Saturday, Oct. 03, 2009

Clark Howard helps soldiers avoid getting ripped off

Clark Howard, consumer advocate, talk radio host and CNN “Headline News” personality, said Thursday he was stunned by how many U.S. soldiers get ripped off through bad business deals.

“They’ve got people who want to separate them from their money,” Howard said. “It’s my job to fight back.”

On Thursday morning, a few dozen soldiers and fans gathered on the front lawn of the National Infantry Museum and Soldier Center to listen to Howard as he taped his syndicated radio show, which airs locally on WRCG-AM 1420. During the program, the Atlanta-based host — whose motto is, “Save more, spend less and avoid getting ripped off” — took questions from the military crowd about money matters. He also spoke with retired Maj. Gen. Jerry White, chairman of the National Infantry Foundation; Maj. Gen. Michael Ferriter, commanding general at Fort Benning; and “HLN” anchor Robin Meade, who later signed copies of her new book at the museum.

Advice and lessons

Dressed in full army combat uniform, Howard — who is a volunteer member of the Georgia State Defense Force — spoke of how young soldiers armed with discretionary income could easily become targets for unethical businesses. At the same time, he questioned whether they had the necessary skills to avoid getting financially duped.

Financial counselors at Fort Benning said it was a familiar situation: Some soldiers purchase cars they can’t afford or take out loans with exorbitant interest rates, for example.

Rosalie Grant-Nolt, a financial readiness specialist with Fort Benning’s Army Community Service, told Howard on-air she once saw a soldier who was losing $800 a month because of bank overdraft fees.

“It’s not just soldiers, but Americans in general are not keeping their bank account journals,” Grant-Nolt said. “This is a huge issue. If you spend $800 of your $836 on overdraft fees, what do you live on?”

At Fort Benning, soldiers are required to complete a personal finance class at the beginning of their service. There are other consumer classes that cover topics like debt counseling and budgeting, which soldiers can take through the Financial Readiness Program.

Most of the questions Howard fielded during his radio show didn’t deal with getting ripped off; most focused on investing, retirement and staying out of debt.

James Kvicala, a retired colonel in his 70s, told Howard he and his wife were receiving money from three sources: Social Security, military pension and a civil service fund. The father of three grown children and grandfather of eight asked Howard about possible investment options to grow their money.

Howard suggested a 529 college savings plan — a investment fund from which withdrawals for education expenses are free from federal income tax — for his younger grandchildren.

Kvicala later said he had heard of the fund Howard had mentioned. “He’s given me the impetus to consider that seriously,” he said.

Sandy McLean, a chaplain with the Warrior Transition Battalion at Fort Benning, was among the crowd listening to Howard’s advice.

“I think it’s right on,” said McLean, 55. “The more help we can get managing our funds, the better.”

Howard said he came to talk to Fort Benning soldiers for two reasons — to show his appreciation and to give back through personal finance advice.

“I so value what they do for our country and it eats at me that they get ripped off more than anybody else in our population,” Howard said after his radio show.

Howard later taped his TV program in the museum lobby that afternoon, during which he took more questions from the audience.