Many of us are military spouses and moms and lots of us stay at home, especially here at Osan where there are fewer options for paid employment. And that's a great choice for lots of reasons, but unemployed spouses can be at a financial disadvantage, particularly when the employed spouse is military.
Often the spouse of an active duty service member knows little about pay, entitlements, life insurance and other benefits or obligations, and these things can be challenging to figure out. We all know that decoding an LES or information provided by the military can be difficult, and sometimes it's not even accurate. Click here for military.com's guide to military pay. https://mypay.dfas.mil/mypay.aspx is the military's myPay site. The site can be accessed with the active duty member's login ID and a six-digit PIN. The semi-monthly LES can be found here, as can the W-2 and other tax forms. Pay changes can be made through the site also: TSP contributions, exemptions, payroll deductions, direct deposit, savings bonds and etc.
Another potential disadvantage to the military spouse is the lack of a personal retirement plan. If you move from base to base, sometimes working, sometimes not, it can be difficult to amass significant retirement benefits. A Roth IRA can be an excellent choice for a retirement vehicle for a spouse. T Rowe Price and Fidelity both offer low cost Roth IRAs with a variety of investment choices. You can invest up to $5,000 per year (this year; limits will likely change over time) and many investment companies let you contribute automatically every month. Just sign up, pick a fund or fund(s) and forget about it. Or check into some other options, but do something for your future- Osan is a great place to sock away some money!
If you're interested in going back to school, the active duty spouse can now transfer his or her post 9/11 GI Bill benefits to a spouse or (child)ren, or any combination. The total benefit is 36 months (4 9-month school years) of tuition, housing at the E-5 rate for the locality, plus $1,000 per year for books. The benefit can be split up however you choose, and active duty members can do it from work with their CAC- it just takes a few minutes. You can read more the details and rules here.
And that brings us to three D's we don't want to talk or think about: Divorce, Deployment and Death.
As military spouses, we are possibly more knowledgeable than our counterparts married to civilians, because almost everyone has been through at least one deployment, probably requiring us to handle the family finances whether we usually do it or not. Both spouses should be up to date on bank accounts, debts, investments and other financial information and have access to important documents and data. If you or your spouse is a little behind the curve, sit down together and make up a cheat sheet, just in case.
And what about divorce? It may not surprise you to hear that if you and your active duty spouse separate, the military will be of no assistance to you until a divorce settlement is finalized. If you are separated and your spouse won't give you any money, guess what? The military doesn't care. If you think you might be in this position in the future, make your financial preparations now: get a credit card in your own name, and start stashing away some cash. You may or may not be entitled to a portion of the military member's retirement, so if you are facing this possibility, get a good lawyer with experience in military finances.
You probably know that the active duty service member has life insurance coverage through SGLI. If your active duty spouse elects a beneficiary other than you, your permission is required and a notification is sent to you. Is the SGLI enough? Check out your other benefits and entitlements in this situation and look at your family's finances to decide if you would need more. What about the stay at home spouse? If something happened to you, would your spouse be able to afford to pay someone to do all the work you do every day? Chances are, if you have kids, coverage for you makes a lot of sense.
The bottom line is that a little bit of time and effort now will pay big dividends in the future- keep up on your family and personal finances!
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