August 18, 2013
Vol. 39 No. 24
inside:
2013
FANTASY FOOTBALL PREVIEW PG. 12
MILITARY BEARING AND YOU PG. 8 NIMITZ NEWS | AUGUST 18, 2013
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Commanding Officer Capt. Jeff Ruth Executive Officer Cmdr. John Cummings Command Master Chief CMDCM Teri M. McIntyre Public Affairs Officer Lt. Cmdr. Karin Burzynski Media LCPO MCC (SW/AW) Mike Jones Media Production Chief MCC (SW) Gregory Roberts Media LPO MC1 (AW/SW) Michael Cole Editor MC2 (SW) Jason Behnke Lead Designer MCSA Andrew Price Media Department MC2 (SW/AW) Jacquelyn Childs MC2 (SW) Ashley Berumen MC2 (SW) Nichelle Bishop MC2 (SW) Devin Wray MC2 (SW) Ryan Mayes MC2 (SW/AW) Alexander Ventura II MC3 (SW) Renée L. Candelario MC3 (SW) Shayne Johnson MC3 Jacob Milner MC3 Christopher Bartlett MC3 (SW) George J Penney III MC3 Raul Moreno MC3 Linda S. Swearingen MC3 (SW/AW) Jess Lewis MC3 Vanessa David MC3 (SW) W. J. Cousins MC3 Derek Volland MC3 Phil Ladouceur MC3 (SW) Sam Souvannason MC3 (SW) Nathan McDonald MC3 Joshua Haiar MCSN Kole Carpenter MCSN Derek Harkins MCSN Kaitlyn Haskett MCSN Eric Butler MCSN Siobhana McEwen MCSA Aiyana Paschal MCSA Kelly Agee MCSA Victoria Ochoa Nimitz News accepts submissions in writing. All submissions must be in by Friday, COB. Submissions are subject to review and screening. “Nimitz News” is an authorized publication for the members of the military services and their families. Its content does not necessarily reflect the official views of the U.S. Government, the Department of Defense, the Department of the Navy, or the Marine Corps and does not imply endorsement thereby. ON THE COVER: AM3 Michael B. Herring performs maintenance on the rotor of an MH-60R Seahawk Helicopter assigned to HSM-75 on the flight deck. Photo by MCSN Eric Butler.
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By Lt. Andrew Colvin CHC, USN
ORA ET LABORA
O
n a beautiful hilltop lined with Grand Sequoias in the verdant Oregon Willamette Valley is a Benedictine Monastery and Seminary called Mount Angel. It was there that Benedictine monks trained me for the priesthood. Benedictine monks are known popularly by their mystical Gregorian chant, which is their way of praying the Psalms throughout the day. They dedicate half of their waking day to prayer. The other half, they dedicate to work. Thus, they live by the motto ora et labora, which is Latin for prayer and work. Work can be just as important as prayer. Ignatius of Loyola, the founder of the Society of Jesus, is attributed to saying, “Pray as if everything relies on you; work as if everything relies on God.” For Christians work is a blessing: God’s gift. You’ve no doubt heard someone say something like, “She has a Christian work ethic,” meaning “She is a good worker.” The quality of our work and environment shapes our sense of dignity and professionalism. Who would argue that job satisfaction is unimportant? Yet, I wonder how many Sailors
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would say their job and work environment is unsatisfying or even miserable. If any of you have encountered prolonged job dissatisfaction, I encourage you not to lose hope. There are steps we can take to improve the work environment. Charles J. Keating, author of “Dealing with Difficult People” states, Productive job design suggests that a worker (1) be and feel responsible for his or her task, (2) have a significant degree of control over how the task is done, and (3) receive significant information about the value and professionalism of his or her job. In this short article I cannot possibly provide all the information and training necessary to meet these criteria. However, I encourage you to ponder their significance. We have many resources to help us improve job satisfaction, including Mr. Keating’s short book, which I highly recommend. Each of us is responsible for contributing to a healthy and satisfying work environment, as well as a willingness to get along with one another. Respecting each other’s gifts and different personalities is crucial to a harmonious work environment and job satisfaction. The Benedictine Monks taught me that prayer, too, is vital!
