After serving our country, some veterans may want financial support when they come back, as they may have been disrupted from a job when being called upon. we are here to give them that financial support with 4 financial tips that will help them achieve financial success after achieving success serving our country.
1. 10% Increase in Savings
When creating a savings deposit program, ask your bank if they have one specifically for military veterans. Banks usually have deposit programs for veterans that give them an extra 10% bonus to the interest accrued in a savings account. The military savings deposit program caps at 10,000 initial investments but receives a 10% annual interest, compounded quarterly, for up to 3 months after their return. For more information regarding this program, check out the Savings Program Deposit page on the Defense Finance and Accounting website
2. Benefit from the Tax-Free In, Tax-Free Out Program
Using a Roth IRA can be very useful as a normal way to save, but there is a program to allow veterans to access the savings of a Roth IRA account without having taxes taken out if you are receiving tax-free combat-zone pay. Saving this way will allow for your earnings and contributions to be tax-free.
3. Access to Inexpensive Life Insurance
When planning for the future, life insurance is something that can come to mind. It is a good way to ensure that your family is taken care of in cases of emergencies or if a passing occurs. Service members have access to a low-cost life insurance plan called Servicemembers’ Group Life Insurance, and this plan is a low-cost plan that can be extended to your spouse. Other life insurance plans may also give benefits for being a service member, so always be sure to ask.
4. Take Advantage of Low Loan Rates
When wanting to make high-cost purchases, such as a new house or car, a loan is usually needed. Thankfully, the Servicemembers’ Civil Relief Act provides special legal benefits for service members, including an interest-rate cap of 6% on any loans taken out before being called into active duty. This is not an automatic program, and it requires you to apply to the lender to apply for the benefit, it is a very useful benefit to have that normally is approved by lenders.
NAIFA has an interest in helping veterans, as we support all veterans and want to help them to the best of our ability. NAIFA is able to help veterans with their financial service needs, whether it be through affordable proper financial planning, or by finding the perfect life insurance plan. Part of what helps NAIFA be so adept at helping is that we have veterans working in the industry and advocating for what NAIFA has to offer, such as Steven Saladino. NAIFA supports and thanks veterans for the work they do and hopes to continue helping them with their financial needs in the future.