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How entrepreneurial military spouses build retirement security

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It’s scary enough for individuals to take a chance on themselves and start their own business, but the spouses of military servicemembers are often grappling with a unique set of hurdles on the journey toward entrepreneurship.

Certified financial planner Adrienne Ross can speak to that personally. She and her now-retired Marine Corps husband were constantly on the move during his military career, and that made the complicated process of earning her bachelor’s degree a yearslong process.

“We would move, and it would be like going through the process all over again,” recalled Ross, a partner at Clear Insight Wealth Management in Spokane, Wash. “I went to multiple colleges to complete a degree, and we were never in one place long enough.”

She ultimately completed her education at the University of Illinois Springfield through an online program while she and her family were living outside the U.S., but the ordeal informed her decision to become a financial planner, hang out her own shingle and work with military families toward financial stability.

“The client base I focused on serving is military families because I understand what it’s like to move all the time and have so many disruptions to your work life and personal life – and how it impacts your financial journey as well,” she said.

Unique advantages and disadvantages

The itinerant lifestyle that Ross grappled with as she worked on her degree can be a handicap for military spouses who are trying to build out a business.

“The number one additional hurdle would be things like business licensing,” said Bill Sweet, CFP and CFO at Ritholtz Wealth Management and U.S. Army combat veteran. “Each state and municipality will have its own licensing requirements, and there isn’t always reciprocity.” That’s often the case for teachers and nurses, for example.

“If you’re moving around every two to three years to follow your spouse, it becomes difficult to redo your nursing license on a business income,” he said. “But when it comes to things like retirement savings, I think there are a lot of neat things you can do.”

Servicemembers can enroll in the federal government’s Thrift Savings Plan, for instance, which offers benefits and savings like the 401(k) plans available to private-sector employees.

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A spousal individual retirement account might be a good starting point for military spouses, even if they themselves aren’t yet employed. The servicemember can sock away up to $7,000 in 2025 ($8,000 for those age 50 and older) into the spouse’s IRA. To make this work, the married couple must be filing jointly.

“Most families today live on two incomes, so they should plan on retiring on two incomes,” said John Power, CFP at Power Plans in Walpole, Mass. “Every military spouse should have a spousal IRA. The IRS allows you to deduct from your income to contribute to your spouse’s IRA – and if you can do that, you should do that.”

While the spousal IRA is enough to start stashing money away for retirement, entrepreneurs can take other steps to beef up their savings as their business grows.

In Ross’s case, she started out with a Roth IRA – a retirement account where contributions are made on an after-tax basis but grow tax free and, most importantly, are free of tax upon withdrawal. “I love Roth IRAs,” she said. “They are super flexible, available to many people and very attainable, especially if you’re getting started with a small business.”

Roth IRA contribution limits are capped at $7,000 for those under 50 ($8,000 for those 50 and over). Be aware that if you have both a traditional IRA and a Roth IRA, the contribution limit of $7,000 is an aggregate amount. The upshot of Roth IRAs? You don’t need a whole lot of money to start saving in the first place.

“You can start with as little as $50 a month, and in most places fees are very reasonable,” Ross said.

Graduating to more complex savings options

When Ross’s business grew, she shifted into using a simplified employee pension plan, or SEP IRA, for retirement savings. These plans are specifically for small businesses, and they don’t come with the hefty start-up costs you might see in conventional retirement plans.

The upshot for young businesses is that the annual contributions to SEP IRAs are flexible, which can be handy in the early years when cash flow is inconsistent. Generally, these accounts allow for a contribution of up to 25% of an employee’s pay (or up to $70,000 in 2025). It should be noted that participant loans are not allowed under these arrangements, however.

“In terms of planning your own retirement, treat the business like a job and treat yourself as an employee of that business,” said Sean Gillespie, president of Redeployment Wealth Strategies in Virginia Beach, Va. “Take the proceeds and feed your retirement the way you would if you were [a W-2 employee] working for someone else.”

Eventually, Ross and Gillespie partnered with another advisor to form a registered investment advisory firm called Apforia. Because of this arrangement, they had the assets and the economy of scale needed to start a 401(k) plan.

