Financial advisor for military and veterans: planning the handoff

Leaving uniformed service — or planning the years that lead up to it — is not a generic “invest for veterans” problem. The decisions that matter most sit at the handoff: which retirement system you are under (the Blended Retirement System or the legacy High-3 pension), how the Thrift Savings Plan fits beside retired pay, what Survivor Benefit Plan election you make for a spouse, and how VA disability, TRICARE, and SGLI-to-VGLI timing line up with a second-career paycheck. This page covers what makes transition finances different, what a military-transition-aware advisor actually handles, and how to choose one.

This page is educational. It is not personalized investment, tax, legal, benefits, or insurance advice. Your Service personnel and finance offices, DFAS, TSP.gov, VA.gov, and TRICARE are the sources of truth for your own records. Valora is not arranging advisor matches or introductions at this time.

Why military-transition finances are different

Civilian planning usually starts with one employer plan and a Social Security estimate. A service member’s plan starts with a defined-benefit pension many civilian jobs don’t offer — if you reach the years gate — layered with a TSP that may or may not include Service matching, plus medical and life coverage that change shape the day you separate or retire.

The pension is formula-driven and system-specific. BRS and High-3 both generally use the average of your highest 36 months of basic pay, but they do not use the same multiplier. Confusing the two — or applying a civilian “replacement ratio” rule of thumb — produces the wrong picture of household income after the uniform comes off.

Basic pay drives more than the LES. TSP automatic and matching contributions are percentages of basic pay. Continuation Pay under BRS is also expressed as a multiple of monthly basic pay. Housing and subsistence allowances are not TSP contribution sources (TSP.gov).

Benefits continuity has its own calendar. SGLI coverage, VGLI application windows, TRICARE eligibility through DEERS, and (for some) Transitional Assistance Management Program (TAMP) coverage do not move on the same day as your last drill or your retirement ceremony. Missing a window can be costly and hard to undo.

A second career rewrites cash flow overnight. Retired pay (if any), VA disability compensation (if awarded), a civilian salary, a new 401(k) or 403(b), and whatever you do with the TSP all arrive in the same household budget. State tax treatment of military retired pay varies — check your own state; this page does not invent a state-by-state list.

What a military-transition-focused advisor actually handles

Beyond portfolio construction, expect coordination on:

• Confirming which system you are under — BRS (automatic for Date of Initial Entry into Military Service on or after January 1, 2018, or 2018 opt-in) versus legacy High-3 — from your own personnel and pay records, not from a rule of thumb.
• TSP contribution pacing — staying at or above 5% of basic pay to receive the full Service match when eligible. If employee contributions stop before the final pay period because you reach your applicable annual limit, you can miss later Service matching; eligible catch-up contributions (age 50+) can still be matched in some cases. Pace contributions across the year, especially in a bonus or Continuation Pay year (TSP Bulletin 25-3; TSP.gov).
• Traditional versus Roth TSP education — including combat-zone / tax-exempt contribution nuances at a high level, and the 2026 mandatory-Roth catch-up rule for higher earners — with a tax professional in the loop.
• Continuation Pay and lump-sum option literacy — cash now versus obligated service or reduced retired pay later; questions and models, not prescriptions.
• SBP decision framework — base amount, cost, survivor income, remarriage rules, and how private life insurance compares as a question set, ideally with a licensed insurance professional who is not selling a replacement product in the same breath.
• Transition timing — VGLI, TRICARE path (separate vs retire), VA disability claim process at a high level, and how a second-career offer changes the household plan.
• TSP keep-versus-roll after separation, and how a new employer plan shares the same IRS elective deferral limit.
• Coordination with a CPA, an accredited VA claims helper or Veterans Service Organization when disability claims are in play, and — if you move into civilian federal service — your agency benefits officer. Moving into a federal civilian job? See our financial advisor for federal employees page for FERS, the civilian TSP, FEHB, and military service credit; this page stays on uniformed service and transition.

