2022 Veterans Financial Readiness Toolkit

Financial Readiness

VA DISABILITY AND FINANCES

CREDIT SCORE HACKS BUDGETING AS A

PRESENTED BY AMERIFORCE MEDIA, LLC

BY AMERIFORCE MEDIA STAFF 20 6 finance podcasts for the military

17 What I wish I knew about transitioning from the military 22 Filing VA disability claims should be ‘No. 1 priority’

BY KARI WILLIAMS

When you’re making a big life change, finances are the last thing you should have to worry about. That said, we want to help make possibly your biggest life change –leaving the military – as seamless as possible.

As you read through this guide, which was sponsored by the Association of Military Banks of America and the Veterans Benefits Banking Program, you’ll notice that we not only sought expert advice on the best ways to remain (or become) financially sound in the civilian world, but went straight to the source – you. We reached out on social media to see what others like you wish they had known before they left the service. You can find their advice on page 17.

AMBA and the Department of Veterans Affairs Veterans Benefits Administration also provide advice through the VBBP. Read on page 10 about how this program ensures veterans and their beneficiaries can receive their VA benefits via direct deposit at participating banks and credit unions nationwide.

A recurring theme you’ll notice is related to VA benefits and disability claims. My conversation with Katie Purswell, director of veterans affairs and rehabilitation at the American Legion, about the importance of preparing medical records to file claims can be found on page 22

Several of our writers in this guide are either veterans themselves, currently serving or military spouses. So they know the struggles you’ve faced in the past and could face in the future if a large financial burden hits out of the blue.

They’ve taken the time and the care to craft their stories with your individual journeys in mind. We hope it helps.

LETTER FROM THE EDITOR contributors

KARI WILLIAMS Associate Editor

Rebecca Alwine Nikki Davidson Crystal Kupper

Rick Stedman Andrea Peck Eric Zedalis

SECURE YOUR FINANCIAL FUTURE.

The Veterans Benefits Banking Program (VBBP) is a partnership between VA and the Association of Military Banks of America (AMBA).

VBBP helps Veterans receive their VA benefits payments by direct deposit—a smarter, safer way to bank.

VBBP offers a variety of services to Veterans and their families.

Banking Support

Help establishing low or no-cost checking and savings accounts.

Financial Counseling

Support and guidance to reach your financial goals.

Credit Counseling

Providing assistance with debt management and credit issues.

Join the more than 180,000 Veterans who have protected their VA benefits with direct deposit through VBBP.

VETCENTS

A financial education program created specifically for Veterans and beneficiaries.

“Veterans deserve to get their benefits in the safest most secure way possible, and that’s what the Veterans Benefits Banking Program delivers. Since 2019, it has helped more than 150,000 Veterans and beneficiaries receive benefits payments via direct deposit — a move that has reduced fraud by 93%.

Expanding this great program, to include financial counseling and education, will have a real impact on Veterans’ lives helping protect and grow the benefits they’ve earned.”

~ VA Secretary Denis McDonough

@VBBPFORVETS

VeteransBenefitsBanking.org

VETERANS BENEFITS

& RESOURCES

BY AMERIFORCE MEDIA

BENEFITS:

Dental care

There are nine common ways that veterans qualify for VA dental insurance, including but not limited to: Service-connected compensable dental disability/condition; Serviceconnected disabilities rated 100% disabling or are unemployable and paid at the 100% rate; veterans who request dental care within 180 days of discharge; Service-connected, non-compensable dental disability/ condition due to combat wounds/ service trauma; veterans with dental condition associated with/aggravating a service-connected condition.

Educational assistance

In addition to standard Post-9/11 GI Bill benefits, VA offers several programs that are more focused. The Edith Nourse Rogers STEM Scholarship is available to those interested in extending their Post-9/11 GI Bill or Fry Scholarship for STEMspecific training. Veteran Employment Through Technology Education Courses can enhance skills for the high-tech industry. The Yellow Ribbon Program offers financial assistance for out-of-state, private or graduate school tuition not covered under the Post-9/11 GI Bill. Other non-Post-9/11 GI Bill offerings are available as well

Financial hardship assistance

VA offers hardship assistance for veterans who lost employment, have a decrease in income or an increase in out-of-pocket health expenses. If approved, the assistance helps manage VA co-pay debt or exempts future co-pays. To apply, visit https:// www.va.gov/health-care/pay-copaybill/financial-hardship//

Geriatrics and extended care

Veterans are eligible for VA disability compensation based on the disability rating they received in connection to active military duty. The compensation is a monthly, tax-free payment for those who have a service-connected disability. Veterans must apply for a VA disability rating. Veteran service officers accredited through VA do not charge for this service.

Housing assistance

VA direct loans have VA serve as the mortgage lender, while with a VA-backed loan, VA stands behind a portion of the loan from a private lender. Nearly 90% of VA-backed loans are made without a down payment. Service history and duty status determine eligibility. Disability housing and specially adapted housing grants also are available. Veterans experiencing homelessness can receive assistance or speak to a VA counselor by calling the National Call Center for Homeless Veterans at 877-424-3838. All conversations are private.