In 2025, individuals can put away up to $23,500 in a 401(k) plan, plus $7,500 if they’re 50 and over (or up to an additional $11,250 for employees aged 60 to 63).

It’s OK to seek help

Military spouses seeking to make the leap into entrepreneurship should leverage their connections to peers.

“Having that connection to other military spouses who have their own businesses was really important,” said Ross. “They have that same understanding of what it’s like to be living a nomadic life and trying to build a business or career for yourself despite all of that.”

They should also invest in themselves by calling in a financial planner or an accountant who can help them build a resilient and healthy business.

“Ultimately, I think working with a professional will pay off, and being proactive,” said Sweet. “Pay a little out of pocket and talk to a CPA or CFP about setting up a business.”

JOIN the CNBC CFP® Circle for Mission: Money Management on April 1. This exclusive virtual roundtable, held in partnership with The Association of Military Spouse Entrepreneurs, will focus on how to best manage money effectively. Get your free ticket today!

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Personal Finance

What student loan forgiveness opportunities still remain under Trump

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Under the Biden administration, the U.S. Department of Education made regular announcements that it was forgiving student debt for thousands of people under various relief programs and repayment plans.

That’s changed under President Donald Trump.

In his first few months in office, Trump — who has long been critical of education debt cancellation — signed an executive order aimed at limiting eligibility for the popular Public Service Loan Forgiveness program, and his Education Department revised some student loan repayment plans to no longer conclude in debt erasure.

“You have the administration trying to limit PSLF credits, and clear attacks on the income-based repayment with forgiveness options,” said Malissa Giles, a consumer bankruptcy attorney in Virginia.

The White House did not respond to CNBC’s request for comment.

Here’s what to know about the current status of federal student loan forgiveness opportunities.

Forgiveness chances narrow on repayment plans

The Biden administration’s new student loan repayment plan, Saving on a Valuable Education, or SAVE, isn’t expected to survive under Trump, experts say. A U.S. appeals court already blocked the plan in February after a GOP-led challenge to the program.

SAVE came with two key provisions that lawsuits targeted: It had lower monthly payments than any other federal student loan repayment plan, and it led to quicker debt erasure for those with small balances.

“I personally think you will see SAVE dismantled through the courts or the administration,” Giles said.

But the Education Department under Trump is now arguing that the ruling by the 8th U.S. Circuit Court of Appeals required it to end the loan forgiveness under repayment plans beyond SAVE. As a result, the Pay As You Earn and Income-Contingent Repayment options no longer wipe debt away after a certain number of years.

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There’s some good news: At least one repayment plan still leads to debt erasure, said higher education expert Mark Kantrowitz. That plan is called Income-Based Repayment.

If a borrower enrolled in ICR or PAYE eventually switches to IBR, their previous payments made under the other plans will count toward loan forgiveness under IBR, as long as they meet the IBR’s other requirements, Kantrowitz said. (Some borrowers may opt to take that strategy if they have a lower monthly bill under ICR or PAYE than they would on IBR.)

Public Service Loan Forgiveness remains

Despite Trump‘s executive order in March aimed at limiting eligibility for Public Service Loan Forgiveness, the program remains intact. Any changes to the program would likely take months or longer to materialize, and may even need congressional approval, experts say.

PSLF, which President George W. Bush signed into law in 2007, allows many not-for-profit and government employees to have their federal student loans canceled after 10 years of payments.

What’s more, any changes to PSLF can’t be retroactive, consumer advocates say. That means that if you are currently working for or previously worked for an organization that the Trump administration later excludes from the program, you’ll still get credit for that time — at least up until when the changes go into effect.

For now, the language in the president’s executive order was fairly vague. As a result, it remains unclear exactly which organizations will no longer be considered a qualifying employer under PSLF, experts said.

However, in his first few months in office, Trump has targeted immigrants, transgender and nonbinary people and those who work to increase diversity across the private and public sector. Many nonprofits work in these spaces, providing legal support or doing advocacy and education work.

