Emotion and Stress Cause Consumers to Make Poor Personal Finance Choices

First Command Offers Tips to Replace Fear with Fact When Dealing with Affairs of
the Pocketbook
FORT WORTH, Texas--(Business Wire)--
To say that the American consumer has been spooked by the gloom and doom of
economic reports is putting it lightly. The fact is most of us have at some
point in our lives made a rash decision out of fear that we later regretted and
many of us have put off critical financial decisions for fear of making the
wrong choice. In this economy, possibly the only thing worse than overreacting
is not reacting at all.

"In today`s uncertain times, it`s easy to subconsciously make decisions based on
fear instead of fact," said Scott Spiker, CEO of First Command Financial
Services. "We have to take emotion out of the equation, or we risk making
financial decisions that actually hurt us in the long run."

Spiker urges consumers to consider the following fact versus fiction when
responding to the current economic downturn:

Retirement Investments: Emotion tells us that we`re in a free fall and to get
out of the stock market while the facts say the market is priced at what it was
12 years ago. Emotions may run particularly high for retirees who have seen a
big drop in the value of their lifetime assets. If you are one of them and feel
a need to move your money out of the market for peace of mind, one option is to
start small. Withdraw only the money you need to cover your living expenses for
the coming year.

College Savings: Emotion tells us to pull everything out while logic says to sit
tight and consider all money-saving options including less expensive schools and
living at home. If you have a child starting college next year, remember that
you actually have a five-year goal. Take it one year at a time. If your assets
or income have taken a big hit recently, be sure to update your Free Application
for Federal Student Aid. You may be newly qualified.

Saving vs. Spending: Emotion tells us to save every penny in this economy, while
logic says if you have saved for your personal needs or planned for a large
purchase it is OK to spend. Many people don`t balance their checkbooks today so
try writing your budget on a 3x5 card and carrying it with you; every time you
spend money, subtract it from that card so you don`t overspend. Most
importantly, know where your money is going so you can understand how to better
save.

Refinancing Home Mortgages: Emotion tells us to take the lower interest rate no
matter what while logic says to weigh the cost versus the actual savings. Look
at how much it will cost to refinance and how long it will take to recover the
cost. If it will take three years to make it up and you`re planning to stay in
your home for 10 years, then it`s a no brainer.

Sometimes knowing the facts isn`t enough when we are emotionally close to the
decision. Two additional ideas to help consumers get past the fear and emotion
are:

* Create a financial plan or revisit the one you have.
* Schedule an appointment with a trusted advisor.

"Even in a difficult economy, people with a financial plan through a financial
advisor report greater confidence in their ability to retire comfortably,
greater financial security on a day-to-day basis and they report feeling less
financially stretched," said Spiker. "Households with a financial plan have
greater comfort with their levels of savings and personal debt, providing
greater confidence when facing the uncertain outlook for 2009."

Consumers are faced with a number of difficult financial decisions right now.
Now, more than ever, they can benefit from the support of an educated and
trusted advisor who can help them replace fear with fact and emotion with logic
as they navigate their financial futures.

For more fact versus fiction information, visit
http://www.firstcommand.com/news-events/2009/03/24/09-0324-mar-2009-index.htm

About First Command

First Command Financial Services and its subsidiaries, including First Command
Bank and First Command Financial Planning, assist American families in their
efforts to build wealth, reduce debt and pursue their lifetime financial goals
and dreams-focusing on consumer behavior as the first and most powerful
determinant of results. Through personalized financial plans that emphasize
accumulating wealth while reducing risk, First Command Financial Advisors have
established lasting relationships with hundreds of thousands of client families
since 1958.

First Command Financial Services, Inc. is the parent company of First Command
Financial Planning, Inc. (Member SIPC, FINRA) and First Command Bank (Member
FDIC). Insurance products and services are offered by First Command Financial
Services, Inc. Financial planning services and securities products are offered
by First Command Financial Planning, Inc. Banking products and services are
offered by First Command Bank. Securities products are not FDIC insured, have no
bank guarantee and may lose value. In certain states, First Command Financial
Services, Inc. is a separately registered domestic corporation and does business
in California as "First Command Insurance Services." A financial plan, by
itself, cannot assure that retirement or other financial goals will be met.

First Command Financial Services
Eileen Rochford, 773-463-2480
eileenr@theharbingergroup.com
www.firstcommand.com

Copyright Business Wire 2009