Ep. 186 - FINANCIAL RESILIENCE FOR FEMALE VETERANS - A HOLISTIC GUIDE

In this episode of "The Merging Life and Money Show," I discuss financial resilience for female veterans transitioning to civilian life. Key topics include maximizing VA benefits such as disability ratings, healthcare, and life insurance and leveraging VA loans and entrepreneurship opportunities. Emphasis is placed on financial wellness, adapting military skills for civilian success, and addressing unique challenges female veterans face. Strategies for managing financial setbacks, integrating health and financial planning, and building support networks are highlighted to assist veterans in achieving financial independence and stability.

📥Don't forget to download  "Strength Beyond Service" - Empowering quotes from female veterans at mariejocaesar.com

🕒KEY MOMENTS IN THIS EPISODE 

00:09 Military Transition to Financial Freedom  

04:03 Crucial Financial Steps for Transition  

08:32 Women Veterans' Key Financial Challenges  

11:50 Salary Negotiation Tips for Veterans  

15:02 Maximize VA Benefits for Success  

18:08 Unlock Wealth with VA Loans  

23:59 Entrepreneurship Funding for Female Veterans  

28:01 Transition Impacts on Financial Wellness  

31:25 Resilience Requires Wellness and Strength  

34:16 Mentorship Builds Financial Health Strategies  

39:36 Military Skills Enhance Financial Success  

41:37 Download Resources to Build Wealth  

🔑 Key Topics Discussed:

📝Transition Challenges Unique to Female Veterans

📝Va Benefits Maximization

📝Real Estate and Va Loan Strategies

📝Veteran Entrepreneurship Opportunities

📝Financial Wellness and Support Networks

**DISCLAIMER:** The information shared on the Merging Life and Money Show is for informational and educational purposes only and does not constitute financial, legal, or professional advice. Always consult with a qualified financial advisor or professional before making any decisions related to your personal finances or health. The opinions expressed in this show are those of the host and guests and do not represent any official stance or endorsement by any organization. Listener discretion is advised.

Chapters

• 0:09 Introduction to Financial Resilience for Female Veterans
• 1:29 Unique Financial Challenges for Female Veterans
• 3:39 Translating Military Skills to Civilian Careers
• 4:40 Wealth Building Strategies: VA Loans and House Hacking
• 5:39 Wealth Building Strategies: VA Loans and House Hacking
• 6:45 Entrepreneurship Opportunities for Female Veterans
• 7:32 The Importance of Financial Wellness
• 8:45 Building a Support Network for Success

Transcript

Ep. 186 - FINANCIAL RESILIENCE FOR FEMALE VETERANS_ A HOLISTIC GUIDE

Good afternoon, good morning, good evening, and hello. 

From serving our country to serving themselves, this is a journey so many of our brave female veterans face. If you're a female veteran listening today, you have already mastered military discipline, and now it's time to master your financial future. Here is a striking fact. Female veterans earn 30% more than their civilian counterparts, yet many still struggle with the financial transition from military to civilian life. 

Welcome to the Merging Life and Money Show. 

I am your host, Marie Jo Caesar, and today, we are embarking on a critical mission, helping you transform your military excellence into lasting financial independence. As a financial wellness strategist who has worked with female veterans, I have witnessed firsthand the unique challenges you face during this transition.

Throughout today's episode, we will explore how you can navigate the shift from military to civilian finances, maximize your VA benefits, and create a sustainable path to wealth building. We will address the property opportunities through VA loans, discuss entrepreneurs' pathways specially designed for veterans, and explore how you can integrate mental wellness with financial planning for truly holistic success. 

I am especially excited to share strategies to help you translate your valuable military experience into civilian career advancement and financial growth. And because I believe in the power of shared wisdom, stay with me until the end of the episode to receive your complimentary copy of Strength Beyond Service, empowering quotes from female veterans. A powerful collection of resilient leadership and financial wisdom from those who've walked this path before you. Their insights will inspire and guide you through every step of your financial journey. 

Whether you are recently separated from service or have been navigating civilian life for years, today's episode will equip you with the tactical and strategic approaches needed to secure your financial future. Let's begin this important journey together. 

