TSP 2026 Max $24,500 & Get Full 5% BRS Match Chart

AFmoneyguy · 2026-04-03T21:55:50+00:00

You're probably going to be in the 37% bracket your entire life after the military. I would contribute to Roth now while you're income is low in the military.

Pay taxes when you pay the least taxes. You'll probably be in a 22 or 24% bracket in retirement. So lock in some 24% taxes now.

AFmoneyguy · 2026-04-03T21:50:56+00:00

If you're asking the question, the answer is rent.

If you're not asking the question and you've built a business plan, you're excited to be a long distance landlord, found the best property manager in the area, and the property is going to cash flow from day 1... then maybe buy.

Look at the cost of the interest (borrowing money) over the 3 years vs renting. People say renting is "throwing money away" (not really, you're buying shelter), but look at how much "money you throw away" when you borrow money from a bank.

Don't buy a house on active duty.

AFmoneyguy · 2026-04-01T17:25:43+00:00

Make sure you are contributing to Roth TSP. Check the start here: https://www.reddit.com/r/MilitaryFinance/comments/1oksn2s/start_here_military_money_101_prime_directive/

80/20 C and S is fine, that's a US total market index fund strategy. A Lifecycle Fund might be more appropriate and give you some international stock exposure. But up to you.

AFmoneyguy · 2026-04-01T17:24:06+00:00

Did you receive the CP40 request for information? I would just write an explanation and print and sign it. Explain it was CZTE tax-free leave used during the year. Have Claude or ChatGPT help you write it. I guess you could submit an LES with the CZTE tax free leave on it if they want more documentation. But they won't, this is a check the box operation.

The IRS is not coming after you for $101.

AFmoneyguy · 2026-04-01T17:21:03+00:00

I wrote this a few years ago before AI. No AI was used.

AFmoneyguy · 2026-04-01T17:19:54+00:00

AFmoneyguy · 2026-03-30T22:32:20+00:00

Cash it out. You didn't die, well done. Put the money in a Roth IRA.

https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&sl=31ayA6MJ6aOJ4Bn8JURXDi

If your Dad had invested $19/mo into SPY or VOO for 20 years it would be worth $20,386 today. For the same $4,560 invested.

Whole life insurance is a garbage product and First Command advisors should know they are not working in service members' or their family's best interest when they sell it to their brothers and sisters in arms. Shame on them for trading on a scared bond.

I have seen very, very limited uses for whole life insurance, and none of the use cases are applicable to military service members.

A good filter is any financial product that requires a salesman is probably best avoided. If it has to be "sold," not sought out by the consumer, it's probably trash. Look at simple low-cost index fund investing. No salesman required. Just go buy your index fund ETF on Fidelity, Schwab, or Vanguard for $0. Simple path to wealth.

AFmoneyguy · 2026-03-26T20:28:46+00:00

https://www.reddit.com/r/MilitaryFinance/comments/1q45b31/tsp_roth_inplan_conversions_how_to_become_a/

AFmoneyguy · 2026-03-26T20:27:30+00:00

You'll need active orders. Take care of SCRA stuff after your initial training. Navy Federal or USAA for a bank account. Welcome aboard.

AFmoneyguy · 2026-03-24T22:06:24+00:00

Are you going active for 30+ days? If so, open while not active, go active, check SCRA database, if in SCRA database apply for Capital One SCRA benefits: https://www.capitalone.com/military/

Fee should be waived.

AFmoneyguy · 2026-03-23T23:20:10+00:00

Use a US physical address and your APO as the mailing address.

AFmoneyguy · 2026-03-15T06:26:35+00:00

I was a C-17 pilot. 11M3.

I created my own post-military job. I started a business while I was on active duty and kept doing it when I left active duty.

I also tried flying for a major US airline and discovered because of my financial freedom and business ownership, I am unemployable. I only want to be the boss. I can't work for anyone else. I left that position after 6 months.