Career stages: mid-career BRS, approaching retirement, and recently separated or retired

Mid-career under BRS

Members with a DIEMS on or after January 1, 2018 are automatically enrolled in BRS (militarypay BRS hub). The mid-career plan is mostly about not leaving Service money — or tax flexibility — on the table.

• Capture the full match when you are eligible. TSP.gov’s own table shows that contributing 5% of basic pay brings total contributions to 10% (your 5% plus the automatic 1% and a 4% match). BRS members who first entered service on or after January 1, 2018 generally begin automatic 1% contributions after about 60 days of service and matching after two years of service; both Service automatic and matching contributions continue through 26 years of service (TSP.gov; 5 CFR 1600.19). Non-BRS uniformed members can still contribute to the TSP but do not receive the Service match.
• Know vesting on the automatic 1%. Under BRS rules described by DoD and TSP materials, members generally need two years of service to be vested in the automatic 1% and its earnings; your own contributions and Service matching (once eligible) are immediately vested. Confirm your own vesting on TSP.gov and with your finance office.
• Revisit traditional versus Roth as pay, deployments, and household taxes change. Contributions from tax-exempt combat-zone pay have special treatment — educational detail lives on TSP.gov; model with a tax professional.
• Continuation Pay is a retention tool, not free money. Continuation Pay is a one-time mid-career payment for BRS members with not less than 7 and not more than 12 years of service (from Pay Entry Base Date), in exchange for at least three additional years of obligated service (DoD FMR Vol. 7A, Ch. 66). Your Service decides when Continuation Pay is offered and at what multiple: active-component amounts range from 2.5 to 13 times monthly basic pay; Reserve-component amounts range from 0.5 to 6 times the monthly basic pay of a same-grade active member. It may be paid as a lump sum or in up to four annual installments (DoD FMR Vol. 7A, Ch. 66; BRS FAQ). If you contribute Continuation Pay into the TSP, pace contributions so they do not stop before the final pay period at your annual limit — that can miss later Service matching.

Approaching retirement

• Confirm the system on your record. Legacy High-3 members who never opted into BRS keep the 2.5% multiplier; BRS members use 2.0%. Opt-in (for those who were eligible in 2018) was irrevocable (BRS FAQ).
• Run the household income picture with real estimates. Use your Service retirement counselor / DFAS estimate process and the official DoD tools linked from the BRS hub — not a blog calculator alone.
• BRS lump-sum option (educational). Eligible BRS retirees may elect to take 25% or 50% of the discounted present value of a portion of future retired pay up front, with reduced monthly retired pay until full Social Security retirement age (age 67 for most), when full monthly retired pay resumes (militarypay BRS hub; BRS FAQ). The lump sum is taxable earned income and generally cannot be rolled into the TSP. Disability retirements are not eligible for the lump-sum election under the FAQ. If you have or expect a VA disability rating, DoD notes the lump sum can affect how much VA disability compensation you receive for a period, because of the required offset of retired pay already received (CRSC and CRDP rules differ) — ask DFAS and VA before electing (BRS FAQ). Treat this as a modeled household decision, not a default.
• SBP election before you retire. See the framework below. Married members who elect less than maximum spouse coverage generally need spouse concurrence.
• TRICARE path. Retiring and separating are different life events with different coverage paths. Start from TRICARE eligibility and the separating / retiring life-event pages; your DEERS record is what the plans read.

National Guard and Reserve (short note). Non-regular retirement still generally requires 20 qualifying years; points convert to equivalent years of service (points ÷ 360) for the annuity math, and retired pay typically begins at age 60 unless reduced for qualifying active service (BRS FAQ §9; defined-benefit fact sheet). This page does not rebuild a full Reserve benefits guide — confirm points and gray-area timing with your component.

Other uniformed services (one line). U.S. Public Health Service and NOAA Commissioned Corps members use related Blended Retirement / TSP frameworks under their own Service rules — confirm with your personnel and finance offices; this page does not rebuild those systems.