Transitioning to civilian life can feel like looking in the mirror without your uniform for the first time. It's familiar but different. This transition period can feel like learning a new language, especially regarding your finances. Let's discuss navigating this change with the same confidence you brought to your military service. This is where your financial recon mission comes into play. In the first 90 days, just like you wouldn't enter unfamiliar territory without a plan, you shouldn't start your civilian life without a solid financial strategy.

The Department of Defense's latest transition data tells us something of utmost importance: the first three months can make or break your long-term financial success. Financially, you are leaving behind predictable income streams, such as basic allowance for housing, BAH, and basic allowance for subsistence, BAS, and entering a world of taxed income, civilian benefits, and possibly even different pay structures. 

For our civilian listeners, BAH and BAS are special tax-free allowances that service members receive to cover housing and food costs.

Well, civilian pay works differently. You might see a bigger number on your job offer. But here is the reality check. After taxes and civilian benefit deductions, your take-home pay might tell a different story.

Let's talk about building your new financial safety net. In the military, you had built-in security housing. In the military, you had built-in security, housing, healthcare, and life insurance. Now, it's time to create your own security system. Think of it as setting up your personal forward operating base in the civilian world. 

Financial experts who work with veterans recommend having six to nine months of expenses saved up. That's more than the typical civilian recommendation because your transition often takes longer than expected. 

Consider setting aside 20% of your separation pay or last military paycheck specifically for this transition period. This buffer will help you manage unexpected expenses while you are establishing your new financial routine. Think of it as creating a personal BAH and BAS replacement strategy until your civilian income stabilizes. 

Remember, this transition is not about maintaining your financial status quo. It's about leveraging your military experience to build a stronger financial future. Let's look at how you can create this robust financial safety net.

Let's talk about something that often stays in the shadows of transition: the unique financial hurdles that female veterans face. These challenges are not just numbers on a spreadsheet. They're real obstacles that impact your daily life and long-term financial security. 

As a female veteran, you face a distinct set of transition challenges. Recent studies from the Department of Veterans Affairs show that women veterans are three times more likely than their male counterparts to face economic insecurity during their first year of civilian life. Let me break it down into areas that directly affect your financial wellness. 

First, let's address the childcare puzzle. Did you know that female veterans are significantly more likely to be single parents with children living at home? This is not just about finding daycare; it's about the financial domino effect. The absence of reliable childcare creates a direct barrier to both education and employment opportunities, often forcing tough choices between career advancement and family responsibilities.

Employment gaps hit female veterans particularly hard. Despite higher levels of educational attainment, women veterans report more difficulty finding employment after military service. Here is a startling reality. Post-9/11, women veterans have lower labor force participation than non-veteran women, less full-time employment, and earn less than veteran men. The job search period for female veterans typically extends three months longer than their male counterparts. 

Housing insecurity is another critical concern that often blindsides transitioning female veterans. Studies show that women veterans experience higher rates of homelessness than male veterans and are actually the fastest-growing subgroup of homeless veterans. This is not just about finding a place to live. It's about maintaining stable housing while juggling other financial responsibilities. 

The financial strain often compounds with other challenges. For instance, women veterans are more likely to be the sole financial provider for their families. This means every financial decision carries extra weight. Add to this the fact that many women veterans report learning about available services and benefits purely by chance, rather than through systematic support. 

But there is something important to remember. These challenges do not reflect your capabilities. There are systemic issues that require strategic navigation. Let's talk about how to build your career capital to overcome these obstacles. 

We are going to transform your military expertise into civilian success. You've got a goldmine of experience. And today we will unpack how to showcase it in a way that civilian employers understand and deeply value. 

Think about all those moments in your military career where you made critical decisions, led teams through challenging situations, or managed complex operations. These experiences are incredibly valuable in the civilian world; you just need to help employers see them. 

Recent studies from the Veterans Job Index show that military-trained women consistently outperform their civilian counterparts in leadership roles, with 82% of employers rating their leadership ability as superior. When it comes to translating your military experience, think of it as learning a new dialect rather than a new language. Your skills have not changed, just the words we use to describe them. 

