Financial Advisors for Military Personnel

The reasons for joining the armed forces may vary. From the need for adventure to patriotism, the army offers it all. While jobs in the military are like no other, the financial needs of service members and veterans are more or less similar to those of civilians. Life in the military can be unpredictable. So, as a military personnel, it is essential to plan not just for your present needs but also for the future. This involves ensuring the financial well-being of your family, preparing for your own retirement, and managing your finances effectively throughout your military service.

Choosing a suitable financial advisor is crucial in this regard. A financial advisor experienced in working with military personnel and veterans can help you address specific financial concerns and take advantage of special benefits associated with military life. This article will guide you through the process of finding a qualified financial advisor who understands the unique needs of serving and ex-military employees.

How to find an army financial advisor?

Finding a financial advisor who understands the unique needs of military personnel is crucial for effective financial planning. The financial needs of military personnel largely differ from those working in the private or other public sectors. Military personnel often move around a lot due to their postings and deployments. They may also live in relatively secluded towns and cities, which can bring about a massive shift in their lifestyle and lead to unlikely costs like temporary accommodation needs or higher costs for accessing goods and services. This, in turn, affects their spending habits and financial goals and brings forth the need to hire not just any financial advisor but someone who specializes in addressing their unique financial concerns.

Here are some specialized options that allow you to hire army financial advisors:

1. Military Financial Advisors Association (MFAA)

MFAA can be an ideal option if you are looking for military financial advice. The association consists of fee-only fiduciary financial advisors, which makes it easier for you to trust them. Since fiduciaries always put the interests of their clients before their own, hiring them can be a plus. The MFAA network of financial advisors specializes in assisting active-duty military members. They also cater to the financial needs of veterans. With their expertise and years of experience, they can help you achieve your financial goals more effectively.

2. Navy Federal Credit Union

The Navy Federal Credit Union is another resource that provides financial advisory services customized to the needs of military personnel. They can provide military and financial counseling and help you make the most of your available military benefits, compensation, pension, and more.

3. United Services Automobile Association (USAA)

USAA also offers financial services for military members and veterans. They offer military financial planning that is customized to address the financial goals and challenges faced by military employees.

Below are some reasons why professional financial advice for veterans and serving personnel is essential:

1. You may need help understanding the benefits of your employment

If you are in the military or a veteran, you may be entitled to special benefits designed to support your financial well-being. However, these benefits can be complex, with varying eligibility requirements and application processes. A financial advisor experienced with military benefits can help you understand these rules and avail yourself of these benefits to ensure you secure your financial future.

For example, if you served in the military, you may qualify for GI Bill benefits, which provide financial support for education and training programs. These benefits can cover tuition, school fees, housing, and even books and supplies, supporting both you and your dependents in planning for education. If you are a veteran, you can also take advantage of VA loans to purchase homes with no down payment and lower interest rates than traditional mortgage products. These loans are backed by the Department of Veterans Affairs and make homeownership more accessible for military families. A financial advisor can guide you through these provisions to ensure you cross major financial milestones without any hiccups and make the most of these opportunities.

Life insurance is another important consideration for service members, especially if you are deployed to high-risk areas. While obtaining an individual life insurance policy can be challenging, military members may qualify for Servicemembers’ Group Life Insurance (SGLI), which offers coverage at affordable rates. A financial advisor can help ensure you have the right coverage to protect your family. Tax planning is another essential for military members, as you are taxed differently from civilians. For instance, income earned in a recognized combat zone may be excluded from federal income taxes. Hiring an army financial advisor can be helpful to ensure that you understand military tax rules and claim deductions, credits, and other tax-saving opportunities to reduce your tax burden and keep more of your earnings.

2. You may need help managing your expenses

Military life often involves frequent relocations, and while some of these moving costs may be reimbursed, you might still face out-of-pocket expenses. On top of that, if you are deployed away from your family, you will likely have additional costs for maintaining two households – your own and your family’s. Relocation and deployment can also complicate family finances. If your spouse is unable to work consistently due to frequent moves, your household may rely primarily on your income. This limited family income can increase financial pressure, especially since you do not have a partner to share the financial load. Additionally, with one parent often away, you may have to spend more on childcare or similar services, further increasing your expenses.

Balancing these costs can be challenging, but careful budgeting and financial planning can help. A financial advisor experienced with military life can help you manage these unique expenses and ensure you make the most of your income while planning for the future.

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3. You may need to plan for contingencies, given the volatile nature of your job

Military life comes with inherent risks. Service members are often exposed to dangerous situations that can lead to injuries, disabilities, or, in some cases, the ultimate sacrifice. Beyond the physical risks, deployments in volatile regions can also have long-lasting mental health effects, with many veterans experiencing issues such as Post-Traumatic Stress Disorder (PTSD), anxiety, or depression even years after. Given the unpredictable nature of this career, it is essential to plan for all contingencies to ensure your financial well-being and that of your family.

