Service members and their families are a protected group when it comes to their finances. The Department of Defense intentionally protects the military community from predatory financial sales practices while they are serving. Those protections are no longer there when you separate or retire, making transitioning service members top targets of predatory sales practices.
In this episode, Drew Stamp discusses what service members and their families face when they leave the military, how to educate themselves, and how to combat bad actors in the financial and veteran space. We also discuss whether all the benefits the community receives could negatively impact them.
Drew Stamp is a husband, father, and retired US Army Special Forces Master Sergeant. Additionally, he is a teacher, mentor, and coach who co-founded The Donovan & Bank Foundation, a non-profit that assists Special Operations service members and their families in transitioning to post-service life and employment. In his role at the D&B Foundation, he visits Special Operations units around the world to lead seminars and assist servicemembers in crafting their plans to transition from military service to a life of peace, contentment, and balance.
Drew is also a gifted instructor on all things related to personal finance, teaching a variety of military audiences across the US on a weekly basis. Drew has a master’s degree in business administration, has earned the Chartered Financial Consultant® credential and successfully passed the Certified Financial Planner® exam. Although originally from Michigan, Drew and his wife now proudly call North Carolina home, where they’re actively involved in their church, community, and raising their four children.
Episode 304: Predatory Financial Sales Practices
Transitioning from Military Service – Drew shares insights on the emotional and psychological challenges service members face when transitioning out of the military, particularly the struggle to find purpose, shift identity, and establish a new community outside of military life.Purpose, Identity, and Community – Drew emphasizes the need to focus on purpose, identity, and community when transitioning, rather than just job hunting, as these factors are key to a successful post-military life.
Predatory Financial Practices – Discussion on the predatory financial practices targeting transitioning service members, with a particular focus on inappropriate sales of financial products like whole life insurance policies and index universal life policies.
Financial Literacy Gaps – Drew addresses the significant financial literacy gap among service members, especially regarding investments, insurance, and taxes. He provides actionable advice for improving financial knowledge before and during the transition.
Misleading Sales Practices – The episode touches on how some veterans use their status and military experience to sell financial products to transitioning service members without fully understanding the long-term impact of those products.
The Importance of Gratitude and Self-Sufficiency – Drew stresses the importance of gratitude and self-awareness during the transition process.
Positive Traits of Financial Professionals – Drew provides tips on what to look for in a good financial advisor and shares green flags that indicate a financial professional is genuinely looking out for your best interests.
Financial Planning for Transition – Practical financial planning advice for transitioning service members, including considerations for life insurance, investing, taxes, and selecting a trustworthy financial advisor.
Related: How the Military Lending Act Combats Predators
Resources from Predatory Financial Sales Practices
- Donovan and Bank Foundation
- Drew on LinkedIn
- Less Annoying CRM
- The Man in the Mirror by Patrick Morley
- Principles by Ray Dalio
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