1NIMITZ NEWS | OCTOBER 13, 2013

238DEFENDING AMERICA WITH PRIDE SINCE 1775

U.S. NAVY TURNS

OCTOBER 13, 2013 Vol. 39 No. 36

INSIDE:

TAILOR’S TRADE

THE PROWLERS

PG. 8

PG. 10

BIRTHDAY MESSAGE TO THE FLEET PG. 6

2

3XEOLF�$IIDLUV�2I¿FHULt. Cmdr. Karin Burzynski

0HGLD�',92Ensign John Mike0HGLD�/&32

MCC Mike Jones0HGLD�3URGXFWLRQ�&KLHI

MCC Gregory Roberts0HGLD�/32

MC1 Michael Cole(GLWRU

MC2 Jason Behnke /HDG�'HVLJQHU

MC3 Raul Moreno Jr.

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

UHÀHFW�WKH�RI¿FLDO�YLHZV�RI�WKH�8�6��Government, the Department of

Defense, the Department of the

Navy, or the Marine Corps and does

not imply endorsement thereby.

&RPPDQGLQJ�2I¿FHUCapt. Jeff Ruth

([HFXWLYH�2I¿FHUCapt. John Cummings

&RPPDQG�0DVWHU�&KLHICMDCM Teri M. McIntyre

0HGLD�'HSDUWPHQWMC2 Jacquelyn ChildsMC2 Ashley Berumen

MC2 Devin WrayMC2 Ryan Mayes

MC2 Alexander Ventura IIMC3 Shayne Johnson

MC3 Jacob MilnerMC3 Christopher BartlettMC3 George J Penney IIIMC3 Linda S. Swearingen

MC3 Jess LewisMC3 Vanessa DavidMC3 W. J. CousinsMC3 Derek VollandMC3 Phil Ladouceur

MC3 Sam Souvannason MC3 Nathan McDonald

MC3 Joshua HaiarMCSN Kole CarpenterMCSN Derek HarkinsMCSN Kaitlyn Haskett

MCSN Eric ButlerMCSN Siobhana McEwen

MCSA Aiyana Paschal MCSA Kelly Agee

MCSA Victoria OchoaMCSA Andrew Price

By Cmdr. Emile Moured

It’s a familiar story – a group of peo-ple wandering around near the Red Sea, feeling like they were going in circles, wondering if they’d ever get

home. Why? Because their return home got delayed…by 40 years! Talk about a sucker punch to the gut. Decades after OHDYLQJ�(J\SW��WKH�QDWLRQ�RI�,VUDHO�¿QDO-ly entered the homeland of their ances-tors; but the delay was painful.

Thankfully, our extension is a lot less than 40 years; but to some degree you are feeling their pain. Six weeks ago, your spirits began lifting as you thought about pushing east and heading home. Then over the last few weeks – marking time in the Red Sea – you’ve had to regroup and prepare yourself and perhaps your family for these ex-tra weeks away. Maybe now you feel like you’re just getting by or hanging on. Though “hanging on” is admirable, I’m not a big fan of just “hanging on” when you can do some pull-ups while you’re waiting. What can you do to turn this challenging season of life into a positive growth opportunity? Here are some suggestions:

Focus on success. The XO pushed out a great tool – the “goals card.” Use it! Just because we’re delayed doesn’t mean your growth has to stagnate. In fact, you can thrive. And remember – once you achieve success, it’s yours forever. You’ll look at yourself in the mirror with pride because you turned this extension into an opportunity to grow, rather than wonder what you could have been or could have done.

