Know before you go

Know before you go

In 2012, after serving about a decade in the Army Reserve, I took off my uniform for the last time, embarking on a full transition from military to civilian life. 

While it was the most permanent transition I’d made out of uniform, it certainly wasn’t the first. Like a lot of others who have served in the reserves or Guard, I made my fair share of shifts between the Army and civilian world. Looking back at that fast-paced time period, it’s not much of a surprise that I did not spend a full calendar year at my civilian job during the first six years of my career, due to the needs of the Army. Added up, between mandatory military schools and deployments to Iraq and Afghanistan, I spent more time working for the Army than I did my civilian employer. 

My experience isn’t unique. I’m just one of many in the generation known as post-9/11 veterans, a group that’s all too familiar with the concept of an all-expense-paid vacation – at least as it applies to garden spots like Iraq and Afghanistan. By 2012, I felt like a professional at dealing with all the intricacies of military transition.  

Unfortunately, there was a lot I didn’t know or even consider. As the saying goes, “You don’t know what you don’t know.” But to a large degree, that’s where I was during the transition. Thankfully, I wasn’t alone. Most of the advice I received was from more experienced soldiers who had “been there and done that.” To those who helped me, thank you – your advice and guidance helped pave the way for a relatively smooth move into a full-blown civilian life.

Today, I’m lucky enough to work at USAA, a great company that provides me an opportunity to pay it forward. The cornerstone of our mission at USAA is to facilitate the financial security of our members and their families. Those aren’t just words; they are a philosophy that drives all we do as a company. That’s pretty cool, especially having had a front-row seat as USAA has rolled out a variety of new tools and services for its members, ones specifically designed to help those leaving the military. (As an aside, I hope you know that USAA membership is free and available to those who have honorably served. USAA is also the preferred provider of financial services for The American Legion.)  

TIME TO GET SERIOUS Speaking of helping the military, I recently reviewed the 2015 Blue Star Families Annual Military Family Lifestyle Survey. Blue Star Families is a nonprofit formed by military spouses to create a platform where military family members can join with civilian communities and leaders to address the challenges of military life. More than 6,000 survey respondents highlighted two areas of concern to them: the difficulty of transition from the military and financial readiness. These findings reflect what I observed in the military and continue to see as problem areas for my fellow post-9/11 veterans. They’re also areas in which USAA has focused on making a difference. Let’s start with transition.  

Most of us enter the military at a young age and don’t realize all the good things that come as a result of our service. From medical insurance and health care to allowances for housing and food, the list is long and often taken for granted. When we look to transition out of the military, we sometimes forget to fill some of the gaps created by the change, leaving us financially unprepared for the future. 

I often receive calls asking for transition advice. Everyone who calls has different reasons for transitioning and a different set of circumstances. On top of that, each person has unique knowledge, skills and abilities that will translate into the civilian world. Too often, though, servicemembers separate from the military with no job, little savings and no plan, only to end up on their parents’ doorstep. Transitioning out of the military is a serious life event and requires serious planning and preparation. That’s my message, and USAA has free online resources to help in the transition process at www.usaa.com/militarylife

Some of the many tools available include: 

  • USAA Separation Checklist. Customize your own separation checklist and get started on a to-do list with a suggested timeline.  
  • USAA Military Separation Assessment. This will help you determine what your civilian pay will need to be in a specific area to be equivalent to what you are earning currently in the military.  
  • USAA Real Estate Rewards. Get help finding, financing and insuring a home. 
  • Life insurance. This is designed to continue after military service. 

In the military, we were focused on readiness. We would spend months ensuring we had the correct personnel, equipment and training to succeed down range. However, when it came to financial readiness, that was our personal responsibility. Sure, the military provided us with classes and seminars to promote healthy financial behaviors and a balanced budget, but ultimately we were the ones responsible for our own finances. And sometimes it didn’t turn out well.  

I’m sure many of us had those friends who blew everything they saved during a deployment while out on their two-week leave, partying in a place like Las Vegas. Those free-spending pals had crazy stories to tell later, but they ended up regretting squandering away an entire deployment’s worth of savings for a few days of fun. They worked too hard and too long, and put their lives in danger, only to see what they earned disappear in a blink of the eye or roll of the dice.

Remember that buddy who bought a new car with the rims and sound system that was way over his budget? His joy ride didn’t last long after he realized that the new car payment came with additional costs such as higher insurance, gas and maintenance. The story often ended with no car and bad credit. 

I’m sure you agree with the Blue Star Families survey respondents who said they consider financial readiness to be a challenge. However, it’s not all bad news. I was excited to see that according to the survey, 86 percent of post-9/11 servicemembers say they follow a personal budget. That’s great, but truth be told, there’s so much more to financial readiness than a balanced budget.  

Last October, USAA rolled out a new digital tool designed to make it easier for servicemembers and veterans to view, act on and track their overall financial well-being. Called the Financial Readiness Score (FRS), it identifies financial risks in areas such as budgeting, insurance, debt, retirement savings and certain life events that could negatively affect a member’s financial well-being. FRS also analyzes a member’s financial readiness in four key areas: protecting, saving, spending and planning.

Finally, FRS summarizes a member’s financial readiness environment based on personal information, such as life stage, household and income into one score, from 1 to 100. The tool provides a personalized, prioritized action plan to help improve financial wellness and reduce finance-related risks. 

I recently used the FRS, and although I didn’t score as high as I would have liked, it did give me good advice to prepare for my future and increase my financial stability. USAA members can obtain their free FRS score and action plan online at www.usaa.com/myfinancialscore

None of us joined the military to become rich.  We joined simply to protect our country, our families and everything we hold dear. We knew that our chances of fighting in war were high, but like the generations of warriors before us, we stepped up to the plate. Even so, we need to be aware of any resources that can help us maximize our situation once we’re out. 

As Legionnaires, we’re part of the group that has “been there and done that,” and we are always looking for ways to help our fellow veterans. Each of us has unique challenges and obstacles, but what we have in common is our service to our great country and an opportunity to share our learned experiences with those still on the journey.   

 

Chris Figueroa is a lead account manager at USAA, The American Legion’s preferred provider of insurance and financial services.