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Money Monday

Monday, May 20th, 2013

By Barbara O’Neill

What are some tips for service members for naming beneficiaries for insurance policies and retirement savings plans such as the Thrift Savings Plan (TSP)?

Photo by lorenkerns (creativecommons.com)

Photo by lorenkerns (creativecommons.com)

First, service members should regularly review the beneficiaries named in insurance policies and retirement savings plans and revise them as needed. Second, service members should name secondary beneficiaries in case the primary beneficiary predeceases them. Third, service members should record in one document all of the beneficiaries and contingent beneficiaries for all of their important papers that include named beneficiaries for ease of review and periodic updating. A form to record beneficiary designations can be found at njaes.rutgers.edu/money/pdfs/beneficiary-designations.pdf

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This post was published on the Military Families Learning Network Blog on May 20, 2013

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The Johnsons discuss 529 Plans

Tuesday, May 14th, 2013

The Johnson family first joined us during Dr. Michael Gutter’s April 15 Financial Statements & Record Keeping web conference. Here, they discuss opening a 529 plan for their 2-year old son, Sam. Watch as Brittany and Brett discuss the advantages of this education savings option, and save the date of May 21 for Dr. Barbara O’Neill’s Paying for Post-Secondary Education Expenses web conference.

 

The Johnsons discuss 529 plans
by: msgutter

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Money Monday

Monday, May 13th, 2013

By Barbara O’Neill

Why should service members start a savings program before they are deployed?

The simple reason to save part of a service member’s military paycheck as early as possible is because “time is money.” The sooner money is saved, the sooner compound interest can work its magic by earning interest on interest. Also, by saving money in advance of a deployment, service members will be able to contribute as much as possible to the Savings Deposit Program (SDP) as soon as they become eligible. Deposits that are proportionate to a service member’s unallotted pay, bonuses, and allowances can be made by cash, check, or money order in $5 increments or by allotment.

Deployed service members can invest up to $10,000 in the SDP and receive 10% interest, compounded quarterly for as long as they are deployed and for up to three months after they return from a combat zone. The 10% return far exceeds the return on traditional bank savings accounts or credit union share accounts and is especially valuable on a larger sum of money (e.g., $10,000 of principal versus $2,000). For more information about the SDP, see saveandinvest.org/FinancialBasics/Saving/P124359.

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This post was published on the Military Families Learning Network Blog on May 13, 2013

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Money Monday

Monday, May 6th, 2013

By Barbara O’Neill

Are the children of service members covered by the federal health care law that allows adult children to stay on their parent’s health care plan until age 26?Photo by DVIDSHUB (creativecommons.com)

Yes. Congress passed legislation requiring TRICARE, the health insurance program for active and retired service members, to adopt the provision required for health insurance offered by civilian employers to extend health care insurance for young adults until age 26. An annually adjusted fee ($176 or $201 per month in 2012, depending on the type of plan selected) is charged for each young adult covered through a parent’s insurance. Young adult TRICARE premiums are based on recent medical expense data.

Browse more military personal finance Frequently Asked Questions answered by experts.

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This post was published on the Military Families Learning Network Blog on May 6, 2013

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Money Monday

Monday, April 29th, 2013

By Dr. Barbara O’Neill

What is Military Stop Loss Pay?

Military Stop Loss occurs when a service member’s enlistment is involuntarily extended. As a result, additional pay may be provided to service members in this situation.

The deadline for filing a Retroactive Stop Loss Special Pay (RSLSP) claim for stop loss between September 11, 2001 and September 30, 2009 was October 21, 2012. RSLSP pay is $500 for each month/partial month served in stop loss status and the average benefit is $3,700.

Eligibility, filing, and payment information for Retroactive Stop Loss Special Pay is available online at http://www.defense.gov/home/features/2010/0710_stoploss/.

 

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This post was published on the Military Families Learning Network Blog on April 29, 2013

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Education Expenses and the Military

Friday, April 26th, 2013

The Army has recently announced a change to their GI Bill transferability policy that will impact service members with 20 or more years of service in August of this year. Currently, service members with less than 20 years of service can transfer their GI Bill benefits to a spouse or dependent by signing on for 4 more years of service,  a stipulation that doesn’t currently apply to retirement-eligible service members; in August that will no longer be the case.

The personal finance group will provide more details on these changes as well as many other important components of the GI Bill and other ways to finance education expenses during a 2-part webinar series.

On May 21, Dr. Barbara O’Neill will present Paying for Post-Secondary Education Expenses Part 1, which will focus on options for paying for college and the benefits of continuing education. Dr. O’Neill will provide participants with a myriad of online resources that provide information about meeting the cost of tuition and other educational expenses.

On June 17  Leland Drew Hill, Associate Director of Veteran’s Affairs with Embry-Riddle University, will together present Paying for Educational Expenses & the GI Bill. This session will focus on the benefits afforded to service members to continue their education.

