As a veteran, transitioning from the military back into civilian life comes with its own set of challenges. One of the most crucial aspects to consider is your financial health, which may require some detailed planning, either autonomously or with professional assistance. Whether you're a young vet, approaching retirement, married, unmarried, with or without kids, your financial planning needs will vary.
It's crucial to keep in mind that veterans often become a target for scam artists due to their trove of financial benefits. Here are some tips to help you understand your entitlements and how you can optimize them:
Firstly, let's talk about education benefits - veterans can avail these under two versions of the G.I. Bill, namely the Montgomery GI Bill-Active Duty or the Post-9/11 GI Bill. Various criteria are listed on the U.S. Department of Veterans Affairs (VA) website, which you must meet in order to access education and training funding via MGIB-AD.
Depending on your service tenure, the Post-9/11 GI Bill can cover up to 100% of tuition and fees at public institutions and up to $27,120.05 annually at private ones. Additional benefits include a housing allowance and reimbursement for textbooks and supplies.
However, beware of for-profit colleges aggressively targeting veterans; they often offer degrees that hold little market value and could lead you into unnecessary student loan debt. The VA’s GI Bill Comparison Tool is a helpful resource to research potential schools objectively.
Furthermore, as a retired service member, you are eligible for VA healthcare along with your family members. The Defense Health Agency’s TRICARE also offers several plans with varying costs and services.
The VA’s Home Loan Guaranty program assists veterans with home purchasing or refinancing. But beware of scam artists claiming connections to the VA or other government agencies. To avoid falling victim, hang up immediately and contact the VA directly.
Veterans might also be eligible for Veterans’ Group Life Insurance (VGLI). This term life insurance is renewable for the duration of your life and premiums depend on your age and coverage amount.
Depending on your income, net worth, and service tenure, you might qualify for a Veterans Pension from the VA once you reach sixty-five years of age or in case of a disability. Surviving spouses and unmarried dependent children are also eligible under certain conditions.
Lastly, depending on when you joined the military, you could be eligible for the military’s Blended Retirement System or the legacy High-3 retirement plan. The former combines a traditional pension with a TSP (thrift savings plan), whereas the latter provides a pension benefit based on your highest paid years and length of service.
To sum it up, as a veteran, you’ve earned your share of benefits from your military service. While it's crucial to be wary of scam attempts, you also need to stay informed about your rights and benefits. Programs like Military OneSource, funded by the Department of Defense, can provide helpful transition support and guide you as you reenter civilian life, ensuring a secure, financially stable future for you and your family.