For now, those pursuing PSLF should print out a copy of their payment history on StudentAid.gov or request one from their loan servicer. They should keep a record of the number of qualifying payments they’ve made so far, said Jessica Thompson, senior vice president of The Institute for College Access & Success.

“We urge borrowers to save all documentation of their payments, payment counts, and employer certifications to ensure they have any information that might be useful in the future,” Thompson said.

Other loan cancellation opportunities to consider

Federal student loan borrowers also remain entitled to a number of other student loan forgiveness opportunities.

The Teacher Loan Forgiveness program offers up to $17,500 in loan cancellation to those who’ve worked full time for “complete and consecutive academic years in a low-income school or educational service agency,” among other requirements, according to the Education Department.

(One thing to note: This program can’t be combined with PSLF, and so borrowers should decide which avenue makes the most sense for them.)

Student loan matching funds

In less common circumstances, you may be eligible for a full discharge of your federal student loans under Borrower Defense if your school closed while you were enrolled or if you were misled by your school or didn’t receive a quality education.

Borrowers may qualify for a Total and Permanent Disability discharge if they suffer from a mental or physical disability that is severe and permanent and prevents them from working. Proof of the disability can come from a doctor, the Social Security Administration or the Department of Veterans Affairs.

With the federal government rolling back student loan forgiveness measures, experts also recommend that borrowers explore the many state-level relief programs available. The Institute of Student Loan Advisors has a database of student loan forgiveness programs by state.

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Personal Finance

Many Americans are worried about running out of money in retirement

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Many Americans are worried they’ll run out of money in retirement.

In fact, a new survey from Allianz Life finds that 64% Americans worry more about running out of money than they do about dying. Among the reasons cited for those fears include high inflation, Social Security benefits not providing enough support and high taxes.

The fear of running out of money was most prominent for Gen Xers who are approaching retirement. However, a majority of millennials and baby boomers also said they worry about their money lasting, according to the online survey of 1,000 individuals conducted between January and February.

Separately, a new Employee Benefit Research Institute report finds most retirees say they are living the lifestyle they envisioned and are able to spend money within reason. Yet more than half of those surveyed agreed at least somewhat that they spend less because of worries they will run out of money, according to the survey of more than 2,700 individuals conducted between January and February.

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Meanwhile, a Northwestern Mutual survey reported that 51% of Americans think it’s “somewhat or very likely” they will outlive their savings. The survey polled 4,626 U.S. adults aged 18 and older in January.

Since those studies were conducted, new tariff policies have caused disturbance in the stock markets and prompted speculation that inflation may increase. Meanwhile, new leadership at the Social Security Administration has prompted fears about the continuity of benefits. Those headlines may negatively affect retirement confidence, experts say.

With employers now providing a 401(k) plan and other savings plans versus pensions, it is largely up to workers to manage how much they save heading into retirement and how much they spend once they reach that life stage. That responsibility can also lead to worries of running out of money in the future, experts say.

How to manage the ‘fear of outliving your resources’

Because of the unique risks every individual or couple faces when planning for retirement, the best approach is typically to transfer some of that burden to a third party, said David Blanchett, head of retirement research at PGIM DC Solutions.

Creating a guaranteed lifetime income stream that covers essential expenses can help reduce the financial impact of any events that require retirees to cut back on spending, Blanchett explained.

That should first start with delaying Social Security benefits, he said. While eligible retirees can claim benefits as early as 62, holding off up until age 70 can provide the biggest monthly benefits. Social Security is also unique in that it provides annual adjustments for inflation.

73% of Americans are financially stressed

Next, retirees may want to consider buying a lifetime income annuity that can help amplify the monthly income they can expect. Admittedly, those products can be complicated to understand. Therefore Blanchett recommends starting out by comparing very basic products like single premium immediate annuities that are easier to compare.

“Unless you do those things, you just can’t get rid of that fear of outliving your resources,” Blanchett said.

Without a guaranteed income stream, retirees bear all of the financial risk themselves, he said.

 “Retirement could last 10 years; it could last 40 years,” Blanchett said. “You just don’t know how long it’s going to be.”

