Financial Planning for Military and Government Families in Dover: What You Need to Know
Dover, Delaware is more than just the state capital—it’s a community anchored by military personnel, federal employees, and state workers committed to public service. With Dover Air Force Base and several government agencies nearby, many local families navigate financial lives shaped by structured benefits, frequent relocations, and specialized retirement systems.
Financial planning for military and government professionals in Dover requires a thoughtful, personalized approach. From understanding the complexities of federal and military benefits to aligning decisions with long-term goals, a fiduciary financial advisor in Dover is committed to providing the guidance and support needed to help build a plan that reflects your values and supports your long-term goals.
Managing Military and Federal Compensation
Whether you’re an active-duty service member, a civilian federal employee, or a state worker, your compensation likely includes more than just a base salary. Military personnel may receive housing allowances, hazard pay, and bonuses, while federal and state employees often see pay variations tied to locality adjustments, promotions, or special duty assignments. While these additional income sources can be advantageous, they can also add complexity to cash flow management, savings strategies, and tax planning.
A financial advisor who understands the nuances of government and military compensation can help you evaluate your income streams and align them with your monthly budget, savings goals, and future objectives. With thoughtful guidance, you can make informed decisions about how to allocate your income to high-yield savings accounts, investment accounts, or retirement plans, helping you to pursue your financial goals.
Understanding Your Public-Sector Retirement Benefits: FERS and BRS
Retirement systems for public-sector employees differ significantly from those in the private sector. Military personnel typically participate in the Blended Retirement System (BRS), while federal civilian workers enroll in the Federal Employees Retirement System (FERS). Both offer pension income, access to the Thrift Savings Plan (TSP), and other benefits that can create a reliable foundation for retirement.
FERS includes a pension, Social Security eligibility, and the TSP, which functions similarly to a 401(k). Understanding how these elements work together is crucial, particularly when considering factors such as your planned retirement age, survivor benefits, and cost-of-living adjustments. The BRS, on the other hand, combines a smaller pension with automatic and matching contributions to the TSP, making active participation and investment decisions critical.
A financial advisor can help you project your pension income, select TSP fund allocations based on your risk profile, and decide when to draw Social Security in a way that complements other retirement income. For dual-income households, coordinating benefits between spouses can help improve long-term outcomes.
Navigating Relocations and Housing Decisions
Military and government service often require frequent relocations—sometimes across state lines or overseas. While these moves may be routine, they can carry financial implications that go well beyond logistics. From managing home equity and state tax exposure to maintaining continuity in your financial plan, each transition deserves thoughtful consideration.
Decisions around homeownership can be especially complex. Renting may offer flexibility, but buying a home, particularly with access to VA loan benefits, can provide long-term value. That said, understanding the break-even point of a home purchase is essential, especially if your assignment is expected to last only a few years.
A fiduciary advisor can help you weigh the financial tradeoffs between renting and buying, prepare for relocation expenses, and adjust your broader financial plan to stay aligned with your long-term goals. They can also assist with state tax planning and clarify residency rules, which are an important consideration for military families navigating multiple state obligations.
Making the Most of Military and Government Benefits
Public-sector employees often have access to valuable benefits, including health insurance, life insurance, and retirement plans. However, selecting the right options requires careful consideration. For federal employees, programs like FEGLI (Federal Employees’ Group Life Insurance), FLTCIP (Federal Long Term Care Insurance Program), and FSAFEDS (Flexible Spending Account Program) can provide important financial protection. Military families may have access to comparable resources through TRICARE, SGLI, and the Post-9/11 GI Bill.
A financial advisor can help you evaluate these benefits in the context of your overall financial plan. You may choose to supplement your life insurance coverage, establish a health savings account (HSA) for future medical costs, or strategically allocate GI Bill benefits among family members. These choices can have lasting implications for your financial security and long-term wealth planning.
Coordinating Estate and Legacy Planning
Estate planning for government and military personnel involves unique considerations, including survivor benefits, pension continuation options, and federal-specific designations. A comprehensive estate plan can help protect your family’s financial future in the face of unexpected events.
Key steps may include designating the proper beneficiaries, establishing or updating powers of attorney, and helping to ensure that any trusts or guardianship decisions reflect your family’s specific needs. While military and government pensions often offer survivorship elections, these choices should be carefully coordinated with the rest of your estate plan.
A fiduciary advisor can work with estate attorneys to help you address these complexities. Together, they can help ensure that your plan is current, aligned with your goals, and structured to provide clarity and confidence for you and your loved ones.
Planning for Post-Service Life
Many military and government professionals retire earlier than those in the private sector or transition into a new career phase. Some pursue opportunities in the private sector, others launch businesses, and many opt for full retirement. Each path represents a significant lifestyle and financial shift—one that can benefit from a thoughtful retirement planning strategy.
As you prepare for this next chapter, your strategy should address how to replace income, manage healthcare expenses, and preserve existing retirement benefits. This may involve updating your investment allocation, refining your spending plan, or leveraging tax opportunities—such as Roth conversions—during years of lower taxable income.
A fiduciary advisor can help you navigate this transition with confidence. That includes evaluating healthcare options like the Federal Employees Health Benefits (FEHB) Program and TRICARE for Life and coordinating Medicare enrollment, if applicable.
Why Work with a Fiduciary Advisor in Dover, DE
Professionals who dedicate their careers to public service deserve financial guidance that reflects their values. A fiduciary advisor is legally and ethically obligated to act in your best interests, offering personalized advice without commissions or product-based incentives.
At Savant Wealth Management, our team in Dover understands the benefits, systems, career paths, and lifestyle demands of military members and government employees. Our goal is to help individuals and families make smart decisions about savings, taxes, investments, and legacy planning, all while striving to ensure those decisions are grounded in your specific goals.
Build a Financial Strategy That Honors Your Service
Financial planning for government and military personnel in Dover goes beyond balancing budgets. It’s about helping to create a future that supports your mission, your family, and the life you want after service.
Schedule a consultation with a financial advisor in Dover today. Together, we’ll help you build a personalized plan designed to simplify your financial life and support your service.