The Financial Battle of National Guard Members
Over the course of this blog series, we have ventured into the financial labyrinth that National Guard members and their families navigate, from the trials of deployment to the intricate balancing act between military service and civilian life. It’s a journey shaped by the complex interplay of commitment, sacrifice, opportunity, and challenge.
In the early 2000s, National Guard members were deployed overseas in significant numbers, particularly during Operation Iraqi Freedom. They stepped away from their civilian roles to serve their country, marking the start of a transformative journey. The second blog (“The Financial Impact of Deployments”) illuminated the economic shift that servicemembers often face, with military pay often failing to match their civilian earnings, necessitating financial resilience and adaptability.
This financial journey, though fraught with challenges, is also paved with opportunities. As explored in the third blog, the Thrift Savings Plan (TSP) provides a route to retirement savings with tax advantages akin to civilian 401(k) plans. Similarly, the Savings Deposit Program (SDP), highlighted in the fourth blog, offers an impressive 10% return for those deployed in combat zones, far outpacing most civilian saving schemes.
Yet, the financial journey is not solely the servicemember’s to embark upon. As discussed in the fifth blog, families back home navigate their own set of financial challenges. Spouses often bear the burden of managing household finances single-handedly, supporting the family on reduced income during deployments, and handling the emotional strain of their partner’s absence.
Finally, the sixth blog brought to light the delicate dance between maintaining a civilian career and serving in the National Guard. The Uniformed Services Employment and Reemployment Rights Act (USERRA) ensures job protection, but time away from a civilian career could result in missed opportunities and professional stagnation.
This journey of service is a shared endeavor, traversed by the National Guard member, their family, and the broader community. The voyage is undeniably challenging, but with the wealth of resources and support available, it’s a journey that can be embarked upon with a sense of preparedness and resilience.
This series aimed to shine a light on the financial aspects of serving in the National Guard, a topic that often takes a backseat in discussions of military service. From understanding the initial financial impact of deployment, through maximizing benefits available during service, to balancing military service with civilian work and family life, the journey is intricate and multifaceted. By sharing this journey, we hope to have offered a deeper understanding, and above all, to have conveyed the resilience, adaptability, and dedication that underpin the service of our National Guard members.
As this series comes to a close, let me first say, thank you to those who chose to serve in the military, irrespective of what component. The sacrifices that you and your family voluntarily live through do not go unnoticed. Additionally, let me say that, if you or your family are finding yourself experiencing financial challenges as a result of your service, we are here to help. We have the knowledge and skills necessary to help people like you. We can be reached through our website, or you can contact the owner directly through his email (david@averyrockfinancial.com).
References:
- Congressional Research Service. (2020). Reserve Component Personnel Issues. Available at: https://www.everycrsreport.com/reports/RL30802.html
- Defense Finance and Accounting Service. (2020). Thrift Savings Plan. Available at: https://www.dfas.mil/civilianemployees/invest/savingsplus/
- Defense Finance and Accounting Service. (2020). Savings Deposit Program. Available at: https://www.dfas.mil/militarymembers/payentitlements/sdp.html
- National Guard Bureau. (2020). Family Programs. Available at: https://www.nationalguard.mil/Resources/Family/
- U.S. Department of Labor. (2021). USERRA. Available at: https://www.dol.gov/agencies/vets/programs/userra
- American Red Cross. (2021). Emergency Financial Assistance. Available at: https://www.redcross.org/get-help/military-families/emergency-financial-assistance.html
Avery Rock Financial, LLC is a registered investment adviser. The information in this material is for educational purposes only, is not intended to predict or guarantee future market performance, and is not intended to act as individualized tax, legal, financial, or investment advice. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Please consult a qualified attorney or tax professional for individualized legal or tax advice. Please contact a financial advisor for specific information regarding your individualized financial and investment planning needs.
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