MARINE CORPS AIR STATION MIRAMAR, Calif. -- After the attacks of Sept. 11, MARADMIN 503/01 announced the first hostile fire pay, or HFP, issued during the resulting Global War on Terrorism.

The order granted Marines serving at the Pentagon and World Trade Centers during the attacks HFP, plus three months more if the Marines  incurred injury and were hospitalized.

Marines continue to fight in support of the Global War on Terrorism and continue to receive compensation for their selfless and willing dedication to country and Corps, distinguished by their service in combat zones, as the American force in readiness.

On average, a young Marine could save about $700 to $800 a month while deployed due to fewer out of pocket expenses and increased income from special pay.

A frugal Marine can return home with about $5,000 at the end of a typical seven-month deployment or about $9,000 at the end of a yearlong deployment, give-or-take a few thousand dollars depending on the prior responsibilities and allotments of the Marine, according to Craig K. Hughes, an accredited financial counselor with the Marine and Family Services Center here.

On top of basic pay for military service, with a respective amount at each rank, Marines receive hazardous duty incentive pay of $150 monthly and imminent danger or hostile fire pay at $225 monthly while deployed.

The highest ranking Marine in a family during deployment will receive family separation allowance of $3.50 a day, roughly $108 a month, for service away from family while under military orders for 30 days or longer.

Marines who feel their pay income is inconsistent with the amount they should receive can direct concerns to their administrative sections. The station finance office can process requests to determine pay problems in an account and restore the correct amounts, but the request must first come from the administrative section, according to Lance Cpl. Allan S.

Kohler, a pay clerk at the station finance office.

“Most Marines deploy with a good idea of what kind of money they will make while they are gone,” said Lance Cpl. Anna Bohmen, administrative and pay clerk, customer service section, installation personnel administration center, or IPAC. “They look up their leave and earning statements while they are gone, and if they think there is a problem, they usually call us and figure out the problem before they get back.”

Marines returning from deployment must have the deployments section of IPAC perform an audit when they return and check in to their parent command. The audits are designed to catch possible pay problems along with other clerical discrepancies.

Congress and the president can designate combat zones as tax exempt areas, making those earnings received during service in certain areas excluded from taxable income.

Money saved during the time of deployment is tax-free, unless it is sent home as in the case of basic housing allowance sent home to families, child support payments and similar garnishments. In those cases, the money’s recipient will be taxed.

Craig K. Hughes provides Marines stationed here with advice for spending, budgeting and making financial goals.

His main suggestion to Marines returning from deployment is to “sit down and think about your life’s financial goals.” Determine long term goals and begin pursuit of them now. Put the money saved from deployment to a good use that has future benefits.

“If (a Marine) were to invest $4,000,” said Hughes, “which is a reasonable amount of money for a Marine to save from deployment, into a Roth IRA, in 40 years, they would have $214,802 at a 10 percent annual rate of return, which is two percent less than the average historical percent of the stock market over the last 100 years.”

Though Hughes acknowledges he is generous with his calculations, it is evident that the money Marines have earned during deployment can be put to good use in preparation for the future.

Hughes encourages supplementing a Roth IRA for use in many other areas of life, such as education and first time home purchase.

Hughes also suggests getting out of debt that incurs interest rates of 10 percent or higher and establishing an emergency savings account equivalent to one month’s average spending.

Hughes warns Marines against running to the car dealership with their hard-earned and abundant amount of cash, a common mistake for recently returned Marines.

“You might be sacrificing your long term goals and family’s well being,” said Hughes. “Is that Porsche worth $214,802 for you in the long run? That’s the question you should be asking yourself.”

Marines can view their personal leave and earning statements at mypay.dfas.mil/mypay or call 1-800-390-2348, the DFAS customer service line, with questions.

To contact Hughes for financial or budgeting advice, dial 858-577-9802.

(For more information about tax regulations related to deployment pay, see TAXES page 1 and 3.)