Kiplinger’s recently listed the top 10 financial tips for military families, which are as follows:
- Take advantage of low-cost investments. Service members have access to the thrift savings plan and the Roth TSP, which is a Roth IRA without the income restrictions.
- Get 10% on your savings, guaranteed. The military Savings Deposit Program lets deployed service members invest up to $10,000 in the program and receive 10% annual interest, compounded quarterly, for up to three months after their return.
- Benefit from tax-free in, tax-free out. If you’re receiving tax-free combat-zone pay, your money goes into the Roth tax-free and your contributions and your earnings come out tax-free.
- Transfer your education benefits. If you have served at least 36 months since September 11, 2001, you have access to the Post-9/11 GI Bill which can cover up to four academic years at a public college or up to $17,500 per year for a private college or foreign school.
- Sign up for inexpensive life insurance. Service members have access to one of the lowest-cost life insurance programs available.
- Maximize your tax breaks. As long as they are in the military, service members can maintain legal residence in one state even if they are transferred to another state.
- Take advantage of low loan rates. The Service Members Civil Relief Act provides special legal benefits for service members, including an interest-rate cap of 6% on any loans you took out before you were called to active duty.
- Make the most of housing breaks. Take advantage of the perks, including tax-free housing allowance and access to VA loans.
- Calculate a comparable salary. When thinking about leaving the military, make careful calculations to figure out how your new job compares to your military career. Be sure to consider the military benefits you’re giving up as well.
- Make the most of resources for finding a new job. Each service branch has a career program for retiring service members; you can also get help from the military community-service office on your base.
At the Estate, Trust and Elder Law Firm, P.L., we proudly serve those who have served our country, helping them get the benefits and resources they have more than earned. Contact us for your free initial consultation at one of our conveniently located offices in Fort Pierce, Stuart, Port St. Lucie, Vero Beach, and Okeechobee.