Financial Readiness Course
Understand your benefits, maximize your compensation, and protect what you've built.
Course Modules overview
Know What You Have
Understand your military retirement pay, TSP options, and Social Security — and how they work together.
Maximizing Disability Benefits
Are you getting everything you've earned? Filing claims, understanding CRSC vs CRDP, and avoiding scams.
Healthcare & Long-Term Care
Managing VA healthcare, Medicare, TRICARE for Life, and planning for Aid & Attendance.
Managing Your Retirement Income
Tax-efficient withdrawal order, RMD management, state tax impact, and managing debt on fixed income.
Legacy & Estate Planning
SBP, estate documents, beneficiary designations, burial benefits, and protecting against exploitation.
Know What You Have
Understanding your pension, retirement savings, Social Security, and VA disability — and how they stack in retirement
Learning Objectives
- Understand your pension — military retired pay, civilian pension, or neither
- Know where your retirement savings live — TSP, 401(k), 403(b), or IRA — and your withdrawal options
- Learn when and how to optimize Social Security benefits
- Identify key resources for pay and benefits questions
How Your Pension Works
A pension is a monthly check for life, paid by a former employer. Some of you earned one from 20+ years of military service. Others earned one from a civilian career. A third group served under 20 years and has no pension — for you, Stream 2 (savings) and Stream 3 (Social Security) are the whole picture.
Military Retired Pay (High-3)
Average of highest 36 months of basic pay × 2.5% × years of service.
Example: 20 years at $7,000 High-3 = $3,500/month
Adjusted every January for inflation (COLA).
Civilian Pension (Defined Benefit)
Formula varies by employer — typically: final average salary × a multiplier (often 1.0–2.0%) × years of service.
Key differences from military: often no COLA (fixed amount for life), survivor election chosen once at retirement, eligibility age varies by plan.
Reading Your Pension Statement
Whether your pension comes from DFAS or a civilian plan administrator, every statement has a few lines worth knowing. Most veterans glance at the bottom line and file it away — here's what to actually look for:
Military Retirees — DFAS RAS
- Gross Pay — Base retired pay before deductions
- VA Waiver — Dollar-for-dollar reduction if you receive VA disability
- SBP Premium — Survivor Benefit Plan deduction
- CRDP/CRSC — Restored pay (Module 2)
- Federal Tax Withholding — Check W-4 elections
- Net Pay — What hits your bank account
Civilian Pensioners — Plan Statement
- Gross Benefit — Your elected monthly amount
- Survivor Election Reduction — Lower payment if you chose joint-and-survivor
- Federal & State Tax Withholding — Verify elections
- Medical Premium Deductions — If retiree healthcare is pulled from your check
- Net Deposit — What hits your bank account
VA Disability Compensation
VA disability compensation is a tax-free monthly payment based on your service-connected disability rating. It's available to every eligible veteran — military retirement is not required. If you served and have a service-connected condition, you may qualify.
How it interacts with your pension
Civilian pension or no pension: VA disability is fully additive — a separate tax-free stream on top of whatever else you have.
Military retired pay + VA disability: Your retired pay is reduced dollar-for-dollar by your VA amount (the "VA Waiver"). Programs like CRDP and CRSC can restore some or all of that reduction — covered in Module 2.
Your Retirement Savings Account
Whatever the label — TSP (federal / military), 401(k) (most private employers), 403(b) (schools, hospitals, non-profits), or IRA (individual) — these are all defined-contribution accounts. Same tax rules, same withdrawal rules, same RMDs. The differences are mostly about who administers them.
Traditional (pre-tax)
Contributions went in pre-tax, reducing your taxable income in your working years. Withdrawals in retirement are taxed as ordinary income.
Applies to: Traditional TSP, Traditional 401(k)/403(b), Traditional IRA.
Roth (after-tax)
Contributions went in after-tax. Qualified withdrawals — including all growth — come out tax-free in retirement.
Applies to: Roth TSP, Roth 401(k)/403(b), Roth IRA.
Knowing Your Plan
Every plan — TSP, 401(k), 403(b), IRA — works on the same three questions: what are you invested in, what does it cost, and does it still match your risk tolerance? Whether you're drawing down or still growing the balance, you should be able to answer all three.
If your account is TSP
Five core funds — plus L Funds (Lifecycle) that blend them by target date.
Lowest risk
Low-moderate
Moderate
Higher
Higher
If your account is 401(k) / 403(b) / IRA
Your plan has a menu of mutual funds or ETFs — often dozens of choices. Three things to know:
- Current allocation: what percent is in stocks vs. bonds vs. cash?
