Top 10 Financial Benefits of Military Service
Most of these cost nothing but paperwork. Here's the list, with the one move to make on each.
- The VA loan. No down payment as long as the price isn't above the home's appraised value, and no private mortgage insurance. Start with How VA Home Loans Actually Work.
- The TSP match. Under the Blended Retirement System, put in at least 5% of your base pay and the service adds 5% more (a 4% match plus the automatic 1%).
- The BRS pension. Serve 20 years and you get a monthly pension on top of your TSP.
- The GI Bill. It covers more than tuition. The Post-9/11 GI Bill can also pay a housing allowance, books, and certification tests.
- BAH. Your housing allowance isn't taxed: no federal or state income tax, no Social Security. Used with a VA loan on a multi-unit home (house hacking), it can build equity instead of just covering rent.
- TRICARE. Health coverage for you and your family. Compare it line by line before you trade it for a civilian employer's plan.
- SGLI. Up to $500,000 of life insurance while you serve. Check your amount and your beneficiaries in milConnect (see Money and Kids on a Military Paycheck).
- Tax-free combat pay. Pay earned in a combat zone is excluded from your taxable income (officers have a cap).
- Military discounts. Ask every time, for travel, retail, and services. Small savings add up when you actually use them.
- VA disability compensation. If you have a service-connected condition, file. See 7 Things Every Veteran Should Know About Filing a VA Disability Claim.
Pick one you haven't used yet and claim it this month.
Always do your research to ensure the platform aligns with your financial goals and investment style.
Disclaimer: I am not a financial advisor. The information provided here is for educational purposes only and should be verified independently. See the full Disclaimer.