By MC3 Nathan R. McDonald
5TH FLEET: ARRIVING C
Vice Adm. Miller speaks to officers in the wardroom.
Story by MC2 (SW) Jason Behnke
ommander, U.S. Naval Forces Central Command, U.S. 5th Fleet, Combined Maritime Forces, Vice Adm. John W. Miller visited the aircraft carrier USS Nimitz (CVN 68) to tour the ship and hold an all-hands call with Sailors, Aug. 13. During the all-hands call in the hangar bay, Miller opened by thanking the crew for their professionalism while on liberty in Bahrain. He also addressed key issues affecting the entire military, such as sexual assault. “All of us that have been in uniform since 9/11 have enjoyed the respect, admiration and trust of the American people,” said Miller. “The one thing that could change that is if the American people come to the conclusion that we create an environment that tolerates sexual assault.” He added that although Nimitz and the military in general have robust programs dealing with sexual assault prevention, every service member has a responsibility to put an end to it. “At the end of the day each of us, every single one of us has to be onboard,” Miller said. He emphasized the importance of bystander intervention and instructed shipmates to help Sailors who may have had too much to drink or who are about to make bad choices. Miller also noted a common link between many sexu-
al assault and suicide cases in the Navy. “If you look at the sexual assault or suicide statistics, one of the things you’ll find is often times alcohol is a contributing factor,” said Miller. Nimitz has been in the 5th Fleet area of responsibility (AOR) since June. Miller also thanked the crew for their months of hard work and contributions made in support of Operation Enduring Freedom thus far. “I know it’s hard,” said Miller. “If you’re up on the flight deck, down in engineering, or you’re in one of the launch and arresting gear spaces, it’s an extremely challenging work environment and you’re doing a magnificent job.” Prior to embarking Nimitz, Miller and Force Command Master Chief James E. DeLozier also visited USS William P. Lawrence (DDG 110). While aboard the guided-missile destroyer, Miller and DeLozier conducted allhands calls with the officers, Chiefs, and Sailors to commend them for a great job on deployment. Miller then had lunch with the crew and paid tribute to the legacy of Adm. William P. Lawrence. Nimitz Strike Group (NSG) is comprised of Nimitz, embarked Carrier Strike Group 11, Carrier Air Wing 11 and Destroyer Squadron 23. NSG is deployed to the U.S. 5th Fleet AOR conducting maritime security operations, theater security cooperation efforts and support missions for Operation Enduring Freedom. 3 NIMITZ NEWS | AUGUST 18, 2013
EM3 Dawkins plays his guitar.
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Story and photo by MC3 Linda S. Swearingen
M
an has been playing music or singing almost since the beginning of time. In 1846 a Belgian instrument maker, Adolphe Sax, invented a new wind instrument called the saxophone. The origins of the guitar can be traced even further back to 8th century when the Moors brought four-string instruments called ouds to Spain. Twenty-three-year-old Electrician’s Mate 3rd Class Philip W.D. Dawkins, of West Alexandria, Ohio, a Sailor on board the aircraft carrier USS Nimitz (CVN 68), is a classically trained musician who plays both the saxophone and guitar. “I’ve been playing the saxophone for about nine years and the guitar for about six years,” said Dawkins. Dawkins’ first instrument was the saxophone which he became interested in playing when he was in middle school.
marching band instructor by his high school after graduation. Dawkins said his influences for playing the guitar include Joe Satriani and Billy Corgan of The Smashing Pumpkins. He lists his influence for the saxophone as his high school band director who motivated him to start playing in the first place. Finding time to practice playing the guitar can be difficult while underway with his long work hours; however, Dawkins finds time whenever he can. “Whenever I can find time after working hours I practice the two guitars I brought on board usually in my work center,” said Dawkins. According to Dawkins, the best thing about playing music is that it is a fun way for him to relieve stress while trying to better himself as a musician.