- Expense ratio: fees eat returns — below 0.50% is good, below 0.10% is great
- Target-date fund: most plans offer one (e.g., "Target Retirement 2025") that adjusts automatically — a simple default
Withdrawals & Required Minimum Distributions
TSP, 401(k), 403(b), and traditional IRA all trigger the same RMD at age 73 (or 75 if born after 1959). The withdrawal options differ slightly by plan type:
TSP Options
- Monthly Payments: Fixed dollar amount or life-expectancy-based
- Single Withdrawal: One-time partial (min $1,000)
- Full Withdrawal: Lump sum, annuity, or roll to IRA
- Leave It: Continues growing tax-deferred until RMD age
401(k) / 403(b) / IRA Options
- Scheduled Distributions: Monthly or annual, set by you
- Ad-Hoc Withdrawals: Most plans allow any amount, any time
- Roll to IRA: Common move at retirement — more flexibility, broader investment menu
- Leave It: Usually fine, but check plan rules on forced-out small balances
Your Retirement Accounts
Take a minute and list every retirement account you have — TSP, 401(k)s from old employers, 403(b)s, IRAs. Are you drawing from any of them? Still letting them grow? Have you consolidated through rollovers?
- Do you know what each account is invested in today?
- Have you thought about how withdrawal order affects your taxes?
- If you have accounts at multiple former employers, would consolidating into one IRA simplify your life?
Social Security for Veterans
Your military service counts toward Social Security. If you served after 1956, you paid into Social Security through payroll taxes — and you may have received special wage credits that boost your benefit.
When to Claim
- 62: Earliest age — permanently reduced benefit (~30% less)
- 67: Full retirement age (FRA) for those born 1960 or later. Born 1955–1959? Your FRA is between 66 yrs 2 mo and 66 yrs 10 mo — check ssa.gov for your exact date
- 70: Maximum benefit — 24% more than FRA amount
Key Facts for Veterans
- Military service counts toward your 35-year earnings record
- VA disability pay does NOT reduce your Social Security
- Military retirement pay and SS are both taxable (but at different rates)
Spousal & Survivor Benefits
Social Security isn't just about you — your claiming decision directly affects your spouse, both now and after you're gone.
- Spousal Benefit: Your spouse can receive up to 50% of your FRA benefit amount, even if they never worked
- Survivor Benefit: When you pass away, your surviving spouse can receive up to 100% of your benefit
- Timing Matters: If you claim early at 62, you permanently reduce both YOUR benefit and your spouse's future survivor benefit
- Divorced Spouse: An ex-spouse may qualify for benefits on your record if the marriage lasted 10+ years
Social Security: The Dollar Math
The decision of when to claim is worth $200,000–$500,000 over a couple's lifetime. Here's why delaying matters:
Permanently reduced ~30%
Full Retirement Age
Maximum — 24% above FRA
Why This Matters for Veterans
- If you have a pension: Military retired pay, civilian pension, or VA disability can cover your baseline — that means you don't NEED Social Security at 62, and letting it grow is essentially free money
- If you don't: Claiming timing matters even more — every year you delay past 62 is a permanent raise you can't get any other way
- Survivor protection: Your surviving spouse inherits your benefit amount. Claiming at 70 protects them for decades
- Break-even age ~82: If you live past 82, you come out ahead by waiting. Average 65-year-old male lives to 84
- VA disability doesn't count: Your VA pay is not counted as income for Social Security taxation thresholds
Your Social Security Plan
Have you already started receiving Social Security, or are you still deciding when to claim? What factors are influencing your decision?
- Have you created an account at ssa.gov to see your projected benefit?
- How does your spouse's work history and age factor into your timing?
- Did you know that delaying past your full retirement age increases your benefit by 8% per year?
Key Takeaways
- Pull your most recent pension statement — myPay (DFAS) for military retirees, plan administrator portal for civilian pensioners
- Review the allocation in every retirement account you have — TSP, 401(k), IRA — does it still match your risk tolerance?
- RMDs start at 73 (or 75) for TSP, 401(k), 403(b), traditional IRA — missing one costs 25% of the shortfall
- Create an account at ssa.gov to see your projected Social Security benefit at 62, 67, and 70
- Delaying Social Security can significantly increase your spouse's survivor benefit
- VA disability pay is tax-free, available to every eligible veteran, and doesn't reduce Social Security
- Delaying Social Security from 62 to 70 can mean $200K-$500K more over a couple's lifetime
- If you have a pension (military or civilian), you may not need SS early — let it grow
Module 1 Complete!
You now have a clearer picture of your retirement income sources and how they work together.
