In this episode of 'Service to Savings,' hosts Joseph Brown and Greg Young discuss financial strategies for managing old 457 plans and the benefits of rolling them into Thrift Savings Plans (TSP) or IRAs. They explore the pros and cons of different investment options, including the importance of diversification and the potential for Roth IRA conversions. The conversation also touches on the significance of low-cost index funds and the value of long-term financial planning.

Takeaways

• Consider rolling old 457 plans into a Thrift Savings Plan for simplicity and low costs.
• Avoid leaving old 457 plans unattended due to potential high fees and forgetfulness.
• Long-term financial planning is crucial for building wealth.
• Behavioral finance plays a role in investment decisions and outcomes.

In this episode of Service to Savings, hosts Joe Brown and Greg Young answer three listener questions covering different areas of military and veteran financial planning.

Joe and Greg discuss how to approach retirement planning when you are six months from retirement, how to evaluate whether military discounts are actually saving you money, and where military families should begin with estate planning.

Each question is addressed independently and reflects a different set of circumstances, allowing listeners to apply the frameworks and guidance to their own situations. Drawing on their experience working with military families, the hosts focus on practical decision-making, common pitfalls, and steps service members and retirees can take to build clarity and confidence in their financial lives.

Topics covered include:

• Retirement planning with six months remaining
• Income, healthcare, and housing priorities
• TRICARE and healthcare considerations
• Evaluating military discounts and spending behavior
• Estate planning basics for military families
• Beneficiaries, wills, trusts, and base legal resources
  

🔗 Resources mentioned in this episode:

• DoD Transition Checklist: https://www.dodtap.mil/dodtap/rest/docs?filename=Managing_Your_Transition_Timeline.pdf
• LinkedIn Retirement Checklist (Kirk Windmueller): https://www.linkedin.com/feed/update/urn:li:activity:7311311801760006145/

🎧 About Service to Savings
Service to Savings is brought to you by the Military Financial Advisors Association (MFAA), providing education and guidance to help military families navigate financial complexity throughout their careers and into retirement.

In this episode of Service to Savings, Joseph Brown and Greg Young discuss financial strategies for military personnel, focusing on tax planning, capital gains, and credit card management. They provide insights into leveraging non-retirement accounts, understanding tax brackets, and optimizing credit card rewards. A trusted resource to help with handling credit cards is military money manual. Head over to their site and register for their free credit card course to maximize your rewards and learn how to properly handle credit cards. Financial readiness and record-keeping, especially during government shutdowns, can be key to minimizing stress and maximizing your success.

Want to find a trusted Fee-Only financial advisor to work with? Head over to https://militaryfinancialadvisor.org to find one!

Takeaways

• Understand the benefits of long-term capital gains tax brackets.
• Consider tax gain harvesting in low-income years.
• Non-retirement accounts can be valuable for retirement planning.
• Always pay off credit cards to avoid interest.
• Military members often have access to credit cards with no annual fees.
• Keep good financial records to avoid issues during shutdowns.
• Evaluate your financial resilience after a government shutdown.
• Use credit card rewards strategically for travel or cash back.
• Be sure to hit introductory credit card offers and spending requirements – with spending you already were going to have.
• Head over to militarymoneymanual.com for a free credit card course.
• Consult a financial advisor for personalized advice.

Chapters

• 00:00:00 Introduction and Current Events
• 00:03:00 Understanding Capital Gains
• 00:09:00 Tax Strategies for Low-Income Years
• 00:15:00 Credit Card Management for Military
• 00:21:00 Financial Readiness and Record-Keeping

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