Life insurance

Eligible armed forces members can receive Servicemembers’ Group Life Insurance (SGLI) while serving and can shift that into Veterans’ Group Life Insurance (VGLI) for a period of up to one year and 120 days following separation. SGLI also can be converted to a civilian policy, though the timeframe is 120 days. More eligibility requirements for VGLI can be found at https://www.va.gov/life-insurance/ options-eligibility/vgli/

Medical care

The majority of service members who did not receive a dishonorable discharge are eligible for health care through VA. The minimum duty required states that enlistment occurred after Sept. 7, 1980, or the veteran entered active duty after Oct. 16, 1981, and served 24 continuous months “or the full period for which you were called to active duty,” unless: Discharged for disability caused, or made worse by, active-duty service; discharged for hardship or early out; served prior to Sept. 7, 1980. Current and former members of the reserve component who were activated under a federal order and completed the mission also are eligible. Apply online for VA health care. Coverage for beneficiaries also is available through CHAMPVA and TRICARE

Mental health

From telehealth options to local, inperson resources VA has a catalog of options for those who want to address

mental health concerns. Support is broken down into several categories, including transitioning service members, LGBTQIA+, college faculty and family/friends. More information about treatment options can be found at https://www.mentalhealth.va.gov/ get-help/treatment.asp.

Pension program

Eligible service members can apply for a veterans pension through VA. Veterans accepted into the program receive monthly payments, which vary year to year

VA Transition Assistance Program

The Transition Assistance Program (TAP) provides resources and tools to help service members who are exiting the armed forces. TAP begins one year before separating from the service or two years prior to retirement. VA’s portion is a one-day event that covers benefits, education and disability compensation, among other items.

Vet Centers

Vet Centers throughout the VA system provide counseling services for couples, families and individuals who are readjusting back to civilian life or who experienced a traumatic event while serving. Services are provided at no cost and include counseling for depression, PTSD and effects of military sexual trauma.

Veteran Readiness and Employment Program

The Veteran Readiness and Employment Program provides support and resources to service members separating from active duty as a result of medical issues. It also is available to veterans with serviceconnected disabilities. The program offers vocational counseling, training/ education, career placement and special rehabilitation services. Local VA offices can connect veterans with a VR&E representative.

VetSuccess on Campus

VetSuccess on Campus is a VA effort affiliated with the Veteran Readiness and Employment Program. Available to qualified dependents as well

Benefits and resources abound for veterans who are transitioning to civilian life. Below we detail some of the most beneficial ones to help in your personal journey.

as service members and veterans, it helps coordinate on-campus benefits assistance and counseling. Vocational rehabilitation counselors are accessible at schools within the program, along with a Vet Center outreach coordinator. A complete list of education institutions in the program can be found on the VA website

RESOURCES:

American Legion Temporary Financial Assistance

Minor children of active-duty service members or American Legion members are eligible for grants up to $1,500 that help with costs relating to food, shelter, utilities and health expenses. Before being granted the financial assistance, an investigation will be conducted at the Legion’s state or department level to confirm legitimacy of the request. Applications are available through local posts or department headquarters.

Honor Bound Foundation

The Honor Bound Foundation has resources to help veterans with emergency financial relief; paying utilities or a rent deposit for those nearing homelessness; food and household necessities; and more. The organization accepts assistance referrals from case workers and social workers at the state, local and federal level, including VA.

Hope For The Warriors

Hope For The Warriors offers several programs to aid service members in their transition to civilian life. A Warrior’s Wish provides grants to severely injured service members, veterans, their families or families of service members who have died. Warrior’s Compass has resources for veterans beginning new careers and for employers to locate qualified veteran candidates. More information can be found at https://www. hopeforthewarriors.org/transition/

Navy-Marine Corps Relief Society

The Navy-Marine Corps Relief Society provides financial assistance for loans, emergency travel and more. Eligibility is limited to active-duty or retired sailors and Marines; family members with a military ID card; surviving spouses; and reservists on active

duty for 30 days or more. Situations that warrant NMCRS assistance include: food, rent/mortgage, utilities, essential home repairs; establishing a new residence; car repairs and insurance deductibles; medical expenses; military pay shortages; funeral expenses; and OCONUS PCS pet travel.

Operation Homefront

Operation Homefront’s critical financial assistance program assists eligible veterans who have a serviceconnected wound, illness or disability. To apply, the organization requires submission of a DD-214, line-ofduty documentation or another official record of the wound, illness or injury, and household income documentation. More information on the application process and eligibility criteria can be found at https:// operationhomefront.org/criticalfinancial-assistance/.

Student veterans support

VFW offers the Sport Clips Help a Hero Scholarship, which awards up to $5,000 to eligible student veterans.

VA claims support

Disabled American Veterans (DAV) has transition service offices nationwide to assist with VA claims. VFW also has accredited veteran service officers through its National Veteran Service

office to do the same. American Legion service officers are available as well

Veterans Community Project

Based in Kansas City, Missouri, Veterans Community Project is a tiny-home living center for veterans experiencing homelessness that also offers walk-in support services. The 501(c)3 nonprofit has locations in St. Louis; Longmont, Colorado; Sioux Falls, South Dakota; Oklahoma City, Oklahoma; and Milwaukee, Wisconsin.

VFW’s

pre-discharge program

Since 2001, the Veterans of Foreign Wars has provided pre-discharge services to service members at no cost. Representatives help with the VA claims process, including preparation and submission of forms and evidence prior to separating from active duty. For more information, or to locate a representative, visit https://vfw.org/ assistance/va-claims-separationbenefits

VFW Unmet Needs

VFW offers grants of up to $1,500 to veterans to aid with basic life needs, such as paying rent, a mortgage or utilities. Veterans do not have to repay VFW, and the organization works directly with creditors. Eligibility requirements and specific uses for the grant can be found at https://vfw.org/ assistance/financial-grants

DID WE

We know there’s an endless amount of resources and benefits available to veterans. If you’re aware of a resource or benefit not included on this list, email kari.williams@ameriforcemedia.com

4 TRICKS FOR CUSHIONING TAXES

BY REBECCA ALWINE, ARMY SPOUSE

Tax law is complicated and while many military families file their own taxes, when it’s time for separation from active duty, it’s also time for a tax professional.

