FINANCIAL COUNSELING • PLANNING • EDUCATION

April 2007Volume 25 • Number 2

Credit unions have traditionally con-sidered financial education to bepart of their mission. Indeed, educa-

tion is one of the founding objectives of theinternational credit union movement.

Credit unions actively promote the educa-tion of their members, officers, and employ-ees, along with the public in general, basedon the principle of cooperative self-help.The promotion of thrift and the wise use ofcredit, combined with information about therights and responsibilities of members, areessential to the dual social and economicmission of serving member needs.

Founders of the U.S. movement made itclear that from the start that they thoughteducating members was one of a creditunion’s fundamental duties. Edward Fileneonce said, “There is no permanent remedyfor our economic and social ills other thanbetter thinking, which must come throughbetter education.”

Furthermore, early credit union leadersstressed the importance of beginning finan-cial education with the youngest familymembers. In 1936, one of the editors of amagazine published by the Credit UnionNational Association (CUNA) wrote:Our children of today will be the heads offamilies of tomorrow. They will be the buy-ers and sellers of the nation, the financialexecutives of the world. If they are to be fit-ted to meet these responsibilities we mustgive them an opportunity to learn how tomanage money and we must do it now.

Credit unions have responded to thesechallenges in a number of ways:

Information. Credit unions provide con-sumer and financial information to mem-bers through regular newsletters and othermailings. For example, since 1989, theyhave distributed to members 80 millionbrochures on subjects ranging from manag-ing a checking account to protectingagainst identity theft.

Face-to-face assistance. Credit unionsprovide financial information to memberson a one-on-one basis. A 2005 poll of thelargest credit unions, which collectivelyserve 80 percent of all U.S. members, foundthat:

� 80 percent provide financial educationto adults on topics such as auto buying,fraud prevention, home ownership,credit cards, retirement planning,investments, budgeting, college funding,estate planning, insurance, long-termcare, tax strategies, and remedial credit.

� 73 percent provide financial educationto members under the age of 18.

School programs. Credit unions activelyapproach schools with classroom and after-school programs that teach K–12 studentspersonal finance skills. For example:

� Since 2000, credit unions have broughtthe NEFE® High School Financial

Continued on page 10

Credit Unions and Financial LiteracyBy Philip Heckman, Credit Union

3 AFCPE Kicks Off 10%SolutionSM

The 10% SolutionSM initiative hasone simple goal: to encourage allAmericans to save 10 percent ofeach dollar that passes throughtheir hands.

4 Serving Those Who Serve OurCountryThe Defense Credit UnionCouncil provides a myriad ofservices to those who serve ourcountry.

6 Effective Referrals from theFinancial Counselor to a MentalHealth ProfessionalFinancial counselors may findthemselves ill prepared to helpclients achieve personal financialsuccess and the role of the finan-cial counselor may becomeunclear when a client needs psy-chological counseling.

8 Advice for Inherited IRAsThe decisions made by a benefi-ciary are important, since smallmistakes may have large taxconsequences.

13 Software Review“Simple Money Solution” soft-ware.

14 AFCPE News

And more…

2

PresidentRay Forgue, Ph.D.University ofKentuckyLexington, KYE-mail: perfinypm@yahoo.com

Past PresidentJudith Cohart, J.D.AARP E-mail: jcohart@aarp.org

President-Elect PJ GunterHouston, TXE-mail: PJ@MoneyMonitors.com

SecretaryMichele SchullReinowski, AFC Grand Forks AFB, NDE-mail: michele.schull@grandforks.af.mil

TreasurerGlenn Muske, Ph.D.Oklahoma State UniversityStillwater, OKE-mail: muske@okstate.edu

Members-at-LargeLynne Boccignone,AFCAptos, CAE-mail: lynne@sanddollarfinancial.biz

William Heaberg, AFCRobins AFB Airmanand Family ReadinessCenterRobins AFB, GAE-mail: william.heaberg@robins.af.mil

Diane Johnson,CHC, AFCGreenville, OHE-mail: johnson.8@osu.edu

Jean Lown, Ph.D.Utah State UniversityLogan, UTE-mail: lown@cc.usu.edu

Angela Moore, AFCBECUSeattle, WAE-mail: amoore@becu.org

Greg O’Donoghue,AFCDudley, NCE-mail: godonoghue@nc.rr.com

Oliver White, AFCNaval PostgraduateSchool in Monterey,CaliforniaE-mail: owhite@nps.navy.mil

Executive DirectorSharon Burns,Ph.D.E-mail: sburns@afcpe.org

Editor: Jill Anne LadouceurE-mail: ladjill@qwest.net

Deadlines for The Standard are asfollows:

January issue—November 15April issue—February 15July issue—May 15October issue—August 15

The Standard (ISSN-1096).Published quarterly in January,April, July and October.

Association for FinancialCounseling and PlanningEducation1500 W. Third Avenue, Suite 223Columbus, Ohio 43212Phone: (614) 485-9650Fax: (614) 485-9621

www.afcpe.org

It’s spring! At least it is here inKentucky. I hope by the time youreceive this issue, it will truly be spring

wherever you are. With spring comes newbeginnings and renewed energy. This isespecially true for AFCPE this year. Weare about to embark on a multi-year pro-gram to change the financial behavior of,we hope, millions of Americans. In April,you will receive information about thelaunch of the 10% SolutionSM program. Byfolding this program into your ongoingwork, you can be the catalyst for thebehavior changes we envision.

Perhaps you have heard about, or evenread, The Tipping Point by MalcolmGladwell. The book outlines how socialepidemics occur, whether they are a newproduct catching on, a book (like his)becoming a “must read,” or a new set ofbehaviors such as wearing seat belts beingadopted. AFCPE wants to create a newsocial epidemic—an epidemic of saving.

You might wonder why AFCPE is under-taking this effort as others already haveprograms in place to do so. Personally, Isee two reasons. First, there is the altruis-tic reason. On a daily basis, we all see thedifficulties that people experience whenthey have insufficient savings. Smallfinancial emergencies such as a vehicleengine repair or unexpected accidentwreck cash flow. Or, retirement has to bepostponed or is a financial struggle.Credit is overused. Getting people to savemore is the key to avoiding these difficul-ties and achieving financial success.

The second reason may not be as altruis-

tic, but is important as well. As I wrote inJanuary, there is a vast market of millionsof families and households whose livescould be made better through the rightmix of financial education, skill buildingand counseling. These folks are not incredit difficulty, but are also not affluentenough to afford highly paid financialassistance. Encouraging these people tosave more will ratchet up their interest inother financial aspects of their lives. We

want AFCPE, and you, to be at the fore-front of building a profession to meet theneeds of this underserved market. And wecan “prime the pump” by getting them tosave more.

So…how does The Tipping Point comein? In the book, Mr. Gladwell explainsthe “power of the few.” These are thepeople that influence others to make thechanges or adopt the product, service oridea in questions. That is where youcome in. You are part of the few—a pow-erful few. I hope you will buy-in to ourefforts and become a catalyst for a newepidemic of saving.