Among retirees, there has been some hesitation to buy annuities, said Craig Copeland, EBRI’s director of wealth benefits research. Such a purchase requires parting with a lump sum of money in exchange for the promise of a guaranteed income stream.

“We see great increase in interest, but we aren’t seeing upticks in take up yet,” Copeland said. “I do think that’s going to start to change.”

What can help boost retirement confidence

To effectively plan for retirement, it helps to seek professional financial assistance, experts say.

Meanwhile, few people have a plan of their own for how they may live on the assets they’ve worked hard to accumulate, according to Kelly LaVigne, vice president of consumer insights at Allianz Life.

“This is something that you should not plan on doing on your own,” LaVigne said.

While the survey from Northwestern Mutual separately found individuals think they need $1.26 million to retire comfortably, the real number individuals need is based on their personal situation, said Kyle Menke, founder and wealth management advisor at Menke Financial, a Northwestern Mutual company.

In thinking about how life will look in 30 years, there are a variety of things to consider, Menke said. This includes stock market returns, taxes, inflation and medical expenses, he said.

Even people who have enough money for retirement often don’t feel confident in their ability to manage all of those factors on their own, he said. Financial advisors have the ability to run different simulations and stress test a plan, which can help give retirees and aspiring retirees the confidence they’re lacking.

“I think that’s where the biggest gap is,” said Menke, referring to the confidence Americans are lacking without a plan.

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Trump tariffs will hurt lower income Americans more than the rich: study

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Shipping containers at the Port of Seattle on April 16, 2025.

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Tariffs levied by President Donald Trump during his second term would hurt the poorest U.S. households more than the richest over the short term, according to a new analysis.

Tariffs are a tax that importers pay on foreign goods. Economists expect consumers to shoulder at least some of that tax burden in the form of higher prices, depending on how businesses pass along the costs.

In 2026, taxes for the poorest 20% of households would rise about four times more than those in the top 1%, if the current tariff policies were to stay in place. Those were findings according to an analysis published Wednesday by the Institute on Taxation and Economic Policy.

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For the bottom 20% of households — who will have incomes of less than $29,000 in 2026 — the tariffs will impose a tax increase equal to 6.2% of their income that year, on average, according to ITEP’s analysis.

Meanwhile, those in the top 1%, with an income of more than $915,000 a year, would see their taxes rise 1.7% relative to their income, on average, ITEP found.

Economists analyze the financial impact of policy relative to household income because it illustrates how their disposable income — and quality of life — are impacted.

Taxes by ‘another name’

“Tariffs are just taxes on Americans by another name,” researchers at the Heritage Foundation, a conservative think tank, wrote in 2017, during Trump’s first term.

“[They] raise the price of food and clothing, which make up a larger share of a low-income household’s budget,” they wrote, adding: “In fact, cutting tariffs could be the biggest tax cut low-income families will ever see.”

Meanwhile, there’s already evidence that some retailers are raising costs.

A recent analysis by the Yale Budget Lab also found that Trump tariffs are a “regressive” policy, meaning they hurt those at the bottom more than the top.  

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The short-term tax burden of tariffs is about 2.5 times greater for those at the bottom, the Yale analysis found. It examined tariffs and retaliatory trade measures through April 15.

“Lower income consumers are going to get pinched more by tariffs,” said Ernie Tedeschi, director of economics at the Yale Budget Lab and former chief economist at the White House Council of Economic Advisers during the Biden administration.

Treasury Secretary Scott Bessent has said tariffs may lead to a “one-time price adjustment” for consumers. But he also coupled trade policy as part of a broader White House economic agenda that includes a forthcoming legislative package of tax cuts.

“We’re also working on the tax bill and for working Americans, I believe that the reduction in taxes is going to be substantially more,” Bessent said April 2.

It’s also unclear how current tariff policy might change. The White House has signaled trade deals with certain nations and exemptions for certain products may be in the offing.

Trump has imposed a 10% tariff on imports from most U.S. trading partners. Mexico and Canada face 25% levies on a tranche of goods, and many Chinese goods face import duties of 145%. Specific products also face tariffs, like a 25% duty on aluminum, steel and automobiles.

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