Encourage your families. As hard as this is on you, it is likely harder on your families. Choose to be an encour-ager to them and be positive in your

conversations and emails. Keep the right perspective. First,

realize that the short period of time remaining is much shorter than the months you’ve already endured. Sec-ond, remember that you are more ex-perienced and better trained now than any other Carrier Strike Group that could respond to any situation that aris-es. Last, remember that you are profes-VLRQDO�ZDU� ¿JKWHUV� WKDW�PXVW�PDLQWDLQ�your bearing and conduct yourselves in a way that infuses those around you ZLWK�FRQ¿GHQFH�

Spread load. When I’d hike with the Marines, we ensured that one guy wasn’t carrying all the weapons and gear while others carried lighter packs. So we’d “spread load” – the Marine with all the gear would (gladly) redis-tribute his burden to others with light-er packs. While sometimes we have to simply learn the value of “endurance,” it doesn’t mean you have to endure alone. Find a mentor and a safe “battle buddy” that is genuinely interested in your well-being. If you feel the need to VKDUH�VRPHWKLQJ�LQ�FRQ¿GHQFH��WDON�WR�D�chaplain. Coming alongside each other and sharing each other’s load, we’ll all get through these last weeks easily.

Perhaps the best advice offered was what God gave to the nation of Israel after a 40-year extension to their home-coming: be strong, be courageous, and follow God’s blueprint in His word (Joshua 1:7-9). Likewise, I encourage you to delve deeper into your beliefs and your walk with God. Rather than wasting energy on worrying or com-plaining, intentionally and assertively utilize this unique opportunity to focus on personal growth.

An Extended Opportunity

3NIMITZ NEWS | OCTOBER 13, 2013

Birthdays are a time for celebration and intro-spection. A time to com-memorate another year of being while taking stock of progress made, challenges met and goals

accomplished. As the U.S. Navy celebrates the 238th anniversary of its inception, Sailors aboard are in a unique position to honor watch stand-ers both past and present in the midst RI�D�:HVWHUQ�3DFL¿F�GHSOR\PHQW��

“There’s no better place to cele-brate the Navy’s birthday than at sea, and not just at sea but deployed,” said Senior Chief Cryptologic Technician (Technical) Robert Stewart. “We’re doing our mission day to day. It’s what we do. It’s what we get paid to do and what a lot of us enjoy doing.”

For those serving aboard Nim-itz, the ship’s namesake is a constant reminder of the rich heritage of vic-tory the Navy has established.

“Just the name Nimitz is syn-onymous with naval pride and ex-cellence,” said Stewart. “If there’s an important mission to be done or forward presence is required by the Navy, what better ship to utilize than Nimitz.”

For some on the ship, the proud lineage of the Navy is just as much time for personal celebration as it is professional.

“I’m a fourth generation Sailor. When I see older Navy movies or hear stories from my chiefs it makes

me think about it,” said Aviation Maintenance Administrationman 2nd Class Mason Nichols, who is as-signed to the “Gray Wolves” of Elec-tronic Attack Squadron (VAQ) 142. “I remember that this has been in my family for a very long time.“

Like his predecessors, Nichols’ family has learned to accept the sac-UL¿FHV� DQG� SULGH� LQKHUHQW� WR� QDYDO�service.

“They’re really proud of me,”

said Nichols. “I think they’re happy that I enjoy the Navy. They wish I was home more, but they understand. It’s the same thing for my brother who is a helicopter pilot.”

Preserving the Navy’s history and traditions and passing it down to newer generations of Sailors has be-come more of a priority for those in leadership positions.

“I’ve seen a much greater em-phasis on ensuring the leadership passes on knowledge of what oc-curred,” said Stewart. “So much so WKDW� FKLHI� SHWW\� RI¿FHUV� DUH� JUDGHG�

on their evaluations on heritage and sense of heritage. How much are they sharing the lessons learned from our past and present to guide us?”

Passing this knowledge down isn’t solely about lessons learned however, but about honoring the work of previous generations of watch standers as well.

“It ensures we never forget those who have gone before us,” said Stew-art. “We even say it in the Sailors’ Creed every day at quarters to make sure we honor those who have gone before us to defend freedom and de-mocracy around the world.”

The Navy’s 238th birthday cele-bration is not just an opportunity to UHÀHFW�RQ�WKH�SDVW��,W�DOVR�SURYLGHV�DQ�occasion to take stock on the present and turn an eye toward the future.

