• Take advantage of available veteran benefits like pensions, educational assistance, healthcare coverage, and home loan guarantees.
• Save money by setting up automatic transfers to a savings account and contributing to retirement accounts.
• Invest in a business or real estate asset to diversify wealth and build financial security.
• Develop a strategy for stock market investing to build wealth but be aware of the risks.
For many veterans, the transition from military to civilian life can be difficult. And establishing a sound financial strategy is one of the most important steps in this transition. It’s essential to plan for the future and make sure your finances are in order. Here’s a look at how you can get your financial house in order after leaving military service.
Take Advantage of Veteran Benefits
One of the best ways to set yourself up for success financially is to take full advantage of veteran benefits. It’s important to explore all your options as a veteran and ensure you’re taking advantage of all the programs available. Here are some of the options that you can consider:
Pensions
Also called the High-36, the Military Retirement Pay System provides a pension plan for veterans who have served at least 20 years in the military. After retirement, you can receive a monthly payment based on your rank and number of years of service. These pensions can supplement other retirement income and provide financial stability in your later years.
Educational Assistance
Veterans can also take advantage of educational assistance through the GI Bill. Several different programs are available, each providing either money for tuition or a living allowance while attending school. This benefit is designed to help veterans further their education and increase their job prospects after leaving the military.
Health Care Benefits
Another major financial benefit available to veterans is the health care. The Veterans Health Administration provides comprehensive coverage for veterans, including medical and mental health services. This benefit can help reduce the cost of medical care and provide peace of mind to veterans struggling with physical or mental health issues. This is a great opportunity to ensure you have the necessary coverage for any health issues that may arise.
Home Loan Guarantees
It’s never too late to get on the property ladder. With a VA Home Loan, veterans can purchase a home with no down payment and attractive interest rates. This is a great opportunity to become a homeowner and build financial security for yourself and your family.
All active-duty personnel are eligible for these benefits when they leave the service—in fact, many are available to them while they’re still in uniform—so you must familiarize yourself with them and make sure you’re taking full advantage of them.
Save Money
Another key component of financial success after military service is saving money. This means setting aside funds each month or each year, so you have a cushion should an emergency arise or if you want to purchase something expensive down the line. This can be done by setting up the following:
Automatic Transfers
These are transfers from your checking account to a savings account that you set up regularly. You can choose the amount and frequency of the transfer depending on your financial goals. This is ideal, especially if you find it hard to remember to save monthly money.
Retirement Accounts
Save for the future by putting money into retirement accounts, such as a 401(k) or an IRA. This tax-deferred investment can help you build a nest egg and ensure financial stability after leaving the service. If you have already left the service, take advantage of any catch-up contributions you’re eligible for.
Develop an Investment Strategy
Developing an investment strategy is important once you are comfortable with your savings plan. Having an investment allows you to diversify your wealth and increase the likelihood of achieving financial stability. Here are some of your investment options:
SBA Loans for a Restaurant
The Small Business Administration (SBA) offers loans for veterans who want to start a business. For instance, an SBA loan for a restaurant can help you get the funding you need to open your own eatery. These loans provide low-interest rates and long-term repayment periods, making them an attractive option if you’re looking for a viable business venture.
Real Estate Investing
Real estate investing is a great way for veterans to build wealth, and several options are available. You can purchase rental properties, flip houses, or invest in REITs (real estate investment trusts) to diversify your portfolio and generate passive income.
Stock Market Investing
The stock market can be a great way to build wealth, but it’s important to be careful when investing in stocks since it is volatile and risky. Consider investing in exchange-traded funds (ETFs) or mutual funds, which are less risky than individual stocks and provide an easy way to diversify your portfolio.
Retiring from service does not have to mean a financial setback. With proper planning and the right strategy, you can use the benefits available and develop an investment plan to ensure long-term financial success.