2007 Board of Directors

President’s MessageBy Ray Forgue, Ph.D., 2007 AFCPE President

You are part of the few—a powerful few. I hope youwill buy-in to our effortsand become a catalyst for anew epidemic of savers.

You have spoken and now it’s timefor action. On April 1, AFCPEintroduced the 10% SolutionSM ini-

tiative with one simple goal: To encour-age all Americans to save 10 percent ofeach dollar that passes through theirhands, whether from working, investingor an inheritance.

Background

During 2006, AFCPE surveyed its mem-bers to learn their views of the mostimportant activity that would change theirclients’ financial lives for the better. Themost common responses you gave includedsaving, regardless of how and where, andhaving a spending plan. When queriedabout needed research, you suggested thatchanging behavior and motivating peopleto save were of most importance.

In addition to the survey responses,AFCPE hosted a workshop at its annualconference looking at financial program-ming, research, message, and deliverymethods now and in the future. Onecommon thread was repeated over andover: that the family needed to be at thecenter of our work.

Last, all of the general session speakers atour conference in San Antonio spent sig-nificant time reflecting on fosteringbehavioral change from theoretical,behavioral, and marketing perspectives.Two of the three speakers expressed theimportance of aligning our work with theneeds of the ‘man on the street.’

From these three sources, our members,workshop reflections and experts in socialmarketing and behavior change, wearrived at the 10% Solution.

What Is the 10% SolutionSM?

First and foremost the 10% Solution con-veys a common message: Those who save

10 percent of every dollar will enjoy abasic level of financial stability and secu-rity. The 10% Solution is prescriptive.Consumers want to be given tangibleactions they can take to make their livesbetter. The 10% Solution is attainable inthe short run. It reduces the likelihood ofbeing overwhelmed by such advice as sav-ing 18 times income (one recent mediareport suggested) for retirement. Last, andmost importantly, the 10% Solution isamazingly simple: Just omit the last digitof an income amount to arrive at howmuch should be saved!

Second, the program is designed to belong-term and have high impact. The10% Solution is the central theme but willconsist of 20 quarterly topics over a five-year period. Because each topic will bedelivered for three months, and the over-arching message for sixty months, it’shoped consumers will repeatedly beexposed to the same idea. Repetitionincreases the likelihood of change.Assuming fifty percent of AFCPE mem-bers participate, it’s possible that we canreach 375,000 individuals each quarter.

Third, the 10% Solution program lever-ages the power of you and your profes-sional AFCPE colleagues. Unlike otherprograms that are focused directly towardthe consumer, this program helps profes-sional counselors and educators help con-stituents build their savings through con-sistent behaviors.

What the 10% SolutionSM Is Not!

Unlike other national programs the 10%Solution is not a new educational productor tool. It assists professional financial edu-cators and counselors in taking the messageof behavior change to their communitiesthrough their normal work plan. It’s notprovided in conjunction with other profes-sionals in a local community, althoughAFCPE hopes you will share the message

far and wide. It’s not a national public serv-ice announcement (PSA) or media cam-paign (AFCPE doesn’t have the resourcesfor that yet). It is simply a message—youcan compound its effect to reach manyindividuals throughout America by lever-aging the AFCPE professional capacity.

The Message

We hope you join other AFCPE membersin spreading the message: Save 10% of EveryDollar. From April 1, 2007 through March31, 2008, the quarterly topics will be:

April 1, 2007–June 30, 2007: ‘PayYourself First’ Prevents Problems

July 1, 2007–September 30, 2007: Build aBetter Balance Sheet

October 1, 200 –December 31, 2007:Money Talks: Conversations EveryFamily Should Have

January 1, 2008–March 30, 2008: Take aSpending Sabbatical: Ten Ways FamiliesCan Reduce Expenses

the standard April 2007

AFCPE Kicks Off the 10% SolutionSM

3

It’s as Easy as 1-2-3The 10% Solution program has three

components:

1A one-page educational overview

of the very specific, prescriptive

topic for the quarter, including which

on-the-shelf programs you might use

to expand upon that message.

2A news release template

designed to be delivered by you

to your local media.

3Additional resources available to

you and your constituents.

4

There are over 8,500 credit unions inthe United States and the DefenseCredit Union Council represents

less than three percent of that number.However, while our numbers are small, ourpurpose is grand. The Defense CreditUnion Council (DCUC) has the greathonor of supporting those federal and statechartered credit unions that serve theDepartment of Defense community andoperate on military bases worldwide.

The Defense Credit Union Council wasformally established in February 1963.The mission then was to assist defensecredit unions in addressing the chal-lenges associated with serving a mobilemembership, developing uniform supportpolicies, promoting financial services,conducting educational meetings andmaintaining a central operation toaddress common issues.

Here we are, forty-four years later, andDCUC remains steadfast to that missionand those principal activities. Today, wecontinue to represent the interests of

defense credit unions at the Departmentof Defense (DoD); we continue to be ourmembers’ primary spokesman at thePentagon and the Pentagon’s principalconduit to credit unions on DoD instal-lations. Today, more than ever, we arethe central repository for informationand the leading expert on matters per-taining to on-base credit union opera-tions. In addition to coordinating policyand regulatory changes, we continue to“ride shotgun” on behalf of our membersto ensure the Department’s rules remainsupportive and flexible and flexibleenough to permit our on-base membersthe latitude to promote the financialmorale and welfare of our troops.

Since 1928, defense credit unions havehad the distinct privilege of supportingthe men and women who proudly, self-lessly, and courageously serve our great

nation. Whether stateside or overseas, in-garrison or deployed; whether our troopsare engaged in peacekeeping or peace-making operations, on temporary duty oron remote assignments, the fact of thematter is that defense credit unions have

AwardsMary Spear, AFCFFSC OceanaVirginia Beach, VAE-mail: mspear@oceana.nfsc.hr.navy.mil

CertificationMary Ann BarryAir ForceMcConnel AFBE-mail: MaryAnn.Barry@mcconnell.af.mil

ConferenceProgramVirginia Zuiker University ofMinnesotaSt. Paul, MNE-mail: vzuiker@umn.edu

ConferenceStudent PapersLance PalmerLogan, UTE-mail: lancepalmer@cc.usu.edu

DistinguishedFellowKaren ChanUniversity of IllinoisE-mail: chank@uiuc.edu

DiversitySyble SolomonLifeWise ProductionsRockville, MDE-mail: solomon@lifewise.us

ElectronicCommunicationsDavid EvansThe Ohio State Uni-versity, Columbus, OH

EthicsJudith Cohart, J.D.AARP E-mail: jcohart@aarp.org

InvestmentsGlenn Muske, Ph.D.Oklahoma State UniversityStillwater, OKE-mail: muske@okstate.edu

JournalFran Lawrence,Ph.D.Louisiana State UniversityBaton Rouge, LAE-mail: flawrence@lsu.edu

Life & RetirementPlanningSally C. HassWeyerhaeuserCompanyFederal Way, WAE-mail: sally.hass@weyerhaeuser.com

