Military Personnel: Do You Have a Financial Plan for Retirement?

Retirement planning is an essential aspect of financial independence, and military personnel have access to several effective options when planning for their golden years. There are several different types of retirement savings and investment options that can help military members prepare for the future. At Harvest Wealth Partners, our professional financial advisors are fully committed to helping military members explore these options, tailoring strategies to address their individual financial goals.

Understanding Your Retirement Planning Options

Military personnel may not have access to 401(k) plans like those in the private sector. However, they do have access to various savings and investment opportunities that can significantly contribute to your desired retirement. Among these options are federal military retirement benefits, Thrift Savings Plans (TSP), Individual Retirement Accounts (IRAs), and even additional savings options such as the Savings Deposit Program (SDP).

Federal Military Retirement Benefits

The federal government provides two retirement plan options for military service members: the Legacy Retirement System (LRS) and the Blended Retirement System (BRS). The LRS is a defined-benefit plan that pays a lifetime monthly annuity to service members at retirement who have served for 20 years or longer. The BRS, on the other hand, is a combination of a defined benefit pension plan and a defined contribution plan using the TSP.

Thrift Savings Plan (TSP)

The TSP is a federal retirement plan similar to a 401(k) offered to eligible government employees, including military personnel. For 2024, military members can defer up to $23,000 into their TSP accounts, with an additional catch-up contribution limit of $7,500 for those aged 50 and over.

Individual Retirement Accounts (IRAs)

IRAs offer another way for military members to supplement their federal retirement benefits and TSP contributions. For 2024, service members can contribute up to $7,000 to a Roth IRA.

Crafting Your Retirement Savings Plan

Creating a strategic retirement savings plan involves understanding your current financial situation, future income expectations, and financial goals. It includes considering your monthly budget, historical spending, desired retirement age, and other financial goals, such as paying for college or purchasing a home.

Working With a Financial Advisor

Navigating the complexities of retirement planning can be challenging. At Harvest Wealth Partners, our team of experienced financial professionals is ready to guide you through this process. We provide personalized service focusing on your needs, wants, and financial goals, helping you make the most of your military benefits and retirement savings options.

Learn More About Your Retirement Planning Options

Military personnel have access to an array of effective retirement savings options. Understanding these options and how they can work together in a strategic retirement savings plan is crucial. Furthermore, working with a financial advisor can provide valuable guidance and support in navigating these complexities.

At Harvest Wealth Partners, we are committed to serving our military members by helping them prepare for their financial futures. If you are a military member looking to strategize your retirement planning, our advisors are here to help. Call us today to start investing in your future.

A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.