Financial considerations for military veterans

There are resources available to help veterans with finances

If you’ve recently finished military service, first of all, thank you. Secondly, you might have questions about making the transition back to civilian life, especially when it comes to your finances. The good news is that there are significant resources available to help veterans financially. Here are a few considerations to keep in mind.

Financial family planning

Veterans and active military members might manage their finances and family strategies in different ways than non-military members. Veterans and active military members have access to benefits that affect their health care, education access, housing and retirement.

Families come in all shapes and sizes. Whatever your family looks like, knowing and understanding these benefits can help set you on a path to financial success. Now is as good a time as ever to remind yourself of the benefits you have as a veteran or active military member. Let’s get into the details of veterans’ finances and family strategies.

Servicemembers Civil Relief Act and family strategies

The Servicemembers Civil Relief Act (SCRA) is a law that was enacted in 2003 that provides legal and financial protections to active service members in the U.S. military. The law guarantees many benefits, and taking advantage of them can help you build wealth so that your family can achieve bigger financial goals. Here are some of the things that the SCRA can help with:

Approach your job search with confidence

As a veteran, it can be challenging to find employment as you transition back to civilian life. Remember that you have gained valuable skills during your time in the military, which can help you in any number of fields outside of the Armed Forces.

Be sure to find ways to translate these skills into terms that potential employers can understand in your resume and cover letters. Avoid military acronyms and terminology that civilians might not understand. Many jobs will want workers who can deal with high-pressure situations, who have leadership skills and who have other specialized abilities that you may have developed in the military.

As you look for jobs, consider connecting with other veterans on LinkedIn who are working in fields you might like to explore. They will probably be eager to help you. Additionally, there are companies both large and small that go out of their way to hire veterans. Do some research about opportunities at these kinds of companies. This can be a good way to find a job working with other veterans who will understand and appreciate your military experience.

Most common career paths for veterans

According to a study by Navy Federal Credit Union, the top three career paths for veterans are in the fields of health care, government and defense contracting. These fields offer many opportunities for veterans to apply their military skills and experience in a civilian setting.

Here are some of the reasons why veterans are drawn to these career paths:

Health care

Government

Defense contracting

Consider going back to school with help from the GI Bill

If you’re interested in pursuing higher education, you may be eligible for assistance through two current iterations of the GI Bill: the Montgomery GI Bill or the Post-9/11 GI Bill. The specifics of these benefits may vary, so be sure to check the latest details from official sources or consult with a Veteran Affairs representative. The Montgomery GI Bill is for veterans who have done two years or more of active duty and who meet other criteria. Veterans who qualify can receive up to 36 months of financial assistance with higher education costs. The Post-9/11 GI Bill is for veterans who were in the military after September 10, 2001. This bill can cover full tuition at public colleges and universities, depending on how long you have served. It can also provide a housing stipend and funding for books and other supplies.

Take advantage of loan benefits, medical benefits and retirement benefits

There are a significant number of benefits available to veterans through the federal government. For example, if you are looking for a loan to help you buy, build or repair a house, you may be able to get help from the Veterans Affairs (VA) Home Loan Guaranty program.

Additionally, you are entitled to VA health care as a veteran, although you need to enroll to participate. VA health care can help with everything from checkups to surgery to prescription drugs. The VA can also help with mental health services. Verify your eligibility with the VA to ensure you understand the benefits available to you.

If you are nearing retirement age, you might be entitled to a Veterans Pension from the VA. Your spouse or dependent children might also be eligible for VA pension benefits.

Unfortunately, veteran’s benefits are notorious for being difficult to access due to red tape. Doing a bit of research and talking to a financial advisor can help you understand what benefits you are entitled to and how to access them.

Pension eligibility

Once you’ve retired from the military, you may be eligible for a pension. However, certain requirements must be met, and you should know which plan you qualify for. There are two retirement systems:

If you entered the military between the start of 2006 and the end of 2017, you could choose between the two plans.

Pensions are rare to come across, so if you’re fortunate enough to receive one, you should take advantage of the guaranteed monthly income to build your wealth.

Disability compensation

Veterans Affairs disability compensation is a monthly, tax-free payment made to veterans who got sick or injured during their time in service or to veterans whose existing condition was made worse by their time in service. However, you may not be eligible if you were dishonorably discharged.

Any leftover money from your VA disability pay could be used to build your wealth, such as by:

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