{"id":2978,"date":"2010-12-30T21:47:31","date_gmt":"2010-12-31T05:47:31","guid":{"rendered":"https:\/\/maysfinancial.local\/?p=2978"},"modified":"2017-02-26T04:44:18","modified_gmt":"2017-02-26T04:44:18","slug":"financial-benefits-of-military-service","status":"publish","type":"post","link":"https:\/\/maysfinancial.local\/articles\/financial-benefits-of-military-service\/","title":{"rendered":"Financial Benefits & Opportunities of Military Service"},"content":{"rendered":"

People join the military for many reasons and under different circumstances.\u00a0 When thinking about joining, some may wonder if <\/strong>military<\/strong> service provides enough financial compensation, stability and opportunities for a desirable lifestyle.<\/strong> This is an excellent question.\u00a0 Below is a general overview of some military benefits to help you make an informed decision or, if already serving, take advantage of the benefits available to you.\u00a0 The below is from an active duty Marine Corps perspective.\u00a0 There are some differences between services as well as between the active and reserve components.<\/p>\n

Pay<\/strong><\/h3>\n

Military pay can be complicated, so let\u2019s talk about the main components.\u00a0 Firstly, your basic pay<\/strong> is based on your rank and your time in service.\u00a0 As you progress in rank and gain years in service, your pay will increase.<\/p>\n

Your basic housing allowance (BAH)<\/strong> depends on where you live, your rank, and whether you have dependents.\u00a0 For example, you will receive more housing allowance in southern California than you will in South Carolina due to the increased cost of living.\u00a0 Also, your housing allowances will increase as you progress in rank and again if you have dependents.\u00a0 If you prefer to live on base, you can exchange your BAH for on-base housing.\u00a0 This is an attractive option for some because utilities and maintenance are cost-free in addition to an increased level of safety and convenience.<\/p>\n

Along with the above primary pays, there are allowances for food and clothing<\/strong>.\u00a0 There are also signing and re-enlistment bonuses<\/strong> available to certain specialties.\u00a0 Other incentive pays and allowances are available for various specialties, skills and circumstances<\/strong> like aviation, language, combat, family separation, etc.\u00a0 The minutia of these pays and allowances will be covered in another article.\u00a0 More on military pay.<\/a><\/p>\n

Taxes<\/strong><\/h3>\n

There are many, often substantial, tax advantages available to military members.<\/strong> For example, most allowances are not taxed.\u00a0 This leaves basic pay, special pay and bonuses as the primary taxable military pays.\u00a0 Additionally, some states allow military members to avoid paying state income taxes under certain circumstances.\u00a0 Many products and services on base are tax-free as well.\u00a0 More information on military tax issues.<\/a><\/p>\n

Medical Care<\/strong><\/h3>\n

Service members can get free, comprehensive medical care for them and their family.<\/strong> Anyone who\u2019s paid health premiums for a family understands the value of this benefit.\u00a0 Service members also receive things like physical therapy, corrective surgeries (i.e. PRK\/LASEK eye surgery), medications, supplements, and others cost-free<\/strong>.\u00a0 More about military medical care.<\/a><\/p>\n

Life Insurance<\/strong><\/h3>\n

Unfortunately, many of us underestimate the value of life insurance until it\u2019s too late, especially when we\u2019re young and death seems so far away.\u00a0 Service members can purchase life insurance for themselves (SGLI<\/strong>) in $50,000 increments up to $400,000.\u00a0 The cost of the maximum $400,000 coverage is exceptional at only $27\/month no matter what your age, health or specialty.<\/strong> Additionally, service members may also purchase coverage for their spouse and children in $10,000 increments up to $100,000 at competitive rates (FSGLI<\/strong>).\u00a0 For example, coverage for a spouse or child at the $100,000 level for someone 35 or younger is only $5\/month.<\/strong> More information on SGLI.<\/a> More information on FSGLI.<\/a><\/p>\n

Educational benefits<\/strong><\/h3>\n

The GI Bill is a popular military benefit that provides service members money for college, vocational and other educational institutions.<\/strong> The GI Bill now includes more appropriate compensation (based on state tuition rates) and a BAH (allowance for housing) component.\u00a0 With the Post 9\/11 GI Bill came another, less familiar feature called the Yellow Ribbon Program<\/strong> which is available after leaving active duty.\u00a0 Under this program participating institutions will pay some or all of the remaining tuition beyond what the GI Bill covers.<\/strong> This feature makes private institutions more accessible and easier to afford.\u00a0 More information on the GI Bill.<\/a> More Information on the Yellow Ribbon Program.<\/a><\/p>\n

