Sixty-five percent of military families have experienced financial stress, according to a finance and lifestyle survey by Military.com. This statistic is no surprise as they often face frequent deployments, high moving expenses, cost-of-living adjustments, and inconsistent pay. Here are some quick financial planning tips for all our veterans.
If you are part of a military family, there are some steps you can take to protect your finances and future. In honor of Military Family Month, here are several financial planning tips to consider:
While an emergency fund is essential for everyone, it’s particularly crucial for military families who go through many life changes. It can give you the peace of mind of knowing you have the financial resources to cover unexpected expenses and overcome stressful times. Ideally, a fully-funded emergency fund is six to nine months of expenses in an easily accessible account.
Military families often have access to life insurance through the government, but the death benefit amount often is not sufficient. Work with your financial professional to estimate the amount of coverage appropriate to your financial situation. Military spouses and partners also need coverage in case of early death, leaving the military partner to provide financially for children impacting their career.
As a military family, you have access to a Thrift Savings Plan (TSP). It’s a good idea to take advantage your TSP as it’s the most affordable retirement savings plan on the market. With a TSP, you may choose from both traditional pre-tax retirement and Roth IRA retirement savings accounts.
The reality is that frequent moves are a part of military life and can make it a challenge for spouses to establish and maintain stable careers. For this reason, consider budgeting on a single income. Even if your spouse does bring in additional revenue, your family will be prepared if their employment status changes. The Military Spouse Employment Partnership program can help military spouses pursue a career path despite their unique circumstances.
The Servicemembers Civil Relief Act (SCRA) offers unique financial benefits for service members. This perk includes a 6% interest cap on loans you took out before active duty. You can apply for this benefit through the lender. The SCRA also provides other perks such as deferred income tax and the right to cancel a residential lease, auto lease, or phone service.
Together we can review your financial situation and determine the ideal life financial plan for your unique situation. Contact us today to get started.
SWG1886160-1021a Disclosure: The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.
We at Retire Well Dallas have a simple goal: To make your retirement the best years of your life. Time and finances can slip away almost invisibly. We have seen it happen all too often, too unnecessarily. We understand how important time and financial security are in our own lives, so we care about every client that walks through our doors. Contact us today to schedule an appointment.