Recently separated or retired

• VGLI clock. Apply within 1 year and 120 days of leaving; within 240 days of separation you generally need no health review (VA.gov VGLI). SGLI continues free for 120 days after you leave the military (VA.gov SGLI). The 240-day no-health-review window counts from your separation date, not from when SGLI ends. Applying early avoids a gap.
• VA disability compensation is a monthly tax-free payment for qualifying service-connected conditions (VA.gov disability). Rates depend on rating and dependents — use VA’s current tables; this page does not reprint them. An accredited representative or VSO can help with a claim.
• Other VA education and housing links (high-level): GI Bill benefits and VA-backed home loans.
• TSP after you leave. If your account balance is $200 or more, you can leave the account in the TSP; you can no longer make employee contributions, but you can change investments and transfer eligible money in (TSP leaving uniformed services). Pay off TSP loans within 90 days of separation. Unvested automatic 1% money is forfeited if you leave before 2 years of service (BRS FAQ). Rolling to an IRA or a new employer plan is optional — compare costs and features before you move money.
• Second-career 401(k) / 403(b). The IRS elective deferral limit is personal and aggregates across plans in a calendar year — including a uniformed-services TSP and a civilian plan; the annual-additions limit is separate and applied per employer (TSP Bulletin 25-3).

BRS versus legacy High-3 (educational)

Feature	Legacy High-3	Blended Retirement System (BRS)
Who	Generally DIEMS on or before Dec 31, 2017 who did not opt into BRS	DIEMS on/after Jan 1, 2018 (automatic); eligible members who opted in during 2018
Defined-benefit multiplier	2.5% × years of service × high-36	2.0% × years of service × high-36
At 20 years (illustrative)	~50% of high-36 basic pay	~40% of high-36 basic pay
Service TSP automatic 1% + match	No Service match for non-BRS uniformed members	Yes — auto 1% + up to 4% match (eligibility/timing rules apply)
Continuation Pay	Not a BRS feature	Mid-career bonus for additional obligated service
Lump-sum of retired pay	Not available under High-3 (per BRS FAQ)	Optional 25% or 50% discounted election at retirement

Sources: militarypay BRS hub, defined-benefit fact sheet, BRS FAQ, TSP.gov. This table is educational — your LES, PEBD/DIEMS, and personnel record control which row applies.

The TSP in uniformed service

How Service money arrives (BRS). Your Service contributes an amount equal to 1% of basic pay each pay period (after the BRS timing rules above) whether or not you contribute. Matching applies to the first 5% you contribute: dollar-for-dollar on the first 3%, 50 cents on the dollar on the next 2%. Contribute 5% and the Service adds 4% in matching plus the automatic 1% — 5% total from the Service. Contributions above 5% are not matched. Matching is calculated per pay period (TSP.gov). Uniformed members are not entitled to matching on contributions from special or incentive pay (including bonuses) (5 CFR 1600.19).

You can still contribute from special, incentive, or bonus pay (1–100%) if you also contribute at least 1% from basic pay — useful for Continuation Pay planning — but only basic pay drives the match math (TSP.gov).

2026 limits (TSP Bulletin 25-3, November 19, 2025):

Limit	2026	2025
Elective deferral (traditional + Roth combined)	$24,500	$23,500
Catch-up, ages 50–59 and 64+	$8,000	$7,500
Higher catch-up, ages 60–63	$11,250	$11,250
Annual additions (per employer, all sources excluding catch-up)	$72,000	$70,000

Service automatic and matching contributions do not count against the elective deferral limit. The elective-deferral and catch-up limits apply across your uniformed and civilian TSP accounts and generally across 401(k)/403(b) deferrals too. The annual-additions limit, which includes Service contributions, is applied per employer. Traditional contributions from tax-exempt combat-zone pay are not counted against the deferral limit but are capped by annual additions. Ask payroll or a tax professional about coordination (TSP Bulletin 25-3).

