Air Force BMT Prep Guide eBook available NOW: Interested in joining the military and want to set up yourself for a solid retirement in the future? let me introduce to you the Thrift Savings Plan (TSP) which is the 401k for the military. It is absolutely possible to join the military and serve only 4 years but build a retirement portfolio that could be worth over $1,000,000 when you retire. You can become a millionaire in the military after serving just 4 years!
This is not investment advice, please do your own research. I’m simply comparing past performance and showing what one possibility is if certain factors remain the same.
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Airman Vision is run by Kyle Gott and his wife Makenna Gott. Kyle is an Air Force Veteran who got out after 6 years of service as a Staff Sergeant E-5. He started making videos on this channel to document his journey joining the United States Air Force. He went to MEPS on February 8, 2012 and left for Air Force BMT on January 8, 2013. His date of separation from the Air Force is January 7, 2019. Makenna Joined the Air Force in 2021 after wanting to join for over 9 years. She swore into the Air Force on January 15th, 2021. The videos on this channel represent the individual opinions of those speaking and do not reflect thoughts of the Air Force, DOD, or US Government….(read more)
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Great video! I'm living proof that this is true. In fact, I'm on track to become a millionaire by around the age of 40. TSP, Roth IRA, real estate investments. 10 years in service, 10 to go. People that doubt this do not understand finance and the power of compound interest
So this TSP thing you can use even when you’re done with your contract?
And these stats are based of the lowest base pay right?
If I am already 2 years into a degree (aged 20.5 yr old) should I just finish my undergrad and try to go to OTS or enlist now and finish my degree on active duty and then after 4 years try to become an officer?
Let’s say I work X years in service and I have $x amount in my retirement after x%, and I retire at 60, but I die at 62, what happens to the $X left? Does it disappear or does this new system pay out to your family/spouse left?
BRS is not as good as the legacy since you can’t touch your TSP without penalty to you are 59 1/2. You have to start saving a lot from the get if you want a high investment by 60. Once you leave service, you can’t contribute unless you are a federal employee.
Question can I serve 30 years and get millions of dollars for my pension
I was in the army for 7 month and last week i got burn df out of myself (3rd degree burn-2nd degree burn) and im depressed as sht but the only thing that can keep me going is after 19 and half more years im gonna get a big disability check if i dont injure myself even further and plus both my TSP that im investing at the same time and a pension. ill be set for life but i might be a nurse or something. (was planning on becoming a police officer for another pension but ill see about my injury first.) btw if u an enlisted dont think about getting rich the moment u joined the military cuz they make u pay for everything. SOP standard or some other BS so ive been in the army for 7 month and i only got like 4k in my bank account as a pv2 without BAH cuz the army changed so much they do meal deduction and the free medical care is fake cuz they take it from your pay and alot of other stuff
If we do only 4 years how do we keep up with our TSP? How do we continue to contribute money? Etc to get that 5% match money?
Kyle! I enjoyed the video. You make valuable points throughout but I have a minor critique. I do think you might be underestimating the pension's just a bit for 2 reasons. (1) Time value of the money – you'll have access to the pension beginning the month after retirement. Those dollars could then be invested in the market, real estate, starting your own business, kid's college, whatever. and (2) I think you are underestimating how old people will be living when today's servicemembers hit retirement. Aging researchers think many of today's baby boomers will live to 100-110. It seems likely that gen x, millennials, and gen z will live even longer than that. The longer the person lives the more valuable the pension becomes for the SM and their surviving spouse if they purchase the survivor's benefit. Cheers!
Very important video for service members
Thank you I appreciate this information I’m 30 and joining this made me feel at ease.
I recommend learning about the TSP to everyone I can. I didn’t think of it much at first but luckily a standard(lol) army finance brief hit me early enough in my career. I don’t plan on being in the military forever and anyone who doesn’t know if they want a military career or not NEEDS to Utilizes their tsp.