Lisa Mayo, a certified public accountant with 17 years of tax experience and 20 years as a military spouse, said she’s noticed a few costly mistakes that service members make in the transition. The biggest one being they fail to plan in the year of retirement.

Here are the tricks for cushioning taxes – or reducing tax liability – for soon-to-be veterans who are exiting the service.

Residency changes and state taxes

While on active duty, a service member is not required to change their state of residency with each move, Mayo said. The same is true for most military spouses. If you enlisted from Texas, you stay a Texas resident – with no state income tax – until you leave the military.

But when you leave the military, you become a resident of the state you are living in and are responsible for state taxes. So, if you were a Texas resident, and now live in New Jersey, you’re going to see a significant difference in your state income tax.

Mayo recommended taking that into consideration when deciding where to live. Along with state income tax rates, you’ll want to keep in mind the state’s tax rate for military retirement. Some don’t tax it, some partially tax it and others tax it at the same rate as all income.

Multiple streams of income

The next thing to review is the multiple streams of income you’ll have when leaving the military.

First, you’ll have your military W-2 income for part of the year. Then you’ll likely have another job with W-2 income, and, if applicable, retirement pay.

The problem with this, Mayo said, is that these jobs don’t talk to each other for tax planning purposes. So, the military withholding for the few months you were on active duty is not going to help the tax liability that increases with your higher-paying, civilian job.

Often, Mayo sees her clients are short on tax withholding that first year — sometimes by $20,000.

“Chances are you’re withholding at about five to 10% less than you should be, especially in that first year,” Mayo said. “And if we can catch it prior to even a year later, it’s usually fixable.”

Tax wishing and tax planning

To avoid a surprise tax liability, some planning is required.

“I call it tax planning up until Dec. 31, and anything after that is tax wishing,” Mayo said. “You wish you had done something different.”

Planning looks at your withholding based on your total income. It also involves reducing your tax liability by contributing to retirement plans. And it often means talking to a tax professional, and a financial planner,

to determine realistic expectations for your tax liability after the military.

How to find a tax accountant to help

An important step is to find a tax accountant that is licensed in your state, fits your personality, does tax planning and – most importantly –understands military tax law.

Mayo suggested looking at the CPA

Verify website, state CPA society lists or the National Association of State Boards of Accountancy website to find some options for tax planners.

“While you can’t start planning until the year of retirement, you can find a CPA and financial advisor beforehand to start looking at all options,” Mayo said.

Lisa Mayo

VETERANS BENEFITS BANKING PROGRAM ASSISTS SERVICE MEMBERS WITH FINANCIAL TRANSITION

BY ANDREA DOWNING PECK, NAVY VETERAN SPOUSE – SPONSORED

Transitioning from military to civilian life can create money challenges, but the Veterans Benefits Banking Program’s (VBBP) personal financial tools and money management resources, including access to free bank and credit union checking accounts, can help veterans keep their financial matters in order.

“There are things about banks and credit unions serving the military and veteran communities that are very different from banks serving outside the fence line or serving customers that aren’t military veterans,” said retired Air Force Maj. Gen. Steven Lepper, Association of Military Banks of America (AMBA) president and chief executive officer. “Serving these communities requires a particular understanding of the financial challenges of the veteran and military communities.”

AMBA partnered with the U.S. Department of Veterans Affairs Veterans Benefits Administration (VBA) in 2019 to create the VBBP, which ensures veterans and their beneficiaries can receive their VA benefits via direct deposit into low-cost accounts at any of 40 participating banks and credit unions nationwide.

The VBBP’s website provides links to all participating banks and credit unions. Since its inception, the VBBP program has reduced by 175,000 the number of “unbanked” veterans.

Veterans without a banking relationship receive benefit payments through a Direct Express® prepaid card or U.S. Treasury-issued paper check. But the estimated 250,000 veterans who use those options often are victims of delayed, lost or stolen funds. Each year, more than 1.5 million paper checks from the federal government go uncashed, which is why VA and AMBA joined forces to encourage veterans to open a bank account as a first step toward financial independence.

“It’s very clear that managing your money through a financial institution where your money is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) is by far the safest way to save and manage money,” Lepper said. “The protections that surround bank and credit union accounts are better than those that surround any other products, whether they are debit cards or paper checks.”

VBA Chief Financial Officer Charles Tapp says veterans receiving benefit payments through Direct Express®

or paper checks are encouraged to switch to direct deposit. Veteran service organizations and VA call centers also stress the importance of direct deposit to transitioning service members.

VBBP participating banks and credit unions not only are committed to offering veterans no-cost or low-cost accounts, but also will help veterans overcome legal issues or credit problems that might have previously stopped them from opening a checking or savings account.

“This consortium of banks and credit unions are well aware of those challenges and are certainly willing to work with veterans on an individual basis to potentially get past those issues,” Tapp said.

While the VBBP was created to reduce the number of unbanked veterans, its outreach efforts have grown to include a wealth of financial literacy programs, tools and resources geared toward veterans. The VBBP has partnered with the Military Family Advisory Network to build www.VetCents.org, a financial-education platform that provides veterans and their family members expert advice on topics such as budgeting, saving, credit, investing and homebuying, as well as links to additional resources.

Veterans seeking credit or financial counseling have access through the National Foundation for Credit Counseling and the Association for Financial Counseling and Planning Education® to a free consultation with a certified credit counselor or an accredited financial counselor.

