Transcript
Before You Take OffFinancial Planning for
Deployment Pre-Deployment
Presented by________________
Deployment Planning
» Increases Saving/Spending Power
» Eliminates Stress
» Prepares You and Your Family for the Future
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Questions About
» Important Documents
» Financial Issues
» Property Management
–Housing
–Vehicles
» Communication Issues
» Emergencies
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IMPORTANT DOCUMENTS
Put Your Legal Affairs In Order
Important Documents
» Will
» Advanced Medical Directives
» Medical Powers of Attorney
» Powers of Attorney (POA)
– General
– Special/Limited
Legal assistance free of charge in your area http://legalassistance.law.af.mil/content/locator.php
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Important Documents
» Update:– Beneficiaries on accounts
•SGLI, TSP, PAY
•Insurance policies, investments
– Service Record & Contact List
Nothing says LOVE like Life Insurance
Important Documents
» Update– DEERS-Defense Enrollment Eligibility Reporting
System
• Confirm enrollment, call 1-800-538-9552
• TRICARE and Dental
– ID Cards, driver license, passport
– Spouse Relocation-notify command
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Know Your SCRA Rights
» Service Members Civil Relief Act (SCRA)– 6% cap on debts incurred before active duty
– Ability to break leases and cell phone contracts
– Limited eviction protection
– Temporary stays of civil proceedings • Bankruptcy
• Foreclosure: www.hud.gov/foreclosure
• Divorce
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FINANCIAL PREPARATIONSFor Financial Readiness
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Financial Preparations
» To-Do-List– Reevaluate financial goals:
“People don’t plan to fail, but they do fail to plan.”
– Review investments
– Create a budget and avoid combat overspending
– Review combat zone Service Member benefits
Show me the Money
» Base Pay» BAH—based upon where you live (even for AGR)
» BAS» Family Separation Allowance—if you only
have a child as a dependent must have court-ordered document stating you have physical custody at least 14 days per month
» Hostile Fire Pay» Hardship Duty PayCombat Zone Tax Exempt Income:
Federal and State taxes are first withheld and then refunded the following month for MDay SMs
New Money
Your Opportunity to Save!
» Pay Down Debt
» Revolving Savings
» Safety Savings
» Long-term Savings
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Financial Bells and Whistles » Savings Deposit Program (pays up to 10%
interest on up to $10,000 deposited)» SCRA reduces interest rates on debt acquired
prior to AD to 6%--a powerful tool to dig out of debt
» ROTH IRAs are powerful savings/investment vehicles when in a low or no tax bracket
» up to $49,000 per year to TSP with service in a COMBAT ZONE--ROTH TSP will be on line by 2012
» MyCAA provides educational opportunities for spouses of AD (E5, O2 and CW2 and below)
NACCRRA’s Operation: Military Child Care will help you locate licensed child care in your area which may be subsidized (the size of this is determined by total family income, DOD funding, location, etc.) while your spouse/child’s guardian pursues an education, works or for 60 days while seeking employment
Paying Bills
» Financial Arrangements
– Spouse or POA
– Direct deposit—1st and 15th
– Allotments
– Automatic bill pay
– Credit card use
– Set spending limits
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Taxes
» Extension– Automatic 60-Day filing Extension
– 180-Day Automatic Combat Zone Extension
– Freeze any IRS assessments for 180 days combatzone@IRS.gov
» POA or Spouse– Need prior year tax returns to file extensions
• IRS Form 2848 and POA to File Joint Tax Return
• File IRS Form 4868 for Four-Month Extension
Taxes
» Tax Assistance– http://www.irs.gov
• (Search-Military Exclusion Pay)
– www.militaryonesource.com • (For FREE tax preparation or questions)
• 1-800-342-9647
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While Deployed
» Check your LES online
» Protect Your Identity:– “Active Duty” alert
– Credit freeze: www.consumersunion.org/campaigns//learn_more/003484indiv.html
Order your free credit reports at
www.annualcreditreport.com
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Property Management
Protect Your Assets In Your Absence
House/Apartment/Vehicles
Home/Apartment» Payment
» Subletting – credit checks
» Maintenance and lawn care
» Sharing
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Vehicles» Put in storage» Renew registration, tags,
inspection» Check on reduced insurance
rates» Check for repairs and
maintenance
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Communication
Keeping In Touch
Communication Tools
» Phone Cards
» Cell Phones
» Hotel Room Phones
» E-Mail and Free Web Cams
» Regular Mail: stamps, envelopes
» Care Packages
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Emergencies Happen
Have a Plan
Emergencies
Discuss How to Handle:
» Car trouble
» Home maintenance
» Finances
Develop a Support System:
» Friends
» Family
» Community
» Red Cross
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Have on Hand:
» Contact Lists
» Emergency $$ Funding
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TOOLS
To Do the Job
Getting the Job Done
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Service Members Civil Relief Act (SCRA)
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Your Help List
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Support System Handout
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Websites Handout
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Websites
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Good Luck!
» Complete your checklist
» Questions?
» Have a safe and prosperous deployment!
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