“I’ve always been interested in music, and my middle school band needed a saxophonist, so I volunteered,” said Dawkins. A few years after he learned how to play the saxophone, Dawkins became interested in the guitar and quickly taught himself how to play it. “I’m a classically trained saxophonist, but I taught myself how to play guitar by watching videos,” said Dawkins. “I had learned how to read music in band when I started to play the saxophone, and that helped me some with reading music when I was learning guitar.” In middle school and high school Dawkins played saxophone and was in the marching band, jazz band and pep band for sporting events. Prior to joining the Navy, Dawkins gave private lessons for both the saxophone and the guitar. He was even hired as a saxophone and
Upon Nimitz’ return to its homeport of Everett, Wash., Dawkins plans on giving private lessons for both the guitar and the saxophone. Dawkins’ future plans include getting his B.A. in music education and eventually a master’s degree in music history and music literature when he is out of the Navy. “Eventually I want to be a music teacher back home in Ohio, and I want to start a bluesy alternative rock band with some of my friends,” said Dawkins. For those who want to take up the hobby of learning how to play an instrument, Dawkins offers some words of advice. “Be willing to devote as much time as possible when learning how to play a new instrument,” said Dawkins. “It can be daunting when learning how to play a new instrument, but ultimately rewarding in the end.”
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Story by MCSA Kelly Agee
Sports have always been a big part of naval history; whether they take place on land or at sea. They have been a way to help with Sailors’ physical fitness and a fun way to help relieve stress. Boxing is especially prevalent in naval tradition and is still very alive on board the aircraft carrier USS Nimitz (CVN 68). In the early 1800s boxing became popular on naval ships. They would hold “slugging” bouts, or boxing matches, as a means of settling personal grievances. It wasn’t until 1900 when the
Navy Regulations officially mentioned athletics. It included a section dealing with duties of commanding officers (CO) as a statement that the COs shall encourage the men to engage in athletics, fencing, boxing, boating and other similar sports and exercises. Boxing seemed to appear over night. They would become champs by having bested all the Sailors in their own squadron, division or ship. Ship’s boxers gave exhibitions ashore whenever possible. And some shore commands started conducting boxing championships.
In 1919 top boxers started to perform at Balboa Stadium in the Panama Canal Zone to determine that year’s “All-Navy” boxing champions. Although it was unofficial as far as the Department of the Navy was concerned, it marked the beginning of an annual ring show that was staged every year (except for 1922 and 1928) until 1941. The show began again after World War II in 1946. One of the top heavyweight Navy boxing champions ever was Jack Sharkey who won the championship in 1932. Sharkey fought for
Sailors in a slugging bout on board a U.S. naval ship ca. 1900. Courtesy photos.
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ABE3 Mustapha Cunningham, right, trains LS3 J.C. Hunt in boxing in the hangar bay. Photo by MCSA Andrew Price.
the battleship North Dakota (BB 29) and cruiser Denver (C 14) in fleet boxing championships. It has been more than 200 years since boxing made its mark on naval ships and it’s still going strong on board Nimitz. On board Nimitz there are Sailors who have been boxing for years or are new to the sport and want to improve their skills. Aviation Boatswain’s Mate (Equipment) 3rd Class Mustapha Cunningham, of Atlanta, boxes five days a week for one and a half hours each day in the hangar bay of Nimitz with other Sailors. “I started boxing when I moved with my uncle from down south to up north,” said Cunningham. “I needed to learn how to protect myself because I moved to a rough city.”