Both sessions will be offered at 11 a.m. Eastern and will provide AFC-credentialed participants with 1.5 CEUs. Please visit the hyperlinks above for important information about connecting to the online presentation platform.

 

This post was originally posted on the Military Families Learning Network blog on April 26, 2013.

 

 

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Meet the Johnsons

Monday, April 22nd, 2013

Meet the Johnson Family. Brett, Brittany and their son Sam are the subject our our personal finance case study, which details this military family’s financial situation. Brittany, a nurse, enjoys her career and earns a good salary. Brett also enjoys his career as a Corporal in the Army. They are focused on staying current on their bills and saving for their son’s education.
In this video, watch as Brittany and Brett discuss how to use their tax return, and stay tuned for more videos featuring the Johnsons!

This video and this blog post were published by the Military Families Learning Network and shared on the Military Families Learning Network blog on April 22, 2013.

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Money Monday

Monday, April 22nd, 2013

By Dr. Barbara O’Neill

A service member is using Post-9/11 GI Bill benefits to pay for college. How much housing allowance will be received monthly? Photo by pbinder (creativecommons.org)

A military veteran who is enrolled in college full time can expect to receive a monthly housing allowance equal to an E5 with dependents for the ZIP code in which the college is located. In July 2011, the national average for this housing stipend was $1,350 per month, although it was as high as $2,700 in some locations. Service members should stay up-to-date on current program rules for the Post-9/11 GI Bill. This is still a relatively new program, and therefore some of the rules and regulations are still being tested and refined. According to the website www.military.com, Congress is currently working on legislation that will pay the housing stipend only during the weeks school is actually in session. That means that if a veteran is attending a university on a semester system and the term ends May 10, he/she will receive a housing stipend only for the first 10 days of May. The stipend will begin again when classes start again. Veteran students will be responsible for covering their rent during the time between receiving GI Bill payments. If they are attending a 100% online school, starting Oct. 1, 2011, they will receive half the national average Basic Housing Allowance (BAH) for an E5 with dependents, or around $637.50 per month.

For additional information and updates, refer to the website listed above or www.gibill.va.gov.

For more information on the GI Bill, make plans to attend our web conference, “Paying for Educational Expenses and the GI Bill” on May 23, 2013.

 

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This post was published on the Military Families Learning Network Blog on April 22, 2013

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Money Monday

Monday, April 15th, 2013

By Dr. Barbara O’Neill

An active duty service member is in financial difficulty and cannot afford his rent and other expenses. Will he be evicted? Photo by tombothetominator (creativecommons.org)

The Servicemembers’ Civil Relief Act (SCRA) provides a service member protection from eviction for non-payment of monthly rent while on active duty. The SCRA also allows service members to end a lease by giving written notice at least 30 days before the next payment is due. Monthly rent must not exceed a certain amount that is updated annually and service members are advised to speak with their base legal office for current rent amounts. This 30-day time frame allows a service member time to find affordable housing choices. For more information, refer to www.military.com/benefits/legal-matters/scra/lease-termination.

It is important to note that some landlords may be unaware of SCRA protections and try to evict service members anyway. The service member may need to “educate” the landlord by providing resources that explain the law such as http://www.military.com/benefits/content/military-legal-matters/scra/servicemembers-civil-relief-act-overview.html.

There is also a larger question of why a service member is not able to afford to pay rent. Causes of financial difficulty need to be clarified to determine if this is a one-time event of not being able to pay rent or a habitual practice. If a service member and/or spouse needs assistance with preparing and using a spending plan (budget), personal financial counselors are available at the state Joint Force Headquarters, through Military OneSource (see www.militaryonesource.mil/MOS/f?p=MOS:HOME:0), or through the State Family Programs Director.

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This post was published on the Military Families Learning Network Blog on April 15, 2013

 

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Money Monday

Monday, April 8th, 2013

By Dr. Barbara O’Neill

How can military family members save money on postage for care packages sent to service members overseas? nukeit1

The United States Postal Service (USPS) has created a “Mili-kit” based on the items most frequently requested by military families. The kit is free of charge and contains four Priority Mail APO/FPO flat-rate boxes (two medium and two large), one roll of priority packing tape, priority mail address labels, six customs forms, and envelopes. The kit may be requested by calling 1-800-610-8734.

Priority Mail APO/FPO flat-rate boxes cost $2.00 less to ship than standard USPS domestic pricing. The exact cost varies with the size of the box and changes periodically when postal rates increase.

APO/FPO flat-rate packages to service members can be as heavy as the sender would like to make them for the same flat rate. These boxes feature the “America Supports You” logo which will definitely bring a smile to a service member’s face when received!

For more information, refer to: https://store.usps.com/store/browse/uspsProductDetailMultiSkuDropDown.jsp?productId=P_MILI_FRB&categoryId=subcatMSS_FlatRate.

 

Browse more military personal finance Frequently Asked Questions answered by experts.

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This post was published on the Military Families Learning Network Blog on April 8, 2013

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