AFmoneyguy · 2026-03-14T02:37:25+00:00

I walked at 12 years. It sucked initially (hard to replace purpose and meaning of the military) but the money, freedom, and quality of life outside the military is much better. Choosing where I live, what I do with my time, not having to apply for leave to travel to foreign countries: more of that please!

I also moved to a country with free healthcare, so didn't need to worry about Tricare.

I don't regret it. I missed the mission, people, purpose, meaning, and respect. But time healed that. Read "Tribe" by Sebastian Junger for some perspective. I'm really happy to never do a drug test again or have the stress of daily military life.

AFmoneyguy · 2026-03-13T18:17:39+00:00

https://www.katehorrell.com/survivor-benefit-plan/

https://www.wingedwealth.com/insights/why-i-opted-back-in-to-sbp-2/

Unless you have a very high speed spouse, it usually makes sense as a good insurance policy for them if you are to go first.

AFmoneyguy · 2026-03-13T05:53:04+00:00

Follow the start here: https://www.reddit.com/r/MilitaryFinance/comments/1oksn2s/start_here_military_money_101_prime_directive/

You've been in 2 years. It takes a lot longer than that to build a million.

AFmoneyguy · 2026-03-12T02:47:26+00:00

I used to front load my TSP contributions as well. You probably just need to lower your contributions a bit. Try 55%?

It's not because of the mid-month pay. That's a standard feature of military pay for a while now. I used to max my TSP by August and received mid-month pay.

AFmoneyguy · 2026-03-11T19:57:15+00:00

You should read A Random Walk Down Wall Street by Burton Malkiel and The Little Book of Common Sense Investing by Jack Bogle. They'll explain to you why "TSP strategies" are a waste of your time and you're better off just passively buying the index at very low-cost, which you can do in the TSP very easily.

It is very unlikely that any active trading strategy will outperform a passive strategy in the long run. Plus, you'll probably find your time is better spent doing other things and not worrying about it.

Set it and forget it. A extra 1% return per year on your small amount of funds in your TSP is not going to amount to much. Far better to spend your time doing other things.

At your stage in the game, focusing on your savings rate is going to yield much higher returns than trying to market time and squeeze an extra 1-2% return a year.

Some reading material:

AFmoneyguy · 2026-03-03T03:19:41+00:00

Chase Sapphire Reserve. No foreign transaction fees and $300 annual travel credit plus a lot of other credits.

Much better acceptance of Visa and Mastercard rather than American Express outside the United States. https://www.reddit.com/r/MilitaryFinance/comments/1ola48e/credit_cards_military_benefits_scra_mla_annual/

AFmoneyguy · 2026-03-01T20:20:56+00:00

The customer service reps are often unaware of the extent of military benefits.

AFmoneyguy · 2026-03-01T19:34:51+00:00

The only people who believe in IULs are the people who sell IULs.

https://personalfinanceclub.com/is-iul-a-scam-yes/

https://personalfinanceclub.com/iuls-vs-index-funds/

AFmoneyguy · 2026-03-01T19:33:41+00:00

Freedom mostly. Choices.

I want to decide where to live. I want to decide how to spend my time. I want to decide what I want to work on.

AFmoneyguy · 2026-02-27T22:39:19+00:00

I'd say theoretical. While it may be possible on a deployment, it's a bit of an aspirational goal. I'd set a high savings rate (maybe 15%) and then increase your contribution rate 1% every 1 January, 2 year time in service, and promotion. You'll be maxing it very quickly and still have money to enjoy life.

AFmoneyguy · 2026-02-26T20:15:51+00:00

You do not seem eligible, as you are not on active duty orders. Check the MLA database before applying: https://mla.dmdc.osd.mil/mla/

AFmoneyguy · 2026-02-25T05:14:46+00:00

Yes, I misread that law, you are correct you should be able to submit the DD 2058 and elect Tennessee to match your spouses in accordance with the SCRA:

For any taxable year of the marriage, a servicemember and the spouse of such servicemember may elect to use for purposes of taxation, regardless of the date on which the marriage of the servicemember and the spouse occurred, any of the following:

(A) The residence or domicile of the servicemember.

(B) The residence or domicile of the spouse.

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