Boxing is a great way for Sailors to keep up their physical fitness level because it works almost every part of the body. “When you do boxing you need to keep your cardio up,” said Aviation Boatswain’s Mate (Equipment) 3rd Class Laura Quintero, of Chicago. “Lots of people under-estimate how much you have to keep up your stamina during a three-minute fight.” Boxing also builds your shoulder muscles because when people box they have to keep their hands up beside their face for protection. “Sometimes after I box my whole body will be sore for weeks,” said Quintero. Boxing is about more than maintaining physical readiness, it’s also a great stress reliever. “It helps with my stress after
work,” said Aviation Boatswain’s Mate (Equipment) 3rd Class Tyron Tyrell, of Atlanta. “It’s an easy way to relieve my frustration, it feels like I can have an output after work.” If you ever feel stressed, getting involved in sports like boxing might help. If you’re interested in learning how to box, Cunningham doesn’t mind giving lessons. “I don’t mind training anyone who wants to box,” said Cunningham, “as long as they have a passion for it.” More than 200 years later, sports like boxing still live on in the Navy. Sailors might not have “slugging” bouts on the ship like in the early 1800s, but they still enjoy participating in boxing matches whether it is for entertainment purposes, physical readiness or just a way to relieve stress.
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true bearing/
Story by MC3(SW) Nathan R. McDonald
from New Oxford English Dictionary
bear•ing |’be( )riNG| noun e
[ in sing. ] a person’s way of standing or moving: a man of precise military bearing. • the way one behaves or conducts oneself: she has the bearing of a First Lady.
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P
oise. Taking pride in one’s appearance. Deference. You may not find many regulations for these qualities, yet they are essential for any squared away Sailor or Marine. Recently, there has been a push to highlight the importance of military bearing aboard the aircraft carrier USS Nimitz (CVN 68). “Military bearing creates an outward projection of who we are as a military and creates a professional demeanor,” said Chief Intelligence Specialist Aaron Poore. “It projects confidence and contributes to good order and discipline among the ranks. If you show people proper respect, you’ll get proper respect, and that will give you more confidence in everything you do. Good order and discipline helps keep a good, efficient working atmosphere.” Military bearing also plays a role in mission accomplishment. “Military bearing is important because good order and discipline help streamline the whole process of accomplishing what we have to get done,” said Chief (Select) Electronics Technician James Corris. Poore highlighted the essentials of maintaining good military bearing and addressed its basic components. “You need to have a proper uniform, proper haircut and show proper respect for rank,” said Poore. “Even if it’s just one rank above or below you, showing proper respect makes a difference. It’s in simple things, like moving to one side when someone is carrying a load.” Good military bearing entails taking the time to continually maintain one’s ap-
pearance and attitude. “Consistency is what’s key,” said Poore. “It’s not difficult. Fold and iron your clothes. Polish your boots once a day. Those things go a long way.” Poore said military bearing is also a leadership trait, and one that is affected by command climate. “Ultimately, it comes down to leadership enforcing standards,” said Poore. “They either enforce it or they don’t, and it shows either way. We’ve kind of ratcheted down on it, and I think we’ve seen a positive result.” The difference can be felt throughout the entire chain of command. “The people that work for me look to me for my example to see what’s okay and what’s not okay,” said Corris. “If I show up and my uniform isn’t right, then it shows them that it’s okay for them to show up like that too.” Good military bearing is a trait that can pay lifelong dividends, as well. “It goes back to confidence and giving a sharp presentation of yourself,” said Poore. “People typically want to work with veterans because of military bearing. They’ll show up on time, they project confidence with the information they know and they’ll follow the proper rank structure to take care of a problem if there is one.” Ultimately, military bearing is about respect. Respect for one’s service, uniform and other service members. “The biggest thing is respect,” said Corris. “Military bearing teaches you to respect your supervisors and junior personnel. These relationships exist in both the civilian and military workforce.”
