5 Ways Veterans Can Continue to Save in Retirement
There are several ways veterans can manage their finances and be more secure in retirement. Here are 5 things that Veterans can do to manage their finances more successfully in retirement.
Even if you’ve taken all the right steps to prepare your finances for transitioning out of the military and into retirement doesn’t mean that your job is over. As a retired veteran, you’ll still need to actively manage your income, expenses, savings, and investments to ensure you are able to enjoy retirement with fewer money worries and the ability to do what you really enjoy.
There are several ways to manage your finances and be more secure in retirement. Here are 5 things that Veterans can do to manage their finances more successfully in retirement.
Have a Spending & Savings Plan
Having a solid spending and savings plan in place and finding ways to minimize your expenses and maximize your savings is the best way to start when trying to ensure you have a solid financial plan in retirement. Knowing what you can afford to spend and save will give you more flexibility to do the things you enjoy the most. It’s important to still maintain an emergency fund and save for expected future expenses like home repairs, education or that much deserved vacation.
Don’t forget about Inflation!
There is no way around it – inflation is inevitable. Things will always get more expensive as time goes on, which decreases your buying power and impacts your spending. Having a plan that accounts for inflation will help you be prepared to handle these increases and enable you to adjust as you go.
Consider Tax Implications
Unfortunately, tax planning doesn’t end when you retire or stop working. It may even get more complicated, which makes it even more important to understand how your “money actions” can impact your overall tax burden. Taking required minimum distributions and pulling money from accounts will possibly have tax implications. It’s important to know what will be incurred beforehand, so that you make the right choices and avoid paying out more than you expected or planned.
Don’t Fear Investing
Many Veterans fear they will lose their nest egg if they continue to invest after retirement. Unfortunately, this fear can cost you big time in the long term since success in retirement means managing and maximizing what you have. You’ll want to make smart decisions that balance your spending, savings, and retirement accounts to truly be able to retire comfortably. It’s normal to be nervous about market fluctuations, but don’t let that fear completely deter you.
There is NO shame in asking for help, especially when it comes to managing your retirement! Having assistance from someone who is knowledgeable about military retirement is key to ensuring you have a plan that will not only allow you to live your best life but also help you make your money last. It’s important to choose an advisor who is experienced and will help you work toward achieving your goals while keeping your best interests in mind.
The VA offers financial literacy programs to help Veterans create a plan and has recently partnered with the Association of Military Banks of America (AMBA) to create the Veterans Benefit Banking Program (VBBP) and now offers one free financial counseling session that you can take advantage of to start creating your retirement plan.
If financial counseling or enlisting the help of an advisor is not an option for you and you want to do it on your own, check out our list of Dos & Don’ts when Investing – link to VS article-. It can help you get started on a plan that works for you.
Veteran Saves wants to be your partner as you enjoy this new phase of life. Take the Veteran Saves Pledge and we’ll be your sidekick along the way. Choose Retirement as your goal and we’ll send you emails and texts full of tips, resources, and information to keep you motivated and on track.