Member ServicesSharon CabeenNational StudentLoan ProgramLincoln, NEE-mail: sharonc@nslp.org

NewsletterJill Ladouceur E-mail: ladjill@qwest.net

NominationsJudith Cohart, J.D.AARP E-mail: jcohart@aarp.org

PersonnelJudith Cohart, J.D.AARP E-mail: jcohart@aarp.org

Poster SessionGlen JenningsAmes, IAE-mail: bkjenni@iastate.edu

Practitioner’sForumKelli Jo AnthonFTBFCU,Woodbridge, VAE-mail: kanthon@ftbfcu.org

Proceedings EditorIrene LeechVirginia Tech,Blacksburg, VA

ProfessionalReviewPJ GunterHouston, TXE-mail: pjgunter@hotmail.com

Research PapersJohn GrableManhattan, KSE-mail: grable@humec.ksu.edu

Strategic PlanningJudith Cohart, J.D.AARP E-mail: jcohart@aarp.org

2007 Committees

Serving Those Who Serve OurCountryBy Arty Arteaga, Defense Credit Union Council

[Our members] are thebenchmark for financialreadiness and the standardfor support. This support isneeded to ensure ourtroops’ personal financialreadiness posture is on parwith mission readiness.

Continued on page 5

5the standard April 2007

faithfully served the military for nearlyeight decades. From day one, our mem-bers’ commitment to the Department ofDefense has been unparalleled and theirloyalty to their respective Commands hasbeen without equal.

Daily, our member credit unions addressthe financial well-being of our troops, andthey do so by providing no-cost financialeducation and counseling services by pro-moting financial readiness programs andby developing and offering financial prod-ucts and services that our troops need,want, and deserve.

In terms of financial education, defensecredit unions cover the gamut. Our mem-bers provide training in the areas ofcheckbook balancing, credit building,auto buying, loan shopping, budgeting,and the like. Their objective: to arm ourtroops with a basic understanding offinancial issues and make them more con-sumer savvy. The more our troops knowand understand, the better financial andconsumer decisions they will make and,in essence, the more financially and mis-sion ready they will be.

Aside from offering financial educationtraining, our on-base credit unions do yeo-man work when it comes to supportingDoD financial readiness initiatives.Programs, such as the recently launchedMilitary Saves campaign, which focuses onactively getting military members tochange their savings habits and behavior,are not only embraced by our members,but also fully supported. For example, dur-ing the first-ever Military Saves Week, heldin March 2007, eighty percent of the on-base financial institutions that pledgedtheir support of this marquee event weredefense credit unions. Not because theyhad to, not because they needed to, butrather, because they wanted to. “Serving

Those Who Serve Our Country” are notmere words to DCUC member creditunions…they are a way of life…a philoso-phy that speaks volumes to the level ofsupport and empathy defense credit unionshave for our troops and their families.

Our members understand the challenges ofa military lifestyle. They know troops aredeployable twenty-four/seven/three sixty-five; they are sensitive to enforced anduntimely separations and the impact ofsuch on budgets and finances; they knowof the considerable out-of-pocket expensesincurred while routinely moving from oneduty station to the next. As such, they arequick to address and support these specialneeds and/or circumstances and they do soby developing the right mix of productsand services and creating programs thataccommodate the financial needs of ourtroops. In so doing, our member creditunions are (as suggested by variousMilitary Commands) a “force multiplier.”They enhance mission readiness.

Some of the programs offered include: lowinterest and starter loans; small unsecuredpersonal loans; low interest and startercredit cards; high interest savings; specialwarrior savings; star share accounts; easystart certificates; high interest certificate;debt management programs; utility guaran-tee programs; and alternative payday loanprograms. This inventory of programs,products, and services—and many more—are the hallmark of defense credit unions.They are the benchmark for financialreadiness and the standard for support.This support is needed to ensure ourtroops’ personal financial readiness postureis on par with mission readiness.

Serving those who serve our country? Noone…no one does it better or more con-sistently than defense credit unions! Theyhave for over seventy-five years and willfor endless years to come!

Arty Arteaga is with the Defense Credit UnionCouncil. He can be reached at AArteaga@cuna.coop.

Serving Those Who Serve OurCountryContinued from page 4

Annual List of Top

Consumer

Complaints

The Federal Trade Commission has

issued its annual report, Consumer

Fraud and Identity Theft Complaint

Data on complaints consumers have

filed with the agency. For the sev-

enth consecutive year, identity theft

tops the list, accounting for 36 per-

cent of the 674,354 complaints

received between January 1 and

December 31, 2006. Other cate-

gories near the top of the complaint

list include shop-at-home/catalog

sales; prizes, sweepstakes and lot-

teries; Internet services and comput-

er complaints; and Internet auction

fraud. This year, for the first time,

complaint data has been broken out

by metropolitan statistical areas with

populations greater than 100,000. To

view the entire report, go to the

Federal Trade Commission Web site

at www.ftc.gov/opa/2007/02/top

complaints.shtm.

6

Financial coun-selors may findthemselves ill pre-

pared to help clientsachieve personal finan-cial success and the roleof the financial counselormay become unclearwhen a client needs psy-chological counseling. Infact, debt and the inabili-ty to manage one’s per-sonal finances are ofteninterrelated problems andindividuals will often seek help with theirpersonal finances before seeking help froma mental health professional.

The reasons individuals seek financialcounseling are as varied as people them-selves. Reasons may range from the needto solve a particular problem to the desireto enhance one’s own ability to plan andprepare financially for the future. Ineither case, it is advisable to look for clus-ters of signs or behaviors which will hin-der the financial counseling process andrefer those whose financial counselingmay be enhanced with a mental healthprofessional’s assistance.

How do you approach a financial coun-seling client with regard to seeking amental health professional’s assistance?Usually, it is best to speak face-to-face tothe client using a straightforwardapproach that will show your concern forhis or her wellbeing. It is not advisable tomislead or trick the client into seekinghelp from a mental health professional.Make it clear that this recommendationrepresents your best judgment based onyour observations of the client’s behavior.Be specific regarding the behaviors thathave caused your concerns and stay away

from making generalizations about theclient. Anticipate clients’ anxiety andfears about seeking mental health coun-seling and be prepared to address them.

The option must be left open to theclient to accept or refuse to seek mental

health assistance. Simply express yourunderstanding of his or her feelings sothat your own relationship with theclient is not jeopardized. Give the clientan opportunity to consider other optionsby suggesting that he or she might needsome time to think it over. Discuss refer-ral alternatives such as where the clientmay seek assistance. Do not make a refer-ral when a client is so troubled and con-fused that he or she cannot comprehendor listen to you. Wait until the client hascalmed down and is able to converse and

respond to your sug-gestions and takepart in the decisionmaking process.

After a situation aris-es, it is too late todevelop a list of pro-fessionals to whomyou may refer finan-cial counselingclients. Develop andkeep up-to-date refer-ral alternatives for

your clients to select. If at all possible,meet these professionals personally andhave business cards or brochures on handto provide to your clients.