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HOOP D Story and photo by MC3 (SW) Renee Candelario
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DREAMS T
he ball bounces slowly on the wooden court, her heart is steadily pounding, mind is focused and quiet as the sounds of shoes squeak across the floor and the players run by leaving a cooling breeze against her jersey. Her vision is clear and she knows her next move. It’s like a game of chess. She can see her opponent and knows just how to win the game by weaving and dodging through the pieces. “In the midst of playing basketball it’s as if nothing else matters anymore,” said Aviation Ordnanceman 2nd Class Erika N. McDougall, an elevator technician for USS Nimitz (CVN 68) Weapons Department. “It’s a hobby and a stress reliever.” Growing up in Detroit, McDougall discovered her love for sports at a young age and never had a problem playing against the guys. “I don’t want to sound like a cliché, but I’ve been a tomboy all my life,” McDougall laughed to herself. “While growing up, I didn’t like to do anything girly. If the guys were playing football in the middle of the street that is what I wanted to be doing.” She believes what triggered her “tomboy” ways were the memories of days spent with her grandfather and out on the playground at recess during elementary school. “My granddad would watch baseball on TV or listen to the games on the radio and I would be sitting right there with him thinking it was just the coolest thing,” she reminisced. “I would always play basketball, football and soccer at recess. I was a Green Bay Packers fan at the time, so my mom bought me a Green Bay Packers football. I would bring that ball to school and play football on the gravel with the guys and get tackled. I would be at the bottom of the pile, but it was fun. At that age you’re just doing what feels comfortable and my comfort zone was playing sports.” In the 9th grade, McDougall tried out for her high school’s junior varsity basketball team and worked her way up to varsity then continued to play for a year and a half in college after receiving a two-year scholarship for her academic and athletic performance. “I had to start somewhere,” she shrugged. “Playing for my college was fun, but the politics in sports kind of took the fun out of it.” At the age of 20, McDougall decided to join the Navy to get a break from college and gain other work experience. She has since further demonstrated her love for basketball by getting together with other girls who shared the same interest to start a women’s basketball team. “When the ship was in dry dock, my friend and I saw a couple girls, here and there, that would play basketball at the gym on an everyday basis,” she explained. “We found out that [Morale, Welfare and Recreation] put on a women’s basketball tournament, so we handpicked a few people we
knew played well and started from there.” McDougall continued to scout players for her team, the “Lady Ballerz,” after the ship moved to Everett, Wash. and has since exceeded her expectations. “Last year in dry dock we were struggling for players to come on game days, but now we have more than enough,” she laughed. “I think our greatest accomplishment this season was beating USS Ronald Reagan (CVN 76) women’s team. [Operation’s Specialist 2nd Class] Tiphania Johnson scored the winning bucket bringing the score 54-53. There were about 10 seconds left on the clock for them to score so through our excitement we had to get back on defense and I was able to make their ball handler commit an offensive foul which ran the clock out. It’s like my high school coach always said, ‘Defense wins games, and offense sells tickets.’” When asked what her favorite position to play on the team was, McDougall smiled and responded with, “It’s between point guard or shooting guard depending on how I feel that day. I’m 5’4” but in my mind I’m 6’5”. I feel like I can jump with anyone and take any hits they give me. I’ve been run over a couple of times and I always pop right back up and keep playing.” Although the ship is currently underway, McDougall and the “Lady Ballerz” take time from their liberty during port calls to get together and play. “The games our team has played since deployment began have been cool,” she explained. “Sports are universally loved so to be an ambassador for the U.S. and the Navy through basketball has been a great way to spend time off the ship.” After the Navy, McDougall plans to attend the University of California, San Diego to take advantage of the school’s top psychology