In the first installment of looking at our Financial Toolbox, we explored getting started with our finances and things we need to be doing now! Now, let's take the time to look ahead!
Investment Accounts and Retirement Planning Platforms: Long-term financial health is built on strategic investing. Whether you opt for a robo-advisor, a traditional brokerage account, or retirement-specific vehicles like IRAs, 401(k)s, or the Thrift Savings Plan, using platforms that provide both educational content and portfolio management tools can set you on a path to wealth-building. They allow you to automate contributions and adjust your investments as your financial picture evolves.
Insurance Products and Risk Management: Financial planning isn’t just about growth—it also involves protecting what you have. Life, health, disability, and property insurance serve as essential risk management tools. They help shield your finances from unexpected events that could otherwise be catastrophic.
Financial Education Resources: Knowledge is a powerful tool. Books, webinars, podcasts, and financial blogs can demystify topics such as taxes, investment strategies, and estate planning. A continually expanding financial education can help you make informed, confident decisions that align with your personal and professional goals. Your installation family support center offers financial counseling and educational resources.
Estate Planning and Legal Documents Even if you’re at an early stage of building wealth, having basic estate planning tools—such as a will, power of attorney, or healthcare directive—ensures that your financial affairs are organized and that your assets are protected according to your wishes. These documents provide peace of mind and can simplify potential complications down the road. Your installation legal office can provide these services to military members, retirees, and their families at no cost. Another financial decision for some will be about the Survivor Benefit Plan (SBP), so make sure to learn more about it.
There are also some military-specific “tools” that strengthen financial stability for military members and their families:
- Savings Deposit Program: If you are deployed to an eligible combat zone, you can establish a special savings account that pays a risk-free, guaranteed 10% interest.
- Active-Duty Alerts: Protect yourself from financial fraud with a special type of fraud alert that military members can place on their credit reports to prevent identity theft while deployed. Sign up for free with the three credit reporting bureaus.
- Service Member Civil Relief Act (SCRA): The SCRA’s protections include interest rate ceilings on debts incurred before joining the military; foreclosure, lease termination, and eviction protection. protection against default civil judgments, and the ability to defer filing income taxes if the ability to pay is affected by military service.
- Servicemembers’ Group Life Insurance (SGLI) and Family Servicemember’s Group Life Insurance (FSGLI) offer low-cost life insurance for military members, their spouses, and children. Service members can purchase up to $500,000 in coverage, while spouses can be insured for up to $100,000. Traumatic Injury Protection (TSGLI) provides short-term financial assistance of $25,000 to $100,000 for combat and non-combat injuries, including amputations, paralysis, burns, and traumatic brain injuries.
Each of these tools plays a distinct role in the overall management of your financial life. They empower you to not only react to financial challenges but also proactively build a secure and flexible financial future. By combining a clear budget with risk management and investment strategies, you’re better positioned to navigate the ups and downs of life. Beyond these essentials, consider periodic financial reviews to adjust your strategy as your goals evolve.
Explore More with My Military Lifestyle and Finances!