You’re trained to adapt as a service member. That doesn’t mean it will be easy to navigate the financial transitions from military to civilian life.
A New Routine
You’ve adapted to life as a service member. That comes with a predictable routine.
Your financial provisions have hopefully been reliable and predictable as well. The transition brings new opportunities…and challenges.
How to Adapt and Succeed Financially When Transitioning from Military Service
Protect your cash-flow
Your pay has perhaps been predictable though not always adequate while serving. That’s a common reality for many service members.
Be prepared for the same as you make your transition. Of course, it depends on your employment, compensation, related benefits package – including health care, and your overall cost of living.
Give attention to your monthly expenses. Take a long term view up to 12 months out. Determine what you can save from each paycheck that will provide an adequate cushion for those months should something unforeseen happen.
Pay Uncle Sam
Taxes are a reality. Be prepared, life outside of military service can increase your tax liability.
Consider the tax-breaks that are no longer available to you as you depart the military. Your new employment, benefit provisions, lifestyle, and cost of living will clarify your overall tax picture.
Prepare for liabilities
Insurance like taxes are necessary. Your insurance protection depends on your post military decisions.
Retiring? TRICARE is available to you. And it’s important to seek assistance (if you’re retiring) in deciding on your military Survivor Benefit Plan.
Re-entering the workforce? Your healthcare and other related insurance packages will be negotiable.
Your insurance provisions should evolve alongside your lifestyle and family realties. Make sure you and your loved ones are adequately covered.
Plan for your future
Retirement packages these days require more self-management. Be prepared to take-the-reigns unless your job or career provides a more hands-off pension plan.
Evaluate your debt post service. Any military retirement funding that consistently flows to you can be used to reduce your debt or achieve other financial goals.
Direct your employment retirement benefits toward your future. Be aware of all our options to maximize your benefits.
It’s a good idea to seek the counsel and expertise of a financial planner too.