While on active duty, service members can use Tuition Assistance (TA). <\/strong>This pays for courses up to $250\/credit hour totaling up to $4,500 per year for most branches.\u00a0 Essentially, this allows you to earn a Bachelor\u2019s degree for free while serving without using your GI Bill<\/strong>.\u00a0 This program may also be used to earn a Master\u2019s and Doctorate degree<\/strong> as well.\u00a0 More information on Tuition Assistance.<\/a><\/p>\n

With the new Post 9\/11 GI Bill service members may also pass their <\/strong>education<\/strong> benefits onto their dependents<\/strong> after certain time in service milestones are met.<\/p>\n

Retirement<\/strong><\/h3>\n

Military <\/strong>retirement<\/strong> is without a doubt one of the best <\/strong>retirement<\/strong> programs<\/strong>, <\/strong>but it must be earned.<\/strong> Military service requires a serious commitment and can be incredibly demanding on the service member and their family.<\/p>\n

At its most basic level, for 20 years of service an individual receives have of their qualifying basic pay for the rest of their life. <\/strong> Retirement pay increases by 2.5% per year, capping at 100% after 40 years of service. For example, if someone joined the service at age 17 they could potentially retire as a Sergeant Major or Chief Warrant Officer at age 37 and receive over $30,000\/year for the rest of their life, <\/strong>still young enough to begin another career. \u00a0\u00a0 More on active duty retirement.<\/a><\/p>\n

In addition to the above, the military offers a voluntary retirement savings program called Thrift Savings Plan (TSP) which is similar to a Traditional IRA<\/strong>.\u00a0 The Thrift Savings Plan allows service members to contribute significantly more per year than Traditional and Roth IRAs<\/strong>.\u00a0 \u00a0 Thrift Savings Plan Website.<\/a><\/p>\n

Experience and Training<\/strong><\/h3>\n

I have no doubt that it is possible for an individual to sit at a desk their entire career and never actually go anywhere or see anything, but this is highly unlikely.\u00a0 But based on choice of branches, occupational specialty and motivation you can do just about anything you desire<\/strong>.\u00a0 In the Marine Corps I\u2019ve had the opportunity to manage logistics, work in aviation, manage nearly a billion dollar budget, perform combat operations and security patrols with foreign militaries, lead large groups of people towards a common goal, etc.\u00a0 I\u2019ve also had the opportunity to live all over the United States and see different parts of the world<\/strong>.\u00a0 That\u2019s just something you can\u2019t put a price on, especially if you want to leave the military to pursue a career elsewhere.\u00a0 Everyone\u2019s experiences vary, but in my mind this is one of the largest benefits.<\/p>\n

Benefits from training are highly dependent on occupational specialty.\u00a0 For example, a military police officer will have an advantage if they wish to follow a career in law enforcement later in the civilian world.\u00a0 A number of my friends were aviators in the military and are currently flying for airlines, FedEx or other organizations while serving in the reserves.\u00a0 The opportunities are immense<\/strong> and some occupational specialties transfer more easily to the civilian world than others.<\/p>\n

Perks<\/strong><\/h3>\n

There are countless military perks.\u00a0 Things like military discounts<\/strong>, free tickets to events, free college for children in certain states, preferred job placement, etc<\/strong>.<\/p>\n

Pride<\/strong><\/h3>\n

This speaks for itself, some things you just can\u2019t put a price on.\u00a0 Whenever someone tells me, \u201cThank you for your service\u201d all I think is, \u201cWell, you make it easy.\u201d\u00a0 The American people make serving a very worthwhile and rewarding experience<\/strong>, which is just icing on the cake.<\/p>\n

How many, on their death-bed, would give all they had and more to feel like they made a difference with their life?\u00a0 The pride from making such a contribution to society and the world is immeasurable and lasts a lifetime.<\/strong><\/p>\n

Official website for military compensation: http:\/\/militarypay.defense.gov\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

People join the military for many reasons and under different circumstances.\u00a0 When thinking about joining, some may wonder if military service provides enough financial compensation, stability and opportunities for a desirable lifestyle. This is an excellent question.\u00a0 Below is a general overview of some military benefits to help you make an informed decision or, if […]<\/p>\n","protected":false},"author":1,"featured_media":3992,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[2,12],"tags":[],"_links":{"self":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/2978"}],"collection":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/comments?post=2978"}],"version-history":[{"count":0,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/posts\/2978\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/media?parent=2978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/categories?post=2978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maysfinancial.local\/wp-json\/wp\/v2\/tags?post=2978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}