program and earn her doctorate in sport’s psychology, while also working with girl’s high school sports teams to give them the training and motivation they need to win. “A lot of urban school programs don’t focus much on the girls’ teams unless they are a team full of superstars,” she explained. “The guys kind of get all the attention and are provided all of the big training programs. I want to try and change that.” Her competitive and winning spirit will surely assist her in pursuing her life-long goal to become a sport’s psychologist working anywhere for professional teams to Olympic athletes. “Sports psychology isn’t about helping the athlete through their injury physically, but mentally,” she explained. “Being able to combine sports and how the mind works would be an exhilarating feeling.” For now, McDougall will continue to fulfill her duties as a Sailor while moving toward her goals and gives a shout out to her hometown teams back in Detroit. 11 NIMITZ NEWS | AUGUST 18, 2013
2013 FANTASY FOOTBALL SR. CHIEF TINY MCDANIELS PRESENTS:
PREVIEW
Ladies and gentlemen it’s that time of year again! Get your buddies, cro-
nies, amigos, bothers and sisters together and let them know it’s time to establish your fantasy football teams. Through my extensive research while out at sea, I have put together a quick guide on super picks, down in the dump players to stay away from and some sleepers that may surprise you. Lets take a look at the 2013 fantasy football players and teams. QUARTERBACK S Aaron Rodgers- The “Big Cheese” in Green Bay is money. One day he will break every record of his predecessor. T Peyton Manning- We live in a day and age where medical miracles happen. Manning is one of those miracles. U Tom Brady- At 36 years old, he still has it. He makes everyone on the field he plays with better. D Drew Brees- Extremely accurate, intelligent and athletic. Coming off his third 5,000 yard passing season. S Matt Ryan- “Matty Ice” and the Falcons will make a run for the Super Bowl this year. He has so many weapons. SOLIDS: Colin Kaepernick, Mathew Stafford, Russell Wilson, Ben Roethlisberger, Eli Manning. FORGET ABOUT IT: Mark Sanchez, Matt Flynn, Brandon Weeden, Jake Locker, Kevin Kolb. SLEEPERS: Andy Dalton, Andrew Luck, Carson Palmer. RUNNING BACK S Adrian Peterson- The MVP and almost broke the rushing record last year. Just about as solid as you can get. T Arian Foster- Is the most productive back in the last two seasons with 29 TDs and 3,482 total combined yards. U Ray Rice- Bowling ball in stature, he can juke you or rock your world. A shifty ball runner who stays healthy. D Marshawn Lynch- “Beast” mode has a great defense to allow him to get more carries and also has a great QB. S Matt Forte- The complete running back. Will flourish with Chicago’s up-tempo West Coast-style offense. SOLIDS: Frank Gore, Alfred Morris, Doug Martin, Chris Johnson, LeSean McCoy FORGET ABOUT IT: Rashard Mendenhall, DeAngelo Williams, Ryan Mathews SLEEPERS: Le’Veon Bell, Daryl Richardson, Ahmad Bradshaw WIDE RECIVER S Calvin Johnson-“Megatron” survived the “Madden Curse” and reigns the as the best receiver in the game. T Andre Johnson- A cornerback’s nightmare at 6-foot-3, 230 pounds and exceptional hands. The Lone Star receiver. U Brandon Marshall- All Pro last year becoming the first Bears receiver to do so since 1970. The go to receiver. D A.J. Green- In his first two seasons he has caught 162 passes for 2,407 yards. He has the size, speed and hands. S Julio Jones- Part of a family of weapons in Atlanta, he is the first option for QB Matt Ryan. A promising future. SOLIDS: Dez Bryant, Larry Fitzgerald, Wes Welker, Victor Cruz, Roddy White FORGET ABOUT IT: Earl Bennett, Brandon LaFell, Nate Burleson, Santonio Holmes SLEEPERS: Cordarrelle Patterson, Pierre Garcon, Tavon Austin
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TIGHT END S Vernon Davis- One of the most athletic tight ends in the game. Combines speed, strength and play making ability. T Jimmy Graham-A great receiving tight end that accounted for 85 catches and 982 yards with nine TDs. U Tony Gonzalez- His 16th year in the NFL, he came back for one more year in hopes of gaining a Super Bowl ring. D Kyle Rudolph- Emerged as a rookie last year showing signs as a possible star in Minnesota. Great wingspan. S Jason Witten- Not getting any younger, but this crafty veteran gets it done day in and day out. Reliable/healthy. SOLIDS: Greg Olson, Jermichael Finley, Jacob Tamme, Owen Daniels FORGET ABOUT IT: Antonio Gates, Fred Davis, Aaron Hernandez SLEEPERS: Coby