“I’m proud of being in VAQ-142 and being in electronic warfare,” said Nichols. “I’m proud of my brother being a helicopter pilot, too. That’s really cool.”

Stewart also echoed Nichols’ sentiments of pride and taking a place in history.

“I’m proud to serve and I love what we do,” said Stewart. “This LV�P\�¿UVW� DLUFUDIW� FDUULHU�� VR� WKLV� LV�D�¿WWLQJ�ZD\�WR�GR�ZKDW�LV�SUREDEO\�my last deployment of my career. It’s been awesome.”

USS NIMITZ CELEBRATES238TH NAVY BIRTHDAYStory by MC3 (SW) Nathan R. McDonald

“There’s no better place to celebrate the Navy’s birthday than at sea, and not just at sea but deployed”

-Stewart

4

Today is the anniversary of the Continental Navy’s establishment. Since its inception, Sailors have al-ways celebrated this day as the birthday of the Unit-ed States Navy.

Well, at least since 1972 they have.Truth is, other than John Paul Jones, there was very little

to brag about the performance of the Continental Navy. And though every Sailor knows who John Paul Jones is today, after the Revolution he faded from public memory.

$QG�ZKHQ�WKH�&RQWLQHQWDO�&RQJUHVV�¿QDOO\�JRW�DURXQG�WR�building a decent warship, they promptly gave it to France and disbanded the Continental Navy. It wasn’t a good beginning.

In 1798, Congress got around to establishing a Department of the Navy, which is funny because they put in an order for six frigates (including the USS Constitution) four years before this. And then the Navy pretty much didn’t do anything espe-cially spectacular for about a hundred years.

That’s not to say that important events didn’t happen or that brave men didn’t do daring things. But with few excep-tions, most of the war heroes of America in the 19th Centu-ry were victors of land battles fought in North America. They were the ones who dominated the popular imagination.

Then, in 1884, a relatively mediocre sea captain named Alfred Mahan was appointed to the newly created Naval War College. He spent a year preparing his lectures on sea power, DQG�ZKHQ� WKH\�ZHUH� HYHQWXDOO\�SXEOLVKHG�DV� ³7KH� ,QÀXHQFH�RI�6HD�3RZHU�8SRQ�+LVWRU\�´�WKH\�LQÀXHQFHG�QDYDO�VWUDWHJLHV�around the world.

Mahan believed it was only through an overwhelmingly powerful navy that a nation could hope for security. This was the birth of the New Steel Navy. Steam-powered battleships, ever more powerfully armed and armored, would patrol the oceans.

Defending America

With Pride Since 1775

Story by MC3 (SW) Phil Ladouceur

USS Constitution and HMS Guerriere

1812

Battleships in column

1920s

Aircraft over USS Hornet

1945

5NIMITZ NEWS | OCTOBER 13, 2013

Instrumental in promoting this old ‘New Navy’ was The-odore Roosevelt, who as Assistant Secretary of the Navy, and later as President, actively promoted not only a more prom-inent role for the Navy, but also greater recognition by the public.

In addition, the performance of the American Navy in the Spanish-American War inspired an interest in its history. It ZDV� LQ� WKH� DIWHUPDWK� RI� WKDW�ZDU� WKDW� WKH�¿UVW� ELRJUDSK\�RI�(VHN�+RSNLQV�� ¿UVW� FRPPDQGHU� LQ� FKLHI� RI� WKH�&RQWLQHQWDO�Navy, was written. This was also the beginning of the cam-paign to bring the remains of John Paul Jones from Paris to the Naval Acadamy in Annapolis, Md.

Even then, it wasn’t until after World War I that the Navy had its own day. The Navy League began celebrating Navy Day in 1922, and it would be celebrated every Oct. 27. Why that day? It was Theodore Roosevelt’s birthday, of course.

Of course.Meanwhile, the Marine Corps had decided it was time for

a birthday. In 1921, by order of the Marine Corps Comman-dant, Nov. 10, 1775 was designated the Marine Corps Birth-day.

