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Strategic Financial Planning for Veterans: A Guide for Military Families

Strategic Financial Planning for Veterans: A Guide for Military Families

December 30, 2023

Financial Planning for Veterans: Special Considerations for Military Families

Financial planning is crucial for everyone, but it holds particular importance for military families. Veterans and their families face unique financial challenges and opportunities. Understanding these nuances can help in making informed decisions that align with long-term financial security and goals. Here are some key considerations for financial planning specific to veterans and their families.

1. Understanding Military Benefits and Pensions

Military veterans often have access to a range of benefits, including pensions, which can form a significant part of their retirement planning. It's essential to understand how these benefits work, their eligibility criteria, and how they can be optimized within a financial plan. This understanding helps in planning for retirement and ensures that veterans receive all the benefits to which they are entitled.

2. Utilizing Education Benefits

The Post-9/11 GI Bill and other education benefits are vital resources for veterans and their families. These benefits can cover tuition, books, and even provide a living stipend. Veterans should explore these options not only for themselves but also for their dependents, as some benefits can be transferred to spouses or children.

3. Dealing with Deployment and Relocation

Military families often face frequent relocations and deployments. These changes can have significant financial implications, including fluctuating living expenses and changes in state taxes. Financial planning should take these potential moves into account, ensuring that savings and investments are flexible enough to handle these changes.

4. Managing Disability and Healthcare

Veterans may have access to disability compensation and healthcare benefits through the Department of Veterans Affairs (VA). Understanding these benefits, including how to apply for them and how they impact overall financial planning, is crucial. These benefits can provide significant financial support, especially in the case of service-connected disabilities.

5. Life Insurance Considerations

While active, military members have access to life insurance through the Servicemembers' Group Life Insurance (SGLI). However, upon leaving the service, it's important to reassess life insurance needs and options. Veterans should consider converting their SGLI to a Veterans' Group Life Insurance (VGLI) or explore civilian life insurance policies to ensure their family's financial security.

6. Emergency Savings and Debt Management

Like any family, having an emergency savings fund is crucial for unexpected expenses. Military families should aim to build a solid emergency fund, especially considering potential uncertainties like deployment. Additionally, managing debt effectively, including understanding the implications of the Servicemembers Civil Relief Act (SCRA), which offers certain protections, is key to financial well-being.

7. Retirement Planning Beyond Military Pensions

While military pensions are a significant benefit, veterans should also consider other retirement savings options like IRAs or employer-sponsored 401(k) plans. Diversifying retirement savings ensures a more robust financial foundation for the future.

8. Estate Planning and Legal Affairs

Estate planning, including wills and trusts, is an important aspect of financial planning, especially for those who have served in the military. Ensuring that affairs are in order can provide peace of mind and security for a veteran's family.


Financial planning for veterans requires a tailored approach that considers the unique benefits and challenges faced by military families. By understanding and leveraging military-specific benefits, managing typical financial concerns, and preparing for the future, veterans can build a solid financial foundation that supports them and their families for years to come.

Remember, financial planning is a dynamic process, and it's crucial to review and adjust plans regularly, especially as life circumstances change. Seeking advice from financial professionals who understand the specific needs of military families can also be a valuable step in this journey.

The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.