The following clusters of signs or behav-iors might be useful in making a decision

about referring a client to seek mentalhealth assistance. To prevent possibleover-interpretation of a single or an iso-lated behavior, look for cluster signs orbehaviors.

1. Stated Need for Help—The desire forassistance other than financial counselingin dealing with a problem may be statedby the client. For this reason, it is impor-tant to attend to the content of what a

Effective Referrals from Financial Counselor to a Mental Health ProfessionalBy Kimberlee Davis, Ph.D., AFC and Dorothy Bagwell, Ph.D., AFC

Continued on page 7

If you wish to minimize the conflict, and have professionalshelp you and your spouse to reach agreement outside of thecourt system, then the collaborative model may be best.

7the standard April 2007

client is saying and understand theunderlying message. Listeninginvolves hearing the way things arebeing said, the tone used, and observ-ing the expressions and gestures, bodylanguage.

2. Talking About or MakingReferences to Suicide—It is necessaryto distinguish between a hypotheticalreference to suicide and a statementwhich indicates your client is in crisis.Regardless of the circumstances, anyreference to committing suicide shouldbe considered serious. To conclude thata clients’ suicidal comments are simplyoff-handed remarks should not bemade without directly confronting theclient about his or her intention toharm his or herself.

3. Observable Changes—Actionswhich are inconsistent with a client’sprevious behavior may indicate thathe or she is experiencing psychologi-cal distress.

4. Anxiety and Depression—Anxietyand depression are two of the morecommon symptoms which can presentsignificant problems for clients. Bothinterfere with a client’s normal func-tioning when they become prolongedor severe and requires some kind ofassistance be recommended.

5. Psychosomatic Complaints—Clients who experience headaches,nausea, loss of appetite or excessiveeating, insomnia or excessive sleep-ing, gastrointestinal distress or gyne-cological problems or other physicalpains which have no apparent causemay be experiencing psychosomaticsymptoms. 6. Changes in Personal

Effective ReferralsContinued from page 6 How Effective Is Financial Education?

Contributed by the National Endowment for Financial Education® (NEFE®)

Financial education programs in the research marketplace have proliferated in recentyears. Yet, accessible ways to evaluate their effectiveness have not kept pace. Focusingon this challenge, the National Endowment for Financial Education® (NEFE®) provided agrant to a team of university researchers for creating a powerful assessment tooldesigned to help educators measure the success of their respective programs. The resultof the collaboration led to the development of the NEFE Financial Education EvaluationToolkitSM, an innovative resource that now is available online at no cost to users.

The toolkit has two components: a database, which allows users to quickly and con-veniently customize an evaluation tailored to their financial education program; and asupplemental manual, assisting educators in designing a measurement tool and col-lecting and analyzing the resulting data. Equipped with this knowledge, instructorscan improve their program’s effectiveness, provide accountability to stakeholders andeven use program results to support funding requests.

With the free toolkit, educators can customize an evaluation by selecting variousoptions. For example, they can choose a post-program evaluation only; pre- and post-evaluations; stages-to-change evaluations (i.e., document the process of behaviorchange over time); or train-the-trainer evaluation. In addition, educators can decidewhich aspects they want to assess, such as knowledge growth, increases in skills orconfidence, actions taken and changes in financial behavior and/or financial position.

Users also can select, add or edit knowledge questions, behavior statements, and open-ended questions to elicit qualitative information and demographic questions. In addition,the database spans a wide range of financial topics, which allows the evaluation tool to betailored to subjects covered by many different education programs. Educators will findquestions and statements on decision-making, cash-flow management, savings andinvestments, credit and debt management, homeownership and retirement, among others.

Koralalage S.U. Jayaratne, Ph.D., who at the time was the evaluation specialist in theCooperative Extension Family and Consumer Sciences department at the Universityof Georgia, and is currently the state leader for program evaluation and an assistantprofessor at North Carolina State University, led the research team. Other researchersincluded Angela Lyons, Ph.D., assistant professor, at the University of Illinois atUrbana-Champaign; Lance Palmer, Ph.D., CPA, assistant professor, at the Universityof Georgia; Jimmy Hansen, Cooperative Extension Service, at the University ofGeorgia; Pamela Turner, Ph.D., assistant professor, at the University of Georgia; JoanKoonce, Ph.D., associate professor, at the University of Georgia; Erik Scherpf, doctor-al student, at the University of Illinois at Urbana-Champaign; and C.W. Copeland,doctoral student, at the University of Georgia.

To access the NEFE Financial Education Evaluation Toolkit, visit www.nefe.org andclick on the Multimedia Access section, or go directly to www.nefe.org/eval.

The National Endowment for Financial Education is an independent, nonprofit foundationcommitted to educating Americans about personal finance and empowering them to makepositive and sound decisions to reach financial goals.

Continued on page 9

The United States has begun thegreatest transition of wealth ever,from one generation to the next,

and much of this wealth will transferthrough individual retirement accounts(IRAs). You or your clients may havealready been the beneficiary of an IRA,or will someday inherit one. The deci-sions made by a beneficiary are impor-tant, since small mistakes may have largetax consequences. Professional advice isoften needed.

Because many inherited IRAs will comefrom traditional rollover IRAs, openedwhen the owner retired, this article pro-vides advice to spouses and those who arethe sole beneficiaries of a traditional IRA.

Spouses and Others as Beneficiaries

Different rules apply to spouse and non-spouse beneficiaries. Non-spouse benefici-aries are also divided into two groups—persons or other. “Person” is any individ-ual who is not the spouse of the IRAowner. “Other” is an estate, charity, trustor any entity without a life expectancy.

Topics not included here are ‘others’ asbeneficiaries, multiple beneficiaries, andrules for inherited Roth IRAs. Each ofthese has rules different from each otherand from those discussed here.

Immediate distribution may be elected forthe inherited traditional IRA, and theentire amount taken and used for any pur-pose. However, the distribution will beincluded in the beneficiary’s tax returnthat year as regular income.

Keeping the inheritance as an IRA maybe the best option for wealth accumula-tion, but it can be confusing. What willyou need to do? Notify the IRA’s custodi-an (credit union, brokerage or mutual

fund company) of the owner’s death.They’ll send forms to sign and will requirea death certificate.

Non-spouse beneficiaries need to open a“Beneficiary IRA.” This is important! Anexample: “Jane Public IRA (deceasedMay 1, 2006) FBO Jill Public,Beneficiary.” If the inherited IRA isincorrectly registered as “Jill Public IRA,”the account becomes taxable immediately,and the tax-deferral is gone forever.

Spouse beneficiaries have more options,but typically select a “spousal rollover” or“beneficiary IRA.” With a rollover, thespouse becomes the owner of the IRA andmay postpone distributions until reachingage 701⁄2. The beneficiary IRA may beelected instead, since distributions can betaken by a young spouse under the age of591⁄2 without a 10 percent penalty.

New beneficiaries should be namedimmediately after the account registrationhas been changed. When the first benefi-ciary dies, the new beneficiary can con-tinue the tax-deferral.

The Social Security number on the accountshould be changed to that of the benefici-ary. This notifies the Internal RevenueService (IRS) who will be responsible fortaxes on future distributions.

