Deployment Savings Opportunities

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Deployment Savings Opportunities

• Using deployment financial opportunities to boost
  savings

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Deployment and savings

• Making a budget is like deciding how to divide up
  the pie
• Deployment offers opportunities to make the pie
  larger

• Having more pie doesnt mean you have to eat more
  pie

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Deployment and financial benefits

• Deployment offers allowances, tax breaks,
  incentives and special pay
• The Department of Defense currently has 70 types
  of special pays and allowances, depending on your
  deployment and duty status, branch of service,
  and duty station on the books

• Find detailed information through your service
  financial office or online through myPay

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What to save during deployment

• Combat zone tax exclusion
• Pay yourself instead of the government
• As an E-6 with 6 years, you earn approximately
  35,410 per year
• The taxes generally add up to 8,800.00
• Set aside 8,000 in a retirement account with 2
  interest for 10 years
• Saving earns you 1,769.60

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What to save during deployment

• Make extra payments on credit cards, student
  loans, car loans or mortgages.
• A credit card with a 15,000 balance will never
  be paid off with the minimum payment
• With a payment of 500/month, it will take nearly
  3 years and over 2,000 in interest to pay off
• A lump sum payment of 8,000 towards this debt
  saves more than 1,500 in interest payments

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What to save during deployment

• Per diem while TDY
• Minimize spending, maximize income and saving
• The difference that 5-10/day can make
• Over a week 35-70
• Over a month 140-240
• Over a year 1820-3640
• Small saving can be the difference between 1 cup
  of designer coffee per day and an HDTV
• Paid in cash
• No debt and no interest payments

VS
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What to save during deployment

• Family Separation Allowance
• FSA is payable at 250.00 per month and accrues
  from the day of departure from the home station
  and ends the day prior to arrival at the home
  station, in addition to any per diem or other
  entitlements

• Use this cash for taxes, retirement, credit card
  and loan payments, college savings, home repairs,
  etc

• Also consider using it for something that the
  whole family will enjoy for years

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What to save during deployment

• Maybe you are considering a family vacation after
  your deployment endsand nothing says family like
  Mickey Mouse!
• 4 passes for 4 days in Disney World cost 1076

• If you pay in cash with your Family Separation
  Allowance Savings, you pay 1076

• If you put this on a credit card and only pay the
  minimum, you will pay more than 2,600 over 14
  years

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What to save during deployment

• Live alone?
• Going to be gone for 3 months? 6 months? a year?
• Consider renting out your house or apartment for
  extra cash
• Subletting allows you to cover your housing costs
  while you still collect BAH

• Do you rent?
• This is a great way to set aside money for a down
  payment for your first home

• Do you own?
• This is a great way to put money aside for home
  improvements

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Ways to save during deployment

• Create a rainy day fund
• Cash has its advantages that credit and long-term
  accounts dont offer
• Short term savings can really save you from the
  unexpected

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Ways to save during deployment

• See you local credit union or military bank to
  learn more about
• Basic Savings Accounts
• Certificates of Deposit
• College Savings Accounts
• IRAs and other retirement accounts
• Investment options

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Ways to save during deployment

• Get sound advice.
• Online, check out saveandinvest.org for Money
  Mobility, information specifically for military
  personnel and their families

• See a Personal Financial Manager at you
  Installation or arrange a consultation with a
  Certified Financial Planner through Military
  OneSource.

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Ways to save during Deployment

• Saving Deposit Program (SDP)
• For military members deployed in combat zones,
  qualified hazardous duty areas, or certain
  contingency operations
• Annual interest rate of 10

• E-6 salary after 6 years35,410
• Save 103,451
• After 12 months in SDP savings 3,809
• Reward for saving 358
• Save the maximum 10,000
• After 12 months in SDP, savings 11,038
• Reward for saving 1,038

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Ways to save during deployment

• TSP is a Federal Government-sponsored retirement
  savings and investment plan
• For more detailed information, visit
  http//www.tsp.gov

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Join a community of savers