Opinion: The 7 financial ‘must dos’ for transitioning veterans

A naval aviator returns from deployment returns from deployment File photo by Chris Stone Times of San Diego San Diego is home one of America s largest military populations with nearly a quarter million veterans countywide in addition to the large concentration of active-duty personnel Having banked both the U S military and San Diego for over a century Bank of America has dedicated support and services for our military men and women including helping them transition into civilian life following their current duty careers Specifically we help them understand the different financial materials and challenges that come with leaving one profession and entering another For example there are several financial considerations when transitioning from military to civilian life ranging from housing allowances and deployment pay to certain tax benefits that go away following official function Understanding this new landscape can help handle the transition to civilian life with confidence to achieve financial wellness in a new life chapter Here are seven tips to help you make the financial transition Set aside a transition fund It may take you a limited months to land the job you want At the same time you may face new expenses like housing and transportation that require cash up front If you can set aside enough money to cover a scarce months of basic expenses Starting small and saving a limited dollars a month can help you build toward this goal Know how far your civilian paycheck will go Much of your civilian income will be subject to taxation meaning your take-home pay will likely be less than the salary you were quoted in your job offer Try to get a sense of how much you ll take home each month after taxes and then create a budget that includes rent food car payments debt repayment and any other expenses Understand how taxes will change You ll seemingly have more taxes withheld from your new civilian paycheck but there are also a number of tax breaks available to help veterans and their families For example multiple Veterans Administration benefits are tax-free and a number of states offer property tax relief for veterans From now on you ll need to be more mindful of the IRS s April deadline While you may have received an automatic income tax return filing extension while serving in combat zones as a civilian you must request more time if you re going to file your return after April Extensions are generally granted until Oct but you ll still have to pay any taxes you owe by April Take Care of Your Fitness Your physical condition care coverage generally ends the day you exit the military so you ll want to know your options for the future For example you may be able to continue your TRICARE coverage by paying out of pocket using the Continued Healthcare Care Benefit Operation or you may qualify for group insurance through a new job If you don t have a job lined up you can also look into buying coverage via a state exchange Consider insurance to protect yourself and your loved ones Protecting and providing for your loved ones is apparently a high priority for you but you may not have thought about life insurance as part of your financial plan These plans may be offered through your employer or you may want to explore a individual protocol to ensure your family is covered even during any employment lapses The VA offers a calculator to figure out coverage demands Know your VA benefits The Department of Veterans Affairs offers a host of benefits to those transitioning out of the military including Financial and tuition assistance through programs such as the Post- GI Bill the Montgomery GI Bill and the Veterans Educational Assistance Undertaking Career counseling Homebuying help via the VA home loan which guarantees a portion of a mortgage or home loan allowing you more favorable terms Financial assistance to accommodate a service-related disability Check the VA website to see a full list of available benefits Start thinking about retirement During your transition from advancing duty to civilian life your primary focus may initially be shorter-term demands but it s also a good time to start thinking about longer-term goals like retirement You may already have money set aside via the Thrift Savings Plan As a civilian you will have a new range of retirement capital options available to you like employer-offered k s or b s If you don t have access to employer plans you can consider setting up an Individual Retirement Account As a company that has proudly served the U S armed forces for over a century Bank of America provides free financial development information specifically for military members from current duty to post-military life on our Better Money Habits website A U S Army veteran Tony Guminski is a vice president of business banking and co-chair of the Military Promotion and Assistance Group for Bank of America in San Diego