Serving in the military is a profound commitment that utterly transforms your lifestyle. Although it comes with its fair share of rewards, military life also brings a unique set of challenges—especially when it comes to finances.

As a Veteran, you've made sacrifices for our country. In return, our government provides a host of benefits and opportunities for you. However, navigating the financial landscape post-service can be daunting.

From managing Veterans' benefits, to planning for retirement, the financial transition from servicemember back to civilian is anything but straightforward. The choices you make today will have a long-lasting impact on your lifetime financial stability. That's why financial planning for Veterans is not just recommended—it's absolutely crucial.

In this guide, we'll explore five key financial planning tips designed to empower Veterans and military families. These tips will help you make informed decisions about your benefits, protect against scams, and help you secure a stable financial future. Let's dive in.

Tip #1: Know Your Available Benefits

As a Veteran, you have access to a range of benefits designed to assist you and your family in various aspects of life, from education and health care, to home loans and retirement. However, these benefits don't help unless you actively claim and manage them!

The first step to maximizing your benefits is knowing what options you have. Here, we'll explore the main types of benefits available to Veterans, as well as some strategies you can employ to maximize what you get at the end of the day.

Types of Benefits Available to Veterans

• Education: Programs like the Post-9/11 GI Bill offer opportunities for higher education or vocational training. Some programs even extend these benefits to dependents. We'll discuss these later.
• Health care: The Department of Veterans Affairs (VA) provides health care services through VA hospitals and clinics. Options like TRICARE are also available for extended family.
• Home loan guarantees: VA home loans offer several advantages, such as zero down payment and no mortgage insurance.
• Life insurance: Various life insurance programs like the Veterans' Group Life Insurance (VGLI) are available to offer financial security for your family.
• Retirement: The Thrift Savings Plan (TSP) and other retirement options provide avenues for long-term financial planning. We dive into the TSP in Tip #3.
• Disability compensation: If you have a service-connected disability, you may be eligible for monthly tax-free payments.
• Employment services: Job training, employment placement, and career counseling services are also part of the benefits package.

For a comprehensive view of Veterans benefits, visit the VA webpage Benefits A-Z to see an alphabetized list.

Must-Know Strategies for Claiming Veterans Benefits

Document, document, document. In your time in the service, you probably became accustomed to meticulously keeping your equipment clean and your space in order. In the same way, it's critical for Veterans to keep clear documentation of your service records, disability status, and other information that may be required for claiming benefits.

For example, you'll probably need DD Form 214 (your formal discharge papers) to access most of your benefits. You'll also want to keep track of marriage certificates and family records, as they can be used for claiming health care and educational benefits for dependents and extended family members. Similarly, keep any service awards and commendations that can be helpful during job applications and employment interviews. The bottom line is, if you are provided documentation for anything related to your time in the service, keep some sort of record of it so you can access it if you need to—even decades down the road.

See how you can combine your benefits. In some cases, you may be able to stack your benefits for maximum advantage. For example, you can use a VA loan along with a first-time homebuyer grant to make homeownership more affordable. Many benefits also extend to your family members. By making them aware of what they can access, you can help your family get ahead of the curve with some coordinated effort.

Stay informed about the latest changes. Veterans' benefits are controlled directly by the government and are subject to changes. Legislation can always add or modify existing benefits, so you need to track the latest government news to ensure that the benefits you're relying on aren't about to change.

Tip #2: Avoid Being Targeted by Veterans Scams

When it comes to scams, awareness is your first line of defense. While the range of benefits and services available to Veterans offers much-needed support, they also make Veterans attractive targets for scams and fraudulent schemes. Fortunately, you're headed in the right direction just by learning about these scams. Here are some common types of scams targeting Veterans—and how to safeguard against them:

5 Common Scams Targeting Veterans

1. Benefits buyout scams. Scammers offer quick cash in exchange for a Veteran's future disability or pension payments. This lump sum is often a fraction of the value of the future benefits.
2. Fake charities. Scammers set up charities with names similar to well-known organizations that help Veterans and solicit donations—pocketing all donations collected.
3. Phishing schemes. These take the form of emails or calls impersonating the VA or other official entities, often in pursuit of personal information. With this information, the scammer can commit identity theft or make fraudulent transactions.
4. Employment scams. Fraudulent offers of employment for Veterans often require payment for "training" or "certification." After the money is paid, they provide no training—and no job.
5. Veteran service records scam. Fraudsters charge Veterans to access service records or benefits information, both of which are free.

