Investor Education Forums in Okinawa, Yokosuka Stress Dangers of Predatory Lending, Advantages of Disciplined Saving and Investing
April 18–21, 2006
Predatory lending took center stage at the NASD's Investor Education Forums held at USMC's Camp Foster on Okinawa and at the Yokosuka Naval Base. "Borrowers lose more than $25 billion dollars each year due to predatory lending," said Francis Dong, Associate Director, Military Education and a member of the team from the NASD Investor Education Foundation that visited the bases.
"Pawn shops, rent-to-own stores, and payday loan businesses are all siren songs that can dash your hopes of saving and investing," said Mr. Dong, who also noted that 93% of payday industry revenue comes from repeat business from customers who often think they will only need to use a payday lender once.
The NASD team stressed the value of saving as much as possible, as early as possible. A 20-year old who puts $2000 away each year for ten years at an 8% rate of return will have more than $462,000 at age 65-much more than someone who starts saving at age 40 and invests $2000 every year for 25 years.
NASD representatives also provided information about the Thrift Savings Plan (TSP), mutual funds and 529 college savings plans. The NASD team noted that a key base resource for TSP information, debt counseling and general savings and investment questions are the Military Family Support Centers and Fleet & Family Support Centers, whose staff are well-equipped to offer guidance about saving and investing. Attendees were encouraged to contact base financial specialists for one-on-one financial counseling.
The NASD Investor Education Foundation continues the roll out of its Military Education Program with forums at the Naval Submarine Base in Kings Bay, Georgia, June 13, 2006.