Your experience in logistics becomes supply chain management. Your role in personnel management translates to your human resources leadership. That mission critical project, you led that strategic project management in civilian terms. Remember, you are not just changing words. You are reframing your experience to showcase its civilian market value. 

Now, let's tackle salary negotiation, an area where many female veterans leave money on the table. Research shows that women veterans who effectively negotiate their first civilian salary earn an average of 18% more than those who do not. That's not just a one-time win; it affects every raise and bonus throughout your career. Here is where your military position becomes your secret weapon. Just as you wouldn't enter a mission without proper intel, don't enter salary negotiations without market research. 

Did you know that salary negotiation is expected in the civilian world? In fact, 84 % of employers anticipate and respect candidates who negotiate. This is not like questioning orders in the military. It demonstrates business acumen. When discussing compensation, remember that your security clearance alone can add 5 to 15 % to your market value in certain industries.

Start by researching salary ranges for your target positions using veteran-specific job platforms. Add a premium for your leadership experience and security clearance, if applicable. When negotiating, use data-driven examples from your military career to justify your salary requirements. For instance, if you manage a 2 million budget or lead a team of 50 personnel, these are quantifiable achievements that directly translate to business value.

Remember, in the civilian workforce, your military experience is not just a background.; It is a competitive advantage. The ability to perform under pressure, lead diverse teams, and achieve objectives in complex situations. These are not just military skills. They are leadership qualities that civilian organizations desperately need.

Let's move on to something equally important: maximizing your benefits package because your total compensation is much more than your salary.

According to the VA's own data, only 44% of women veterans are currently enrolled in VA healthcare benefits. That means many of you are leaving significant value on the table. And today, we are going to change that. 

Think of your VA benefits as a comprehensive financial tool kit. Not just a health plan. When I work with female veterans, I often hear, I wish I had known about this sooner, really. When it comes to optimization, timing and knowledge are everything. 

For example, did you know that your VA disability rating can affect multiple aspects of your financial life? Beyond monthly compensation, it can provide property tax exemptions in certain States. educational benefits for your dependents, and even impact your eligibility for certain small business loans.

I will add that healthcare planning deserves special attention in your transition strategy. The average American family spends over 12, 000 annually on healthcare, but you have options to reduce this cost significantly as a veteran. Your VA healthcare benefits can serve as either your primary healthcare solution or complement your employer-provided insurance, potentially saving you thousands annually.

Consider this strategic approach. If you are eligible for both VA health care and employer-sponsored insurance, you can use VA services for service-connected conditions while maintaining private insurance for family coverage or specialized care. This dual coverage strategy can reduce your out-of-pocket healthcare expenses by up to 40 % (4 0%)

One often overlooked benefit is the VA life insurance program, which does not require a medical exam if applied for within 240 days of separation. This can be particularly valuable if you have any service-connected conditions that might affect your insurability in the civilian market.

The key to maximizing these benefits lies in understanding the interconnections. Your VA disability rating, healthcare choices, and life insurance decisions create a comprehensive safety net that protects your financial future. Let's explore how to build upon this foundation with property and housing opportunities.

Taking full advantage of your benefits is just the beginning.

First. Before we get into it, while I share finance, investment information, and strategies based on research and veteran experiences, I must emphasize that I am not a licensed investment advisor, financial planner, or registered investment professional. The information presented in this episode serves educational purposes only and should not be considered personalized investment advice.

Every veteran's financial situation is unique, so before making any investment decisions, please consult with qualified financial professionals who understand your specific circumstances, goals, and risk tolerance. They can provide personalized recommendations that align with your individual needs.

Remember, past performance does not guarantee future results, and all investments carry risk. Your success in any investment strategy depends on various factors, including market conditions, timing, and your personal financial situation. 

Now, let's continue with our discussion. One of the most powerful wealth-building tools in your veteran toolkit is your VA loan benefit.

Did you know that less than 15 % of eligible female veterans fully leverage their VA loan for wealth creation? That's a statistic that keeps me up at night because this benefit is like having a financial superpower that most civilians can only dream of.

