In this episode, I discuss options for managing your TSP after leaving the military: keeping it in the TSP, rolling it over to an IRA or an employer-sponsored plan, or taking a distribution or purchasing an annuity. Keeping it in the TSP is easy and low-cost but offers limited investment options and multiple account management. Rolling it into an IRA provides more investment choices and easier management but can complicate backdoor Roth IRA contributions. Rolling into a new employer’s 401(k) consolidates accounts and preserves Roth IRA opportunities, though fees and options vary. Taking a distribution or buying an annuity offers different benefits and risks, including potential penalties and lower returns. The best choice depends on your personal circumstances and financial goals. Tune in to get a better idea of these options.

Key Takeaways:

• Keeping your TSP where it is can be a simple way to keep costs low and your financial life simple.

• Rolling your TSP into an IRA or 401(k) is a great way to broaden investment opportunities or consolidate accounts.

• Be cautious about taking a distribution from your TSP too soon, before 59 and a half, there can be penalties (though exceptions apply).

• Annuities are a transfer of risk to an insurance company, and can be considered, but the benefits really depend on your goals.

• To keep your TSP open, leave $200 in the account.

• The best decision depends on your situation and goals.

Key Timestamps:

(00:00) - Introduction: What to Do with Your TSP After Leaving the Military

(00:46) - Option 1: Keeping Your TSP in Place

(02:26) - Option 2: Rolling Your TSP to an IRA or Employer Plan

(04:51) - Option 3: Taking a Distribution or Purchasing an Annuity

(06:50) - Conclusion: Making the Best Decision for Your TSP

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, TSP, Roth IRA, 401(k), employer sponsored retirement plans, retirement savings, low cost savings

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/50

I welcome Evan Kaufman from WeVetHomeLoans, a fellow Air Force Academy graduate and economics major, to discuss VA loan refinancing amidst the fluctuating mortgage market. Evan explains the current state of interest rates, specifically for VA loans, and how recent trends have made refinancing particularly advantageous. We cover the unique benefits of the VA Interest Rate Reduction Refinance Loan (IRRRL), also known as 'Uncle Earl,' including no appraisal or income documentation requirements, low costs, and the ability to significantly lower monthly payments. Evan also introduces a newly developed tool from WeVet that helps veterans and active duty members determine their eligibility and potential savings instantly. We emphasize the importance of resetting mortgage rates periodically to maximize financial benefits and offer detailed insights into financial planning strategies for those with VA loans.

Key Takeaways:

• What are the benefits of VA IRRRL (Interest Rate Reduction Refinance Loan)?

• When will I know it’s time to refinance my mortgage?

• How will this affect my long term savings plans?

• Evan covers the tools he offers to notify you when you’re eligible and how you could benefit.

Key Timestamps:

(00:00) - Introduction to Evan Kaufman

(02:53) - Understanding VA Loan Refinancing

(04:16) - Benefits of VA IRRRL (Uncle Earl)

(07:32) - Refinancing Process and Costs

(11:27) - Strategic Considerations for Refinancing

(20:01) - VA Funding Fees and Savings

(20:23) - The Benefits of Refinancing

(21:07) - Calculating Long-Term Savings

(22:21) - Exploring Different Refinance Scenarios

(25:19) - Introducing the VA Loan Rapid Refi Tool

(29:34) - Evan's 20-Year Vision for Clients

(32:42) - Final Thoughts and Contact Information

(35:41) - Conclusion and Resources

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, refinancing VA loans, IRRRL, Evan Kaufman

Mentions:

https://wevett.com/

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/49

I address common questions and concerns that arise before and after getting married, such as whether to change your name and how to update various accounts. I emphasize the importance of having open financial discussions before marriage to decide on joint or separate finances. I provide a detailed checklist, starting with the name change process at the Social Security Office, followed by updating banking information, credit cards, real estate titles, investment accounts, vehicles, insurance policies, and estate documents. I stress the importance of listing both spouses on insurance policies and updating beneficiaries. Although this process can be lengthy and complex, it's essential to make these changes to avoid future complications. Lastly, I highlight the importance of healthy financial conversations and ensuring both spouses are aligned, emphasizing the significance of joint decision-making for a harmonious financial life together.

Key Takeaways:

• Have transparent conversations about your financial situations and decide together on whether to merge or keep separate finances - or a mix of both..

• Begin the name change process at the Social Security Administration, then update your driver's license, passport, and other legal documents.

• Update names on credit cards and consider adding spouses as additional cardholders to streamline financial management.

• Discuss and decide on joint or separate ownership of real estate and investment accounts, updating titles and beneficiary information as needed.

• Ensure both spouses are listed on insurance policies, update beneficiaries, and revise estate planning documents like wills and power of attorney to reflect your new marital status.

Key Timestamps:

(00:00) - Introduction: Financial Checklist for Getting Married

(00:47) - Pre-Marriage Financial Conversations

(02:12) - Name Change Process

(02:54) - Banking Decisions

(03:30) - Credit Cards and Real Estate

(04:31) - Investments and Vehicles

(05:34) - Insurance and Beneficiaries

(06:23) - Estate Documents

(07:09) - Conclusion: Final Thoughts and Advice

(08:22) - Download the Ultimate Military Finance Checklist

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, marriage, marital finances, name changing, estate planning, marriage planning, beneficiaries

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/48