Personal Finance for Military, Veterans, and their Families
Will you have a pension plan to help fund your retirement dreams? A defined benefit pension plan can make a huge difference in your retirement planning. We’ll take a deeper look at how having a pension impacts your retirement, and what you can do to create regular income streams if you a pension will not […]
Are you on track to retire? I’ll share my current progress and show you some steps you can take to ensure you are moving in the right direction. One of those steps is getting a free retirement review from USAA. Disclosure: This article is part of the #LifeUninterrupted campaign sponsored by USAA, which is designed to […]
Disclosure: This article is part of a military personal finance bloggers #BRSBlitz education campaign sponsored by USAA. I am receiving a fee for posting; however, the opinions expressed in this post are my own. The Blended Retirement System (BRS) officially rolled out on January 1, 2018. Members who joined the military on or after January […]
The Blended Retirement System (BRS) is the new military retirement plan, which went into effect on January 1, 2018. The BRS was passed by the Senate Armed Services Committee as part of the FY 2016 National Defense Authorization Act (NDAA). The 2016 NDAA featured several major proposals, including military retirement reform, personnel reform, and headquarters and […]
Recently, Michael Kitces published an article titled, “Why Paying Yourself 5% Interest On A 401(k) Loan Is A Bad Investment.” My first thought was, “If it’s a bad idea for a 401(k) loan, it must be even worse for Thrift Savings Plan loans.” After all, the interest on a TSP loan is nowhere near 5%…it’s […]
Congress created the Thrift Savings Plan as part of the Federal Employees’ Retirement System Act of 1986. The Thrift Savings Plan offers the same tax and retirement savings benefits that individuals receive from their 401(k) plans through private corporations. It was available to federal civil service employees upon its creation. But, members of the uniformed forces, […]
John is an Active Duty Coast Guard Officer, currently stationed in Massachusetts. He has been helping his wife escape $107,000 in student loan debt. Together with their dog and a new baby on the way, they are on the path to Financial Independence and Early Retirement. He blogs about the journey at MilitaryFIRE.com. Check him […]
I’ve written several articles about Roth conversions, particularly tax planning considerations & marginal tax rate impacts. This article serves as a case study to help visualize how a Roth conversion strategy could work, and how the tax liability can fluctuate based upon the timing of Roth conversions. There are many variables that affect tax liability […]
Recently, I sat down with someone who asked me whether she should take the military’s Blended Retirement System (BRS). As most people know, the BRS is the military’s attempt to slowly move away from a defined benefit pension to a defined contribution pension. So her question was, “Should I take some money now, in exchange […]
Many people have taken advantage of the Roth TSP option since its inception in 2012. However, there are still many federal employees and service members with most of their retirement savings in traditional accounts. Naturally, this begs the question: “How do I convert my traditional account to a Roth account?” This is also known as […]