Let's talk about VA loan maximization. First off, forget what you've heard before about needing a down payment. You can finance 100 % of the home's value with a VA loan. In today's market, where the average down payment is a whopping $62, 000 for conventional loans, this gives you a massive headstart. But here is where it gets really exciting. As of 2024, VA loan limits have been eliminated for veterans with full entitlement. What does this mean? It means you are not restricted by conventional conforming loan limits in most areas. You've got more flexibility to choose properties that align with your wealth-building goals.

Now let's talk housing investment strategies because this is where things get really interesting. Have you heard of "house hacking?" It is a strategy that is perfect for VA loan users. Here is how it works. You buy a multi-unit property, maybe a duplex or a fourplex. Leave in one unit and rent out the others. The VA actually allows this as long as you occupy at least one of the units. 

But maybe you are not ready for a multi-unit property. That's okay. 

Consider the "live in flat" approach. Find a home that meets VA standards but could use some cosmetic updates. Live there for the required year while making improvements, then sell it for a profit or rent it out and buy your next property with a second-tier entitlement VA loan. 

Here is a powerful statistic to consider. Veterans who use their VA loan benefit to purchase multi-unit properties generate an average of $1,500 monthly in passive income to rental payments. That's $18,000 a year that could accelerate your journey to financial independence. 

Remember, Your VA loan benefit is not a one-time opportunity. It is a renewable resource for building wealth through real estate. And in a market where housing prices continue to climb, getting in sooner rather than later can make a huge difference in your long-term wealth. 

Let's talk about how we can combine this real estate strategy with entrepreneurship to really supercharge your financial growth. 

Beyond real estate investment, your veteran status opens doors to significant entrepreneurial opportunities. Did you know veterans-owned businesses generate nearly a trillion with a T in annual revenue and employ over 3. 6 million people across the United States? 

When it comes to business ownership, your veteran status is a powerful asset. As of 2024, the SBAs Veteran Small Business Certification or Vet Cert program has streamlined the certification process, making it easier to access federal contracts. This certification is particularly valuable as the federal government aims to award at least 5% of all contracting dollars to service-disabled veteran-owned small businesses.

For certification and contracts, timing is crucial. Starting on the 22nd of December 2024, Service Disabled Veteran Owned Small Businesses Certification will be required for all federal contracting goals and subcontracting credits. This means getting certified now puts you ahead of the curve. The process requires your business to be at least 51 % veteran-owned and controlled, meeting specific size standards based on your industry.

Regarding funding access, several new opportunities have emerged in 2024. The SBA recently announced a funding competition offering up to $300,000 for organizations providing entrepreneurship training to women veterans. Additionally, programs like the Women Veteran Entrepreneurship Training have shown remarkable success, with over 9,500 participants working with grantees to start or grow their businesses in fiscal year 2023. 

For immediate capital access, consider these pathways: the Military Reservist Economic Injury Disaster Loan Program, the veteran-specific small business grants offering up to $100,000 in funding, and corporate partnership Programs with major companies, specifically seeking veteran-owned suppliers.

Now, let's explore how these business opportunities connect with your investment and retirement planning. 

While entrepreneurship opens one path to wealth creation, maximizing your military retirement benefits and investment opportunities creates another powerful avenue for long-term financial security. 

Let's look at how to optimize your transition from military retirement planning to civilian investment strategies.

 The transition from your thrift saving plan, TSP, to a civilian retirement account requires careful strategy planning. Your TSP offers some of the lowest fee structures in the investment world with expense ratios averaging just, um, 0.042%, significantly lower than most civilian 401k plans, which average 0. 45%. Think about that for a moment. 0.042% versus 0. 45%. 

When considering your TSP to civilian transition, you have several options. You can keep your funds in the TSP, roll them into a new employer's 401k plan, or transfer them to an IRA, an individual retirement account. Each choice has distinct advantages. For instance, keeping your TSP gives you access to the G Fund, a unique investment option offering government securities returns without the risk of losing your principal.

For veteran-specific opportunities, consider these investment strategies. The VA pension can be combined with social security benefits. for enhanced retirement income. Service-connected disability payments are tax-free and can be directed into investment accounts. Veterans Group Life Insurance, VGLI, can be converted to build cash value for investment purposes.

