The Pre-Deployment Financial Checklist Every Service Member Needs

There is a saying in the military that "Proper Planning and Preparation Prevents Piss Poor Performance" and this could not be further from the truth when it comes to preparing your finances, especially when preparing for a deployment. Deployments require service members to do various workups to prepare for that big moment, while other times a deployment can pop up unexpectedly. Regardless of the timing, having your financial deployment strategy in place ahead of time enables great performance.

Here are 10 quick tips to help you and your family prepare:

1. Communication of financial responsibilities

Whether you are in a relationship or not, it is important to have a plan in place on how bills are paid and who is responsible for taking action. Since access to the internet may be limited to the one deployed, having a spouse or a designated person, such as a trusted family member, be responsible for paying any recurring or unexpected bills eliminates any extra stress. Be proactive in sharing this responsibility months prior to leaving to ensure a smooth transition.

2. Power of attorney, access and permissions

Be prepared ahead of time by having a Power of Attorney or authorizations on file with companies in which are in the service member's name only. This will let the designated person act on your behalf. When someone has a Power of Attorney, they can have general privileges or limited. It is important to understand this difference when someone is making legal and financial decisions on their behalf since each form can provide a broad range of power to as little as wanted. Additionally, when connecting with each of these companies, confirm that the person responsible has access to the information needed. This could be by creating a shared email address if you receive paperless notifications and even switching over the phone number to have on file. Multi-factor authentication is often required for online access and making this small change can eliminate any potential being locked out.

3. Will, life insurance, and beneficiaries

Benjamin Franklin said "In this world nothing can be said to be certain, except death and taxes" and as true as it may be, many feel uncomfortable about these very topics. While yes, the goal is for everyone to come home from serving in a military operation, there are some that never make it. That being said, take time to really think about how you would want your final affairs to be handled through proper estate planning and an updated Will. Clearly define children and any individuals who shall or shall not receive assets if you pass away. Make sure the person you designate as your authorized agent knows that they are responsible for carrying out your wishes and leave them a copy. Estate planning should also include reviewing your insurance policies to verify beneficiaries are accurate. Military members should also review their Thrift Savings Plan and their Record of Emergency Data card to make sure the contacts are up to date in case of previous marriages. When you have this information prepared ahead of time, this gives your family the opportunity to grieve and be relieved.

4. Financial document organization

Bank account statements, utility statements, loan information, insurance declarations, Last Will and Testament… the list goes on and on – whatever the document is called, have a designated area that they can be found. This can be a small storage box with folders or a file cabinet if necessary. The point is these are documents that should be able to be accessed quickly for the person handling the finances and if needed, an additional person in case of emergency.

5. Budgeting for deployment expenses

Deployments come with expenses that did not happen before such as sending care packages and even changes in the grocery bill. Review any subscriptions that may be able to be paused during deployment. Examples of these can include putting a hold on a gym membership or phone line. For the family at home, this may mean preparing to spend more on car maintenance, extra childcare or even the potential for going back to your hometown during an extended period of time.

6. Savings before deployment and during deployment

Before Deployment: As soon as you find out you will be deploying, start putting money away to have for planning a fun trip together as a family if possible and yes, even when "Murphys law" pops up unexpectedly. While everyone should be aiming to have savings regardless of deployment status, adding a little extra cushion can eliminate any added stress from last-min decisions or needs.

During Deployment: A financial perk that service members can take advantage of when being in a designated combat zone is the Savings Deposit Program. This program allows members to utilize a high-yield savings account with the rate of return of 10% annually. Don’t miss out on this opportunity to boost your savings while you are able.

7. Scam awareness and family communication

Cyber crimes can affect anyone at any time. When you are in a heightened sense of awareness with a deployment at hand, the likelihood of falling prey to one may increase for the unprepared. Speak with immediate family members who may be unaware of OPSEC policies and how communication of the service member's location should be avoided. Remind them that if they ever receive a distressed message stating that money is needed or claiming to be you, it is likely a scam. Additionally, if you are in danger, remind them that they will be contacted via someone who is within your unit or command with very specific information. Have a code word ready that is shared in case of emergency. This code word should not be something commonly used within your household or family, but rather something that can send a "red flag" to the receiver. Having these small actions in place can have significant impacts on protecting your finances.

8. Credit protection and fraud alerts

In order to further prevent fraud and scams while being deployed you can protect your information with a credit freeze. A credit freeze will prevent any accounts being created in your name free of charge. For active duty, an extra added layer of protection can be applied that requires businesses to verify your identity. Additionally, active duty can have an extra fraud alert added to their profile that requires businesses to take you off their marketing lists for unsolicited credit and insurance offers.

9. Military tax benefits

Deployments to a combat zone can provide tax benefits for military members through a variety of ways. Combat income or any bonuses received may be excluded from taxation. Automatic extensions of filing deadlines may also apply. Stay up to date with any changes and special considerations made only for those in the military at the IRS military tax page.

10. Federal protections and service member rights

When you are deployed, certain federal protections are enabled. For those who are in reserve status who have been called to active duty have the right of protecting their civilian job. The Uniformed Services Employment and Reemployment Rights Act (USERRA) allow service members to be able to not be terminated without cause for up to 180 days and access to any health benefits. Another financial protection that can be used, even outside of deployment status, is the Servicemembers Civil Relief Act (SCRA). This is a protection to help terminate residential or automotive leases and reduce interest rates to 6% for debts prior to active duty. While knowing these rights are beneficial, without prior communication to human resources or the companies that you conduct business about your military status will impact your ability to receive such rights.

Deployments are stressful regardless of being routine or last minute. You can use these tips as part of your pre-deployment checklist along with your gear packing list. When you take the time to prepare your finances, you can stay focused on your mission and be financially confident eliminating stress for all involved.

If you want a thought partner who understands the reality of deployment life, a Mentor session is an excellent place to start. Fruition Mentors include service members, veterans, and military spouses who have navigated these same financial decisions. You've already chosen to serve, so let someone who's been in your shoes help you protect all that you've built.