FINANCIAL MANAGEMENT ELEMENT 42

Financial Management is about security for your loved ones.

Thrift Savings Plan (TSP) Options Leave funds in TSP account (if balance is more than $200) Roll your TSP into another eligible account (i.e., IRA, annuity, civilian 401k) Withdraw your TSP funds completely Contact TSP: (1-TSP-YOU-FRST) www.tsp.gov Must decide to do something by April 1st following the year you turn 70 ½

SURVIVOR BENEFIT PLAN (SBP) ONLY FOR RETIREE’S PROTECT SURVIVORS AGAINST THE RISK OF: MEMBERS EARLY DEATH SURVIVOR OUTLIVING THE BENEFIT INFLATION SPOUSE MUST SIGN ELECTION FORM/IF DIVORCED SERVICE MEMBER MUST REVIEW DIVORSE DECREE TO DETERMINE IF THE COURT REQUIRES MEMBER TO ELECT COVERAGE FAILURE IN ELECTING WILL RESULT IN AUTOMATIC COVERAGE MONTHLY PAYMENTS ARE DETERMINED BY “BASE AMOUNT” Full coverage spouse would receive 55% of the members retirement pay If lesser coverage is selected spouse receive 55% of elected “base amount”

MILITARY VS. CIVILIAN PAY & BENEFITS Monthly Military Pay (Single E5>4 years) BASE Pay $2238.00 BAH $948.00 BAS $367.92 Fed Tax $-310.02 State Tax $-32.45 FICA (SS & Medicare TX) $-234.00 NET PAY $2977.47 Monthly Civilian Pay ($26.00/hr) Base Pay 3553.92 Fed Tax $751.14 State Tax $213.33 FICA (SS & Medicare Tx) $-414.00 State Disability Ins. (SDI) $-45.07 Medical $126.00 NET PAY $2004.85 A Difference of $973

INDIRECT COMPENSATION: for Military Medical Care/Prescriptions/Dental Federal/State Tax Advantage BAH/BAS SGLI/TSP/TA Commissary/NEX Legal/FFSC/Counseling Gym Membership

CIVILAIN BENEFITS

Military One Source (Guard/Reservists) 1-800-342-9647 RESOURCES TO HELP: Fleet & Family Support Center (FFSC) Personal Financial Manager (PFM) Command Financial Managers (CFS) Navy Marine Corps Relief Society (NMCRS) Military One Source (Guard/Reservists) 1-800-342-9647 www.militaryonesource.mil

SUMMARY: Developing a 12 month spending plan TSP/SBP CAPSTONE - REQUIRMENT TSP/SBP Analyze military compensation and compare to civilian compensation Other Company Benefits/Perks