Fleener, Tyler Eifort, Delanie Walker DEFENSE S Seattle Seahawks- A young and talented defense, allowing only 15.3 points per game. Great return specialists too. T San Francisco 49ers- Linebackers Patrick Willis and NaVorro Bowan look to get the Niners back to the SB. U Pittsburgh Steelers- The number one defense overall last year added some youth this year to its aging defense. D Chicago Bears- The defense forced an astonishing 44 turnovers last year. Devin Hester will focus only on KR/PR. S Houston Texans- Lead by Defensive Player of the Year J. J. Watt who broke new barriers as a dynamic pass rusher. SOLIDS: Baltimore Ravens, New England Patriots, Green Bay Packers FORGET ABOUT IT: Jacksonville Jaguars, Oakland Raiders, New York Jets SLEEPERS: Arizona Cardinals, St. Louis Rams, Tampa Bay Buccaneers KICKERS S Stephen Gostkowski- A consistent kicker on a team that consistently puts their team in scoring position. T Blair Walsh- Plays indoors without the unpredictable weather and was labeled as the NFLs best kicker for 2012. U Phil Dawson- Recently picked up by the Niners, at age 38, Dawson just gets better with age. Look for big season. D Matt Bryant- Half of his games are in domes and the Falcons offense is full of weapons to put the team in position. S Justin Tucker- He was perfect at 50 plus yards last year and also went to the Super bowl as a rookie. Good start. SOLIDS: Mason Crosby, Matt Prater, Adam Vinatieri, Robbie Gould, Garrett Hartley FORGET ABOUT IT: Nick Novak, David Akers, Graham Gano SLEEPERS: Steven Hauschka, Greg Zuerlein
Adrian Peterson scores a touchdown despite blood trailing down his arm. Courtesy photo.
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13 Finance
FICO Score/ Managing Credit
A fun and easy guide by Cdr. Matthew Miller N33/N35 Sub Ops/Future Plans
Introduction
Managing your credit score is one of the most important things you can do in the personal finance aspect of your life. All of us have a FICO score and I suspect most of us don’t know what it is. FICO stands for Fair Isaac Corporation and scores run from 300 to 850 (with the majority of people being between 620 and 780). More later on what these numbers mean, but higher is better. Bottom line, I can’t overstate how important it is for you to proactively manage your credit score. Read on and you will learn how. Overview Your credit score (FICO) is a number that gives lenders (including credit card companies, mortgage companies, auto loan companies, banks, etc.) a general idea of how likely you are to pay them back. That’s it. It is a measure of your projected credit worthiness. It is important to note that many companies and organizations are now using your score for other things
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like whether you are a good insurance risk or whether you should even be hired for a job. I say again, I can’t overstate how important it is to have a good FICO score. How is Your FICO Score Calculated? Your FICO score is calculated based on many different factors. It is NOT calculated based on your income or employment history. This is very important to understand. If you have messed up your score, getting a new highpaying job DOES NOTHING to fix it. Your score is based on the following factors: • Payment History (35% of the score) – how many times have you been late on a payment and how late were you? The fewer the late payments, the higher the score. • Available Credit (30% of the score) – how much of your current credit have you used up (i.e., are you currently maxed out on your credit cards – if so, this will lower your score). The more available credit you have, the higher your score. • Length of Credit History (15% of the score) – the longer you have established credit, the higher your score. • Types of Credit Used (10% of the score) – the ratio of installment loans, revolving credit, and consumer finance will change your score (the mathematical models are proprietary so it is unclear what the best ratio is here). • Recent Search for Credit (10% of the score) – if you are applying for a lot of new credit, this will lower your score. The precise mathematical model for all of this is proprietary, so the above guidance is generic (the %’s are accurate based on Fair Isaac Corporation, but not much more beyond that can be determined). If your score is not at least 700, you are going to pay significantly higher interest rates for all types of loans (mortgage, auto, credit card, etc.) than someone who has the same loan with a score above 700 (this could cost you $100s per month or