A credit counselor can help a veteran avoid foreclosure or eviction, qualify for a first-time home purchase or get out of debt, while a financial counselor can assist with creating a budget or debt-reduction plan, saving for a home purchase or preparing for life transitions such as a new job, birth of a child, return to school or retirement.

“The VBBP is not just a program to encourage veterans to manage their money through financial institutions,” Lepper said. “It’s also a program to help them understand their financial issues and deal with them in a better way through tailored financial counseling.”

Service members and veterans always will face unique financial challenges, but the third year of the COVID-19 pandemic has brought an added layer of potential difficulties. Lepper notes the combination of high inflation rates and the end of pandemic-based rent moratoriums and governmentfunded stimulus checks has increased veterans’ need for low-cost banking services and improved financial literacy.

“As we enter these difficult financial times, veterans will see that it is even more imperative that they hold on to every penny they get from the government,” Lepper said, “and if they want to do that effectively, they’ll do it by using bank or credit union accounts rather than other forms of money management.”

To learn more about the programs and tools available through the Veterans Benefits Banking Program, go to www.veteransbenefitsbanking.org. The Association of Military Banks of America website can be found at www.ambahq.org.

CREDIT UNIONS

1st Advantage Federal Credit Union

American Heritage Credit Union

AmeriCU

Andrews Federal Credit Union

Arizona Financial Credit Union

Bragg Mutual Federal Credit Union

Chartway Federal Credit Union

FirstLight Federal Credit Union

HomebaseCredit Union

BANKS

5Star Bank

Armed Forces Bank

Bank of America

Bank of Guam Bank of Hawaii

of Edmond

Fort Sill Federal Credit Union

Hanscom Federal Credit Union

Hiway Federal Credit Union

Infuze Credit Union

Kirtland Federal Credit Union

Members First Credit Union

Navy Federal Credit Union

New Orleans Firemen’s Federal Credit Union

Pen Air Federal Credit Union

PenFed Credit Union

R.I.A Federal Credit Union

Sea Air Federal Credit Union

SeaWest Coast Guard FCU

SEFCU

Service Credit Union

Scott Credit Union

Travis Credit Union

VyStar Credit Union

USAA

WaterStone

Wells Fargo

WHAT TO DO WITH YOUR FUNDS TSP

WHEN YOU LEAVE THE MILITARY

BY ERIC ZEDALIS, ARMY RESERVIST

When it comes to personal finance, specifically how to address Thrift Savings Plan (TSP) funds upon separating or retiring from the military, service members have the luxury to wait without the hurry.

“When you leave the military, the easiest option with your TSP investments is leaving everything in the TSP,” said Doug Nordman, author of “The Military Guide to Financial Independence and Retirement.” “Life is busy enough for the first few months after military service, and there’s no need to make a quick choice with the TSP.”

While expediency and decisiveness have made many a military career, Nordman, who retired from the Navy in 2002 at 41 years old, said this is one facet of life where time and reflection are necessary.

“The differences [between retirement accounts] might be important depending on your career plans after

the military,” Nordman said. “So figure out your next steps in life while you leave your investments in the TSP for a few months.”

Not only will delaying any moves with TSP savings allow time to make the right decision, Nordman said there is a minimal price to pay for brief indecision.

“Although major fund companies have lower expense ratios (in some of their funds) than the TSP, the dollar difference is relatively small,” he said. “The differences can add up over several decades, but they’re insignificant over a few months.”

Leaving funds in the TSP

A proponent of leaving TSP savings where they are is Spencer Reese, author of “The Military Money Manual.” He generally advocates for inactivity (“set-it-and-forget-it”) vs. active management.

“For military service members, 90% of the time it’s best to just leave it alone,” said Reese, a separated active-duty Air Force officer on an investing path to financial independence by age 40. “In general, leaving your TSP invested in a Lifecycle fund and leaving it alone will be the right answer for the majority of people. Personally, I left my TSP account alone when I separated. I check it once a year.”

In his book, Reese preaches the “LADS” concepts – Low-Cost, Automatic, Diversified and Simple. The TSP, he said, satisfies all four.

“The more you leave [your TSP] alone, the better it will usually do,” Reese said. “Your TSP account is not for day trading. Set a reasonable asset allocation, stick to it for decades and let the power of compounding interest go to work.”

Service members can easily set TSP allocations to mimic any Standard & Poor’s (S&P) 500 fund or Total Stock Market Index Fund in terms of diversification and performance.

According to Reese, the TSP invests in the same indexes as the “big three” firms: Vanguard, Fidelity and Schwab, and similar returns can be expected

from any S&P 500 index fund, whether an ETF like Vanguard 500 Index Fund (VOO), Standard & Poor’s Depository Receipt (SPDR) 500 Trust (SPY), or a TSP Fund like the C Fund (Common Stock Market Fund).

Reese also said the S&P 500 or the C Fund typically makes up 75% to 80% of the U.S. stock market as measured by market capitalization. The rest of the mid-cap and small cap stocks in the S Fund make up the remaining 20% to 25%.

“Don’t think that moving your funds to another broker or fund will outperform the passive index funds of the TSP,” he said.

However, Reese said moving TSP funds into an employer’s 401(k) or an IRA could be wise if the right conditions are met.

“If your 401(k) is less than optimal, you’re probably better off leaving your funds in the TSP,” he said.

Moving TSP funds

For Do-It-Yourself (DIY) investors seeking a greater sense of control, moving TSP funds into an Individual Retirement Account (IRA) offers a “wider variety of investment opportunities,” according to Nordman.

“There’s actually no need to invest in a complicated variety of funds, but your IRA may find lower expense ratios for a total stock market index fund or a total bond market index fund,” he said.

Moving TSP funds into an IRA also brings the potential to do a Roth conversion at a more convenient time.

