Lejeune Leadership Institute Financial Planning of Family Separation and Reunion

Pre-Deployment 2

Reasons to Have a Financial Plan in Place 3  Reduces stress  Helps to identify and plan for financial needs specified on a Family Care Plan  Ensures family members are self sufficient and financially secure  Allows another individual to carry out financial obligations on your behalf

Financial Planning Steps 4 Establish Goals Gather Data Analyze and Evaluate the Data Develop a Plan Implement the Plan Monitor the Plan

 Will, including a living will  POA: Includes general, durable, specific or limited, medical  Birth certificates and/or adoption records  DEERS and ID cards  RED  SGLI and TSP beneficiaries Important Documents 5 Remember: Review and update prior to deployments and other extended periods of family separation; review annually during periods of non-deployments

Managing Your Financial Affairs 6  Prepare for deployment before your command is ordered to deploy  Consider how and by whom your financial affairs will be managed  Plan and communicate with the designated person  Determine how much authority to extend  Plan for and cover unexpected expenses  Maximize the use of any increases in income

What is a Family Care Plan? 7  Specifies how your family will be cared for in your absence  Contains written instructions and certain legal documents  Allows a smooth transition of responsibilities  Confirms that members are mission ready

Who Should Have a Family Care Plan? 8  Single parents with children under 19 years of age  Dual military couples with children under 19 years of age  Married Marines with custody or joint custody of a child, and the non-custodial biological or adoptive parent is not their current spouse  Marines solely responsible for the care of children under 19, or the care of adult family members unable to care for themselves  Marines primarily responsible for dependent family members (e.g., spouses who do not speak English or have no access to food or medical care)

When Should it be Submitted? 9  As soon as a Marine falls under any of required categories  After notifying their commander of the need to create a Family Care Plan, a final plan should be submitted: – Within 60 days for active duty – Within 90 days for selected reservists

Components and Basic Requirements 10  Name and contact information of caregiver and alternate caregiver  Provisions for short- and long-term absences  Name and consent of non-custodial biological or adoptive parent  Name of person designated for temporary responsibility in the event of incapacitation or death  Financial arrangements for security of family members  Logistical arrangements if transportation required for family members and/or caregivers

Financial Component  Establish a budget for the financial and logistical arrangements associated with your plan  After estimated amounts have been determined, begin building a reserve fund earmarked specifically for your plan 11

Financial Arrangements Funding Options Monthly Allotment Joint Bank Account Authorized Access to Existing Account 12

Determining the Amount Needed 13 Consider Costs for the Following:  Needs and wants of dependents – Daily expenses and costs for any extra activities  Support for the designated caregiver – For compensation or appreciation of care  Any necessary logistical requirements – Legal costs, movement/transportation arrangements, travel escort, home maintenance, medical care or support, language translator if required

Other Considerations 14  Discuss expectations with caregiver; provide guidance and detailed instructions  Provide information regarding medical history of dependents, use of medical insurance and medical payment methods  Provide emergency contact numbers and contact information of family members and individuals designated with other responsibilities

Creating a Household or Deployment Budget 15 Suggested Guidelines:  Review past expenses  Plan for changes in income, spending, or saving  Set realistic goals for spending and saving  Open a separate account for unforeseen expenses  Plan how credit cards will be used  Plan for the unexpected by establishing an emergency fund

Banking Options and Bill- Paying Techniques AssistanceAllotmentsSplit-Pay Automatic Transfer Electronic Bill Pay 16

 Discuss plan with spouse  Limit use of credit cards  Request a credit report  Establish and maintain good credit  Place an active-duty alert on credit report  Consider a credit freeze  Account monitoring Credit Tips During Deployment 17

Property Management Concerns  Homeowner issues – Make arrangements for mortgage payments – Set up a budget for unexpected expenses  Rental issues – Make arrangements for rental payments – Review the lease prior to deployment  Renting your home – Work with a property manager  Vehicle storage – Decide where to keep it and who will take care of it – Notify your insurance company 18