Front-loading and matching. If your employee contributions stop before the final pay period because you’ve hit your annual limit, you can miss later Service matching (TSP Bulletin 25-3). Catch-up contributions (age 50+) can still be matched in some cases (TSP.gov). Pace contributions across the year, especially in a bonus or Continuation Pay year.

Traditional versus Roth. Both count toward the same elective deferral limit. Service contributions go to the traditional balance. The educational question is which tax bill you would rather face — now, or later beside retired pay, Social Security, and any VA compensation (VA disability compensation is generally tax-free; retired pay is not). Starting in 2026, if prior-year FICA wages exceeded the IRS threshold ($150,000 for 2025 wages), catch-up contributions must be Roth once traditional contributions hit the pre-tax maximum (TSP.gov).

Fund choice in one sentence. The TSP offers individual funds and Lifecycle (L) funds; which allocation fits you is personal — this page does not recommend funds.

SBP decision framework (questions, not prescriptions)

Retired pay generally stops at the member’s death unless a Survivor Benefit Plan election continues a portion to an eligible survivor. Per militarypay spouse-coverage materials:

• The base amount can range from a minimum (materials cite $300) up to full retired pay.
• The spouse annuity is 55% of the elected base amount, with COLA generally tracking retired-pay adjustments.
• Spouse premiums are commonly 6.5% of the chosen base amount (an alternate “threshold” formula can apply for some cohorts; members who entered service on or after March 1, 1990 and are retiring for length of service — not disability, not reserve retirement — generally use the 6.5% formula only).
• Surviving spouses who remarry before age 55 generally lose the annuity (it may resume if that marriage ends); remarriage after 55 generally continues payments.
• At age 70 with 360 months of premiums paid, the member is “paid-up” — premiums stop, coverage continues.
• SBP costs are excluded from taxable retired pay for the member; survivor payments are taxable to the survivor.

Questions to work through with your spouse, retirement counselor, and (if you hire one) advisor — not answers this page will invent:

1. What monthly income would the household need if the member died the year after retirement?
2. How does full versus reduced base-amount coverage change today’s retired-pay cash flow?
3. How would SBP and any VA Dependency and Indemnity Compensation (DIC) fit together in your survivor’s income? Since January 1, 2023, DIC no longer reduces SBP annuities, and the related Special Survivor Indemnity Allowance (SSIA) ended (DoD FMR Vol. 7B, Ch. 46). Confirm your survivor’s eligibility for each with DFAS and VA.
4. What private life insurance is already in force, at what cost, with what underwriting — and what happens at the next renewal?
5. Has the spouse reviewed and consented (where required) to any less-than-maximum election?

SBP is income protection for a survivor, not a substitute for a full insurance review. Compare — do not assume one product “wins.”

VA, TRICARE, and SGLI → VGLI timing

VA disability. Start at VA.gov/disability. Compensation is monthly and tax-free when awarded for qualifying service-connected conditions. Rating and dependent status drive the amount — use VA’s live rate tables. Concurrent receipt rules (CRDP / CRSC) can interact with military retired pay; those are fact-specific — ask DFAS/VA, not a spreadsheet from a forum.

TRICARE. Eligibility is reported through DEERS by the sponsor’s Service (TRICARE eligibility). Separating from active duty generally ends TRICARE eligibility at 11:59 p.m. on the last duty day unless transitional programs (such as TAMP) or purchased Continued Health Care Benefit Program coverage apply (TRICARE separating). Retirement is a different path with different plan options. Schedule the Separation History and Physical Examination on the timeline TRICARE/DoD publish for your separation.

SGLI → VGLI. VA.gov : apply within 1 year and 120 days of leaving; within 240 days of leaving the military you generally need no health review. Initial VGLI amount is based on SGLI coverage at separation (up to the program maximum). Premiums are age-based — use VA’s live tables rather than a copied chart that may be stale. Shop private coverage if you want, but do not let a shopping delay burn the no-health-review window if you have conditions that could make underwriting difficult.