“You can roll a Traditional TSP to a Traditional IRA, and then convert the Traditional IRA to a Roth IRA,” Nordman said. “This move might be a good idea when it makes sense to pay lower income taxes on the conversion.”

Roth conversions allow savers to enjoy tax-free money withdrawals from a Roth account in retirement as opposed to paying taxes at the time of withdrawal from a traditional account; however, the initial conversion itself is taxed upfront.

“A Roth IRA conversion can be a complicated decision depending on your career and your future incometax brackets. It’s worth analyzing this decision with a fee-only fiduciary financial advisor,” Nordman said. Although rolling TSP funds into an IRA can sometimes be a wise choice, Nordman said he typically advises against rolling a TSP into an employer’s 401(k).

“In general, 401(k)s have higher expenses than the TSP and IRAs, and fewer investment choices. But rolling a TSP to a 401(k) might be useful if your 401(k) plan offers unusual or particularly intriguing investments or large discounts on expense ratios,” he said.

The process of rolling funds out of the TSP to an IRA or a 401(k) begins with a request form on the TSP account.

“You’ll simply provide the name of the IRA or 401(k) custodian along with the new account number,” said Nordman.

The Oahu, Hawaii, resident of 30 years, who has seen his investments compound time and again over decades, said once one reaches financial independence, simplicity begins to take priority.

“In the long run, it may feel simpler to manage your investments by consolidating your TSP and 401(k)s into an IRA. This becomes even more compelling after you’ve reached financial independence,” he said.

For those uncertain what to do with their savings, both Nordman and Reese recommend seeking professional help.

“Separation or retirement is a great time to have a conversation with a fee-only fiduciary advisor or Certified Financial Planner (CFP),” said Reese. “They can make sure you’re on the right path.”

7 TIPS TO MANAGE YOUR CIVILIAN AS A BUDGET

BY CRYSTAL KUPPER, AIR FORCE SPOUSE

Army National Guard Capt. Jordan M. Thompson found himself in a familiar position on his last deployment: that of listening to his troops’ financial shortcomings. Budgeting, he was reminded, was a common shortfall.

“Most service members may have had a 30-minute class in basic on things like TSPs (Thrift Savings Plans), but the military needs to do a better job of educating soldiers about the overall financial side of things,” said Thompson, a financial planner in civilian life. “The effort is there, but they’re not quite hitting the mark.”

But in the transition back to civilian life, budgeting doesn’t have to be scary. Read on for tried-and-true ways to make finances work for you while exiting the service:

1. Learn and plan early — don’t wait until folding your uniform for the final time to learn how to craft and stick to a budget. Take advantage of on-base or virtual courses on budgeting, or ask a financial mentor to show you the first steps. More than anything, don’t procrastinate.

2. Recognize your new expenses — military members don’t usually have to worry about things like medical care and housing. But separated military, Thompson said, are usually “on their own” for almost everything. You might even lose your military discount in places like private schools or certain businesses. It doesn’t have to be intimidating, however. As soon as you determine your civilian income — even if it’s temporary while you find a new job — set aside adequate portions for necessities like offbase shelter, food and short-term health insurance. Don’t forget about new-to-you expenses like clothing appropriate for your civilian job, sales tax at off-base stores or non-Centers for Disease Control and Prevention child care prices.

3. Assign every dollar a job

— “Everybody is in different circumstances, but if you allocate your money before you actually

spend it, you’ll end up saving more in the long run,” Thompson said. This means making a list of incoming funds and outgoing expenses before paying a single bill. It can be as simple as making two columns on a piece of paper, adding the total of each and comparing the resulting numbers.

4. Start building an emergency savings fund now — Thompson said the general rule is three months of all expenses (cell phone, car payment, groceries, rent, etc.) for a single person, and six months for a family. “Building an emergency fund is an ‘and’ discussion, not an ‘or’ discussion,” he said. “Although having an emergency fund is a ‘first-thing’ sort of financial strategy, you can also look at other defensive strategies, like purchasing life insurance, while you’re building it up.”

5. Get comfortable with telling yourself “no” — patience is a virtue, including money matters. When you’re on a stretched-thin budget, Thompson said, denying yourself in the short-term will ultimately pay off. “You might be spending money on energy drinks every week, but that’s not a necessity,” he said. “You’ve got to learn the art of delayed gratification.”

6. Make a “fun” budget category — Being smart with your money as you transition into a veteran doesn’t have to be all dull. Thompson recommends having a “fun money” category in every budget, even if it’s miniscule. So go out for a drink with your buddies once or twice a month — as long as it’s already built into your budget.

7. Always ask — a small, delightful way to stretch your budget is by finding unexpected discounts and perks in the marketplace. You might be surprised at who offers what to former military. Though some businesses reserve their discounts for those still active in service, the worst someone can tell you is “no.”

MAXIMIZING MONEY AFTER THE MILITARY

Use these resources and discounts to save some serious cash:

GovX.com: this San Diegobased website offers deals on travel, merchandise, tickets and more for veterans while supporting military-connected nonprofits.

VetTix.org: More than 13 million tickets to concerts, sporting events and other major occasions have been gifted to military families through this organization.

VA Home Loans: Home ownership is in reach for veterans with this no-moneydown home loan program.

ID.me: Verify your veteran status almost instantly and securely while finding deals and special military-related discounts at thousands of stores and brands.

Cell phone plans for veterans: Companies like AT&T, Verizon and T-Mobile all offer deep discounts for veterans. Plus, they often come with extras, like a Netflix subscription. And don’t be afraid to check for new rates and discounts each year.