To protect yourself against these scams, always verify before you act. Check the credentials of charities, employers, and financial services before you provide information or money. When in doubt, seek advice from trusted friends, family, or advisors. Keep in mind that scammers often put themselves in the shoes of their marks—stay one step ahead by maintaining vigilance and being suspicious of dubious or unexpected requests.

Tip #3: Understand Retirement Planning for Veterans

When it comes to your financial future, one of the most powerful tools at your disposal is the Thrift Savings Plan (TSP). As a Veteran, you're likely already familiar with the TSP from your time in the service, but it's essential to understand how to maximize this benefit now that you're a civilian.

What Is the Thrift Savings Plan?

The TSP is a retirement savings and investment plan designed specifically for federal employees and members of the military. It's like a 401(k) plan but with lower administrative costs. Through the TSP, you can access many different investment options.

Why Is the TSP Ideal for Veterans?

• Low fees. The TSP has some of the lowest fees in the investment world. Lower fees mean more money to grow over time.
• Tax advantages. You can contribute to a traditional TSP like a 401(k) and enjoy tax-deferred growth or opt for a Roth TSP and make withdrawals tax-free in retirement.
• Flexibility. A wide range of investment options means you can tailor your account to your specific financial needs. In fact, the TSP offers "lifecycle funds" that are automatically adjusted over time, gradually shifting from high risk to low risk as they get closer to their target dates.

A principal point to keep in mind when investing in a TSP is to look out for rollover fees. If you're considering rolling over an existing non-TSP retirement account into a TSP account, it's crucial to understand the fees involved. Some retirement accounts charge exit, transfer, or closure fees when you roll them over, which may outweigh the potential long-term benefit from the rock-bottom fees of the TSP. It's all about cost-benefit analysis; if you're wondering if rolling an existing retirement account into a TSP is worthwhile, consider speaking to a financial advisor to make sure you don't enroll in a costly mistake.

Tip #4: Maximize Your Education and Health Care Benefits

No matter how you slice it, education is expensive in the United States. Fortunately for Veterans and military families, the government provides extensive programs to offset education costs as a thank-you for your service.

How Veterans Can Use the GI Bill for Education

The Post-9/11 GI Bill is the cornerstone of educational benefits for Veterans. It offers substantial assistance for higher education and training. If you can leverage the GI Bill correctly, it can significantly boost your career advancement and financial stability after leaving the service. Here's how:

• Understand the basics. The GI Bill provides benefits that cover tuition and fees, a monthly housing allowance, and a stipend for textbooks and supplies. The specifics can vary depending on when and how long you served.
• Plan your path. If you qualify for the maximum benefit, the GI Bill will pay for the full cost of your tuition for public, in-state institutions. The VA offers career counseling and academic advising to help you make informed decisions.
• Transferrable benefits. If you don't use all your GI Bill benefits, you may have the option to transfer the remaining benefits to your dependents.
• If you think you're eligible for free or reduced-cost education through the GI Bill, explore the application process to learn more.

What Is the Yellow Ribbon Program?

The Yellow Ribbon Program is a valuable extension of the Post-9/11 GI Bill designed to help Veterans attend private schools or graduate programs that exceed GI Bill coverage. Although there are strict eligibility requirements, if you and your school qualify for the program, you can potentially advance your education far beyond what you could with the standard GI Bill.

Not every school participates in the Yellow Ribbon Program. If you're interested in learning more about this advanced option, visit the VA website or reach out to an academic advisor who can help guide you through the process.

Tip #5: Work with Someone Who Has Done It Before

As you navigate the post-military world of financial planning, the guidance of an experienced professional can be invaluable to your long-term success. By partnering with financial advisors who specialize in Veterans' affairs—the advisors who understand the intricacies of military benefits—you ensure that you're making the most out of your bountiful financial opportunities.

At Wealth Enhancement Group, our RoundtableTM team of specialists scrutinizes your financial plan from a variety of angles and fields. From TSP tax strategizing to education funding through the GI Bill, our team has what it takes to support you throughout your financial journey.

If you're interested in working with upstanding advisors with outstanding work ethics and a commitment to results, reach out to us today to schedule a free, no-obligation meeting.