At this time, the dates most commonly cited as found-ing dates for the Navy were the legislation of 1794 authoriz-ing the six frigates for the War Department, and the April 30, 1798 establishment of the Department of the Navy.

Fifty years later, the Chief of Naval Operations, Adm. Elmo Zumwalt, declared in 1972 that the Navy’s birthday was LQGHHG�2FW������������7KH�1DY\�¿QDOO\�NQHZ�KRZ�ROG�LW�ZDV�

Despite giving a clear origin story for the service, the establishment had come too late in one respect: Though the Marine Corps birthday is technically almost a month after the Navy’s, the Navy is still considered a younger service, be-cause the Marine Corps birthdate was established earlier.

The notion of a birthday for an organization is a metaphor. The Continental Navy didn’t exist after 1785 when it’s last ship was sold. It has no real continuity with the Navy estab-lished later, which itself went through at least three or four separate restructurings over the centuries.

But like every comic book movie for the last decade, we always want to hear the origin story. How did Peter Parker become Spiderman? Was it the genetically altered spider? Or was it the radioactive one? Either way, he’s still Spiderman.

And the Navy will always be the Navy. Uniforms will change, and the birthday might not be the most consistent of dates. Wood-hulled sailing ships give way to steel-armored steam battleships. And then the battleships give way to the aircraft carrier. And Sailors don’t even handle a sail anymore.

Either way, we’re still the Navy.

USS Nimitz

Today

USS Sterett fires missiles during exercise

2008

USS Missouri fires 16’’ guns

1950

6

Secretary of the Navy Ray Mabus, Chief of Naval Operations Jonathan Greenert, and Master Chief 3HWW\� 2I¿FHU� RI� WKH� 1DY\�0LNH� 6WHYHQV� MRLQHG�

IRUFHV�LQ�D�YLGHR�ELUWKGD\�PHVVDJH�WR�WKH�ÀHHW�“This year on October 13th the United States Navy

marks its 238th birthday,” said Mabus. “Since our be-ginning in 1775, our Navy has defended America with pride -- a tradition that continues today. As Secretary of the Navy I have the honor and privilege of working with WKH�¿QHVW�PHQ�DQG�ZRPHQ�RXU�FRXQWU\�KDV�WR�RIIHU��7KLV�was the case 238 years ago and remains as true today as it was at our Navy’s inception. On any given day our Sailors are deployed around the world providing a con-stant presence, defending the American people and our nation’s interests. We are and will continue to be Amer-LFD¶V�DZD\� WHDP�� WKH�¿QHVW� H[SHGLWLRQDU\�¿JKWLQJ� IRUFH�WKH�ZRUOG�KDV�HYHU�NQRZQ���6R�WRGD\�DV�ZH�UHÀHFW�RQ�RXU�heritage, I want to thank all of you for what you do in the service to our Navy and for our country. Happy birthday, Navy! Semper Fortis!

For their portion of the message, Greenert and Ste-vens met at the Washington Navy Yard’s Navy Museum in front of a display commemorating the battle of Lake Erie which according to Greenert was “perhaps the most

dramatic and important battle in the War of 1812. It was at this battle that our Sailors really showed their mettle, really showed their tenacity, and, in fact, were the asym-metric advantage for our forces. Today, the all-volunteer force --you -- are our asymmetric advantage. So think about that as we celebrate our 238th birthday.”

“For 238 years our Navy has overcome enormous challenges and faced adversity,” said Stevens. “We’ve risen with those challenges and built a reputation as the strongest naval force the world has ever seen. We work daily among a rich landscape of ships, bases and water-ways. But it’s not the environment that keeps our Navy moving forward, it’s our people! This is our heritage!”

“So let’s remember the importance, as we look DKHDG��RI�RXU�WHQHWV�RI�WRGD\��ZDU¿JKWLQJ�LV�¿UVW��ZH�RS-erate forward, and we will be ready,” said Greenert. “We will use the genius of our diverse force -- our all-volun-teer force -- and we will be where it matters when it mat-ters, because that’s what you and I are about: our great Navy of today!”

