How to Transition From Military to Civilian Life
April 12, 2016Do you know someone who’s in the military or a recent veteran? One of my colleagues, Teig, interviewed a couple of the financial planners at Financial Finesse who are veterans (including me) to get insight into how to successfully make a financial transition from military to civilian life. Although Teig’s interview focused on veterans, the concepts can be applied to anyone facing a life transition:
I have had the good fortune to be surrounded by both active and former military personnel throughout my life, and I love the stories they tell about their careers. Every one of them gives me a unique perspective on the world. I recently sat down with two distinguished U.S. Military veterans who are also resident financial planners at Financial Finesse to discuss their success in both careers. I wanted to know what inside knowledge they could pass along to military vets and the rest of us about transitioning from one career to another.
When leaving the military, what financial planning did you do?
Tania: I did a lot. I was terrified. So many people reenlisted because they HAD to. I started planning 18 months ahead and paid off all debt and socked money away.
Mark: I was an officer and had the option of staying, but I made a decision to not do that. I don’t think I did any conscious financial planning. I had been disciplined and didn’t have debt when I separated. I was planning to get out and get married, so I had already been saving and dabbling in mutual funds before I left.
I wish I had looked into how benefits work. My healthcare was always taken care of in the military. I went into civilian life not knowing how benefits work.
What do you think you did well, or not so well, in your transition?
Tania: 18 months out, I researched where to live next because NY was expensive. I looked up best places to live and targeted the south. I wanted a diverse economy in a city, good military education benefits, and a low cost of living. I chose Charlotte, NC. We had a program to use to transition from military to civilian, which helped me to learn the civil language and update my resume.
Mark: I started looking later but also realized that my missile programming skills weren’t as transferable as they could be. Before I left, I spent a lot of vacation time going on interviews. I knew I would be moving from North Dakota to Chicago. It’s more expensive so I had to redo my budget. I would not have kept a car if I had to do it again because I didn’t need it in Chicago.
If you were speaking to a soldier or officer today, what’s the one thing you would recommend they do now to make the transition to civilian life easier?
Mark: Leave the military debt-free. Double down on savings.
Tania: Give yourself a reality check. What you make in the military is NOT the same as what you make in civilian life. You’ll have extra living expenses, food, etc. Understand the cost of living where you are going. Definitely bring no debt.
Understand what you’re really worth as a civilian. ACAP is the program. Go into that as early as possible to demilitarize your verbiage.
Mark: Yeah. THAT’s a big adjustment.
What advice would you give family members of transitioning personnel?
Tania: Have patience. There is no guaranty leaving the military.
Mark: Help out with the budget. Get involved in the spending plan.
Tania: Healthcare is different. Understand what PPOs, HSAs, and HMOs are. There is no commissary. There are so many additional costs.
Mark: Your service life insurance doesn’t go with you. You have to go buy life insurance on own. Do your homework. Shop. Find a broker.
Tania: We ran after people for everything as HR. It’s not the same in civilian life. If you’re not proactive, you get nothing.
What are good resources for the transition?
Mark: Military.com has lots of info about transitioning to civilian life.
Tania: I love military.com. They have transition stories and I actually wrote one for them.