Cable & internet plans for veterans: Check with major internet providers like Xfinity and Verizon for deep discounts and extras for those who have served.

Flights: Airlines like United and American Airlines offer discounts and special perks for service members, including veterans.

We asked, you answered

What I wish I knew about transitioning from the military

COMPILED BY AMERIFORCE MEDIA STAFF

In hopes of helping future veterans avoid missteps in transitioning from service, we sought the best “what I wish I knew” advice from service members and military spouses who have been through it. Here’s what they had to say:

SUBMIT AN APPLICATION FOR VA DISABILITY RATING! Not necessarily because you think you’re disabled, but because that disability rating is a gatekeeping function that opens up a TON of VA benefits at BOTH federal and state levels, including many financial and health care benefits not available to active-duty personnel.

– Carol Pittner

Save that $10. May seem small, but add 20 years of interest to that and see what ya get. You don’t know how long that retirement check and/or disability check will take to kick in and your family will need something to fall back on in the mean time!

– Machelle Scarber Taylor

Early preparation will lay a smooth foundation for transition. Don’t be too prideful to ask for help. Utilize all of your resources.

– Tamika Sherman

“Wounded Warrior Project has SO many great resources for transitioning service members! More specifically, they have the Warriors to Work program in which veterans (and spouses!) are paired with a career coach who provides resume/cover letter help, reaches out to hiring managers to the jobs they apply to, provides mock interviews/ interview help, and even provides a financial means to purchase clothing when starting a new job.

Be conscious about who you let in your life influence your decisions about separating. That transitional time period is very stressful for everyone. Choosing a network that is supportive of your decision is monumental. Finding supportive solutions to transition to a civilian job outside of what the military offers for programs. My partner chose to do interview prep courses that aligned with his career field and it was really beneficial!

– Brittany West

– Katie Spitz

“Go to sick-call every time there’s something wrong with you… Document every injury/illness. Make a plan and have a backup plan. Seek out local resources and use them all to your advantage! There are resources to help veterans accomplish literally everything.”

“Plan in reverse. Get confirmation of brigade level policies surrounding maximum terminal leave and whether there’s support for the Career Skills Program. Look at the hiring timelines & realistically when you could expect a signed offer for your new career.

If you own a home but plan on relocating, consider asking for a “rent back” in your sale to give your family enough of a buffer to transition/buy while also buttoning up finances. You cannot close on a new home loan when job status is pending.

Planning your timeline “in reverse” gives you deadlines to meet well in advice of your 90day window.

Oh, and consider the BDD Benefits Disability at Discharge program so your benefits start Day 1 rather than filing with the VA after the fact. This can only be done between 180-90 days before the ETS date.”

– Samantha Peterson

Melissa Johnson

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5 HACKS TO RAISE CREDIT SCORES

BY RICK STEDMAN, ARMY VETERAN

Establishing good credit – or bad credit for that matter – doesn’t happen overnight. But taking actionable steps now can help improve credit scores. First things first, however: Find out your current credit score.

AnnualCreditReport.com provides free credit reports by request. The three major credit report bureaus – Experian, TransUnion, and Equifax –also offer copies of your credit report. Spreading those requests out over a year eliminates the need to wait a full 12 months to see how the credit score is shaping up.

Al Bloir, a consultant with First Command Financial Services suggested that self-examining finances is a “critical” first step.

“Be open and honest with your spending,” said Blair, a 24-year Air Force veteran. “Keep a detailed log for a month and track your spending. You will be surprised at how much you spend and where you are spending that money. The log doesn’t lie, and this will give you a clear indication of where the spending problems are.”

With credit score and spending habits in mind, experts suggest the following tips for improvement:

1. Keep credit cards open

Bloir and his colleagues at First Command Financial Services recommend keeping credit cards open – even they aren’t being used. It’s good to keep it open and inactive because that will be used when factoring your credit score.

“Even if there’s no activity on the card, there won’t be any negative numbers associated with it either, which would result in a lower credit score,” he said.

2. ‘Stop the bleeding’

Bloir also suggested addressing late payments.

“If you are consistently making late payments, you need to stop the bleeding ASAP,” he said. “If nothing else, make a partial payment even if it’s nominal; that still demonstrates you are taking care of your bills.”

3. Consider free services

Experian Boost is another option to assist consumers with poor to fair credit scores, or no credit history at all. This free service, which began in 2019, factors in utility bills, phone payments, and even items like Netflix accounts, which could help increase credit scores.

These type of payments normally are not included when calculating a credit score. However, including these regular payments as part of your payment history offers more opportunity for improving credit scores – if those bills are paid on time.

4. Make more-than-monthly payments

Merriman, an investment advisory firm, urges consumers to pay bills on time, every time. Also, pay bills every

What’s in a credit score?

Financial website Investopedia defines a credit score as a single numerical grade of creditworthiness ranging from 300-850. The higher the number, the better the score. This number is derived from the credit report, which is a detailed record of one’s financial history. It contains a comprehensive list of your credit history, which affects the credit score.

two weeks as opposed to monthly. At this rate, interest will be reduced over time, while demonstrating that you are a dependable borrower.

5. Read credit score literature

To further gain an understanding of the credit scoring process and the overarching credit system, Bloir suggested reading John R. Ulzheimer’s “You’re Nothing but a Number - Why achieving great credit scores should be on your list of wealth building strategies.”

Adam Levin, former director of the New Jersey Division of Consumer Affairs writes in the book’s forward: “John Ulzheimer spent six years at Equifax, seven years at Fair Isaac (FICO) and a significant number of years educating consumers to help themselves, through articles, interviews and teaching.