“Thank you for your service shipmates! I’m proud to serve with you!” concluded Stevens. “And thanks to our Navy families. None of us could do what we do without your love and support!”

SECNAV, CNO & MCPON

WISH FLEET HAPPY

238TH BIRTHDAY

7NIMITZ NEWS | OCTOBER 13, 2013

Most Sunday mornings as the Sailors on board sleep in a few hours later and dream of port calls and Sunday

brunch festivities, squadron personnel slide on their gloves and tackle work-loads to keep their birds !ying high in the sky. "is Sunday, however, is a special Sunday not only to Sailors on board the Nimitz, but also to Sailors Navy-wide.

"e Navy is turning 238 years old today. How are the “Blue Diamonds” of Strike Fighter Squadron (VFA) 146 cel-ebrating the occasion? By carrying on about their day as usual. Sailors within the squadron know that they work long hours and take on di#cult maintenance tasks, but that doesn’t stop them from grasping the bigger picture.

Airman Apprentice Edwin Cruz, from Slidell, La., works in the line shack for the squadron. He has close friends that are currently deployed and serving in other branches of the military.

“It keeps me going day-to-day knowing that our jets are in the air, protecting my friends that are on the ground,” said Cruz.

"e “Blue Diamonds” understand what they need to do each day for oper-ational readiness and they continue to perform proudly. In between mainte-nance meetings, inspections, ordnance uploads, and all the way up to the last panel being closed on a job, they are ensuring their jets are ready when called upon.

Aviation Structural Mechanic 3rd Class Mathew Garcia, a native of Atascosa, Texas, is a recent addition to the VFA-146 corrosion control shop.

“I was broken down in the line shack, but then they built me back up.

Now that I have $nally made it to my shop, I know what I need to do each day, and I do it,” said Garcia.

As the Navy’s birthday is celebrat-ed around the !eet, the Blue Diamonds will surely pause for a piece of cake. But the real celebration will be when they pick up their wrenches and return

to maintaining the jets, carrying on a proud tradition of service.

“I enjoy all of the places I have been and all the interesting things I have seen,” said Aviation Ordnanceman Air-man Michael Daniels of Dallas. “But I am proud to say that I make a di%er-ence, that we all make a di%erence.”

BLUE DIAMONDS: CELEBRATING WITH DEDICATIONStory by AM3 (AW) Racheal Wilburn

Sailors assigned to the Blue Diamonds of VFA-146 conduct maintenance on an F/A-18C Hornet. Photo by MC3 (SW) Raul Moreno Jr.

8

A TAILOR’S TRADE Photo Story by MCSA Kelly M. Agee

9NIMITZ NEWS | OCTOBER 13, 2013

“I like how I get to in-teract with people. I get to see a new face every day.”

- SR Stephanie Lamacchia

10

T he year was 1991, Operation Desert Storm was raging in the sand swept vistas of Iraq. Soar-ing through the air, the EA-6B

Prowler played a key role in suppressing enemy air defense operations, while en-hancing the strike capabilities of not only the air wings but of the U.S. Air Force and allied Forces.

Twenty years later the EA-6B Prowl-ers are still being !own today for mis-sions on board by the “Gray Wolves” of Electronic Attack Squadron (VAQ) 142.

"e Prowler is the oldest aircra& currently on Nimitz. Some would say the Prowler’s long run is due to its electronic capabilities, speed and versatility.

“I think the airframe, for how long it’s lasted, is a testament to how versatile the airframe has been,” said Lt. Cmdr. Matt Mulcahey, assigned to VAQ-142, who has been !ying the Prowler for more than a decade.

"e Prowler was developed in 1966 as a replacement for EKA-3B Skywar-riors for the U.S. Navy. "e Prowler $rst !ew on May 25, 1968, and entered ser-vice on aircra& carriers in July 1971.

