Disabled Veteran Benefits FIRE
Has there been a discussion on being able to FIRE as a disabled vet?
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The biggest ways I see FIRE being unique for a disabled vet is by 1) providing a steady, tax-free (and CPI-adjusted) paycheck every month to help you reach your FI number quicker and 2) providing healthcare access, thereby decreasing (or eliminating) healthcare as a budget line item for the veteran and decreasing your FI number.
That being said, the level of impact depends wholly on the VA disability rating you receive. Ratings range from 0% to 100%, with the benefits increasing drastically (and non-linearly) as you approach 100%. The biggest benefit change thresholds are 30%, 50%, and 100%.
Below 30%- Small monthly pay (10–20%), limited VA healthcare access (generally prioritized for service-related issues)
30-50%- Increased monthly pay, pay is adjusted for dependents (spouse/kids = more pay), broader VA healthcare eligibility, but not yet full coverage for all conditions
50-90%- Increased monthly pay, full VA Healthcare for all conditions (not just service-related), access to programs like vocational rehab (VR&E) and potential eligibility for unemployability (generally at higher ratings)
100% (Scheduler or TDIU)- Max monthly pay (~$3.7k–$4.2k/mo depending on dependents), full healthcare and dental, access to military base facilities, potential state-level tax benefits
100% (Permanent and Total)- Everything above, plus long-term protections (Chapter 35 education benefits for dependents, CHAMPVA healthcare for dependents if not eligible for TRICARE), many state property tax exemptions, and generally no future re-evaluations
Additionally, if you do have a steady paycheck coming in from the VA, you can lean heavier on equities in your portfolio. There is a decreased need for bonds, since they often have a role of stabilizing your portfolio, which a regular (and CPI-adjusted) disability pay already helps accomplish.
For me, I am considering my VA disability money as the bonds portion of my portfolio. I can have my portfolio 100% invested in stocks (VTI/VOO) to allow it to grow as much as it can.
Additionally, since it's guaranteed to be coming in every month, it acts as the base of my monthly cashflow covering my essential expenses. If my stock portfolio dropped 50%, I can still survive until it comes back up. Don't get me wrong, an emergency cash fund for 3-6 months is still available and ready to go as well.
Might not be perfect, but that's my thoughts.
Good point. I considered the same as far as stock risk is concerned.
One thing I learned last year is that you can contribute to an HSA while receiving healthcare through the VA if you also have eligible health insurance thought the marketplace/employer. I have my employers High Deductible plan because it covers my wife and kid, but still receive care through the VA. Any care received there is assumed to be service connected and does not disqualify you from contributing to an HSA.
Hey Marty. Check out Doug Nordman. He’s made the rounds on all the different FI podcast. He was a navy submariner. He doesn’t specifically discuss FI for disabled Veterans but his dod speak the language.
Thank you for the tag,
Nathan_B!
VA disability compensation is another inflation-adjusted life annuity like a military pension or Social Security. They all use the same calculation for their Cost Of Living Adjustment (a formula linked to the Consumer Price Index) and they're all part of federal law. VA disability compensation COLAs used to have to be approved by Congress every year, but in 2024 that law was amended to have all three annuities automatically implement their annual COLA without Congressional action.
The important part of the COLA is that it largely preserves your purchasing power. If you dial in your lifestyle to your inflation-adjusted annuity income (whether or not you're working part-time or full time) then ideally it's sustainable over decades.
Let me know if you have more questions about details. My spouse and I are now in our 60s, and after 25 years of retirement (including my 40% VA disability rating) our spending has risen with the CPI. Our annual spending is variable and occasionally lumpy but the long-term trend is stable.