“I strongly recommend that everyone begin at the beginning. Learn as much as possible about the system; what affects your credit score, and how to quickly and intelligently rebuild and/ or enhance your score. You need to discover how the folks who give you credit keep score.”

Courtesy Amazon

6 finance podcasts for the military

BY CHRISTOPHER ADAMS

Nowadays, attaining financial normalcy and understanding is paramount as the cost of gas, food and goods inflate faster than a balloon at Dollar Tree.

And for service members and their families, these precarious financial times can be even more daunting with the burden of spousal unemployment, insurance costs and child care.

But there is help. Several militaryrelated financial podcasts exist for the purpose of guiding active-duty members (and their spouses), reservists, guardsmen and veterans to sound financial health.

Some of the shows have more personality than others but all have something to offer.

Below is a list of podcasts that can answer questions and provide useful advice.

Military Money Show

This podcast explains intelligent ways to make, spend, save and invest money. The host is Lacey Langford, the “Military Money Expert,” a former Air Force information manager. Langford interviews a variety of guests versed in investing, debt, military life, personal finance and entrepreneurship. The podcast airs on Mondays and can be accessed on Stitcher, Spotify, Audacy, Amazon Music and Google Podcasts.

https://laceylangford.com/ podcast

The Military Money Manual Podcast

Military Money Manual Podcast covers many subjects, particularly personal finance in the military, military travelhacking and investing in the ThriftSavings Plan. It is framed around

the idea of expeditiously achieving financial independence in the military. The show is hosted by Air Force veteran and certified financial planner Spencer Reese. Episodes are weekly (Mondays) and can be accessed on Spotify, Stitcher, Apple Podcasts, Amazon Music, Audible.

https://militarymoneymanual. com/podcast

Operation: Veteran Finance

The education-based Operation: Veteran Finance assists folks in achieving their financial goals and accomplishing their money mission. OVF offers clear and unambiguous investing advice, and savings and planning education for veterans. The podcast, hosted by Army veteran and certified financial planner Garett Sorenson, airs every other Friday and can be accessed on Apple, Spotify and Castro.

https://operationveteranfinance. org/episodes

The Military Millionaire

Podcast

The show focuses on helping service members, military spouses and veterans build wealth through real estate investing, entrepreneurship and personal finance. The podcast is hosted by reservist and Marine veteran David Pere, and Alex Felice. (The duo occasionally drop singleword profanities.) Pere says service members still don’t have access to the necessary information that allows for financial freedom in the military. They’re trying to change that. You can listen to the podcast on Fridays, but it fluctuates between weekly and biweekly episodes. It can be accessed at Apple Podcasts, Spotify, Amazon Music, Stitcher.

https://frommilitarytomillionaire. com/podcast-episodes

Militarily Speaking (Armed Forces Bank)

Militarily Speaking launched this year and is committed to advising the military community on military life and how to navigate finances. The program shares stories and insights about effective and poor financial practices, while furnishing strategies to help service members get in front of their finances. The show also highlights resources for PCS moves and transitioning to civilian life. Militarily Speaking is hosted by Armed Forces Bank executives Tom McLean and Jodi Vickery. It is a bi-weekly Wednesday podcast, accessible at Audible, Spotify, Amazon Music and Blubrry, Apple Podcasts and Google Podcasts.

https://afbank.com/media/ category/podcasts

Navy Federal Credit Union MakingCents Podcast

This podcast investigates ways to help military members, their families and veterans remain in control of their personal finances, e.g., rethinking budgets, mortgages, status transition, etc. “I’m a Navy brat from Coronado, California, and growing up, I experienced firsthand how the military lifestyle can make basic finance questions a bit more complicated,” said show host Emily Bingham in a podcast. The program airs sporadically, with the latest episode posted in May. It is accessible at Apple Podcasts, Google Podcasts, Spotify.

https://navyfederal.org/ makingcents/podcast.html

Veteran-focused financial nonprofit to launch in 2023

BY NIKKI DAVIDSON, COAST GUARD SPOUSE

A group of banking nonprofits and trade organizations serving the military population is doubling down on their efforts to provide financial guidance tailored to veterans through the launch of a new program.

The Defense Credit Union Council, Association of Military Banks of America and Military Saves, a nonprofit coordinated by the Consumer Federation of America, have formed Veteran Saves. The new campaign will launch in spring 2023.

“Before the [COVID-19] pandemic, we recognized a gap in the amount of practical financial education tools and resources available for the veteran population,” said Krystel Spell, manager of military programs for Military Saves. “This lack of tailored support left our veteran population susceptible to issues that contributed to financial instability or resulted in it.”

According to Blue Star Families

2021 Military Family Lifestyle Survey, a higher proportion of post-9/11 veterans experience adverse financial outcomes than veterans from other eras. The survey revealed that about half of post-9/11 veteran respondents

are experiencing financial stress due to excessive credit card debt, spouse underemployment or unemployment, major home repairs, student loans and out-of-pocket medical costs.

Military Saves founders assert that the financial challenges that veteran service members face are often much different than the ones faced by their active-duty counterparts. The veteranspecific service campaign will target those issues directly.

“Active-duty military personnel continue to have the benefit of stable income and medical coverage until they transition out,” Spell said. “The location of where a veteran moves will determine their access to transitional resources. Suppose they do not live near a military base, a Veterans Affairs Hospital or in a military town. In that case, this could severely impact their access to tools and resources that could help mitigate financial instability.”

Financial instability affected nearly half of the veteran population in the past year. In the 2021 Wounded Warriors Project Annual Survey, 42% of veterans reported they did not have enough money to make ends meet at some point in the past 12 months.