"e primary mission of the Prowler

ON THE

PROWLStory by MCSA Kelly M. Agee

An EA-6B Prowler assigned to the “Gray Wolves” of Electronic Attack Squadron (VAQ) 142 moves across the flight deck. Photo by MC3 Chris Bartlett.

11NIMITZ NEWS | OCTOBER 13, 2013

is to support ground-attack strikes by disrupting enemy electromagnetic ac-tivity. It also gathers tactical electronic intelligence within a combat zone and is capable of carrying and $ring anti-ra-diation missiles.

“"ere aren’t too many airplanes that do what we do as far as the mis-sion,” said Lt. Chris Warrick, assigned to VAQ-142. “"ere are a lot of air forc-es out there that have airplanes that can

bomb and that can $ght air-to-air, but there are not too many people who have the ability, willingness or money to be able to conduct electronic attacks that go into the dangerous areas we go to.”

"e EA-6B Prowler is powered by two turbojet engines and is capa-ble of high subsonic speeds. It has a maximum speed of 566 knots. It has undergone more frequent equipment upgrades than any other aircra& in the

“There aren’t too many airplanes that do what we do as far as the mission.”

“ “Navy or Marine Corps due to its elec-tronic warfare operations and the age of the aircra&.

"e aircra& can hold a crew of four, one pilot and three electronic counter-measure o#cers (ECMO). "e ECMO’s primary job deals with radio communi-cations and navigation. "ey set up the navigation system so the pilot knows where to go and knows where every-thing around them is located. "e two personnel located in the back are called the jammers who own the weapon sys-tems. "ey make sure to keep track of what is in the area and make sure the right systems get jammed.

“It’s the oldest jet on the !ight deck right now so it doesn’t have a whole lot of the modern computer !ight control systems or RADARS that some of the newer $ghter jets have,” said Lt. Bren-ton Kolb, assigned to VAQ-142. “"at’s really why it takes all four people in the aircra& to do the full complex mission

it’s designed for.” "e Prowler is in the stage of be-

ing replaced by the Boeing E/A-18G Growler, which is a specialized version of the two-seat F/A-18F Super Hor-net. "e E/A-18G began production in 2007 and entered operational service in late 2009.

“It’s a bittersweet situation,” said Mulchley. “I’m very comfortable with getting into the Prowler because I know where everything is and how ev-erything works, but the next platform is the super hornet airplane, which is a very capable aircra&.”

-WARRICK

An EA-6B Prowler assigned to the “Gray Wolves” of Electronic Attack Squadron (VAQ) 142 deploys flares. Photo by MCSA Kelly M. Agee.

12

“How does it feel to be on watch on the U.S. Navy’s birthday?”

AROUND THE

DECKPLATES

GM3 Nick D. Hideg, from Youngstown, Ohio

|,Q�ILYH�\HDUV�IURP�QRZ��RU�ZKHQHYHU�\RX�JHW�RXW��\RX�FDQ�ORRN�EDFN�DQG�VD\�~,�ZDV�WKHUH�IRU�WKDW���,W�PHDQV�D�ORW�WR�EH�SDUW�RI�VRPHWKLQJ�WKDW�V�EHHQ�DURXQG�VR�ORQJ�}

CTRC Sherita M. Collins, from Memphis, Tenn.

|,W�ZRXOG�EH�YHU\�HDV\�IRU�6DLORUV�WR�IRFXV�RQ�WKH�QHJDWLYHV�WR�RXU�H[WHQVLRQ��%XW�EHLQJ�RXW�KHUH�GXULQJ�D�FULWLFDO�WLPH�LQ�KLVWRU\��DOVR�JLYHQ�WKH�1DY\�V�ELUWKGD\��WKLV�LV�D�RQFH�LQ�D�OLIHWLPH�RSSRUWXQLW\��,�ILQG�LW�WR�EH�D�JUHDW�KRQRU�DQG�,�KRSH�HYHU\RQH�HOVH�GRHV�DOVR��7KLV�LV�ZKDW�UHDO�OLIH�LV�DERXW�}

