Military families face many of the same obstacles as those faced by all Americans. These families maneuver in a different atmosphere and have unique financial options and considerations that may affect there approach to overall fiscal planning. National Guard and Reserve members face a different set of obstacles as there families must be prepared for the inevitability to report to active duty.
Whatever group they fall into service members need to look into both military programs and the private financial options available to them when addressing saving opportunities. They need to create a comprehensive strategy that encompasses both short and long term approaches. These should include traditional savings account held in banks and credit unions as well as higher risk investments for the longer term like stocks, mutual funds and bonds.
They should take advantage of what the military offers them in the way of saving vehicles. This will include the militaries Thrift Savings Plan (TSP) which offers similar saving and tax benefits as 401(k) plans provided by private companies. Military members also have access to reasonably priced life insurance. Active duty personnel are automatically issued a $250,000 life insurance policy through the Servicemembers Group Life Insurance Program (SGLI).
National Guard and Reserve personnel need to be more informed as they need to know about not only their military benefits, but also those offered to them in the private sector, and where the gaps are. It is recommended that they save for an emergency fund that provides them with 3 to 6 months of monies that will cover any gaps between military and civilian pay. These members must also comprehend the differences in healthcare coverage provided by the military and any private insurance they may carry. Go to http://www.esgr.org for assistance in understanding your options and what employers must supply.
There is a critical need for personal financial management in all circumstances. Our current environment brings a new focus to families with members in the armed forces and there overall financial needs.
Other military benefits include improved terms on VA loans, bad credit loans, and protections against military payday loans and payday lenders.