By Phil Dyer, MOAA Benefits Information

Will I have enough money for a secure retirement? Have I saved enough to send my kids to college? Am I making the most of my military, retired military, or civilian-sector employee benefits? * Many MOAA members ponder these and other questions as they attempt to meet their personal financial responsibilities. But you don’t have to explore the complex world of finance and investments all by yourself. A certified financial planner (CFP) can help you navigate your way through the myriad choices and opportunities for investment. Former Army Capt. Phil Dyer, CFP, MOAA’s deputy director for financial education, spoke with three MOAA members — each at a different lifestage and facing different fiscal challenges — about their experiences working with an expert in financial planning.

(* To protect member privacy, photos and some names are not those of actual members.)

Name: Lt. Col. Jim Fuller, USMC*
SitRep: Fuller has 19 years of service and lives with his wife and two young children in northern Virginia.
Planner: Everette Orr, CPA/PFS, CFP, of ORR Financial Planning, McLean, Va.
Fee: $2,400 for a full financial checkup and overhaul

Active duty Marine Lt. Col. Jim Fuller says, “My busy career and two small children make it difficult to devote enough time to make sure we are doing things right.” He decided to seek out a financial planner because “we wanted a comprehensive financial checkup to make sure we were on the right track.”

In the past, Fuller has consulted both a commission-oriented CFP and a stockbroker, but this time, “We wanted an objective professional opinion on our current situation and long-term chances of success,” he says.

An MOAA staff member referred Fuller to the Garrett Planning Network (GPN) (see “Financial Planning Through MOAA,” page 57), where Fuller found Everette Orr. “Everette helped us develop a clear roadmap for long-term financial success that was based on our specific goals. We rebalanced our [investment] portfolio to support those goals and made it more tax-efficient,” Fuller says. “We also validated our college planning approach for our young children utilizing Section 529 college savings plans.”

Fuller recommends a financial review to others: “No matter how smart you are — or think you are — you can benefit from objective outside advice.” And though the process of gathering data for Orr’s review was “very time consuming,” Fuller says, “the end results were very worthwhile.”

“Officers should start [de­veloping a financial plan] as early as possible. Waiting until you are an O-5 to start serious financial planning is too late,” Fuller says. “Yes, there is a cost involved, but the benefits of achieving financial peace of mind from an objective source far outweigh the short-term cost.”

Orr’s objectivity meant a lot to Fuller: “[There was] no product sales pressure. ... He didn’t try to force us in one direction or another. ... He presented choices, options, and a broad array of recommendations.” Fuller and his wife have developed an ongoing relationship with Orr, “to make sure we stay on track,” Fuller says.

Fuller suggests spouses be included in the financial planning process. “It is a team effort and therefore critical that they stay up-to-date,” he says.

Name: Lt. Col. Ron Jackson, USA-Ret.*
SitRep: Jackson retired in 2001 and is in his second career; he and his wife have two children, ages 2 and 5.
Planner: Jim Ludwick, CFP, of MainStreet Financial Planning, Odenton, Md.
Fee: $1,000 to $1,500 range

Lt. Col. Ron Jackson, USA-Ret., says he and his family “needed to rebalance our neglected investment portfolio and wanted professional advice. … We also wanted to validate our retirement planning assumptions and projections.”

Jackson had “never gotten a formal financial plan,” he says, though “I have purchased products through insurance agents and financial salespeople in the past.” He found CFP Jim Ludwick through an article about GPN in Military Officer.

“Jim provided a very thorough summary of all aspects of our financial lives,” Jackson says. “He laid out a game plan for a secure retirement and fully explained the risks and benefits of all his recommendations. He provided specific recommendations for rebalancing our investment portfolio [and] advice on college planning and discussed our estate plan.”

So what has Jackson learned? “Don’t get caught short ... plan early to achieve long-term success.” Also, he cautions, “You need to put some effort into [financial planning] and take it seriously. You might not always like what you hear — such as spend less and save more — but you should be prepared to act on the suggestions, [because] a plan is no good unless you execute.”

On the whole, Jackson found his experience to be a “very beneficial process, particularly if you are going through life changes such as the birth of children, military retirement, [or] starting a second career.” He notes that Ludwick “provided unbiased recommendations and had no sales agenda. ... We were very satisfied overall.”

Jackson’s only caveat: “The ‘homework’ required for a successful comprehensive plan can be extensive; be prepared [for that].” But, he acknowledges, “the thoroughness of the review forced us to pay attention to some key financial items we hadn’t addressed for some time.”

Name: Maj. Don Pape, USAF-Ret.
SitRep: Pape, an oral surgeon, had five years of active and 22 years of reserve service and fully retired in 1998.
Planner: Debra Dillon, principal of Dillon Financial Planning, Boise, Idaho
Fee: $650 for a limited-scope engagement

At 77 years old, retired Air Force Maj. Don Pape’s greatest concern was, “Would my money last during retirement and run out about the same time I did?” Pape’s son, a stockbroker, had given him some good advice, but Pape wanted an independent review of his investment portfolio. He located Debra Dillon through MOAA’s affiliation with GPN.

“I have never used a financial planner before,” Pape says. “Debra got right to the heart of my concern. I was spending money too fast in retirement and ran a real risk of outliving my money. ... She asked me, ‘What do you want?’ and specifically addressed my concerns.”

Pape learned a lot from working with Dillon: “She provided a good education on the effects of inflation, the pros and cons of annuities and other financial products, the advisability of a reverse mortgage, and [the use of] home equity loans [because] my holdings are so real-estate heavy.”

Besides identifying problems, Dillon helped Pape “develop a realistic budget for a secure retirement and really helped ease my mind. We also made some minor changes to my investment portfolio.”

“The recommended solutions really helped my financial peace of mind,” he says. “It was nice to hear that with the small adjustment to spending habits and other changes that I was in pretty good shape going forward.

“My only complaint,” Pape says, “and it really isn’t a complaint, was the final report could have been more streamlined. She almost provided too much information! However, she was very good about explaining everything to my satisfaction.”

Pape liked the service he received so much, he recommended it to his stockbroker son. “I strongly recommend that everyone look at getting a financial planner, and the earlier, the better,” he says. “I wish I had done this 30 or 40 years ago.”