This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Returning Troops Face Financial Challenges

Taking part in the program is a wise choice for those serving, Montanaro says, provided they don't go chasing after a similar return on their money back home.

"Going from 10% to half a percent will be a shocker," he says. "Don't look at the savings rates you are going to get now. Compare it to what you got in SDP and you might decide that's just not good enough, that you have to do some risk-type investments. You don't, all of a sudden, want to be in an inappropriate investment if the markets happen to tank and you need that money. But it is human nature to be earning 10% and want to keep earning that 10% back."

If the deployed let go of managing household finances, they should be prepared to share those duties upon moving back home.

"One of the things for me when I came back was that, by necessity, while I was gone my wife was taking care of the business at home of paying bills and doing all the things you have to do on a day-to-day basis," Montanaro says. "When I came back, my inclination was that we would just go back to our normal roles, but that wasn't the case. I never got it back. There are bound to be some challenges in terms of who does what and who is responsible for things on the financial front."

Montanaro warns that the excitement of coming home can lead to a bit of a spending spree. Returning soldiers need to maintain some restraint so they don't demolish their family budget because of their well-warranted enthusiasm.

"There can be a real tendency upon return to try to make up some of that lost time," he says. "That can manifest itself in terms of spending. 'Hey, the kids want this latest hot gadget, they should have it because I'm back and I want to make everybody happy.' Or, 'We're going to take this big trip because we didn't get to take a vacation together last year.' That desire to make things right and make everybody happy could present a challenge in terms of staying on track with your family's budget."

Similarly, the thrill of being back could lead to big decisions and purchases -- deciding to have a child or add to the family, for example -- that might make more sense a bit later in life.

"There is a perspective they have coming back that life is short and it could push them down a path where they might make decisions that, financially, aren't as well thought out as they should be," Montanaro says. "There needs to be a cooling-off period."

-- Written by Joe Mont in Boston.

>To contact the writer of this article, click here: Joe Mont.


2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs