Life in the military can be tough, even if you don’t actually go to the battle. Army training alone is pretty challenging, and sometimes, it may even be beyond a few people’s capacities. To top that, these people experience what we may never be able to imagine – visuals of the wounded and the dead, and the sound of bullets everywhere.
Usually, people in the service don’t ask anything in return for all that they sacrifice. But as family men themselves, they do deserve to get some financial respite from the government, right? After all, in addition to undying love for his country, a man can give his 100 percent to his duty only when he is assured that his family back home is safe and taken care of.
That’s exactly why the government offers several tax and investment benefits to military personnel and their families. And if you’ve just joined the service, or someone in your family has, knowing about these things can help you immensely.
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The lowest-cost retirement savings plan
The state provides those who’ve completed their military service an investment plan called the Thrift Savings Plan, under which a meager 25 cents is deducted on every $1,000 you invest! You can choose among five index mutual funds or select a target-date fund and keep investing in it to enjoy a comfortable retirement. Military personnel is also allowed to participate in Roth TSP, which is quite similar to Roth IRA but comes with zero income restrictions.
Interest rate up to 10%
No, that’s not deception; what you read is true. With the help of something called the Savings Deposit Program for the military, people who’ve been deployed are allowed to invest about $10,000 into the program with an annual return of 10%.
You can transfer the benefits of education
Individuals who’ve spent 36 months in the service since Sept. 11, 2001, can take advantage of the Post-9/11 GI Bill. This program covers the entire tuition fees for a public college throughout the four years of enrollment in a university (or 36 months). If you intend to enroll your children in a private college or foreign school, this program will cover almost $17,000 of the total cost for each year.
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Cheapest life insurance
Military personnel can take advantage of Servicemembers’ Group Life Insurance (SGLI), which costs only 6.5 cents per 1,000 dollars a month, or $312 a year, with maximum insurance of 400,000 dollars.
Wrapping It Up
These are just some of the financial advantages among the others that a service member can have. But again, privileges like these are really nothing in exchange for what these people and their families do for us.
