Three years after returning from the war in Iraq, Clarence Parker is facing a new battle: managing his finances.
Three years after returning from the war in Iraq, Clarence Parker is facing a new battle: managing his finances.
Due to a traumatic brain injury caused by his close proximity to gunfire and numerous bomb blasts, the 25-year-old former Army specialist suffers from memory loss, confusion and an inability to focus. As a result, he finds it impossible to complete ordinary financial tasks such as paying his $400 monthly truck loan or deciphering credit card statements.
“It's hard to comprehend when they send you all of these papers. It's like reading Japanese,” said Mr. Parker, who lives with his parents in Atlanta after being laid off from two jobs since his return home.
“In the military, I had all of my bills set up to come directly out of my paycheck,” he said. “Here, I get all these bills, and I think I paid one, and I didn't. Then, I get the late fees.”
Mr. Parker is typical of thousands of recent war veterans — injured or not — who find it difficult to readjust to civilian life, especially in matters involving personal finance.
“When you're overseas, your responsibilities are black and white: someone shoots at you, and you shoot back,” said Jeff Bruce, an adviser with 35 military clients at Exemplar Financial Network in Crystal Lakes, Ill., which oversees $2 billion in assets.
“But when you come back home, you've got all of these shades of gray to deal with,” said Mr. Bruce, an 11-year veteran of the Marine Corps who has also served as a staff sergeant in the Army Reserves for the past three years.
Although the military generally discourages financial advisers from offering their services to active-duty soldiers, some advisers make it a point to reach out to military personnel when they re-enter civilian life.
Lee Baker of Apex Financial Services Inc. in Atlanta got a call from the Shepherd Center, a rehabilitation hospital in that city where Mr. Parker is receiving treatment for his injuries, to ask if he would work with the young veteran.
“It's a way for me to give back,” said Mr. Baker, who has worked with a number of wounded veterans. “It would be problematic for me to say that I'm only going to work with high-net-worth folks; I should give of my time.”
RENEGOTIATING DEBT
Among other things, Mr. Baker, who declined to disclose the amount of assets his firm oversees, is developing a plan to help Mr. Parker remember to pay his own bills. Mr. Baker is also helping Mr. Parker renegotiate his debts, including the 13.5% interest rate on his truck loan.
“I told him that everything is negotiable,” Mr. Baker said. “But he's not prepared to do it on his own; he needs someone to make sure he's going through the process.”
Many returning veterans are unaware of various low-cost programs for which they may be eligible, Mr. Baker said.
For example, many lenders are willing to reduce interest rates to as low as 6% on loans to members of the military serving overseas, Mr. Bruce said.
Organizations such as the Army Air Force Mutual Aid Association, which serves Army and Air Force personnel and their families, offer low rates on life insurance. The organization's policies, which include a $400,000 term life policy for just $17 a month, don't include coverage for acts of war, aviation accidents or terrorist attacks.
“A lot of people don't know about this,” Mr. Bruce said.
Another savings vehicle often overlooked by service members is a savings program under which those serving in combat zones may deposit up to $10,000 in a Department of Defense savings account and earn 10% in annual interest.
Despite the availability of such programs, advisers who work with active-duty servicemen and women, and veterans — many in their early to mid-20s — often find it difficult to convince them to save, rather than spend, the tens of thousands of dollars in accrued pay that they receive when they leave the service.
“They just have other things on their mind than savings,” said Hal Estabrook of Esta¬brook & Chamberlain Financial Services Inc. of Bridgewater, Mass., which manages about $35 million. “They come back with quite a bit of money.”
“I sat down with a guy and asked what he was going to do with it. His response was that he'd already spent it on a Dodge Ram pickup truck,” Mr. Estabrook said.
E-mail Lisa Shidler at lshidler@investmentnews.com.
