Before You Take OffFinancial Planning for

Deployment Pre-Deployment

Presented by________________

Deployment Planning

» Increases Saving/Spending Power

» Eliminates Stress

» Prepares You and Your Family for the Future

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Questions About

» Important Documents

» Financial Issues

» Property Management

–Housing

–Vehicles

» Communication Issues

» Emergencies

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IMPORTANT DOCUMENTS

Put Your Legal Affairs In Order

Important Documents

» Will

» Advanced Medical Directives

» Medical Powers of Attorney

» Powers of Attorney (POA)

– General

– Special/Limited

Legal assistance free of charge in your area http://legalassistance.law.af.mil/content/locator.php

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Important Documents

» Update:– Beneficiaries on accounts

•SGLI, TSP, PAY

•Insurance policies, investments

– Service Record & Contact List

Nothing says LOVE like Life Insurance

Important Documents

» Update– DEERS-Defense Enrollment Eligibility Reporting

System

• Confirm enrollment, call 1-800-538-9552

• TRICARE and Dental

– ID Cards, driver license, passport

– Spouse Relocation-notify command

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Know Your SCRA Rights

» Service Members Civil Relief Act (SCRA)– 6% cap on debts incurred before active duty

– Ability to break leases and cell phone contracts

– Limited eviction protection

– Temporary stays of civil proceedings • Bankruptcy

• Foreclosure: www.hud.gov/foreclosure

• Divorce

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FINANCIAL PREPARATIONSFor Financial Readiness

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Financial Preparations

» To-Do-List– Reevaluate financial goals:

“People don’t plan to fail, but they do fail to plan.”

– Review investments

– Create a budget and avoid combat overspending

– Review combat zone Service Member benefits

Show me the Money

» Base Pay» BAH—based upon where you live (even for AGR)

» BAS» Family Separation Allowance—if you only

have a child as a dependent must have court-ordered document stating you have physical custody at least 14 days per month

» Hostile Fire Pay» Hardship Duty PayCombat Zone Tax Exempt Income:

Federal and State taxes are first withheld and then refunded the following month for MDay SMs

New Money

Your Opportunity to Save!

» Pay Down Debt

» Revolving Savings

» Safety Savings

» Long-term Savings

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Financial Bells and Whistles » Savings Deposit Program (pays up to 10%

interest on up to $10,000 deposited)» SCRA reduces interest rates on debt acquired

prior to AD to 6%--a powerful tool to dig out of debt

» ROTH IRAs are powerful savings/investment vehicles when in a low or no tax bracket

» up to $49,000 per year to TSP with service in a COMBAT ZONE--ROTH TSP will be on line by 2012

» MyCAA provides educational opportunities for spouses of AD (E5, O2 and CW2 and below)

NACCRRA’s Operation: Military Child Care will help you locate licensed child care in your area which may be subsidized (the size of this is determined by total family income, DOD funding, location, etc.) while your spouse/child’s guardian pursues an education, works or for 60 days while seeking employment

Paying Bills

» Financial Arrangements

– Spouse or POA

– Direct deposit—1st and 15th

– Allotments

– Automatic bill pay

– Credit card use

– Set spending limits

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Taxes

» Extension– Automatic 60-Day filing Extension

– 180-Day Automatic Combat Zone Extension

– Freeze any IRS assessments for 180 days combatzone@IRS.gov

» POA or Spouse– Need prior year tax returns to file extensions

• IRS Form 2848 and POA to File Joint Tax Return

• File IRS Form 4868 for Four-Month Extension

Taxes

» Tax Assistance– http://www.irs.gov

• (Search-Military Exclusion Pay)

– www.militaryonesource.com • (For FREE tax preparation or questions)

• 1-800-342-9647

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While Deployed

» Check your LES online

» Protect Your Identity:– “Active Duty” alert

– Credit freeze: www.consumersunion.org/campaigns//learn_more/003484indiv.html

Order your free credit reports at

www.annualcreditreport.com

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Property Management

Protect Your Assets In Your Absence

House/Apartment/Vehicles

Home/Apartment» Payment

» Subletting – credit checks

» Maintenance and lawn care

» Sharing

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Vehicles» Put in storage» Renew registration, tags,

inspection» Check on reduced insurance

rates» Check for repairs and

maintenance

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Communication

Keeping In Touch

Communication Tools

» Phone Cards

» Cell Phones

» Hotel Room Phones

» E-Mail and Free Web Cams

» Regular Mail: stamps, envelopes

» Care Packages

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Emergencies Happen

Have a Plan

Emergencies

Discuss How to Handle:

» Car trouble

» Home maintenance

» Finances

Develop a Support System:

» Friends

» Family

» Community

» Red Cross

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Have on Hand:

» Contact Lists

» Emergency $$ Funding

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TOOLS

To Do the Job

Getting the Job Done

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Service Members Civil Relief Act (SCRA)

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Your Help List

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Support System Handout

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Websites Handout

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Websites

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Good Luck!

» Complete your checklist

» Questions?

» Have a safe and prosperous deployment!