spouse or Dependent child must be enrolled in DEERS system, child must already be born.

• The DoD must approve transfers.

• 6 years of service with an additional 4 year obligation is usually required to be eligible to transfer your Post 9/11 GI Bill®.

Benefit Rate

• Based on number of aggregate months on active duty since 9-11-2001 for purposes other than training:

– 100% - 36 months

– 90% - 30 months

– 80% - 24 months*

– 70% - 18 months

– 60% - 12 months

– 50% - 6 months

– 40% - 90 days – 6 months**

• *At 24 months for other than training, the VA will consider entry level basic and skills training (Basic training, AIT, MOS, A-School)

• **Service of 30 days or more where the veteran received a discharge related to a disability entitles 100% Post 9/11 Benefits.

Post 9/11 Tuition Benefit

• VA pays 100% of in In State Tuition charges at public schools.

• For private school the VA will pay a maximum of:

– $19,198.31 for academic year 2013-2014

• Enrollments beginning August 1, 2013-July 31, 2014.

• If the student is less than 100% eligible, the VA will pro-rate each tuition payment.

– For a 60% eligible student, the VA will pay an annual maximum tuition benefit of $11,518.99 (60% x $19,198.31)

Post 9/11 Books and Supplies Stipend

• The VA pays a maximum annual books and supplies stipend of $1000 for a 100% eligible student, this is pro-rated based on the students benefit level.

• The VA pays this stipend per credit of enrollment, based on a 24 credit per year course load.

• For example: A 100% eligible student will receive $1000/24 = $41.67 per credit of enrollment, or $125 for every 3 credit course they take until the annual maximum is reached.

• A 60% eligible student will receive $600/24 = $25 per credit of enrollment, or $75 for every 3 credit course.

Post 9/11 Housing Stipend

• Not payable to active duty service members or their spouses.

• Pays either a distance (online) or in residence monthly rate.

– Distance or online rate: $714.50 per month

– If there is at least one in residence credit hour the rate is based on the BAH for an E-5 with Dependent BAH for the zip code of the Campus the student is attending.

Post 9/11 Housing Stipend cont.

• Student must be enrolled with a Rate of Pursuit greater than 50%.

– For traditional terms where 12 hours is full-time, 7 credits is the minimum to receive a monthly stipend.

• The VA does not pay for remedial (prep) courses which are taken online.

Post 9/11 Housing Stipends cont.

• The VA will pro-rate housing stipends based on:

– The start and end dates of the term

• The VA does not pay for breaks in enrollment.

– The student’s eligibility level

• Monthly payment reduced if the student’s benefit level is less than 100%.

– If the student exhausts their total months of entitlement during the term.

Ch. 30 to Ch. 33 Conversion

• Students can only use 1 benefit at a time for a maximum of 36 months, but may use a combination of benefits for a total of 48 months, Examples below:

– Student may use 36 months of Ch. 30, then use an additional 12 months of Ch. 33 (student must completely exhaust Ch. 30 entitlement to gain the additional 12 months).

– If the student begins using Ch. 30, they may convert to Ch. 33 before exhausting all 36 months of benefits. They would receive the remaining months of benefits to use under Ch. 33. Ex: 12 months Ch. 30, then 24 months of Ch. 33.

– Once the student applies for Ch. 33 they must permanently relinquish one other benefit they are eligible for, if they are only eligible for Ch. 30 this means they can never go back to Ch. 30.

Ch. 1606 – The Selective Reserve Montgomery GI Bill®

• To qualify for the benefit, the service member must have signed a 6 year reserve commitment, and remain in satisfactory drilling status.

• If the reservist separates from the drilling service component, they lose eligibility for the benefit.

• Service members are not eligible for this benefit while serving on active duty.

• Full-time payment rate $362 per month

Ch. 1607 Reserve Education Assistance Program

• Eligibility: serve on active duty at least 90 days since 9-11-2001.

• Benefit Level based on length of consecutive active service*.

– $659.20 - 40% - At least 90 days but less than 6 months

– $988.80 - 60% - At least 6 months but less than 12 months

– $1,318.40 - 80% - At least 12 months but less than 24 months

• Delimitating Date: 10 years from separation

• *Consecutive active service means the VA will determine benefit level by the longest period of active duty, and not aggregate multiple tours.

• Pays percentage (40%, 60%, 80%) of the Ch. 30 rate

Ch. 31 Vocational Rehabilitation and Employment

• Eligibility: Service Connected disability of 20% or greater or upgraded rating within the past 11 years.

– The Veteran must apply and be approved for the benefit, this can take up to 6 months and several interviews.

• Benefit: Pays 100% of tuition and all fees associated with the program, to include books, software, laptop computer, or any other required materials.

– Also pays the veteran a monthly subsistence allowance.

• If the veteran is concurrently eligible for Ch. 33, the veteran may elect to receive the higher Ch. 33 stipend in lieu of the subsistence allowance.

