Your Air Force Benefits & Career: Financial Planning for Service Members and Veterans

Are you an Air Force service member or veteran? Get the resources you need and expert insights from financial professionals who specialize in helping service members and veterans make the most of their compensation and benefits.

Whether you’ve recently enlisted in the Air Force or you’ve moved up the ranks to serve as an officer, it’s important to make smart money moves with your income and benefits. For example:

✅ Do you know the right moves to make to get the greatest value from the benefits available to you?

✅If you’re thinking about leaving the Air Force for the private sector or on track to retire in a few years, are you taking the right steps today to ensure you will receive all of the compensation and benefits that you’ve earned?

Get the Most Value from Your Air Force Benefits and Compensation Package

Throughout the year, the Air Force provides service members with updates about their military benefits, ranging from health insurance to retirement plans like the Thrift Savings Plan (similar to a 401(k) plan), and pension plan. While the Air Force offers many useful resources and access to knowledgeable staff who can assist with questions, you’ll also find financial professionals not affiliated with the Air Force who specialize in helping Air Force service members make the most of their income and benefits.

Whether you’re based in the US or stationed overseas, you may have questions about your compensation package and benefits better suited for a financial professional who can offer unbiased advice and guidance.

For example, sensitive topics like discussing the steps you should take before transitioning into civilian life or deciding when you should plan to retire are all conversations that may be more comfortable with a trusted financial advisor.

💡 In the Q&A below, you’ll gain insights from financial advisors who work with Air Force service members and veterans to help them make smart decisions to get the most value from their compensation and benefits, reduce their money stress, and prepare for a comfortable retirement.

🙋‍♀️ Do you have questions not yet answered? Use the form below to submit questions anonymously and watch this article for updates with answers to your questions. You can also reach out to the financial advisors below to set up an introductory call or contact them with your questions by email.

💸 Smart Money Insights for Air Force Service Members & Veterans

This page is organized into sections to help you quickly find the information you need and get answers to your questions:

1. Q&A: Financial Planning Tips for Air Force Service Members & Veterans
2. Get Answers to Your Questions About Your Air Force Benefits and Career
3. Browse Related Articles

Q&A: Financial Planning Tips for Air Force Service Members & Veterans

Answers to Service Member Questions with Erik Baskin, CFP®, MBA

Erik Baskin is a financial advisor based in Centerville, Ohio, who specializes in offering financial planning services to Air Force service members. Erik helps his clients get the most value from their Air Force benefits and compensation package so they can enjoy life and feel confident about their financial future.

Q: As a financial advisor with experience helping Air Force service members save for their retirement, how do you help them make the most of their benefits?

Erik: I help members of the Air Force understand the benefits available to them, such as the Thrift Savings Plan (TSP), Servicemember’s Group Life Insurance (SGLI), the GI Bill, and the VA Home Loan. These benefits can be a huge positive impact when used properly.

Q: When you first speak with a Air Force service member, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals?

Erik: I love to ask people why money matters to them to get an understanding about how they feel about money. I also like to get an idea of their history of service and plans for the future to better inform the planning that we do today.

Q: Is there a particular benefit available to Air Force service members you feel isn’t as well utilized or understood as it should be?

Erik: I think the Thrift Savings Plan (TSP) is underutilized by most Air Force members. Many can contribute much more than they do, and they get sidetracked by other consumption expenses, especially at a young age. Understanding the power of tax free or tax deferred compounding for decades in the TSP is key to having the motivation to contribute more every month.

Q: Beyond Air Force service member benefits for retirement savings, are there other types of benefits offered that you find valuable to discuss with your clients?

Erik: The GI Bill and planning around that for education benefits for clients or the children of clients is a big planning topic. Also, talking about the VA home loan and when may or may not be the best time to use it is something that I like to go through with clients. Many Air Force members default to always going with the VA loan when that may not be in their best interest.

Q: For Air Force service members thinking about leaving to take a job in the private sector, what actions do you recommend they take before resigning and shortly thereafter?

Erik: Deciding what to do with your TSP as a part of your investment plan. Applying for a VA disability claim is usually a key part of the transition as well for those leaving active duty. Getting life and potentially disability insurance in place before transitioning out of the Air Force is another key item. Another would be to make a 12 month cash flow plan to account for changes in living circumstances and changes in your tax bill that come with transitioning out. Lastly, updating your estate documents if you are moving locations or have any other life changes is a critical part of your financial plan.

Q: For Air Force service members approaching retirement age, how do you recommend they prepare to make the transition from living off their salary to relying upon other sources of income?

Erik: Typically, there will be a portion of guaranteed income between pension, disability, and social security. To make up the gap after that, it is crucial to construct a well diversified portfolio that you can draw income from. This can include a TSP, IRA, or other investments as well as investment real estate. It is important to construct a concrete plan of exactly where that income will come from, and what makes the most sense to minimize your lifetime tax bill while meeting all of your lifestyle needs.

Q: For Air Force service members who have managed their finances on their own to this point, what would you suggest they consider to help them decide if they should begin working with a financial advisor at this stage in their lives?

Erik: Working with an advisor is really for those that have some complexity in their financial lives or realize that there is just too much at stake to do it themselves. Many who work with an advisor would be plenty fine on their own, but they recognize their unique ability does not lie in personal finance and want to outsource this work to a trusted professional, as well as have a thinking partner for all of the financial decisions to come.

Get to Know Erik Baskin, Financial Advisor for Air Force Service Members:

View Erik’s profile page on Wealthtender or visit his website to learn more.

Q: What are some of the unique financial planning challenges you commonly see among your clients who are Air Force service members and how do you help them overcome these obstacles?

Erik: A lot of the families I work with become accidental landlords from moving all over the country every three years. I help them assess the health of their real estate portfolio in the context of their overall financial situation, as well as make the best decisions on that portfolio going forward.

Q: What questions do you recommend Air Force service members ask financial advisors they’re considering hiring to help them decide if they’re a good fit?

Erik: Ask them if they are independent or if they work for a larger firm. Ask them as well how they are compensated, and if they receive commissions of any kind. Ask them how many people they work with, and how many people are similar to you.

Q: Is there anything that comes up frequently in your initial meeting with Air Force service members that surprises you?

Erik: Most people don’t have an estate plan of any kind, even those with children. This is surprising because this is a free service that is offered on base and it is so vitally important to get done.

Q: For highly compensated Air Force service members, are there any special benefits you believe it’s important to take into consideration when preparing their financial plan?

Erik: For those who are highly compensated and may be over the Roth IRA contribution limits, it might make sense to do a Backdoor Roth IRA after contributing the maximum to their Thrift Savings Plan. It also might be smart to automate contributions to a taxable brokerage account or savings account for rental real estate. The key is finding ways to automate income toward goals. Looking for tax saving opportunities such as tax loss harvesting, donor advised funds, and real estate deductions is also a key part of planning for highly compensated employees.

🙋‍♀️ Have Questions About Your Air Force Benefits or Career?

📰 Browse Related Articles

Are you ready to enjoy life more with less money stress?

Sign up to receive weekly insights from Wealthtender with useful money tips and fresh ideas to help you achieve your financial goals.