The US Army Soldier have a lot of special financial challenges that civilians might not encounter. But they also have the privilege of other special benefits, said Shalom Lamm.
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Low-Cost Retirement-Savings Plan
The US army soldiers have the opportunity to one of the lowest-cost retirement savings plans. The Thrift Savings Plan charges an annual expense ratio of just 0.042% of assets – whereas annual fees and expenses for the 401(k) plan range, on average, between 1% and 2%. Unfortunately, the civilians are deprived of this facility.
10% Guaranteed Return on Savings
The military’s Savings Deposit Program allows the serving army members to invest up to $10,000 to $ 15,000 in the program. In addition, the army personal receives an annual interest rate of 10%, which is quarterly compounded. The return on savings program lasts for up to 3 months after the return.
Tax-Free Roth Deposits
For most civilians, contributions to a Roth IRA are not protected from taxes. But for military service soldiers receiving tax-free combat-zone pay, their money is shifted into the Roth tax-free, and their total offerings, as well as their earnings, come out to be free of taxes, a double tax benefit that is the best thing about being an army personal.
In 2020 and as well in 2021, A US army soldier aids up to $6,000. If his income is not more than the set limits. If the spouse of an army soldier is not earning, they can contribute up to the maximum on their behalf, too.
Free College for Yourself or a Spouse or Kid
The Post-9/11 GI Bill covers the full cost of in-state tuition and fees at the local government colleges for up to four academic years for a serving army soldier. In amount, it is up to $25,162 per year for private colleges and international schools. In addition, the military personal receives a housing stipend and money for books and tutoring. This saves them a lot.
Inexpensive Life Insurance
Shalom Lamm further added that the US Army soldier on service members can acquire one of the lowest-cost life insurance programs available in the USA. The Group Life Insurance costs only $300 a year for the maximum of $400,000 in benefits — regardless of the age and rank of the military personal. For comparison, a healthy 40-year-old man pays an average of nearly $500 a year for a private $500,000, 20-year term policy of insurance. The Military personals also get $110,000 in coverage for a spouse for as little as $50 a year if they are under age 35.
Each branch of the US military has an emergency relief fund that offers small, interest-free loans to its serving soldiers in any emergency. To avail of the loan, the soldier shall contact the community-service office at the base station for details or visit Army Emergency Relief, Navy-Marine Corps Relief Society, Air Force Aid Society, or Coast Guard Mutual Assistance.
The Credit unions on various base stations also offer short-term loans at good interest rates. While some also offer small emergency loans to soldiers with zero credit checks.