Good explanation kyle, im in tech school right now and will definitely be putting in 10% asap
What if I’m 19 do u think it’s quite the same as 18 year olds
I am at 14.5 years in and an E-7. Have quite a bit in investments and own my own house. Military can definitely set you up for retirement at a young age just have to plan and stick with it. I plan on retiring between 20-22 years starting out around $41K a year plus disability, which could be a lot of tax free money plus benefits.
Can I remove money from my TSP at anytime?
Sorry, I'm new to all this information but why is there a difference in BRS for 18yrs old and 30yrs old when retire at 67?
Lol.
I’m 6 years in and I never signed up for BRS I wish I did
I plan on joining so I’m hoping I love it enough the in for 20 years. That make me about 41 -42 year old so at the start I might start at 5%. For the first 6months so I can get out of debt first. Then after the 6months goto 10-15% after I have money saved up also. I got money in crypto primary Safemoon so if that blow up. Within the next few years and I decide to cash out. Then I’d put it more like 25% as if it blow up to a good point it help and if they let me add extra money in I would add money from my safemoon profit in there. So by the time I retire I will be set and if I got kids they will have money fall back on.
great video always wonder if I missed out on the old retirement plan when my recruiter discussed the new plan I have now. In today's time its hard to put in 20 years on active duty and people do get out do to lots of reasons for example better job, work schedules, jobs with more pay, going back to school, the people that dont like to deploy a lot etc. I personally would only do 20 yrs as a officer over enlisted and retire as a major or Lt colonel.
Single most important video of my life.
Hey i have a question wouldn't the Roth version be better so you can get you money out since its already been taxed going in? That looks like a no brainer in my opinion
Can AF reservist do UTA drill at an Air Guard base? Looking to enlist reserve in Puerto Rico. But there's an army base and a Air National guard base. No air force bases… any help?
Be a millionaire from the military? Ahahahaha….
Oh my god retire at 67? Already almost in the grave
Remember inflation
honestly I would attempt this, but I'm striving to be a millionaire when I'm young, not when I got limited years left
To me, the old system is a bit better for people who do 20+ years of service, while the new system is infinitely better for people who don't do 20+ years of service. The old system gives you a higher pension rate/ monthly payment from the first day you get out to the day you die, and that money is 100% guaranteed the entire way through… But with zero matching contributions to the TSP at any time while serving, so it will be smaller than it otherwise would be. You also get literally nothing from the whole retirement setup if you don't do 20+ years, which last I checked only about 12-13% of people who join up end up doing that. While in the new system you have a lower pension rate/ monthly payment from the first day you get out to the day you die… But with some matching contributions to your TSP, so it will be larger than it otherwise would be. However, you get to keep your TSP $$$ and do a variety of things with it if you don't end up doing 20+ years, which in turn is almost 90% of people.
Some extra things to note here is that the pension $$$ is, again, fixed and guaranteed from the day you get out. So you get it right away, you don't have to wait for it (big advantage to the old system on that one for getting more guaranteed money immediately). As for the "selling points" on the new system involving the TSP matchings, it doesn't happen from day one technically. The 1% guaranteed match begins after 60 days of service, and the additional 4% begins after 2 years of service, and you need to actually have at least 5% to your TSP every month to fully utilize that. Also, the matching contributions while nice go into the Traditional account of your TSP, meaning you'll pay taxes on it once you draw it out… So what you see is NOT what you get. It's also worth noting that the TSP is essentially just a 401k for us, meaning we can't even touch that money- or more so the profits- until the age of 59.5 at the very earliest, or incur a rather hefty set of penalties. Lastly, the matching contributions are subject to the same rates of return as the rest of your contributions, so it's NOT guaranteed how well or poor that extra money will do for you in the long run. Either way at the end of the day, you should be contributing at least SOMETHING to your TSP regardless of the retirement system you're a part of, no matter what.
TL;DR, the old system is a bit better for those who actually do 20+ years while the new system is so much better for those who don't. And even then the new system is still pretty solid for those who do 20+ years. I just wished we had the option to pick and choose which one we want to opt into haha.
Oh and one last thing, avoid the lifecycle funds in your TSP like the plague. They're awful for the long term.
Yea if you dont spend a dime on nothing in 4 years….lol
Make more financial videos pls