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?

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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?

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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

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Financial Arrangements

Funding Options

Monthly Allotment

Joint Bank Account

Authorized Access to

Existing Account

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Determining the AmountNeeded

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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

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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

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Tax Issues

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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

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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

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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

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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

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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

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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