“Watch your 6” and “keep your head on swivel”. Situational awareness is essential for success for both active duty and retired military members. Retiring from the military is a significant life transition that demands careful financial planning to secure a comfortable future. Military members can take specific steps to enjoy their retirement with confidence.
Here are some essential financial planning priorities:
1. Create a retirement budget: Start by establishing a budget that outlines expected income, expenses, and financial goals. Consider potential changes in housing, healthcare, and lifestyle to ensure your budget aligns with your plans.
2. Maximize retirement benefits: Make the most of military retirement benefits including the Thrift Savings Plan nd any pension or disability payments you may be entitled to. Consult with a financial advisor to optimize your investment choices.
3. Health Insurance: Understand your options for healthcare after retirement. The military offers Tricare for life; however, it is crucial to know how it works and if supplemental insurance is needed.
4. Emergency Fund / Debt Management: Build and maintain an emergency fund to cover unexpected expenses. Prioritize paying off high interest debts like credit cards and personal loans.
5. Second Career or Hobbies: Many military retirees find satisfaction, purpose, and additional income by pursuing second careers, or turning their hobbies into side businesses.
6. Estate Planning: Draft or update your will and make health care directives to be confident your assets are distributed according to your wishes.
7. Seek Professional Guidance: Consult with a Certified Financial Planner® or other qualified financial professional with experience working with military members in retirement to design a personalized plan.
Retiring from the military offers exciting, yet challenging opportunities. Prioritizing these financial planning steps while working with a qualified professional can assist military members in enjoying a comfortable and more secure retirement.
Article Courtesy: Arnie Pechler Sr Sage Financial Planning. Bluffton, SC (843) 422-4524 sagefinancialplanning.com