3 valuable benefits to military families

Members of the armed forces have a lot of special financial problems, most people do not experience: they often have to move – sometimes with very little notice – they can be deployed to a war zone for several months or years. But they also have the opportunity to get some valuable benefits that can help with the family’s personal finances.

My husband is Dr. Lu Jundi has been 17 years, and he recently from his third deployment, where he was stationed in southern Afghanistan combat support hospital seven months to return. We have first-hand experience with the financial challenges faced by military families, but we can also take advantage of services provided to members of some special advantages. Here are three top economic interests Ava Iraq, Buller military members and how to make the most of them to improve your family’s financial future.

Low-cost retirement savings. service members can invest Thrift Savings Plan, federal employee retirement savings plan. Similar to the 401 (k) plan, TSP provides a low-cost, tax-favored way to save for the future. But some members of the military to take advantage of this opportunity surprising – perhaps because they believe that military pensions will be all they need.

But for a military pension as your only source of retirement income count is wrong: there is no local current pension plan, which means that unless you stay in the army at least you will not get anything at ownership of 20 years -.. and most people do not “stay for so long, even if you qualify for a pension, it may not be enough to pay all your bills usually the case, you are entitled to your basic salary 50% If you retired 20-year (and every year you stay beyond 20 years an additional 2.5%), while the potential changes on military pensions light of this debate, it is more important to use their savings to supplement your pension gold.

You can put up to the TSP in 2011 to $ 16,500 ($ 17,000 contribution limit rises to 2012), and deployed more when you can contribute. If you receive a tax-free salary, while in the combat zone service, you can contribute up to a total of $ 49,000 in 2011 (or $ 50,000 2012). we bouncing up and down our contribution when my husband in AfghanistanTo the advantages of electronic XTRA money, because we have to pay for his tax-exempt combat zone.

You can invest your retirement plan contributions, in six different mutual funds available only to TSP participants, including funds investing in US stocks of large companies, small company stocks, bonds, bonds, international stocks plus the L Fund. The L- fund is based on a series of goals for your future retirement age and the date of the date of the Fund. It invests in a diversified portfolio of funds and automatically adjust their asset allocation, you are going to retire grow more conservative. The cost is very low compared to TSP fund most retail mutual funds. 0.025% of costs means it costs you only 25 cents per $ 1,000 investment.

TSP contributions reduce your taxable income and the tax increase, the Defense Agency rred withdrawals until retirement, you will never pay tax expense from tax-exempt combat zone. For more information, please refer to the Thrift Savings Plan website.

A savings plan to ensure that 10% return times. When you hear “guaranteed 10% return times,” you might naturally think touted investment is a scam – especially in this low interest rate environment. But the military’s savings plan is no scam. Service members deployed after the procedure can return it to earn 10% interest, compounded quarterly every year, and you are deploying to invest up to $ 10,000 for up to three months.

It can be tricky in the SDP start because you until you can not donate money to the deployment plan. Talk with your financial office before you leave, find out what you need to do is start. And because it is so unusual opportunity to earn 10% interest, these days, it’s a good idea to reserve some money, a few months ago you deploy, so you can contribute as much as possible, and take advantage of this a program while you “re gone.

For more information, please refer to the savings plan page defense financial accounting website.

Free university for your child . Post 9/11 GI bill, which was adopted in 2009, who can be from September 11 in the military reserve or National Guard service at least 90 days valuable educational benefits to any person, 2001 veteransCheckout state tuition bill in the full cost of public universities FO R will be maintained until four academic years, or $ 17,500 per year up to private colleges and foreign schools. To get the maximum benefit, you must be (or has served) at least 36 months since 9/11.

And one from the previous Montgomery GI bill passed the biggest difference is that the benefits of long-serving members of the military can bring to their spouse and / or children. In order to qualify, the transmission generally requires six years of service, and agreed to serve four years in the armed forces. Spouse can benefit immediately transferred; children must wait until you have at least ten years service. Service members and veterans (and their spouses) must, after leaving the army, in 15 years of earnings. Children over 15 years, but you must use benefiTS 26 years we have moved from the interests of my husband, our 8-year-old son, which gave us a huge boost to our education savings. For more information about the benefits of transfer, please refer to the interests of transport transfer VA and Defense Department website page. Also now we see the GI Bill family, too.

GI Bill will not, if you attend a private college or go to a public university as students from outside the state to pay the full cost, but $ 17,500 would be a big dent in the bill. And you can get more help from the Yellow Ribbon Program: more than 1000 colleges and universities have signed up to provide some additional costs to cover a certain number of additional scholarships for students, and the contribution of Department of Veterans Affairs matches the school. FY yellow ribbon to qualified scholarship, you must comply with the maximum benefit GI- Act, and apply additional incentives through college. For more information, please refer to the VA’s Yellow Ribbon Program page.

For more information on the GI bill, see Virginia GI Bill website.

Some members of the military have access to special legal protection, can reduce their outstanding loans and credit card bills ~ 6% interest rate (see below lending rates for the military). Service members can also use low-cost life insurance, especially tax cuts and mortgage loans with no down payment. For more information about these and other benefits of financial strategy and military families, see the special report of our military families.