Required minimum distributions (RMDs)and required beginning dates (RBDs)

require careful attention to avoid IRSpenalties. The RMD and RBD determinewhen distributions are required. That’sright; some beneficiaries must take distribu-tions from their inherited IRAs each year.

Spousal rollovers are treated as though thespouse was always the IRA owner. At age701⁄2 RMDs must begin, based on thespouse’s life expectancy. However, asowner, distributions taken prior to age 591⁄2will be penalized 10 percent by the IRS.

Spouses electing a beneficiary IRA needto know whether the IRA owner passedaway before, or on or after, their RBD.The RBD is the date the original ownerwas required to begin taking RMDs. Thisis generally April 1 of the calendar yearfollowing the year in which the IRAowner reaches age 701⁄2.

If the owner died before their RBD,spouse beneficiaries must begin distribu-tions by December 31 of the year the IRAowner would have turned 701⁄2. If theowner died after the RBD, distributionsbegin the year following the year of the

IRA owner’s death.

Non-spouse beneficiaries also need toknow whether the owner died before, oron or after, the RBD. If the owner diedbefore the RBD, the RMD is based on thebeneficiary’s life expectancy. If death

8

Advice for Inherited IRAsContributed by Boeing Employees’ Credit Union (BECU)

You or your clients may have already been the beneficiaryof an IRA, or will someday inherit one. The decisionsmade by a beneficiary are important, since small mistakesmay have large tax consequences.

Continued on page 9

9the standard April 2007

occurred on or after the RBD, the RMDis based on the beneficiary’s life expectan-cy or the remaining life expectancy of theoriginal IRA owner, whichever is longer.Non-spouse beneficiaries must beginRMDs by December 31st of the year fol-lowing the year of the owner’s death.

Note: Both non-spouse beneficiaries andspouses who remain beneficiaries cantake distributions prior to age 591⁄2 andwill not incur a 10 percent penalty forearly withdrawal.

Calculating the required minimum distri-bution can be complicated and profes-sional advice may be necessary. A penaltytax of 50 percent can be imposed on any

amount of the RMD that was not distrib-uted. Both owners and beneficiaries willuse IRS Publication 590, IndividualRetirement Arrangements, for more IRAinformation. Pub 590 also has the tablesrequired to calculate the RMD.

This article is not intended to providelegal or tax advice. Inherited IRAs canbe complicated. Our recommendation…when in doubt, seek help. A financialprofessional can provide expert advice,help IRA beneficiaries make educateddecisions, and help avoid costly mis-takes.

Boeing Employees Credit Union isWashington’s leading credit union with over460,000 members. It is open to allWashington state residents. You can reachthem at www.becu.org.

Families and Credit Cards—Thisfree educational brochure is for par-ents who are weighing the merits ofgiving their children credit cards. Toorder this brochure, visit theConsumer Action Web site at www.consumer-action.org/english/articles/families_and_credit_cards_eng#Topic_01.

The Consumer Action Handbook—The Federal Citizen InformationCenter’s (FCIC) 2007 ConsumerAction Handbook is the everydayguide for helping people find the bestand most direct solutions to consumerproblems and questions.To get acopy, call 1-888-878-3256, toll free, orvisit the Consumer Action Web site atwww.pueblo.gsa.gov/rc/d37cah.htm.

Be Prepared, Be Informed, Be inCharge—This special edition of theFDIC Consumer News is entitled “BePrepared, Be Informed, Be in Charge.”This issue highlights simple but effec-tive strategies for managing yourmoney. To learn more, visit the FDICWeb site at www.fdic.gov/consumers/consumer/news/cnwin0607/.

Payday Lending = FinancialQuicksand—The Center forResponsible Lending (CRL) produced areport titled Payday Lending = FinancialQuicksand. To access more resourcesand to learn more about the Center forResponsible Lending, visit their Website at www.responsiblelending.org/.

Small Steps to Health and Wealth—The Small Steps to Health and

Wealth™ (SSHW) program encour-ages participants to make positivebehavior changes to simultaneouslyimprove their health and personalfinances. Visit the SSHW Web site athttp://njaes.rutgers.edu/sshw/ for moreinformation.

Inherited IRAsContinued from page 8

Tools of the Trade

Continued on page 10

Relationships—When an individualexperiences a traumatic change in a per-sonal relationship, such as the death of afamily member or close friend, difficultiesin marriage or family relationships,divorce, changes in family responsibilities,and difficulties in other significant rela-tionships can all result in increased stressand psychological difficulties.

7. Drug and Alcohol Abuse—Indicationsof excessive drinking, drug abuse or drugdependence are almost always indicative ofpsychological problems.

8. Financial Counseling RetentionIssues—Clients who are consideringdropping out of financial counseling ses-sions may find counseling to be a usefulresource during their decision-making.

On occasion it will be necessary to do morethan suggest that a client seeks mentalhealth counseling. You may be in a positionto require a client to seek mental healthcounseling before you will continue with

financial counseling. This may occur whenyou discover during financial counselingthat a client’s problem is serious, especiallywhen there is a crisis.

Kimberlee Davis, Ph.D., AFC, is aninstructor at Texas State University in familyand consumer sciences. She earned her doc-torate in family and consumer sciences edu-cation, with a specialization in personalfinancial planning from Texas TechUniversity. She holds a bachelor’s degreefrom Texas State University, and a master ofeducation with an emphasis in counselingfrom Texas Tech University.

Dorothy C. Bagwell, Ph.D., AFC is associ-ate professor of personal financial planning atTexas Tech University. Bagwell also directsthe operations of Red to Black™, a peer-to-peer financial education program for TexasTech students. She earned her doctorate inresource management, with a specializationin family financial management from VirginiaTech. She holds a bachelor’s degree fromLouisiana State University and a master ofscience in family studies from TexasWoman’s University.

Effective ReferralsContinued from page 7

10

A Project of the New AmericaFoundation: Asset BuildingProgram—For comprehensive infor-mation on asset ownership and poli-cies, go to www.AssetBuilding.org.This site, maintained by the AssetBuilding Program of the New AmericaFoundation, includes the rationale,theory, and evidence for asset-basedpolicies and other materials on asset-based policy.

New Insights into Advising FemaleClients on Investment Decisions—A large number of professional andacademic studies indicate that, ingeneral, women are less knowledge-able, less risk tolerant, and less confi-dent about their investment decisionsthan men are. This research applies amodel for change and suggests aug-menting techniques for financial plan-ners to help women investors improvetheir investing behavior. To learn more,visit the Journal of Financial PlanningWeb site at www.fpanet.org/journal/articles/2007_Issues/jfp0307-art9.cfm.

NASD Investor EducationFoundation Grant Programs—The2007 NASD Investor EducationFoundation grant programs are nowposted online at www.nasdfounda-tion.org/grants.asp.

National Endowment for FinancialEducation (NEFE®)—In 2007, theNEFE® Grants program will includetwo, rather than three, grant cycleswith the June cycle removed. The nextdeadline for grant proposals is June 5,2007, for the October grant cycle. Tolearn more, visit the NEFE Web site athttp://nefe.org/ and click on theGrantsmaking section.