more). To get the best rates on all loans you really need a score above 750. How Can You Find Out Your Score? There are several different ways to do this and they all include buying it. You can go to www.myfico.com and buy your score. You can also buy it through one of the three main credit monitoring agencies. The three are Equifax, TransUnion, and Experion. If you’ve recently bought a home, the lender will run a credit score and you can see what it is. There are a number of ways to have an active monitoring of your credit which may be a good option for some people. Having your credit monitored costs around $75 per year and can be a huge protection against negative impacts from identity theft. How Can You Improve Your Score? The biggest thing you can do is pay your bills on time. If you are not doing this, you need to take a hard look at what’s going on in the personal finance aspect of your life. Some people don’t pay their bills on time because they are disorganized (not because they don’t have the money). This
disorganization will cost you big if it lowers your score due to late payments. Alternatively, if you are struggling from a cash flow perspective, then see if you can develop and implement a Spending Plan. Next is to pay down any revolving debt you have to decrease the ratio of current debt to credit limit. This can have an immediate positive impact on your score. Once you pay a credit card off, you should not close the account right away (in most cases). If you eliminate the available credit, it will hurt your score. If you just can’t discipline yourself and think you will run up debt again, cut the card up and try and forget you have the account. Third is just time. The longer you can go without missing a payment, the higher your score will be. Also, do not shop around and request new credit unless you really need it. How to Pay Down Credit Card Debt?
Closing There really isn’t that much more to your FICO score and managing credit than this. I will reiterate that your score will affect your interest rates, insurance rates, employability (depending on the company), and many other aspects of your personal financial life. Although I am not a certified financial planner, I’ve never even heard of one who doesn’t think knowing and managing your FICO score isn’t critically important – especially before you are applying for a big loan like a mortgage.
If you are carrying a balance on your credit card, that is really not smart in almost all scenarios. As long as you are paying high interest payments to live beyond your means, you will never be on a path to a position of personal financial strength. That being said, if you want to get out of credit card debt, I recommend the below steps: • Commit to spending less than you make (if you don’t do this, the rest is a waste of time). • Stop using the credit cards and pay for all your expenses with cash, check, or debit card. • Pay the minimum balance on all your credit cards except the one with the lowest balance. NOTE: you will get conflicting guidance on which card to pay off first and strictly mathematically speaking it is better to pay off the highest interest rate card first. However, in my experience working with many people, you are much more likely to stick with a debt reduction plan if you can feel like you are making progress. The best way to feel like you are making progress is to pay off one of your balances. Start with the lowest balance card first and move up from there. • Continue this until all your cards are paid off. Is this easy? No. You will have to reduce your standard of living / lifestyle to do this. The alternative is to live in a fantasy world for a short while and then have everything come crashing down once your debt catches up with you. It’s ugly and I’ve seen it happen a lot and bankruptcy is not a pretty sight. The best thing to do is not go there in the first place, but if you get there and are ready to break out of the cycle, follow the four steps above and you will be fine. Only you can choose when you are tired of not having control of your financial situation and decide to take some action. Unfortunately, most people choose to act once something is forced on them when they would have been much better off choosing to act 6-9 months earlier. If you feel stressed from your financial situation, don’t wait – choose to act now. There are many free financial counselors throughout the military that can be a big help; you just have to choose to act. NIMITZ NEWS | AUGUST 18, 2013
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