Tax Issues 19  Personal income taxes – Decide ahead of time how you want your tax return completed; make arrangements for refunds or taxes due – File Extension  Combat zone exclusions – If eligible, regular pay, special pay, bonuses, and the CSB/REDUX retirement plan is excluded from taxable income

How Does it Work? Deposits and Interest Deposits made up to date of departure from assignment in combat zone Interest accrues at 10% rate up to 90 days after return from assignment 20 Consider using the Savings Deposit Program (SDP) Offers a guaranteed annual return of 10 percent, compounded quarterly, up to $10,000 in savings Designed to provide Marines (serving in designated combat zones) an opportunity to build their financial savings

Recordkeeping  Personal information – Full names, addresses, locations and dates of birth, and important medical information on you and all family members  Financial information – Names, account numbers and phone numbers on financial institutions; creditor information such as type, account numbers, date established and phone numbers  Insurance policies – Company names and addresses, names of agents, and policy numbers – Review coverage and beneficiary designations 21

Identity Protection Measures 22  Review your credit report annually  Active duty alert  Never carry more credit cards than you need  Guard your mail from theft  Be careful about giving personal information over the phone/internet  Keep information on accounts in a secure place

Financial Needs of Extended Absence Plans 23

Managing Your Financial Affairs  Ensure you have a well-developed plan  Consider how and by whom your financial affairs will be managed  Plan and communicate with the designated person, financial institutions  Determine how much authority to extend  Plan for and cover unexpected expenses  Maximize the use of any increases in income 24

Creating a Monthly Budget 25  Review monthly household expenses (Pre & Post deployment)  Itemize regular expenses such as rental or mortgage payments, food expenses, car payments, utilities, credit card bills, insurance bills  Add a cushion for unforeseen expenses  Provides information on financial issues faced, and reveals ways to save money

Utilizing an Increase in Income 26  Avoid impulse buying or making large purchases  Identify specific financial goals and develop a financial plan  Seek professional financial assistance  MCCS PFM  NMCRS

Banking Options and Bill Paying Techniques 27  Allotments ―Creates a cash flow for savings, or to cover expenses  Split-Pay ―Allows partial payment at present location and rest transmitted to financial institution  Automatic Transfer ―Automatic deduction of funds when payments are due  Electronic Bill Pay ―Provides flexibility to schedule payments in advance or as reoccurrences  Automatic Bill Pay ―Helps you avoid late bill payments

Post-Deployment 28

Reviewing and Managing Finances  Review and re-establish your budget – Make adjustments in income amounts, increases in expenses, decreases in combat/deploy pay and your current financial situation  Update your financial plan – Review and make adjustments to goals; add new goals and objectives  Review and/or re-start insurance policies – Re-establish appropriate levels of coverage; shop around for the best value  Postpone major purchases – Wait until you have a handle on your finances 29

Excluded Pay 30 Active-duty pay earned while serving in a combat zone Imminent danger/hostile fire pay A reenlistment bonus that occurred while serving in a combat zone Pay for accrued leave earned while serving in a combat zone Awards for suggestions, inventions, or scientific achievements made while serving in a combat zone Student loan repayments attributable to period of service in a combat zone

IRA Contributions  IRS allows tax-free combat pay to be used for contributions to IRA  Visit your base tax office and legal office 31

Documents to Review  Credit report  Insurance Policies  Powers of Attorney  Other Legal Directives  Military pay account – Examine your LES – Review and adjust allotments; check for pay due or overpayments  Bank and investment accounts – Review history of transactions – Contact financial institutions immediately to report questionable transactions 32

Resources 33  MCCS – PFM  Your unit CFS  Marine Corps Financial Fitness Online Resource Center  Military OneSource  Military Saves  Navy-Marine Corps Relief Society  Consumer Action  IRS Tax Information for Members of the Military  Jump$tart Coalition for Personal Financial Literacy