Tools of the Tradecontinued from page 9

Planning Program® to more than400,000 students in more than 1,200schools nationwide.

� 150 credit unions in 30 states andthe District of Columbia operatebranches in 535 schools (kinder-garten through college). All are stu-dent-run to some degree.

� Since 2005, when CUNA launchedThrive by Five™: Teaching YourPreschooler About Spending andSaving, a free resource for parents inEnglish and Spanish, more than53,000 visitors have downloadedmore than 95,000 copies of the eightfree teaching activities. Visitors alsoexamined or downloaded related freeresources (e.g. “Tips for TeachingPreschoolers”) more than 36,000times, for a total of 131,000 itemsrequested.

� Since 1972, the National YouthInvolvement Board (NYIB), a net-work of credit union volunteers, haseducated youth about money andcredit. During the 2005-06 schoolyear, 690 NYIB volunteers conducted9,351 classroom presentations for285,730 students.

Special events. Credit unions seekopportunities to draw attention toyouth—their accomplishments as well astheir needs.

� 2007 brings CUNA’s sixth annualNational Credit Union Youth Week(April 22–28). Modeled after long-standing observances in states such asNorth Dakota and Pennsylvania, thenational event will shine the spot-light on the problem of youth finan-cial illiteracy and the many ways that

credit unions, in partnership withother local institutions, are givingyoung people the tools of financialsecurity.

� And for the fourth consecutive year,Credit Union Youth Week will fea-ture a National Saving Challenge,during which participating creditunions will attempt to beat last year’srecords, when 66,269 members underthe age of 18 added a total of$9,626,748 to their savings accounts.

From the beginning, the people of thecredit union movement have firmlybelieved in the power of information tobetter members’ well-being. As an indica-tion that their long-standing faith in the

efficacy of financial literacy to improvelives is well grounded, consider this: In2005, the overall bankruptcy rate for thegeneral U.S. population was 6.8 per1,000. For the same period, the rate forU.S. credit union members was only 4.0per 1,000.

Credit unions, as part of their continuingmission, are doing many things right.

Philip Heckman is director of youth programsfor the Credit Union National Association(CUNA). With its network of affiliatedstate credit union leagues, CUNA servesmore than 90 percent of America’s 8,800credit unions, which are not-for-profit coop-eratives providing affordable financial servic-es to more than 88 million members-owners.For more information, visit cuna.org.

Credit Unions and FinancialLiteracyContinued from page 1

“There is no permanent remedy for our economic andsocial ills other than betterthinking, which must comethrough better education.”

Funding

11the standard April 2007

AFCPE AnnualConference

November 14–16, 2007Hyatt Regency Tampa

Tampa, Florida

Get ready to experience three productive days in sunny

Florida! The 24th annual meeting of AFCPE is planned for

November 14–16, 2007 at the Hyatt Regency Tampa in

Tampa, Florida.

Conference participants will be able to hear and interact

with four nationally known experts providing content pre-

pared for our group of practitioners, educators, and

researchers. The program opens with a Wednesday

afternoon (2:00 p.m.) interactive workshop followed by a

cocktail hour, sit-down dinner and speaker. On Thursday

and Friday, five sets of concurrent sessions offer twenty

programs on a variety of topics. The conference will end

Friday evening. Network with 500 other professionals,

and enjoy two full breakfasts and several substantial

meeting breaks during the conference.

Tampa is an accessible location, and the hotel is eager

to welcome us. Start planning now to attend. This is one

conference you won’t want to miss!

Visit www.afcpe.org for more information or toregister online.

12

AFCPE Annual ConferenceProceedings—See the invitation topresent at http://www.afcpe.org andfollowing the conference links.Deadline June 1, 2007.

The Journal of Consumer Affairs—Aspecial issue on Financial Literacy:Public Policy and Consumers’ Self-Protection. Manuscripts are sought onthe effects of financial literacy on con-sumer welfare. Submission guidelinesare detailed http://www.blackwellpublishing.com/journal.asp?ref=0022-0078&site=1. Deadline June 1, 2007.

Financial Counseling andPlanning—The journal of theAssociation for Financial Counselingand Planning Education, open submis-sions. http://www.afcpe.org.

Journal of Personal Finance—Opensubmissions. http://www.k-state.edu/ipfp/journal_callforpapers.html.

Journal of Youth Development:Bridging research and practice—Open submissions. Contact PatriciaDawson with questions. http://www.nae4ha.org/profdev/joyd/index.html.

The Eastern Family Economics andResource Management Associationbiannual conference—Seeking sub-missions for refereed papers, posters,educational program resourceexchanges, symposia, workshops, andresearch in progress and programs inconstruction. Go to the conferenceWeb site at mrupured.myweb.uga.edu/index.shtml and clickon Conference Proposals.

Call for Papers

Good To Great, by Jim Collins laysout the story of 11 companies andthe qualities of their chief execu-

tives who would earn the “Good to Great”status based on the requirements of thestudy. This book is based on research find-ings over a 30-year time horizon.

The book outlines a framework of sevenconcepts that the researchers felt separatedthe good companies from the 11 greatcompanies. They are:

1. Level 5 Leadership. These leaders are“self-effacing, quiet, reserved, even shy,”says Collins. “A paradoxical blend of per-sonal humility and professional will,” hecontinues. In contrast, we are used tothinking that top leaders have charismat-ic personalities that are larger than life.

2. First Who…Then What. Collins refersto this concept as getting the right peopleon the bus. Further, his research revealedthat these great leaders first got the rightpeople on the bus, the wrong people offthe bus and the right people in the rightseats. Not until those key players were inplace, did they decide where to drive thebus.

3. Confront the Brutal Facts. He refersto this as the Stockdale Paradox, namedafter prisoner of war, Admiral JimStockdale. A Vietnam veteran, Stockdalewas captive for eight years. He survivedimprisonment and numerous tortures byhaving unwavering faith that he wouldprevail against any difficulty. He alsobelieves that you must confront the bru-tal facts of your current reality, whateverthey might be. While this was not anintrinsic part of the research, it was evi-dent in the companies that achieved“great” status.

4. The Hedgehog Concept. This conceptembraces these three intersecting circles:(1) what you can be the best at (and con-versely, what you cannot be the best at),(2) what drives your economic engine,and (3) what are you deeply passionateabout. Great leaders use this concept tomap out the direction of their companies.

5. The Culture of Discipline. Collins’belief is that when you have a culture ofdiscipline, you don’t need hierarchy orbureaucracy. When a culture of disciplineis combined with an ethic of entrepre-neurship, “you get the magical alchemy ofgreat performance.”

6. Technology Accelerators. Technologyitself is not the primary means to ignite atransformation from good to great, how-ever, the application of carefully selectedtechnologies is part of the equation.

7. The Flywheel and the Doom Loop.The good to great companies did notachieve this status in one fell swoop.Collins likens it to a flywheel, where per-sistence and momentum are keys toachieving breakthrough. In contrast, thedoom loop companies tried to skip buildup and with disappointing results, lurchedbackward.

