At James Investment, we’re privileged to work with clients who have served our country, and we believe their service should continue to reward them long after retirement from active duty. Many veterans, especially those with significant wealth, overlook the range of financial benefits available through the Department of Veterans Affairs and related programs. These benefits can meaningfully enhance a comprehensive wealth strategy by improving tax efficiency, protecting assets, and supporting long-term goals.
Below are several veteran benefits and how they can complement a financial plan.
1. Health Care Benefits: Reducing Out-of-Pocket Costs in Retirement
If veterans have a certain degree of disability, they can access a network of free health care options. Some are even eligible for a travel allowance to get to a VA facility for treatment. Disability compensation through the VA not only for themselves but for their dependents is also available.
Why it matters: Integrating VA health care into your broader plan can reduce reliance on costly private insurance policies or employer-based coverage. For high-net-worth individuals, this can help preserve liquidity for other financial goals, from growing investments to supporting charitable causes.
2. Disability Compensation: Accessing Tax-Free Income Streams
Veterans who sustained injuries or illnesses during service, or whose preexisting conditions were worsened by active duty, may be eligible for tax-free disability compensation. The VA assigns a disability rating based on the severity of service-connected conditions, ranging from 0% to 100%, which determines the benefit amount.
Categories may include:
- Service-connected disabilities: Conditions directly linked to military service.
- Secondary service-connected disabilities: New conditions caused or aggravated by an existing service-connected issue.
- Presumptive disabilities: Conditions automatically presumed to be service-connected based on exposure (e.g., Agent Orange, burn pits).
- Combat-related special compensation: For retired service members with combat-related disabilities.
Why it matters: For high-net-worth veterans, understanding disability eligibility can provide access to tax-free income streams and enhanced health benefits. These programs can also affect long-term insurance and estate planning decisions, allowing you to allocate more private resources toward investment, legacy, or philanthropic goals.
3. Home Financing: Using VA Loans to Improve Liquidity
- VA home loan guarantees can help veterans secure favorable home financing.
- Eligible veterans can also receive grants up to $23,566 for adaptations to improve accessibility and safety in their homes.
- In Ohio 100% disabled veterans are eligible for an expanded homestead exemption on their property taxes.
Why it matters: Even for high-net-worth individuals, VA home loans can improve liquidity and provide strategic flexibility, particularly when acquiring or refinancing properties. At certain levels of disability, the funding fee is waived for a VA loan as well.
4. Education and Business Support: Leveraging the GI Bill for Family Growth
Through programs such as the Post-9/11 GI Bill and veteran business initiatives, service members and their families can access funding for education and entrepreneurship.
Maximizing the GI Bill
The GI Bill covers tuition, housing, and supplies for eligible veterans or their dependents, but benefits can expire if not used within a certain time frame (typically 15 years after discharge for older programs, though newer versions may have no expiration under the “Forever GI Bill”). Veterans can also transfer unused benefits to a spouse or child if eligibility requirements are met.
Why it matters: For families with substantial assets, this is an opportunity to fund advanced education or retraining without tapping private savings or 529 accounts. Coordinating GI Bill benefits with broader education funding strategies can preserve capital and enhance multi-generational wealth efficiency.
5. Pension and Tax Advantages: Optimizing Retirement Income
Veterans and surviving spouses may qualify for pensions. In Ohio, no income tax is charged on military retirement pay.
Why it matters: Layering veteran income streams with other investment income can improve overall cash-flow efficiency and enhance tax management. For high-net-worth families, residency decisions and tax optimization can make a meaningful difference.
6. Long-Term Care and Survivor Support: Protecting Wealth Across Generations
When certain conditions are met, veterans are eligible for long-term care services such as:
- 24/7 nursing and medical care
- Physical therapy
- Help with daily tasks (like bathing, dressing, making meals, and taking medicine)
- Comfort care and help with managing pain
- Support for caregivers who may need skilled help or a break so they can work, travel, or run errands
Why it matters: These programs can offset future care costs and protect personal wealth, ensuring that more of your estate is preserved for future generations or philanthropic goals.
Bringing It All Together
For veterans with significant assets, these programs are not simply benefits, they are strategic tools. By aligning them with your investment, retirement, and estate plans, you can reduce risk, increase efficiency, and extend the reach of your wealth for generations to come.
At James Investment, we help clients identify and integrate every available advantage, including those earned through military service, into a coordinated wealth plan.
If you or a family member are a veteran, our team can help you align your military benefits with your broader wealth goals, ensuring your service continues to reward you for years to come.
Schedule a conversation today to explore how your benefits fit into a comprehensive financial plan.