AO2 Brian D. Perez Medina, from Arecibo, Puerto Rico

|(YHU\�6DLORU�VKRXOG�EH�SURXG�WR�EH�SDUW�RI�WKH�ZRUOG�V�VWURQJHVW�1DY\�� ,�YH�EHHQ� LQ� IRU� IRXU� WR� ILYH�RI� WKRVH�����\HDUV�}

Lance Cpl. Jason A. Gibson, from Des Moines, Iowa

|,W�V�DQ�KRQRU�WR�EH�RXW�KHUH�RQ�WKH�1DY\�V�ELUWKGD\�RQ�D�1DY\�ZDUVKLS��VHUYLQJ�RXU�FRXQ�WU\��KHOSLQJ�RXW�DURXQG�WKH�ZRUOG�}

Lt. Rick A. Dorsey, V-2 DIVO, from Miami

|$OO�������RI�XV�DUH�SDUW�RI�D�WUDGLWLRQ��,�P�SURXG�WR�EH�RQ�WKH�ZDWFK��,�P�VXUH�WKH�JX\V�ZKR�ZRNH�XS�RQ�'HF����������LQ�3HDUO�+DUERU�WKRXJKW�LW�ZRXOG�EH�MXVW�D�QRUPDO�GD\��:KHQ�,�ZDV�LQ�|$}�VFKRRO�6HSW������������,�WKRXJKW�LW�ZRXOG�EH�D�QRUPDO�GD\��<RX�QHYHU�NQRZ�ZKHQ�\RX�ZLOO�EH�QHHGHG�RQ�WKH�ZDWFK�}

13NIMITZ NEWS | OCTOBER 13, 2013

14

21Finance

Managing Finances with Your Spouse/Partner

A Fun and Easy GuideCmdr. Matthew Miller

Editor’s note: Cmdr. Matthew Miller has transferred from Nimitz, but he le& this series of articles to aid the Sailors and Marines aboard in making sound $nancial planning and investing. He is not a Certi$ed Financial Planner. "e opinions expressed in this series of articles are his and do not guarantee any type of $nancial success whatsoever. "ere are many rules and regulations associated with taxes, fees, withdrawal penalties, and other complications that require a detailed under-standing of various $nancial products. Before investing you should review the prospectus associated with the $nancial product and check with a professional to ensure you understand it and that it is right for you. Past performance is no guarantee of future results.

Introduction

This week’s article is very important. Even if you are still single it is worthwhile to read on and think about it. After all, the number one cause of divorce in this country is “stress over money.” There are a lot of other reasons that lead to divorce, but stress over money is number one. I like to say “Our marriage is like the stock market….in the short run, it is unpre-GLFWDEOH�DQG�¿OOHG�ZLWK�ORWV�RI�YRODWLOLW\��EXW�WKH�ORQJ�term trend is up!”

#1 Takeaway

The most important thing in managing joint ¿QDQFHV�LV�WR�FRPH�XS�ZLWK�D�V\VWHP�WKDW�ZRUNV�IRU�you. There is not one system that everyone should use – what matters is that whatever you use, it works for you. With that, I will go through a couple general principles, then two options for jointly managing money. There no doubt are others, but these are the two most common that I have seen work well.

General Principles for Managing Joint Finances

Both people (spouses, partners, household mem-bers, or whoever else) should have a role in man-aging the money – it is important that both of you XQGHUVWDQG�\RXU�¿QDQFLDO�VLWXDWLRQ��

Both people should be on “equal footing” even if one person makes more money than the other person ±�WKHUH�QHHGV�WR�EH�D�³EDODQFH�RI�¿QDQFLDO�SRZHU´�LQ�

the relationship (or you could end up in trouble). If you use a joint checking account, one per-

son needs to be the “manager” and accountable for ensuring you maintain an adequate balance to avoid bouncing checks or causing overdrafts.

Both people should have access to a credit card that has their name on it to ensure you each maintain a strong credit history.