For those readers in the nonprofit sector,I also recommend the monograph by JimCollins, Good to Great and the SocialSectors. This quick-read applies the con-cepts found in Good to Great to theunique needs of nonprofits.

Jill Anne Ladouceur is editor of TheStandard and can be reached atladjill@qwest.net.

Good to GreatWritten by Jim Collins

Reviewed by Jill Anne Ladouceur

13the standard April 2007

The 10% SolutionSM…it’s all about a-c-t-i-o-n. Syble Solomon, theAFCPE 2006 Mary Ellen

Edmondson Educator of the Year, wouldsay that the 10% Solution (see related storyon page 3) takes building a “Habitude.”

“But, I Can’t Afford to Save!”

In today’s personal finance environment,the word “save” might seem like anotherfour-letter word. Perhaps a college studentthinks she’s “saving” when she spends $50and gets 15 percent off the price marked.Others reason they can “save” by buyingin bulk more than they need of anything,whether it’s peanut butter or ballpointpens that dry up before they’re used up.

Savings matters. The most recently post-ed Personal Saving Rate is lower than –1 percent. In fact, the Personal SavingRate has been inching further away fromzero—on the negative side—since thesecond quarter of 2005 (www.bea.gov/briefrm/ saving.htm).

At Issue: Cash Flow Management

However, that may be a symptom of adeeper matter: lack of cash flow manage-ment. Of course there are likely multipleissues to address, among them financialilliteracy and a lack of discipline.Regardless, appreciating the benefits of“The 10% Solution” requires handlingcash effectively.

And that’s where the “Simple MoneySolution” can help. Someone with a “getit now” mentality won’t bother to enter

enough data, let alone wait patiently forthe comprehensive review of their per-sonal finances that’s possible to get withQuicken or Money. They want to knowhow to deal with their money now.

How “Simple Money Solution” Isbeing Used

Missy Cummins teaches courses at IdahoState University that are developed tohelp students understand and cultivatethe mindset and discipline needed to besuccessful in college. So far, she hasoffered six money management courses.“In each session,” notes Cummins, “atleast one person in the class has filedbankruptcy, including a 19-year-oldwoman. I’ve found that how well studentsmanage their money impacts how wellthey perform in school. As students accu-mulate excessive financial obligations,they have to work more or deal with theresulting financial stress. Either way, itaffects their grades and whether they stayin college or quit. The whole idea of cre-ating a ‘spending plan’ is foreign tothem.”

Missy teaches the students how to entertheir data into the “Simple MoneySolution” program. From there they learnto analyze the myriad of reports based onthat information. Seeing the reports helpsmotivate the students to make changes.The reports reveal where they are finan-cially versus where they want to be.

Barbara Huguenin of CoachAmerica(CoachAmerica.com) recruits and trainsfinancial coaches who use “Simple Money

Solution” differently. To generate reportsand answers faster, the coaches in her“Coaching Department” often enter datafor the user and compile the report(s).The simplicity of the software makes iteasy for either the coach or the user to getresults that allow the coach to analyze thedata, make recommendations, work up anaction plan, and conclude the sessionwith a positive sense of accomplishment.

Huguenin adds that “For those who needa ‘snapshot’ indication of their financiallife, ‘Simple Money Solution’ will providethat.” But as the name implies, “SimpleMoney Solution” is likely to be too “sim-ple” for those whose personal finance situ-ation is more complex. It is not designedto be integrated with an online bankingsystem’s ATM-debit/checkbook register.Neither does it work on a Mac, nor is itpossible to import the necessary numbersto generate tax returns.

“Simply” Enter Data and Generate Analytical Reports

For folks who like to “get a feel” for newsoftware before they dive in, no manualor instruction sheet is included. That said,though, most users would rather spend aweekend entering data into “SimpleMoney Solution” instead of learning howto use a money-management program.Someone with little computer experiencecould go through the examples providedand figure out what they need to do to getwhat they need from the program.

Simple Money Solution SoftwareProduced by The “It’s a Habit!” Company, Inc.

Reviewed by PJ Gunter

Continued on back cover

What relevance do new ideas andleaders have to AFCPE? In2006, many AFCPE members

participated in the conversation identify-ing the real life financial issues facing typ-ical Americans and how professionals canassist them in achieving financial stabili-ty. Through surveys, conference work-shops, general sessions and post-confer-ence discussion, the Executive Board andstaff began to identify ways to help ourmembers not only talk among themselves,but with other community members andconstituencies in the effort to assist fami-lies with sound financial strategies. But, ifwe only talk to ourselves, we fail in ourbasic mission: to provide financial solu-tions for life to those whom we serve.

It’s now time to take action. How can youjoin the movement? First, we ask that youcollaborate with AFCPE in the imple-mentation of its Vision 2007 effort, usingthe 10% SolutionSM as its cornerstone. The10% Solution is a true collaboration. Youare invited to participate in any one ofmany ways, using your favorite programs,whether educational or counseling. And,we hope each of you will become the ‘goto’ financial expert in your community.Learn more on page 3 of this newsletter.

Second, we ask that you collaborate withother efforts to increase financial literacyand economic security in your local com-munity. There are many efforts underway,a few of which are described here. One isthe America Saves program. The goal of

America Saves is to encourage and assistindividuals to save and build wealth.Another national movement is Jump$tartCoalition’s effort to increase the availabil-ity of financial education in grades K–12.Each state has a Jump$tart Coalitioneffort and professionals interested in for-warding the financial literacy agenda mayjoin state efforts. The NationalEndowment for Financial Education®

(NEFE®) is collaborating with theCooperative Extension Service and theCredit Union National Association in allfifty states to deliver its high school finan-cial planning program to students every-where. Perhaps you could volunteer toteach a component of this program inyour local high school.

Third, we ask that you seriously exploreways to take financial education andcounseling to those in your local commu-nities. Introduce yourself to representa-tives of your local credit unions andfinancial institutions, social service agen-cies, and education providers. Invite localbusiness media to have a cup of coffeewith you. Identify ways in which you canserve others while promoting financialeducation and financial counseling.Explore those big ideas that with dedica-tion and perseverance can offer lifechanging financial security to those inyour community!

Sharon Burns

14

Notes from the Executive DirectorBy Sharon Burns, Ph.D., AFCPE Executive Director

May 21–23, 2007Personal Finance Seminar forProfessionals. University of MarylandCooperative Extension. SheratonColumbia Inn, Columbia, MD.www.agnr.umd.edu/

June 17–20, 2007The National Association of ConsumerAgency Administrators (NACAA),Philadelphia , PA. www.nacaa.net/

June 21–24, 2007American Association of Family andConsumer Science 98th AnnualConference and Expo, Reno, NV.http://www.aafcs.org/meetings/07/

July 30–August 2, 2007National Extension Family LifeSpecialists Conference, (NEAFCS)Atlanta , GA. http://www.georgiacenter.uga.edu/conferences

October 24–27, 20072007 NCCC-52 Conference, BatonRouge, LA. Contact Angela Lyons atanglyons@uiuc.edu

October 23–26, 2007Housing Education and ResearchAssociation annual meeting, Charlotte,NC. Details pending. Contact JosephLaquatra at JL27@cornell.edu

October 24–27, 20072007 NCCC-52 Conference, BatonRouge, LA. Contact Angela Lyons atanglyons@uiuc.edu

November 14–16, 2007AFCPE Annual Conference, Tampa,FL. www.afcpe.org

Calendar of Events

Do We Only Talk to Ourselves?