The first thing to focus on is the possibility of injury or disability. A serious injury could drastically alter your ability to work and even potentially force you into early retirement. This could significantly reduce your earning capacity and force you to adjust to a more frugal lifestyle. Therefore, it is important to plan for it now so you can mitigate the long-term financial impact of such an event. A knowledgeable financial advisor can help you craft a retirement strategy that takes worst-case scenarios into account. They can help you select investments that can provide stable returns and create a financial cushion in the event of early retirement. Moreover, a financial advisor well-versed with military personnel can help ensure you are taking full advantage of any benefits you are entitled to, such as veterans’ disability compensation, to help bridge any income gaps. If you are deployed in high-risk areas, it is also vital to have a plan in place to protect your family should the worst happen. Life insurance is a crucial tool in this regard, as explained above. However, apart from specialized life insurance plans, such as the SGLI, you must also consider other insurance plans. You may buy additional private life insurance depending on your family’s needs and financial goals. A financial advisor will work with you to assess your coverage requirements and help you select the right insurance package to ensure your loved ones are financially secure in the event of your injury or death.

Additionally, given the mental health risks associated with military service, it is also important to plan for long-term care needs. This could involve setting aside funds for potential therapy, medicines, rehab centers, etc. A financial advisor who understands the challenges veterans face can guide you in establishing an emergency fund or allocating resources for healthcare expenses.

Things to look out for when selecting a financial advisor for military personnel

1. Fees

The fee structure is the first factor to consider when choosing a financial advisor. You need to ensure that the advisor’s fees align with your budget. Financial advisors can charge in various ways, such as fee-only, hourly, a percentage of assets under management (AUM), an annual retainer, or commissions from the financial products and services they sell. It is essential to identify a fee model that works for you and your financial situation. Once you have determined this, you can start narrowing down the professionals who offer a similar payment structure that matches your preferences.

2. Fiduciary status

Fiduciary status is another crucial consideration when selecting a financial advisor. As explained above, a fiduciary financial advisor is legally bound to put your interests ahead of their own. This guarantees that the financial advisor does not act from a place of bias or personal preference but rather suggests options that align with your financial goals. Hiring a fiduciary advisor ensures you receive military financial advice that is transparent, unbiased, and solely focused on benefiting you.

3. Background with the military

Military personnel receive unique benefits through their service but also face distinct financial challenges. Hiring a financial advisor who has relevant experience in working with military employees and their families is crucial to ensure you can make the most of the benefits and overcome possible complexities effectively.

For instance, depending on your years of service and enlistment date, you may be eligible for one of the military retirement plans. A knowledgeable financial advisor can help you leverage these plans to your advantage. Veterans who served during the Vietnam War, World War II, the Korean Conflict, or the Gulf War may qualify for the Veterans Pension program and potentially receive up to $27,609 annually in pension payments. You can hire a financial advisor to understand if you qualify for this pension and how to apply for it. Veterans may also qualify for the Department of Veterans Affairs (VA) medical benefits package. This can be used to cover the financial impact of preventive care and other medical treatments. Additionally, veterans with service-related disabilities, whether physical or mental, can receive tax-free monthly compensation. The amount can vary based on your disability rating and dependents, ranging from $171.23 to over $4,400 per month.

However, only financial advisors well-versed in military-specific benefits and programs can provide the guidance needed to make the most of these opportunities. Therefore, finding a professional who specializes in financial counseling for veterans and active-duty military personnel is essential for securing your financial future.

4. Availability

As a military professional, you might move a lot. This means you need a financial advisor who can accommodate your schedule and offer ongoing assistance no matter where you are stationed or where you go for your next posting. Your financial needs will never end, and no matter where you are deployed, you will need to make sure that your savings and investments continue as planned. This will ensure that your family, whether back home or with you, can cover their essentials and aim for a comfortable life ahead. It will also ensure that you stay on track to meet long-term goals like retirement.

To conclude

Specialized military financial advice is essential to ensure personnel in the army, as well as their families, can live a financially secure life. Given the volatile nature of the job, the unpredictability of deployments, limited work opportunities after your service, and other similar issues, it becomes essential to start planning early on. This would allow you to plan for all your future goals with the help of a qualified financial advisor who can provide personalized financial counseling for veterans and serving professionals.

Use WiserAdvisor’s free advisor match tool to get matched with 1-3 financial advisors who understand the unique needs of serving and ex-military employees and can address your specific financial concerns. Answer a few simple questions based on your financial needs and get matched with 2 to 3 financial advisors who are best suited to help you.