Option 1 – “Combine and Split”

Overview

Each person has their income deposited into one joint checking account so your money is all in one big pot.

One person has the lead for managing the day to day balance and bills associated with the joint account.

Joint expenses are paid out of this account (like the mortgage/rent, utility bills, grocery bills, etc.) – note there may need to be a “negotiation” to deter-mine exactly what is considered a joint expense, but that is OK.

Whatever is left after joint expenses and savings, gets split 50/50 between each person and goes to a separate account that each of them controls. It is OK to have these separate accounts be joint accounts le-gally (or you can have a single account owner if that makes you more comfortable).

Each person has access to two credit cards – one that is used for joint expenses and their own that is used for individual expenses (e.g., you have a Visa

15NIMITZ NEWS | OCTOBER 13, 2013

account with two cards [one for each of you] that you use for joint expenses, and you each have your own Mastercard or American Express card for Individual expenses).

%HQH¿WVEach person has “their own money” to use so

they maintain control over their spending. One person has the opportunity to ensure all re-

curring bills are paid on time out of the joint account.It is easy to administratively differentiate be-

tween joint and individual expenses. It is easy to track to a spending plan.This system works perfectly if one spouse is a

stay at home mom/dad – it is really key to ensure balance in this situation because it is hard work rais-ing kids and it’s very important to ensure the stay at home spouse does not feel trapped or inferior because he/she is not making any direct money at that time.

&KDOOHQJHVThe key to making this system work is trust – the

person who doesn’t manage the joint account needs to trust the person who does, but should still stay involved with what’s going on. The person who man-ages the joint account needs to earn the trust of the person who doesn’t. It’s a two way street.

You need to have an open negotiation on what constitutes a joint expense and what constitutes an individual expense. You should do this before the purchase if at all possible and whatever rules you come up with should apply to both people.

Option 2 - “Separate then Share”

Overview

Each person has their income deposited into their own checking account.

Each person contributes towards joint expenses based on their percentage of the household income (e.g., if one spouse makes 30 percent of the money, then that spouse contributes towards 30 percent of the joint bills).

Once all joint expenses are accounted for, a trans-fer of funds may occur to bring available spending up to 50/50 (note: if you have just started living with a boyfriend or girlfriend and are not sure where things are heading, then this transfer probably shouldn’t oc-cur. Once you have decided you are in it for the long

run, if you are really serious then the transfer should occur).

You don’t have to have a joint credit card, but having one will make it administratively easier. Be wary though – once you have a joint credit card, you are both fully responsible for paying whatever charges are incurred, so don’t do this too early in a relationship. Your credit history is a valuable thing, so make sure you know the other person before you put that at risk.

%HQH¿WVIt gives each person a more direct feeling of con-

trol over their income and spending. If things go badly, it is administratively easier to

separate. It’s better for early in a relationship while you are

still building trust.

&KDOOHQJHVThe toughest part is determining whether it is

appropriate to make the transfer from the higher in-come person to the lower income person after all joint expenses are paid – this can generate resentment from both people (which is bad and will lead to trouble).

,W�GRHV�QRW�DOORZ�IRU�DV�PXFK�³HI¿FLHQFLHV´�LQ�having one general account manager for the joint expenses – takes more time and effort. It’s tougher to track administratively – takes more time and effort.

Team Approach

0\�ZLIH�DQG�,�GLVFXVV�RXU�¿QDQFHV�RQFH�D�PRQWK��It’s nothing dramatic, just a check to make sure she is in the loop and knows where our money goes. Some of the topics may/may not include:

Retirement Investment Status Non-Retirement Investment Status Monthly Income / Expenses Status Investment House Status Upcoming expenses not accounted for

Closing

0DQDJLQJ�¿QDQFHV�GRHV�QRW�WDNH�D�ORW�RI�H[WUD�effort. The key is communicating with your partner early and often. Whatever system you end up using, you both need to agree and have open discussions about it. The worst thing is to not talk about it and just let it fester and build to resentment.