Lejeune Leadership Institute
Financial Planning of Family Separation and Reunion
Pre-Deployment2
Reasons to Have aFinancial 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 CarePlan?
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 beSubmitted?
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 BasicRequirements
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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 familymembers
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 AmountNeeded
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 orsupport, language translator if required
Other Considerations
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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 orDeployment 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 TechniquesAssistan
ceAllotme
nts
Split-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 DuringDeployment
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Property ManagementConcerns 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
designations21
Identity ProtectionMeasures
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 MonthlyBudget
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 PFMNMCRS
Banking Options and BillPaying Techniques
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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-Deployment28
Reviewing and ManagingFinances 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
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Active-duty pay earned while serving in a
combat zone
Imminent danger/hostil
e 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 transactions32
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