🎖️  For Active Duty, Veterans & Military Families

You Served the Country.
Your Finances Should
Serve You Back.

Military service comes with unique financial benefits — and unique financial landmines. TSP decisions, SBP elections, VGLI timing, and civilian transition require an advisor who actually understands them.

Schedule a Free Consultation → TSP Analysis ↓
Home / Military Clients

TSP Decision

Keep in TSP or roll over? Here's the real breakdown.

This decision impacts decades of wealth accumulation. Most separating service members make it without a full analysis.

🏛️
Keep in TSP

Advantages:

  • Extremely low expense ratios (0.066%)
  • Federal government backing and administration
  • Simple, low-maintenance structure
  • No advisor fees if self-managed

Limitations:

  • No new contributions after separation
  • Limited investment options (5 core funds + lifecycle)
  • No Roth conversion capability
  • RMD rules apply at 73
🔄
Roll Over to IRA

Advantages:

  • Full investment flexibility (stocks, bonds, ETFs, annuities)
  • Beneficiary designations with more control
  • Roth conversion strategy capability
  • Professional portfolio management available

Considerations:

  • Requires active management or advisor relationship
  • Potentially higher expense ratios depending on investments
  • Must be done correctly to avoid taxable event
Bottom line: For most separating service members with long investment horizons and a desire for flexibility, rolling over to an IRA with proper allocation unlocks significantly more long-term value. The TSP's low fees are excellent — but the restrictions on conversions, flexibility, and professional management often outweigh the cost advantage. We run the numbers for your specific situation at no charge.

SBP vs. Private Insurance

Survivor Benefit Plan: What the briefing doesn't cover.

SBP is sold as the obvious choice at retirement. The full comparison is more nuanced — and the right answer depends on your health, family situation, and financial goals.

Factor SBP Private Life Insurance
Monthly Cost 6.5% of covered retirement pay (before-tax) Varies — often lower for healthy retirees under 55
Benefit to Spouse 55% of covered retirement pay, guaranteed for life Tax-free lump sum — spouse controls and invests
After Divorce or Remarriage SBP can transfer to new spouse but requires action; complex if divorced Beneficiary can be changed freely at any time
Estate Value Zero — payments stop when spouse dies; no residual asset If unused, full death benefit passes to heirs
Inflation Protection Benefits indexed to COLA (Consumer Price Index) Fixed death benefit; no automatic inflation adjustment
Portability Tied to military retirement — cannot be converted or changed Fully portable; transferable and adjustable
The decision matters: The SBP election at retirement is largely irrevocable. Getting it wrong — in either direction — can cost your family hundreds of thousands of dollars. We provide a side-by-side cost analysis using your actual retirement pay, health profile, and life expectancy before you sign anything.

Military Financial Services

Specialized planning for those who served.

🔄
TSP Rollover Analysis
Complete cost/benefit analysis of keeping TSP vs. rolling over to a traditional or Roth IRA. We model tax implications, investment flexibility, and long-term compounding impact — not just fees — before recommending a direction.
👩‍👧
SBP vs. Insurance Analysis
A personalized side-by-side comparison of SBP cost and benefit against private term or permanent life insurance. We use your actual retirement pay, health status, and family situation to produce a clear recommendation before you elect — or waive — at retirement.
🎗️
VA Benefit Coordination
VA disability compensation, concurrent receipt rules, CRSC eligibility, and the interaction between VA benefits and retirement pay require careful coordination. We help you maximize what you've earned without inadvertently reducing benefits you're entitled to.
⏱️
VGLI Transition Planning
You have 240 days after separation to convert SGLI to VGLI without medical underwriting. We analyze whether VGLI makes sense or whether applying for private coverage — before that window closes — saves you significantly over a 20-year horizon.
🏙️
Military-to-Civilian Transition
Income gap planning, civilian benefits enrollment, housing allowance transition, and retirement account decisions all converge at separation. We create a transition financial strategy that addresses the 6–18 month window when most financial mistakes happen.
⚖️
Blended Retirement Optimization
BRS service members must optimize both their pension component and their TSP contribution strategy. We model the full retirement income picture — pension + TSP + Social Security + investments — and build a distribution plan that maximizes lifetime income.

Common Questions

Straight answers about military finances.

Should I leave my money in TSP when I separate from the military? ▾
TSP offers extremely low expense ratios and solid fund options — some of the lowest-cost investing available anywhere. That said, staying in TSP means no new contributions after separation, limited investment flexibility, and no Roth conversion capability. Rolling over to an IRA gives you full investment flexibility, beneficiary control, Roth conversion options, and professional management. The right answer depends on your specific situation, but for most separating service members, a rollover to an IRA unlocks more long-term value.
Is Survivor Benefit Plan (SBP) worth it compared to private life insurance? ▾
SBP provides guaranteed lifetime income to your surviving spouse, which is valuable. However, premiums are paid from already-taxed retirement pay, benefits are taxable income to your spouse, and SBP provides zero estate value — when your spouse dies, payments stop with no residual asset. Private life insurance can provide a tax-free lump sum, estate value, and coverage that extends to a new spouse after divorce or remarriage. The best decision requires comparing your health, life insurance insurability, and retirement income needs.
What is VGLI and when should I convert from SGLI? ▾
Veterans Group Life Insurance (VGLI) is the post-separation continuation of SGLI. You have 240 days after separation to convert without medical underwriting — meaning no health exam required. However, VGLI premiums increase with age and can become very expensive in your 50s and 60s. If you're in good health, converting to private term life insurance during the 240-day window is almost always more cost-effective long-term. Don't assume VGLI is your only or best option.
How does the Blended Retirement System affect my retirement planning? ▾
BRS combines a reduced pension (2.0% per year of service vs. 2.5% under the legacy system) with government TSP matching contributions of up to 5%. For service members who opt in or entered after 2018, this means retirement planning must account for both the pension and the TSP component. The key decisions involve maximizing TSP contributions to capture the full government match and understanding how your reduced pension affects your overall retirement income math.

Honor Earned. Plan Precision.

You Served With Honor. Let's Plan With Precision.

Whether you're 6 months from separation, recently transitioned, or a 20-year retiree reviewing your financial picture — one conversation gives you clarity on your TSP, SBP, VGLI, and VA benefit decisions.

Schedule a Free Military Review →
Or call directly: 804-869-5336 · kchoate@financialguide.com
🤖
BFG AI Assistant
● Online 24/7