Nanci Hellmich|USA TODAY
Certified financial planner Jeff Rose will never forget the day he met with a couple in their 50s who had almost nothing saved for retirement. "I remember the look of despair on their faces," he says.
He gave them some recommendations on investing and suggested they delay retirement so they could save longer and maximize their Social Security benefits.
The experience made him realize the importance of saving and ignited his passion for educating people about personal finance and investing, says Rose, a blogger at goodfinancialcents.com and the author of Soldier of Finance: Take Charge of Your Money and Invest in Your Future.
A combat veteran of the Iraq War, Rose is now the CEO of his own company, Alliance Wealth Management in Carbondale, Ill.
USA TODAY talked with him about his book:
Q: Based on your experience with the couple who hadn't saved for retirement, what would you like others to know about saving and investing for their golden years?
A: If you don't save for yourself, no one else will. Many people don't have pensions anymore, so it's really on the individual to make sure they are saving enough for retirement.
Q: What's your background, and how did you get interested in personal finance?
A: When I was 19, I was a college dropout, working a dead-end job and going nowhere fast. Then I joined the Army National Guard, and that was one of the best life decisions I've ever made. It gave me a purpose and the discipline that I fiercely lacked to finally take charge of my life. It got me into college, and I finished my degree in finance.
In college, I started accumulating credit card debt and student loan debt, even though I didn't need a student loan because the National Guard was paying for college. Stupid, right? I took loans to keep up with the college-age Joneses. It was just for eating out and going out. I had nothing to show for it. When I graduated, I had at least $25,000 in total debt from student loans and credit cards.
The military gave me the discipline to get into college, but I was still lacking financial discipline. I finally recognized at around age 22 — with tremendous help from my girlfriend at the time who is my wife now — that I needed to make drastic changes in my financial habits. That's the beginning of the transformation that led to who I am today.
Q: Why is the book called Soldier of Finance, and what is your goal with it?
A: When we got introduced to basic training, each soldier got the Soldier's Handbook. It was the introduction to becoming a soldier — all the basic skills you needed to be a well-prepared and equipped soldier.
I didn't have anything like that to help me get started in my financial life. Everything was trial and error. I didn't know what a Roth IRA was. I didn't know how to invest in the stock market. I couldn't explain to you what a 401(k) was.
It's almost comical that I was a finance major in college, and I hadn't been introduced to some of those basic concepts that almost everybody needs to start their career and financial life. I got a job as a financial adviser, and that's when I learned more about investing.
Soldier of Finance is a guide to help people get started on taking action to improve their financial lives: saving for retirement, getting out of debt, what insurance you should buy, the importance of credit scores. You get the basic principles to go from an uninformed consumer to a soldier of finance.
Q: How do you become a soldier of finance?
A: A soldier of finance is an individual who has recognized where they are at in their financial life. They have taken a deep, hard look and seen themselves for who they are, and they have made the conscious choice that they want to improve their financial life.
Q: What are some of the biggest financial mistakes that people make?
A: One, not knowing how much debt they really have and how much interest they are paying. Two, not having nearly enough cash savings in emergency funds. Three, not recognizing they need to save for retirement. That's a huge one, especially for the younger generation, who are not going to have pensions. Four, being oblivious to what is going on with their credit history. That's as simple as checking your credit report for free at annualcreditreport.com and making sure all the information is correct.
The first time I probed into my credit report, I didn't expect to find anything, but I found an error. That hurt my credit score by 80 to 100 points. Once I got that removed, my credit score shot up. But if I had never checked, it would have continued to hurt my credit rating.
Q: What is tactical budgeting?
A: I hate budgeting. But if you have hopes of paying off debt or increasing savings, you are going to have to do one initial budget to see what is going on.
Then tactical budgeting becomes part of a specific plan to accomplish a specific mission.You need a tactical budget anytime you have major life changes — having a child, moving homes, changing careers, starting a business, having a second child.
Q: What's your best advice about debt?
A: Don't be naive about your debt. It can prohibit you from enjoying the things you really enjoy in your life. It can cause a strain on your relationship, your marriage. Most people don't realize the pain and suffering it can cause.
Here's a financial evaluation quiz from the book Soldier of Finance
Take the quiz and tally your score. This is not a test but an evaluation to discover the areas of your finances that need the most work.
Answer Go (yes) or No Go (no) to the following questions:
• Are all of your bills currently paid?
• Do you regularly use a budget?
• Do you keep your checkbook balanced?
• Without looking, do you know how many credit cards you have?
• If you suddenly had to pay for a $500 car repair or other emergency, could you do it in cash without borrowing?
• Do you know your credit score?
• Do you regularly save for retirement in an IRA, 401(k), 403(b) or other plan?
• Can you explain what a Roth IRA is?
• If you were to become disabled, could your family survive without your income?
• If you were to die unexpectedly, would your family be taken care of financially?
• Do you have health insurance and homeowners (or renters) insurance?
• Do you have automobile insurance beyond what is required by law?
Look at questions you answered No Go to, and those are the areas that you may need to work on.