Second-career 401(k) coordination

A civilian offer changes three things at once: income shape, benefits, and retirement-account logistics.

• Income stack. Map retired pay (if any), VA compensation (if any), and civilian wages into one monthly plan before you set a savings rate off the new salary alone.
• Account map. Uniformed TSP can often stay put (account balance of $200 or more). A new 401(k)/403(b) is a separate plan with its own match formula. Rolling TSP money out is a product decision — compare expense ratios, withdrawal flexibility, Roth basis tracking, and advice costs.
• IRS ceiling. One elective deferral limit across plans in a calendar year (Bulletin 25-3). Mid-year separation plus a new employer who auto-enrolls you is a classic way to overshoot.

What to look for when choosing

Three filters can help you assess fit and cost.

1. Fiduciary posture and clear pay. Ask whether the advisor acts as a fiduciary for this engagement, how they are paid (fee-only, commissions, hybrid), and get conflicts in writing. Moving TSP money is a product decision with its own costs — ask how any rollover recommendation compares with leaving money in the TSP. Start with Investor.gov: How to Select an Investment Professional and the Form CRS hub.
2. Real transition fluency. Ask how many military / veteran households they advise and press on specifics: BRS versus High-3 math, Continuation Pay and lump-sum tradeoffs, SBP base-amount elections, VGLI timing, TRICARE separate-versus-retire paths, and TSP keep-versus-roll. Free installation Personal Financial Counselors and Military OneSource counselors are valuable first stops; a civilian advisor should complement, not dismiss, those resources.
3. Records-first process. A useful first meeting works from your LES, TSP statement, retirement estimate, DEERS/TRICARE status, VA claim letters if any, and the civilian offer letter — not a product brochure.

Red flags: advice to roll the entire TSP out “because the TSP is too limited,” with no cost comparison; pitching a BRS lump sum as “found money” without modeling reduced retired pay, taxes, and any effect on VA disability compensation; SBP-versus-life-insurance comparisons that only price the product the speaker sells; ignoring the VGLI 240-day clock; treating High-3 and BRS as the same pension; and seminars that blur a benefits briefing with a sales pitch.

Questions to ask before you hire

• How do you get paid, and will you put fiduciary status and your total first-year cost in writing?
• How many military or veteran households do you advise, and across which career stages (active BRS, High-3 approaching retirement, recently separated)?
• How would you pace my TSP contributions so they don’t stop before the final pay period at my annual limit and miss later Service matching — especially in a bonus or Continuation Pay year — and does catch-up matching apply to me?
• Can you show BRS versus High-3 and full annuity versus lump-sum illustrations built from my service history?
• How would you walk a household through an SBP base-amount decision without leading with a life-insurance sale?
• How do you work with my retirement counselor, DFAS estimates, and (if relevant) a VSO rather than replacing them?
• If you would recommend moving money out of the TSP, how does the total cost compare with leaving it in?

The bottom line

Military-transition finances are a timing problem with several clocks: a pension multiplier that depends on which system you are under; a TSP whose match and tax choices reward steady attention; an SBP election that reshapes household income after a death; and medical and life-insurance windows that close whether or not the civilian job has started. A written plan built from your own records can help you avoid mistakes such as missing VGLI’s no-health-review period, electing a lump sum or SBP level without a household model, rolling the TSP on autopilot, or letting contributions stop at your annual limit before the final pay period and missing later Service matching (eligible catch-up contributions can still be matched in some cases). Whether you hire help or build that checklist yourself, start before the terminal-leave calendar fills up, and if you hire, hire for fiduciary posture, transparent fees, and real fluency in uniformed-service benefits.

Educational only. Not personalized advice. Valora does not arrange advisor matches or introductions at this time.