Module Handouts
Maximizing Your Disability Benefits
Are you getting everything you've earned? Many veterans are underrated or missing benefits.
Learning Objectives
- Know how to file a new VA claim or request a rating increase
- Understand secondary service-connected conditions
- Compare CRDP and CRSC to maximize your compensation
- Recognize common scams that target veteran benefits
Filing New Claims & Rating Increases
It's never too late to file a VA disability claim. If you have a condition that started during service — or got worse because of service — you may be entitled to compensation. And if your existing conditions have worsened, you can request an increase.
New Claims
- File at va.gov or through your local VSO (free help)
- You need: medical evidence + a nexus to military service
- No time limit — you can file decades after separation
Rating Increases
- Conditions worsen with age — your rating should reflect that
- File a "Claim for Increase" with current medical evidence
- Common increases: hearing loss, joint conditions, PTSD
Secondary Service-Connected Conditions
A secondary condition is a new health problem caused or aggravated by a condition you're already service-connected for. These are commonly missed — and can significantly increase your overall rating.
Common Secondary Connections
- Back injury → knee or hip problems (compensating gait)
- PTSD → sleep apnea, hypertension, or depression
- Diabetes (Agent Orange) → peripheral neuropathy, kidney disease
- Tinnitus → migraines, anxiety, or sleep disturbance
Your VA Rating
Do you currently have a VA disability rating? Do you think it still accurately reflects your current health? Have any of your conditions gotten worse since your last evaluation?
- Have you ever considered filing for a rating increase?
- Are there health conditions you have now that might be connected to your service?
- Has anyone here worked with a VSO to file a claim?
The VA Waiver (Offset)
If you receive both military retired pay and VA disability compensation, your retired pay is reduced by your VA amount. This is the VA Waiver — and it affects most disabled military retirees.
Two federal programs exist to restore some or all of this waived pay:
- CRDP — Concurrent Retirement and Disability Pay
- CRSC — Combat-Related Special Compensation
You cannot receive both. You must elect one annually.
CRDP vs. CRSC: Side by Side
CRDP
- 50% minimum VA rating
- Automatic enrollment (no form required)
- Taxable as retired pay
- Any service-connected disability
CRSC
- 10% minimum VA rating
- Requires DD Form 2860 application to your branch of service
- Non-taxable — can mean thousands more per year
- Combat-related only (armed conflict, hazardous duty, instrumentalities of war)
Annual Election & DFAS Lags
Annual Election
Retirees who qualify for both can switch once per year. Run the numbers both ways since rating changes may shift which program pays more.
DFAS Reporting Lags
When the VA changes your disability rating retroactively, there is often a significant time lag before DFAS adjusts your retired pay. This can trigger unexpected debts or back payments.
Which Path Applies to You?
Based on what we've covered, do you think you're currently receiving the right compensation — CRDP or CRSC? Has anyone here had to deal with the annual DFAS election process?
- Do you know your current VA disability rating percentage?
- Have you checked whether your conditions qualify as combat-related for CRSC?
- Has anyone experienced the DFAS processing delays we discussed?
VA Pension & the 36-Month Lookback
The VA pension is a needs-based benefit for wartime veterans with limited income and assets. It's separate from disability compensation — and one of the most underutilized benefits in the VA system.
- Wartime service required: 90+ days active duty, at least 1 day during a wartime period
- Age 65+ or permanently disabled
- 2026 net worth limit: $163,699 (includes most assets except home and vehicle)
- Enhanced by Aid & Attendance (covered in Module 3)
Veteran Benefit Scams: A $584 Million Crisis
Military-connected consumers lost $584 million to fraud in 2024 — veterans and retirees accounted for $419 million of that. Twenty-seven percent of veterans have lost money to a scam at some point. You are specifically targeted because of your guaranteed income.
Top Threats for This Room
- Claim Sharks: Charge $3,000-$10,000+ to file VA claims. This is illegal — VSOs do it free
- Pension Poaching: "Advisors" restructure your assets into annuities to qualify you for VA pension, then pocket fees while you risk repayment
- VA Impersonation: Phone/email scams claiming you owe money or must "verify" your account. The VA will never call demanding payment
- Predatory Financial Products: High-fee annuities, whole life insurance, and crypto sold to veterans receiving lump-sum back-pay
Protect Yourself
- Never pay for VA claims assistance — use accredited VSOs (DAV, VFW, American Legion)
- Verify anyone offering benefit help at va.gov/vso
- Report scams to the VA OIG: 1-800-488-8244 or FTC: reportfraud.ftc.gov
Key Takeaways
- It's never too late to file a VA disability claim or request an increase
- Secondary conditions are commonly missed — they could raise your rating
- