(Vanity) Opinion Request: First Command Financial Services

self | 11/27/02 | jigsaw

[jigsaw]

First Command regards itself as: "The #1 independent provider of financial plans to the professional military family."

I have a young relative who is a new military officer and he is interested in using this organization's services.

Any opinions from Freeper military officers would be most appreciated for guidance.

Many thanks!

[Stingray51]

Funny, I was just emailing another former Army officer about this program, better known as USPA&IRA, which was the subject of a Wall Street Journal article today. Reading that article, page c1, is probably a good place to start. The bottom line is that it is a costly way to invest compared with, for example, one of the big index funds or other inexpensive mutual funds. I wouldn't do it.

[TankerKC]

I have been with First Command for 12 years. They have been great for me, but they are not for everyone. There are cheaper ways to invest, but I just don't have the time or interest to mess with investments on a daily basis.

[jigsaw]

Thanks!

This is just the kind of info he's interested in hearing.

[Salgak]

When in doubt, a young officer can do no better than set him/herself up with the primary Officers' financial resource, USAA. They have decent mutual funds, a band, insurance: a one-stop shop with a good track record and experienced from the very start with the needs of Military Officers (I've been using various portions of their services for 18 years now. . .)

[Salgak]

OOPS. . .I MEANT a "bank", not a "Band". . .

[jigsaw]

Many thanks for the tip. I'm sure he'll look into USAA now and compare it with First Command.

[TankerKC]

I use USAA for car insurance and loans. You just can't beat them there.

[SICSEMPERTYRANNUS]

First Command (formerly USPA and IRA) is a good option for someone in the military who does not know or care to know much about investing/insurance. It is a good place to start but as one becomes more experienced with investing it would be cheaper to do your own homework. Hope this helps.

SIC

[jigsaw]

......Hope this helps.

I'm sure it will. Many thanks.

[Stingray51]

The thing is that USPA costs are front-loaded such that quite substantial commissions are paid the first year providing a large disincentive for dropping out a few years down the road.

It's pretty darn simple to set up, for example, a Fidelity account and pump money into a very low cost index fund each month. That would be my recommendation.

[jigsaw]

Thanks. First Command's large front-loading policy apparently is one of his concerns.

[jigsaw]

Many, many thanks for the heads-up about the Wall Street Journal article!

I found a copy today, and it will be very helpful.

Happy Thanksgiving to you and yours.