A particularly powerful strategy is using your VA disability compensation to maximize your retirement savings. Since these payments are tax-free, you can invest the full amount. Potentially adding hundreds of thousands to your retirement portfolio over time. For example, a 50 % disability rating providing $1,000 monthly invested consistently over 20 years at a 7 % return could grow to over $500,000.

So, let's explore how these financial strategies connect with your overall wellness framework. The military-to-civilian transition reshapes every aspect of your life, including how you think about and handle money. When I work with female veterans, I often hear how different financial stress feels in civilian life. It is more subtle, more persistent, and often more isolating than the clear-cut challenges of military service.

Think of your financial wellness like a mission briefing. You need both intelligence and intuition to succeed. The Veteran's Financial Wellness Survey reveals something very important. When you are struggling with financial decisions, you are not alone.

In fact, most veterans report that money matters significantly impact their peace of mind, with financial stress creating ripple effects throughout their lives. 

Here's where you, your military training becomes your secret weapon. Remember the O O D A or OODA loop? Observe, orient, decide and act. Let's adapt it to your financial life. When you're facing a major money decision, start by observing not just the numbers but how you are feeling about them. Are you making this choice from a place of clarity or from a place of anxiety? Orient yourself by gathering intelligence, market data, expert advice, and lessons from other veterans who've walked that path. Then, decide with both your head and your heart and act with the same precision you use when in service. 

Think of stress management as your financial body armor, just as you wouldn't enter a combat zone without protection. Don't make financial decisions without your wellness toolkit. Create what I call a financial wellness hour, a sacred time each week when you review your finances while practicing mindfulness. Use tactical breathing when reviewing bills or checking investments. These are not just stress relief techniques. They are strategic tools for better financial decision-making. 

The most powerful insight from the updated Veteran Wellness Toolkit is this. Financial setbacks are not failures. They are intelligence-gathering opportunities. When you view your financial journey through this lens, every experience becomes valuable data for your next mission. 

Let's explore how this mindset connects directly with your physical health and long-term planning because true financial resilience requires strength in both body and mind. 

Just as your mental resilience impacts your financial decisions, your physical health and financial wellness are deeply interconnected. Research shows that veterans with strong financial health are 44% more likely to maintain better physical health outcomes and report higher overall life satisfaction. 

Think of your healthcare strategy as a long-term investment in both your physical and financial future. Studies from the VA Health Economics Resource Center reveal that veterans who proactively manage their health through preventive care save an average of 3500 annually in medical expenses.

Your VA health care benefits offer a unique advantage in this area. By understanding and maximizing these benefits, you can create a comprehensive healthcare strategy that protects both your health and your wealth. For instance, taking advantage of VA preventive care services can help you identify and address health issues before they become both medical and financial emergencies.

When it comes to long-term planning, consider this powerful statistic. Veterans who integrate healthcare planning into their financial strategy are 67% more likely to maintain their financial independence in retirement. This means it's about thinking beyond saving money. It's about creating a holistic plan for future healthcare needs.

Start by mapping out your healthcare cost across different life stages. The VA's healthcare calculator suggests that veterans in their forties should plan for approximately $350,000 in lifetime healthcare costs beyond VA coverage. This might seem daunting, but remember your VA benefits can significantly reduce this burden when properly utilized.

Consider establishing a health savings account, HSA, if you are eligible, as it offers triple tax advantages while creating a dedicated fund for future medical expenses. Think of it as creating a financial safety net specifically for your health needs. 

Now, let's explore how to build and maintain your support network, which is quintessential for both your health and your financial journey.

The strength of your physical and financial health creates a foundation, but just like in the military, no mission succeeds without a strong support team. Recent studies show that female veterans who actively engage with mentorship programs are 76%. more likely to achieve their financial goals and maintain long-term financial stability.

Think of building your support network as creating your civilian squad. The Center for Women Veterans reports that female veterans who connect with mentors in their desired civilian career field typically secure positions with 15 to 20% higher starting salaries than those who transition without mentorships or support.

