Client Advisor Mark Herman discusses the numerous financial and retirement benefits provided by the military. Mission Wealth is honored to work alongside those who have selflessly served our country. Thank you to everyone who has made a sacrifice, as well as all active military members.
While less than 1% of the population currently serves in our armed forces, more than 7% have served at some point, and you are likely to have friends or family who are veterans. Few people join the military solely for financial benefits, as they are most likely compelled to serve something greater than themselves.
While joining the military entails certain risks and sacrifices, there are also several notable benefits, both during and after service.
Check Your State Benefits
Above and beyond the federal benefits, many states offer incentives to attract veterans and military retirees, such as exempting military pension income, and college scholarships for the veteran or their children. Further, most states will exempt a portion of property taxes for disabled veterans up to 100%!
Meet Client Advisor Mark Herman, CFP®, MBA
Many in the military presume they will stay long enough to earn a pension though in reality, an average of 83% of members do not stay in for the full 20 years. Thus, saving into a 401(k), or in the case of the military the Thrift Savings Plan (TSP), is an important part of a financial plan. Upon separation from the military, there are some unique elements to consider when deciding whether to leave funds in TSP or roll over to an IRA or Roth IRA.
While most military members do not 
serve long enough to earn a pension, this remains an excellent benefit and can replace up to 50% of the retiree’s income and is also adjusted annually for inflation. However, like many pensions, there are decisions to be made regarding survivor benefits at the time of retirement which can have a significant impact on a family’s financial plan. Having a financial planner with military experience can give a vet a fighting chance to take advantage of the various twists that can come with serving in the military.
Healthcare and Other Considerations
Military retirees also enjoy access to Tricare, which in many cases is better than a plan available on the open market. Note that part-time military members who retire from the Guard or Reserve do not actually begin receiving a pension and access to Tricare again until age 60 in most cases.
Military Financial Advisors at Mission Wealth
The benefits that come with military or federal service can be a significant benefit to your family if properly utilized, and Mission Wealth can help incorporate these into your financial plan. This includes assistance with college planning, tax planning, retirement, and legacy planning. Understanding what benefits are available to you is the first step. Work with an expert in military financial planning to create a financial future for your family.
Mission Wealth Client Advisor Mark Herman, CFP®, MBA, spent 7 years as a Blackhawk helicopter pilot and now serves in the U.S. Army Reserve. He is also an instructor for the Army Command and General Staff College. If you’re interested in working with Mark, please reach out to us using the form below.