Ch. 35 Dependents Education Assistance

• Effective 10-1-13, this benefit pays a full-time benefit of $1003 for up to 45 months education training.

• Eligibility: Generally, One must be the child or spouse of a 100% Service Connected Permanently and Totally Disabled Veteran, or who died as a result of their disability or military service.

• Generally, eligibility for children is from age 18-26, but can be extended, and 10 years from becoming eligible for spouses.

VA Forms

• To initiate the process an application should be submitted to the VA:

– Application for VA benefits: 22-1990

– Dependents (Ch. 35) Application for VA Benefits: 22-5490,

– Dependents (Ch. 33) Application for VA Benefits: 22-1990E.

Financial Aid

Anna-Marie Garcia

Financial Aid

wwfinaid@erau.edu

866-567-7202

What is Financial Aid?

Financial aid is funds provided to students and families to

help pay for postsecondary educational expenses.

Types of Financial Aid

• Scholarships

Money that does not have to be paid back

Awarded on the basis of merit, skill, or a unique characteristic

• Grants

Money that does not have to be paid back

Usually awarded on the basis of financial need

Awarded based on Federal and/or State criteria

• Loans

Federal and/or private money students and parents borrow to help pay educational expenses

Repayment usually begins after education is finished

Sources of Financial Aid

• Institutional

• Private sources

• Federal government

• States

How to Apply for Scholarships

Embry-Riddle Worldwide students are eligible for University Institutional Scholarships and External Scholarship opportunities, awards are granted based on merit or need – Apply on website http://worldwide.erau.edu/finance/financial-aid/scholarships/index.html

Worldwide ScholarshipFunds designed to reward students that have shown successful academic achievement.University Institutional ScholarshipFunds generously donated to the University in order that they should be passed along to students to help pay for their education.External ScholarshipAwarded to students to help pay for education by organizations independent from Embry-Riddle.

How to Apply for Federal Aid

Go to http://www.fafsa.ed.gov/ to complete the

Free Application for Federal Student Aid (FAFSA)

• A standard form that collects demographic and financial

information about the student and family

• State Grants may also require the FAFSA for eligibility

requirements

• May be filed electronically or using paper form

Available in English and Spanish

FAFSA Processing Results to Student

Central Processing System (CPS) notifies student of FAFSA processing results by:

• Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided

• E-mail notification containing a direct link to student’s on-line SAR if student’s e-mail was provided on paper or electronic FAFSA

• Student with PIN may view SAR on-line at www.fafsa.ed.gov

FAFSA Processing Results to

School• Institutional Student Information Record (ISIR) sent

to colleges listed on FAFSA approximately 10 to 14

days after FAFSA is submitted

• College reviews ISIR

After review an e-mail notification is sent if

additional information is needed or if student is

Awarded

WW Financial Aid Tracks

Financial Aid Tracks (Track System)

Worldwide adheres to Federal Regulations by ensuring that

Financial Aid is not paid for overlapping terms/payment

periods. Worldwide offers distinct courses of enrollment to

its students. These unique attendance patterns are called

Tracks.

Undergraduate Students Tracks

TRACK 1 (Online Track Only with 9 week Terms): July Term - September Term - November Term - February termTrack 1 allows students to enroll in classes offered online only and receive financial aid. Students electing to be on Track 1 will not be able to use other modalities of learning such as: Classroom, Eagle Vision Class or Eagle Vision Home as these modalities are not offered on this Track.

TRACK 2 (Blended Track with 9 Week Terms): August Term - October Term - January Term- March termTrack 2 allows students to take advantage of all modalities of learning and receive financial aid: Online, Classroom, Eagle Vision Class and Eagle Vision Home.

Hawaii Campus TRACK 1 (Campus Track with 10 week terms): July Term-October Term-January Term-April TermHawaii Campus Track 1 was uniquely created for Hawaii campuses for their 10 Week Terms.

Master’s Students

Master Track (9 Week Terms) :

August Term - October Term - January Term - March

Term

This track utilizes all modalities of learning: Online,

Classroom, Eagle Vision Class and Eagle Vision Home.

This is the only track available for Master’s students.

Resources

Always refer to the Worldwide ERAU Website

http://worldwide.erau.edu/finance/financialaid/index.html

Federal Student Aid

http://www.fafsa.ed.gov/

http://studentaid.ed.gov/

Have more questions? We are available to help simply call

866-567-7202

Todays Presentation: Dr. Mark Bellnap: bellnd41@erau.edu

Drew Hill: wwva@erau.edu

Annamarie Garcia: wwfinaid@erau.edu~~~

For questions about the webinar series: Bill Gibbs, webinar series coordinator

bill.gibbs@erau.edu

Upcoming Webinars:

• April 8: Critical Thinking for Leadership• May 13: Aviation Psychology• May 20: Finding Your Future in Aviation and

Aerospace (Career Planning)• June 20: Project Management Risk