Financial Planning During Your Military Transition

When you are transitioning from the military, it is important to come up with a plan for your finances. When you’re financially ready to transition, you’ll have more freedom to explore different employment choices and won’t feel pressured to take the first job that you are offered. You’ll be able to delve into what matters to you - type of position, location, company culture, etc. instead of just a salary. 

There are certain steps you can take now to ensure that you will be financially ready when it is time to transition, including setting aside some savings, understanding how far your civilian paycheck will go, and understanding other VA benefits that can help make your transition go smoothly.

Whether you are transitioning in a year or you are a few months out, it’s not too late to start saving for the transition period. While you may find a new career fairly quickly, it could also take awhile, so it’s important to be prepared for the time that you are in between careers. In addition, you may have additional expenses, like moving, that can be costly. Start saving now to offset any expenses, so you can focus on finding the right job for you without the added stress.

In addition, take the time to understand what a civilian paycheck entails. As a military service member you had access to special benefits and tax breaks such as Thrift Savings Plans, inexpensive Life Insurance and BAH. When leaving the military, you forfeit some of those financial benefits you've grown accustomed to. Remember that much of your paycheck will go towards taxes, so be sure to understand how much your “take home pay” will be. Set up a budget to determine how much housing, groceries, utility bills, etc. will be and spend within those parameters.

There are many programs in place to help veterans get started in the civilian world. Take advantage of the benefits offered through the Department of Veterans Affairs for everything from tuition assistance, career counseling, and home buying. Orion has partnered with Mutual of Omaha Mortgage to offer an exclusive VA loan benefit with rebates, cost saving details, VA loan resources, FAQs, and more. 

Orion has a variety of resources to help you financially plan for your military transition, including our podcast featuring James Rossi, a Navy Veteran and Financial Advisor with WestPac Wealth Partners. We encourage you to listen to the episode as James walks through some important financial advice for veterans, and helps break down the differences in the military vs. civilian financial benefits.

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