Military Blended Retirement (BRS) Explained In this video we explain the blended retirement system for the military. We go over both roth tsp and traditional tsp and how they apply to the brs retirement. Investing in the thrift savings plan while in the military is now part of your military retirement, so we wanted to make it easier to understand your brs pension. Military TSP - Thrift Savings Plan Explained: _________ We teach you what you need to know about your personal finances, using words you understand, without boring you to death... because adulting shouldn't suck. Rethink Financial Education Learn more at www.rethinkfinancialeducation.com Say Hi on Social: Instagram: instagram.com/rethinkfinancialeducation Facebook: facebook.com/rethinkfinancialeducation #militaryretirement #blendedretirementsystem #rethinkfinancialeducation ...(read more)
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The Military Blended Retirement System (BRS) was introduced in 2018 as a new retirement plan for members of the US military. The BRS is a combination of a traditional defined benefit pension plan and a defined contribution plan, which includes a Thrift Savings Plan (TSP). Under the BRS, service members who join the military after January 1, 2018, are automatically enrolled in the new plan. Those who are currently serving or who joined before January 1, 2018, have the option to switch to the new plan or remain in the legacy pension plan known as the High-3 plan. One of the key features of the BRS is the TSP, which is similar to a 401(k) plan in the civilian world. Members can contribute up to 5% of their basic pay, and the government will match the first 4% of contributions. The TSP also offers a variety of investment options to help service members grow their retirement savings. The BRS also includes a reduced pension benefit compared to the High-3 plan. Under the BRS, the pension is calculated based on 2% of the service member’s average basic pay for their highest 36 months of service, multiplied by the number of years of service. This is compared to the High-3 plan, which calculates the pension based on 2.5% of the service member’s average basic pay for their highest 36 months of service, multiplied by the number of years of service. However, the BRS includes a new feature called Continuation Pay, which provides a lump sum payment to service members who agree to serve for an additional 4 years. The amount of Continuation Pay is based on the service member’s years of service and their branch of service. This payment can be used as a retention tool to encourage service members to stay in the military. Another key feature of the BRS is its portability. Service members who leave the military before reaching full retirement age can take their TSP savings with them. This can be beneficial for those who leave the military before reaching 20 years of service, which is when they become eligible for the pension benefit under the High-3 plan. Overall, the Military Blended Retirement System offers a flexible and adaptable retirement plan for members of the US military. It includes both a traditional pension plan and a defined contribution plan, as well as additional benefits like Continuation Pay and portability. However, service members should carefully consider their options and speak with a financial advisor before making any decisions about their retirement plan. https://inflationprotection.org/decoding-military-blended-retirement-brs/?feed_id=99177&_unique_id=6467b287568d7 #Inflation #Retirement #GoldIRA #Wealth #Investing #adultfinancialskills #alexmajor #blendedretirementsystem #blendedretirementsystemexplained #blendedretirementsystemmilitary #BRS #brsexplained #BRSpension #brsretirement #DaveRamseyTSP #financialreadiness #investing #legacyretirementvsblendedretirementsystem #militaryfinancial #militaryretirement #phillipcano #RothIRA #roththriftsavingsplan #rothtsp #thriftsavingsplan #traditionalIRA #traditionaltsp #tsp #tsptips #ThriftSavingsPlan #adultfinancialskills #alexmajor #blendedretirementsystem #blendedretirementsystemexplained #blendedretirementsystemmilitary #BRS #brsexplained #BRSpension #brsretirement #DaveRamseyTSP #financialreadiness #investing #legacyretirementvsblendedretirementsystem #militaryfinancial #militaryretirement #phillipcano #RothIRA #roththriftsavingsplan #rothtsp #thriftsavingsplan #traditionalIRA #traditionaltsp #tsp #tsptips
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