CPA Mobilization Kit: Military

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CPA Mobilization KitMilitary Reserves
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Achieving Your Financial Goals
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Achieving Your Financial Goals

• Set clear goals
• Resolve to spend less
• Create an emergency fund
• Make saving a priority

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Achieving Your Financial Goals

• Reduce credit card debt
• Evaluate your insurance coverage
• Think taxes

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Creating a Budget

• Your financial plan
• Track income and expenses
• Unique to you

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Budgeting

•  Gross monthly income
• Net income
• Fixed expenses
• Flexible expenses

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Budgeting

• Discretionary expenses
• Total it up
• Increase your savings
• Programs like Quicken can help

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Danger of Credit Cards What You Dont Know Can
Hurt You

• Be aware of teaser rates
• Stick with one credit card
• Pay in full every month

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Danger of Credit Cards What You Dont Know Can
Hurt You

• Pay on time
• Avoid cash advances
• Protect your credit history

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Danger of Credit Cards What You Dont Know Can
Hurt You

•  Stay within the limit
•  Review your statements
•  Report a lost or stolen card immediately
•  Protect personal information

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Savings and Investing 10 Simple Strategies

•  Start small
• Contribute to your retirement plan
• Save through payroll deduction plans
• Set up an automatic investment plan
•  Round up your mortgage

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Savings and Investing 10 Simple Strategies

• Bank your raises
• Keep paying off a loan
• Pay off your credit cards
• Reinvest dividends
• Keep track of where the money goes

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Investing in Your Future

•  Asset Allocation
• Stocks
• Bonds
• Cash Equivalents

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Investing in Your Future

•  Asset allocation
• Diversification
•  Life circumstances
•  Investment goals, timeframe and tolerance

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Investment Options

• Short-Term Investments
• CD
• Money Market Funds
• Savings Account

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Investing in Your Future

•  Long-Term Investments
• Mutual Funds
• Stock
• Bonds

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Investing in Your Future

•  Retirement Specific Investments
• 401(k)
• IRA
• Social Security

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Protecting Yourself Your Family Through
Insurance

• Life insurance
• Choosing coverage
• How much can you afford?
• How much is needed?
• For how long?
• Protection or investment?

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Term vs. Permanent

•  Term
• Largest death benefit for the dollar
• Annual renewable and level premium
• Return-of-premium

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Term vs. Permanent

• Permanent
• Combines a death benefit with an investment
• Part of the premium is invested, building cash
  value
• Higher premiums
• Whole life, universal or variable life

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Term vs. Permanent

•  Whole life
•  Universal life
•  Variable life

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Health Insurance

•  Dont go bare
• HMOs
• PPOs
• POS

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Health Insurance

•  Flexible Spending Accounts
• COBRA
• Medicare
• Medicaid

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Long-Term Disability Insurance

• Benefit Amount
• Term of Benefits
• Elimination Period
• Non-cancelable
• Guaranteed Renewables
• Own Occupation or Any Occupation

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Government-sponsored Disability Benefits

• Workers Compensation
• Social Security Disability
• Veterans Benefits
• Federal Employees Retirement System

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Insurance for Reservists

• 2004 Temporary Reserve Health Benefit Program
• www.tricare.osd.mil
• Who is affected?
• Reservists
• National Guard
• Delayed-effective date or immediate
• 30 consecutive days
• Support contingency operation

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Insurance for Reservists

• What are my benefits?
• Is my family covered?
• Keep your other coverage
• TRICARE Prime vs. TRICARE Standard

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Fighting for Your CountryA Guide to Living
Overseas

• Housing options
• Station allowance overseas
• Overseas housing allowance
• Move-in housing allowance
• Rates
• Rent
• Security

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A Guide to Living Overseas

• Cost of Living Allowance
• Temporary Lodging Allowance
• Interim Housing Allowance
• Evacuation Allowance

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Overseas Deductions

• Combat pay
• Moving expenses
• Per diem
• Car allowances
• Legal assistance
• Medical and dental care
• Life insurance

• Living allowances
• Educational expenses
• Death expenses
• Defense counseling
• Disability
• Survivor and retirement protection
• Roundtrip travel for dependents once a year

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Guide to Living Overseas

• How do I file my tax return?
• VITA
• [phone]

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Managing Your MoneyWhile Serving Your Country
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Before Being Called to Duty

• Build up savings
• Create a financial plan
• Identify a trusted family member
• Contact creditors
• Know military-provided help
• Contact life insurance carrier

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During Active Duty

• Financial protection
• Bars evictions
• Prevents default judgments
• Stays civil proceedings
• Caps interest rates
• Stick to your budget

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After Active Duty

• Problems wont go away
• Achieving your financial goals
• Creating a budget
• Danger of credit cards

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Get Tax Smart

• Get credit for care
• Make retirement plan contributions
• Improve your recordkeeping
• Plan your investment gains

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Get Tax Smart

• Give away some assets
• Use your vacation home wisely
• Get advice early

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Maximizing Your Military Tax Benefits

• Military Family Tax Relief Act of 2003
• Capital gain exclusion for home sales
• Overnight travel
• Dependent care assistance
• Combat zone extension
• Death benefits
• Additional exclusions

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A Guide to Your Retirement Benefits

• Start with VA
• Education benefits
• Troops to Teachers
• VetFran
• Priority hiring
• Job training and placement
• Educational assistance

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Retirement Benefits

• Disability compensation
• Veterans pensions
• Free or low-cost medical care
• Computing retirement pay
• Pre-1980
• Post-1980

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Retirement and Insurance

• Schedule a physical
• Get a certified copy of medical records
• Specific health programs
• Agent Orange and other herbicides
• Alcohol/drug dependency treatment
• Blind veterans services
• Gulf War Syndrome
• Radiation exposure
• Life insurance

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Veterans Act of 2003

• Increases specially adapted housing grants
• Increases specially adapted automobile grants
• Increases educational benefits
• Encourages entrepreneurship

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Do What You Can!
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Thank You!