Military Benefits
You're Leaving
on the Table

The TSP is the military's version of a 401(k). Under the Blended Retirement System (BRS), the government matches up to 5% of your base pay if you contribute at least 5%. That's a guaranteed 100% return on those dollars before they even invest.

If you joined after Jan 1, 2018, you're automatically enrolled in BRS. Serve 20+ years and you receive 40% of your average base pay as a monthly pension for life — plus TSP matching during your career. The BRS gives you retirement benefits even if you don't reach 20 years.

If you're deployed to a combat zone, you can deposit up to $10,000 into the SDP and earn a guaranteed 10% annual interest rate — paid by the government. In a world of 5% savings accounts, this is extraordinary. Most deployed soldiers have no idea this exists.

The VA loan is arguably the best mortgage product in America. Zero down payment, no PMI (private mortgage insurance), competitive interest rates, and no prepayment penalties. You can buy a home with $0 out of pocket. Most people using this benefit save $200–$500/month compared to conventional loans.

BAH covers your housing costs based on your rank, location, and dependent status — and it's completely tax-free income. In most markets, BAH fully covers rent or a significant portion of a mortgage. Strategy: live below your BAH rate and invest the difference.

When you receive tax-free combat zone pay and contribute it to a Roth IRA, that money grows and is withdrawn completely tax-free — and you never paid taxes on it going in either. This is one of the best wealth-building opportunities in the tax code, available only to deployed service members.

SCRA caps interest rates on pre-service debt (credit cards, student loans, auto loans) at 6% while you're on active duty. If you have debt at higher rates, contact your lender and invoke your SCRA rights. This can save thousands per year in interest.

The Army pays up to $4,000/year in tuition assistance for active duty soldiers pursuing college courses during off-duty time. Combined with the GI Bill (Post-9/11 or Montgomery), you can get a full college education with zero out-of-pocket cost.

MyCAA provides up to $4,000 in scholarships for military spouses pursuing portable career fields (licenses, certificates, associate degrees). If your spouse wants to build a career that travels with your PCS moves, this funds it.

After 36+ months of active duty, you're entitled to full tuition at any in-state public school, a monthly housing allowance (at BAH E-5 rates), and a book stipend — for up to 36 months of schooling. You can also transfer unused benefits to dependents.

SGLI provides up to $400,000 in life insurance coverage for only $28/month — one of the cheapest term life policies available anywhere. Make sure your coverage is maxed and your beneficiary designations are current (especially after marriage, divorce, or having children).

Active duty soldiers receive comprehensive health insurance at no cost through TRICARE. Dependents are covered at low cost. This eliminates one of the largest household expenses for civilian families — often $500–$1,500/month. That's money that can go straight to investing.