Your mentorship connections can come from unexpected places. Organizations like the Women Veterans Network are actively matching veterans with civilian business leaders, offering both career guidance and financial mentorship. These relationships often extend beyond career advice. They become lifelines for navigating complex financial decisions and opening doors to the opportunities you might not find on your own. 

Community resources have evolved significantly. Through the VA woman's veteran entrepreneurship training program, over 9,500 participants worked with grantees in 2023 alone to start or grow their businesses as I mentioned earlier, these are not just programs, they are communities of women who understand your journey because they've worked it themselves.

Consider joining veteran-specific professional networks and financial wellness groups. These communities often share insider knowledge about VA benefit optimization, investment opportunities, and career advancement strategies tailored to your unique experience as a female veteran.

They could also connect you with financial advisors who specialize in veteran benefits and understand the complexities of military-to-civilian transition. 

Remember, building your support network is not just about receiving help. It's about creating a community where you can both receive and offer guidance. Your military experience makes you uniquely qualified to help others even as you build your own financial success story. 

Your military service taught you the value of teamwork and mutual support. Your support network and community become your new unit in the civilian world. Build them with intention, maintain them with dedication, and leverage them for mission success. Remember, the strongest warriors don't go it alone. They know how to build and lead effective teams. 

Now, let's wrap up today's mission of building financial resilience. 

Throughout today's mission briefing, we've covered essential strategies for building financial resilience, from mastering your transition and maximizing virtual benefits to creating integrated wellness frameworks. Now, let's bring these elements together into your action plan. 

Your financial resilience mission combines the same elements that made you successful in the military: strategic planning, discipline, execution, and unwavering commitment to your objectives. From understanding the first 90 days of transition to building your support network, each component strengthens your financial position.

Admiral Michelle Howard, the first woman to achieve a four-star rank in the U. S. Navy, once said, Don't be afraid to take that first step. Don't be afraid to be first. Someone has to be first. And why not you? The words ring especially true for female veterans navigating their financial futures. 

The skills you developed in service, leadership, adaptability, and strategic thinking are your secret weapons in building financial success. Research shows that female veterans who apply the military decision-making process to their finances are 82% more likely to achieve long-term financial goals. 

Remember, financial resilience is not just about money. It's about creating a life of security and purpose. You've already proven your ability to excel in one of the world's most demanding environments. Now, it's time to apply that same excellence to your financial future. 

As you implement these strategies, remember the words of Maya Angelou. "You may encounter many defeats, but you must not be defeated. In fact, it may be necessary to encounter the defeats so you can know who you are, what you can rise from, and how you can still come out of it."

Your military service equipped you with rare and valuable skills. Now it's time to deploy those skills in service of your financial future. You are not starting from scratch; you are building on a foundation of excellence, discipline, and proven success. 

Let's move forward with the same precision and determination that marked your military service. Your financial resilience mission starts now.

To support your mission, I've created Strength Beyond Service. Empowering quotes from female veterans. This collection captures the wisdom, resilience, and financial insights of women who've successfully navigated this path before you. 

Take three actions today to begin your financial resilience mission.

First, download your free copy of Strengths Beyond Service from my website. mariejocaesar. com These powerful quotes will inspire and guide your journey. Second, subscribe to my YouTube channel for weekly videos and financial wellness strategies. You will find practical tips, success stories, and step-by-step guidance for your financial journey.

And third, visit my website for exclusive resources including blog posts and podcast episodes focused on building financial resilience. 

Make sure to join the conversation online using hashtags like #femaleveteranfinance, #veteranwealth, #militarywomenlead, and #vetfinancialfreedom.

Remember, your military service gave you incredible skills and discipline. Now, it's time to deploy those strengths in service of your financial future. I feel like I'm repeating myself. 

You've already proven you can accomplish extraordinary things. Let's take that same dedication and apply it to building your financial legacy.

Thank you for joining me today. Next week, we will return to our series on preparing for the holiday. I will talk about mastering the art of modern gift-giving just in time for the holiday season. We will explore digital gift strategies, smart solutions for modern presents I will show you how to maximize your holiday budget while giving meaningful digital gifts that create lasting memories without breaking the bank.

I am your host. I will be back again next week, and until then, continue merging life and money. Bye for now.