The Price of Service
Economic Battles of the National Guard
In the grand narrative of the United States military foray into Iraq in 2003, there lies a subplot that we seldom delve into with the attention it deserves. The story of the National Guard members and reservists – not the career soldiers we so often associate with war, but citizen-soldiers, plucked from the rhythm and routines of civilian life and thrust into a desert battlefield thousands of miles away. They are the supporting actors who stepped into leading roles, the ones who were pulled from their day jobs to become full-time warriors.
The Financial Front
Imagine you are a successful doctor or lawyer, your professional life is thriving, and then one day, you receive your deployment orders. Now picture your steady and considerable income suddenly being reduced to a fraction of its former amount, as your military pay grade cannot match the lucrative earnings of your civilian job. This is what many of these National Guard members and reservists experienced when they were called for duty. The federal law, the Uniformed Services Employment and Reemployment Rights Act (USERRA), was there to ensure that their civilian jobs would be waiting for them when they returned, but it was powerless to guard their income levels (1).
Even as these citizen-soldiers found themselves navigating the unfamiliar terrain of a foreign battlefield, they also had to grapple with a new, daunting financial landscape. Mortgage payments, car loans, college funds, medical bills, all the trappings of their civilian lives didn’t cease with their deployment. Imagine the distress and the sense of helplessness, their focus divided between the battlefront and the home front.
Limited Reinforcements
Some companies, in an act of commendable goodwill, offered “differential pay,” essentially bridging the gap between their employees’ civilian and military salaries. But this was not a universal practice, nor was it legally mandated. Many Guard members found no such safety net waiting for them (2).
And then, there’s the long game to consider, the toll that deployment can take on a civilian career. Time spent in combat is time away from one’s profession, potentially resulting in missed opportunities, halted progression, and depreciation of skills. This subtle erosion of their professional lives is an under-appreciated casualty of their service.
However, these challenges, as significant as they are, aren’t entirely insurmountable. Various resources and tools are available to National Guard members and reservists to assist them. These include financial counseling services, which provide guidance on managing finances during deployment, and assistance programs that offer emergency funds, grants, and low-interest loans to military families facing financial difficulties (3).
Moreover, the Servicemembers Civil Relief Act (SCRA) offers certain protections, such as interest rate caps on mortgages and credit cards, and protection against eviction (4). Educational programs and resources are available to help soldiers and their families understand these rights and benefits.
Employment support programs also exist to help Guard members and reservists maintain their civilian careers. These include job placement assistance and career counseling, both pre- and post-deployment, to help manage the transition between military and civilian employment (5).
These services and provisions, while not completely alleviating the financial and professional burden, at least offer a level of support. They give a glimmer of hope amid the challenging duality of a soldier-citizen’s life, a testament to resilience in the face of an intricate battle fought both at home and on the frontlines.
In our next installment, we look at Harnessing TSP Benefits in the National Guard & Reserve, and how it can act as an equalizer in overcoming financial obstacles associated with one’s military service in the National Guard and Reserve. Additionally, we will look at both the strategic and tactical approach of using the TSP in both a deploy and non-deployed environment.
As is always the case, if you have questions about your personal situation, feel free to reach out to us. Avery Rock Financial, LLC is a fiduciary investment advisory firm, which means we put your needs ahead of of our own. Until the next time, thank you so much for joining us.
References:
- U.S. Department of Labor. (2020). Uniformed Services Employment and Reemployment Rights Act (USERRA). [online] Available at: https://www.dol.gov/agencies/vets/programs/userra
- Zengerle, P. (2020). Some U.S. troops complain of pay gap during Iraq, Afghan wars. [online] Reuters. Available at: https://www.reuters.com/article/us-usa-military-pay/some-u-s-troops-complain-of-pay-gap-during-iraq-afghan-wars-idUSBREA1D1VF20140214
- National Guard. (2020). Financial Management Awareness Program. [online] Available at: https://www.nationalguard.com/financial-management-awareness
- U.S. Department of Justice. (2020). The Servicemembers Civil Relief Act (SCRA). [online] Available at: https://www.justice.gov/servicemembers/servicemembers-civil-relief-act-scra
- Employer Support of the Guard and Reserve. (2020). Employment Support. [online] Available at: https://www.esgr.mil/ESGR-Outreach/Outreach-Programs/Employment-Support
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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