The Military Saves campaign helps service members save money, reduce debt and build wealth through the habit of saving. The new veteran initiative comes when many families across the country have reduced the amount they’re saving each month.

According to a Morgan Stanley financial benefits study, 62% of civilian sector employees are scaling back their contributions to savings because of the economic impact of inflation.

“At America Saves, all of our programs share the same core beliefs: saving automatically is the easiest, most successful way to save and that saving is a habit, not a destination,” Spell said.

The Veteran Saves campaign will serve as a one-stop-shop to get tools and strategies for veterans to save. It will also provide resources to help them better understand the current economic climate, best utilize workplace savings programs in the private sector, and get the most out of military benefits to build robust financial health.

Since 2005, more than 400,000 service members have utilized the Military Saves program. While there isn’t a concrete goal for how many veterans the founding team of banking nonprofits hopes the new Veteran Saves initiative can reach, leaders are excited about its potential to help the demographic directly.

“Our immediate goal is to continue partnering with organizations that are mission aligned, speak to the veteran community and ensure our financial tools and resources reach those who need them the most,” Spell said.

The Veteran Saves campaign will officially launch next spring during Military Saves Week, April 24-28. For more information on the campaign, visit https://americasaves.org/ veteran-saves/.

FILING DISABILITY CLAIMS SHOULD BE ‘NO. 1’ PRIORITY

BY KARI WILLIAMS ALL PHOTOS COURTESY OF THE AMERICAN LEGION

Though transitioning service members attend TAP classes, information comes “rapid fire,” with the main focus on budgeting, resume writing and finding a job, according to Katie Purswell, director of veterans affairs and rehabilitation at the American Legion.

“Then VA comes in and talks about applying for benefits,” said Purswell, herself an Army veteran who medically retired from the service. “But if you’ve served and don’t have any obvious

injuries or service connections or don’t think you do, or don’t want to go to VA, you don’t think about filing a claim.”

Those who don’t file could be leaving money on the table. And even once the process starts, it could take months to complete, according to Purswell.

“It’s important that service members know… you also need to take care of yourself. You need to make sure that you file for your claim,” she said. “That should be No. 1.”

However, she said people often don’t realize that to receive disability payments, veterans must apply. And the sooner the better.

Purswell, for example, had 28 different claims from eight-and-ahalf years of service, including a traumatic brain injury that resulted from hand-to-hand combat training.

“For me, all of my disability stuff happened while I was still in the service,” she said. “The VA rep at my

“That’s one of those things you don’t know what you don’t know,” Purswell said. “Some people really do get out

ADDED BENEFITS TO A VA DISABILITY RATING

General health care: Outside of the disability rating itself, Purswell said health care access at VA was a benefit because she’s able to see medical professionals who understand veterans.

“They have a unique ability to see the veteran as a veteran and not just a patient,” she said.

Education benefits: Education benefits also spawn from disability ratings, including vocational occupational placement. “Because I’m a 50% service connected, my kids can go to state college for free,” Purswell said. “My husband could go to school for free.” More information can be found at https://www.va.gov/education/

Veteran Readiness and Employment: Certain disability percentages are eligible to receive employment services and support through this program. More information on eligibility can be found at https://www.va.gov/careersemployment/vocationalh-rehabilitation/ eligibility/

Expedited Social Security disability benefits: Veterans who have a VA compensation rating of 100% permanent and total can apply for expedited processing of Social Security disability benefits. https://www.ssa.gov/ people/veterans/100pt.html

military installation sat down with me and went through every single thing I needed to know.”

Because of the way her claims process worked, she started receiving disability payments “almost immediately.”

The standard service member, however, must wait until their service is complete before applying for VA disability. And those ratings can range anywhere from 10% to 100%, according to Purswell.

“Once you reach 50%, you are able to receive all of your care at VA … which is helpful [because you] don’t have to have outside insurance,” she said. “If you have an issue with your leg, but you’re not rated for your leg, you can still get care.”

VA disability ratings are assigned based on the severity of a veteran’s service-connected condition. Multiple disability ratings are used to calculate a combined VA disability rating.

“Calculating your combined disability rating involves more than adding up your individual ratings,” VA stated on its website. “That’s why your combined rating may be different from the sum of your individual ratings.”

Items VA uses to determine a disability rating include evidence from the veteran and results of a VA claim exam.

As far as how many veterans are missing out on VA disability funds, Purswell said it’s a constant unknown.

ACCREDITED VERSUS NONACCREDITED SERVICE OFFICERS

Veterans and transitioning service members also should be aware of the difference between accredited and nonaccredited service officers, according to Purswell.

Accredited service officers receive certification through VA in order to process military claims and follow specific “rules and parameters,” Purswell said. They also participate in “ongoing education” and must be sponsored by a veteran service organization like the Legion or Veterans of Foreign Wars.

VSOs don’t charge anything for their claims services, Purswell said, while law firms, on the other hand, can recoup up to 33% for initial backpay.

“If you’ve served and don’t have any obvious injuries or service connections or don’t think you do, or don’t want to go to VA, you don’t think about filing a claim.”

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Katie Purswell, American Legion director of veterans affairs and rehabilitation

of the service and don’t have any disabilities, don’t go to VA … There’s nothing wrong with them from [their] service.”

Others, however, don’t want to go to VA, she said.

The best time to file a claim, according to Purswell, is “as soon as possible.” She said soon-to-be veterans should start gathering their medical records and making a list of incidents that occurred during their service. Anything from broken bones to scars.

Then find a veteran service organization to help file the claim, or contact VA, because “it is not an easy process to navigate,” Purswell said.

The average claims process varies based on the complexity of the case and how many claims are being filed.