Legacy Planning — It’s for Everyone

*** The following article is proudly contributed by our friends at AAFMAA. Veteran Saves does not endorse organizations or products. We encourage you to research and cross-reference information before doing business with any organization. Remember, “an informed saver is an empowered saver, and an empowered saver can make the best decision for themselves.”

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There is a common misconception that legacy planning is for the extremely wealthy. But what is “wealthy?” Everyone's assessment of what constitutes wealth is different, and everyone has their own version of what it means to leave a legacy behind. Planning for the future is all a legacy plan (or estate plan) really is. When you’re part of the military, this planning is especially important, because your future will change drastically one day — the day you leave the service. It may be five, 10, or 20 years from now, but your time in the military will come to an end and impact what your civilian life will look like.

The great thing is that you can start now. Here are a few simple ways to start planning your military exit:

Make Your Intentions Known: Share your plans for what you want to happen to your house, car, bank accounts, and other monetary assets.

Budget: Savings are a must and a budget will help you build that. A 50/30/20 budget plan can lead you to financial success, where you apply 50% of your income to your needs, 30% to wants, and 20% to saving and debt repayment.

Investing: The government’s Thrift Savings Plan (TSP) benefit enables you to pay yourself first. When you invest 5% of your income in your TSP, the government contributes an additional 4% to your investment, so you are leaving real money on the table if you do not invest at that level.

Children: It’s critical to think ahead to your children’s future. What will happen to them when you’re no longer there to care for them? What about if both you and your spouse are no longer there? Do you have enough life insurance for both you and your spouse to cover the expenses associated with supporting your loved ones’ futures? How about when you leave the service and lose your SGLI?

Don’t wait to answer these questions,protect your family as early as you can. Experts from the military nonprofit AAFMAA (the American Armed Forces Mutual Aid Association) can help you determine the type and amount of life insurance that is right for your military family. They have been serving military families just like yours for over 144 years and will do so with your best interests in mind. Contact an AAFMAA Membership Coordinator at 877-398-2263 to discuss your needs.

Utilize JAG: Talk to your local JAG office to ensure you have a POA, Advanced Medical Directive, and Wills to protect you and your family.

To learn more and stay on top of the latest military benefits and personal finance information, subscribe to AAFMAA Premium Content for free today at aafmaa.com/subscribe.