“… to give birth to new ideas, new courage, and new companions for the journey, we use thesimple and ancient practice of good human conversation.” So says Margaret Wheatley, authorof Leadership and the New Science. She and her companions go on to define a leader as“anyone who wants to help at this time.”

15the standard April 2007

Congratulations New Certificants

Alexander, LindseyBaughman, SaraChatman, Ka’reeClady, JoyCooper, SueEagles, JoyceGraves, LarryHenderson,DeannaHines, AnnaIngram, BridgetteJaffer, ReneeJohnson, Cora LeeKennedy, NicholasLepley, KarenMcNorton, RichardOverby, SherriPickens, JaredPound, DeniseRahn, Clint

Russell, JanineSchrock, ChristyShaddox, JulieStaples, RolandaStubblefield,WilliamVelilla, MannyVonCanon, BillWasdin, JanyWilcher, ErinZamagni, Kimberly

AFCPE Certified ® Financial CounselorGraduates (12/11/06 through 3/10/07)

AFCPE Certified ® Credit Counselor Graduates (12/11/06 through 3/10/07)

Alexandre, RafaelAlves, MiriamAskew, KatrinaBailey, MichelleBarnard,ImmacolataBeach, KelliBejerano, VannyBittarelli, LuzBoduch, ClaireBrock, GuyBrock, KimberlyBrown, EricaBryd, GladysCangemi,TinamarieChang, Sung-MinCofresi, AlCollins, ArnishaConove, PauletteCosentini, JenniferDemaree, DonDembeck, PatriciaDevine, DebDickmann, JeanneDuong, HieuEdelsberg, Avidan

Egan, ChristineEllis, KimberlyEuell, VanessaFerreira, AmandaFisher, TheresaFragoso, LucyFunari, BonnieGalloway, RickGarcia, KarlaGorleski, KendraGravely, JillGuest, LizHaller, JasonHaque, ChristinaHead, DonHolley, BarrieJackson, DougJaramillo, VicJennings, MelissaJimenez, SolangeJudd, AngelaKath, KristenKellerman, RobinKrewer, LeighLashway, EarlLawson, MaritzaLodden, Andrea

Loesch, SandraLong, MarayLunny, JeanneMaher, KevinMalama, VitaMarshall, TaraMartinez, CarmenMcCarthy, ShawnMcSheridan,BrendaMeade, LouiseMedina, BetsyMedina, RebeccaMichael, NickiMiller, JamesMin, BrianMolen, ElaineMorgan, LisaNewman, OlanOliver, AnneOsborn, LoriPappas, ChristinaPetazzi, JavierPetrillo, DawnPolito, JohnPowell, KimRakoczy, Maggie

Rich, EstherRivera, BrendaRobinson, BarbaraRodriguez, AidaRodriguez, PerlaRossi, KarenRuby, NicoleSantana, MarcosSanterre, EricaScott, RobertSola, VictorSours, BradSt. Louis, BetsySteele, ClaudiaStone, MichaelTineo, HenryTirado, CarlosTorres, GloriaTuominen, WainoUriarte, CristalWallace, SeanWulfson, JamesYoncak, RichardZellman, Emily

Meet New Board Members

Three new board members were elect-ed for the 2006–2007 term. Here’san introduction:

Oliver White is the manager of thePersonal Financial Management Programat the Fleet and Family Support Center forthe Naval Postgraduate School inMonterey, California. Oliver completed theNavy Command Financial Specialist(CFS) course in June 1992 and has beenAFCPE certified since 1994. He wasawarded the Naval Postgraduate SchoolCertificate of Recognition for establishingthe Personal Financial ManagementProgram January 1993. White currentlyserves on AFCPE’s Investment Committee.

Lynne Boccignone is an AFC® in privatepractice since 1999. She is a fee-basedfinancial counselor, seeing clients privately,as well as teaching workshops on moneymanagement at a local community college.She has five years experience as a financialcounselor for the Clara Abbott Foundation.Lynne believes it is important that fee-based private practitioners partner togetherthrough AFCPE to educate other profes-sionals about our profession nationwide.She values the contribution of the educa-tors of AFCPE and would like to helpbridge the wealth of knowledge and experi-ence of the private practitioner with educa-tors. This union would create a recogniza-ble presence for AFCPE.

William (Bill) Heaberg, is a CommunityReadiness Consultant for the Robins AirForce Base Airman and FamilyReadiness Center. He joined AFCPE in1992, earning his AFC® in 1996. Bill hasbeen chair of the conference evaluationcommittee, breakout session facilitatorand on the new member welcomingcommittee. Most recently he served onthe AFCPE focus group that developedIt’s Your Move: A Game Plan forInvesting. He was appointed to the boardof directors, Consumer CreditCounseling Service of Middle Georgia inMarch, 2006.

Association forFINANCIAL COUNSELING • PLANNING • EDUCATION

1500 W. Third Avenue, Suite 223

Columbus, OH 43212

We believe…

Everyone has financial desires that affecttheir lives every day.

Better financial decisions lead to a betterquality of life.

People can make better decisions whenthey are supported by a trained profes-sional.

Academics, research and practical experience inform professional financialcounselors and educators.

Setting the standard for performanceand a forum for learning will provide aconsistently higher level of service.

Purpose…

To support and advance the professionof financial counseling and planningeducation.

Financial Solutionsfor Life

According to Vivian Gentry, AFC, andAFCPE member, data entered into“Simple Money Solution” can yield a total“Financial Check Up” that includes a(n):

� Current financial status� Debt elimination plan� Net worth statement summary� Debt elimination calendar with start

date� Detailed net worth statement� Debt elimination summary with pay-

off options� Income and expense statement� Income and expense summary and 6-

month comparison

It is also possible to explore several “what-if” scenarios with certain variables, i.e.,rate-of-return on saving/investments,retirement planning, mortgage and per-sonal loan payoffs, and more.

If simplicity is more appealing than com-plexity, “Simple Money Solution” maymeet the needs of users from the novice tothe more advanced. To “run the numbers”for someone to see, believe and achievethe 10% Solution, “Simple MoneySolution” offers empowerment for thecash flow management needed to main-tain personal financial well-being. Toreview comprehensive examples and learnmore about “Simple Money Solution”,visit www.SimpleMoneySoftware.com.

PJ Gunter is president elect of AFCPE and isbased in Houston, Texas. She can be reachedat PJ@MoneyMonitors.com.

Simple Money SolutionContinued from page 13

For further information about“Simple Money Solution,” seewww.simplemoneysolution.com.

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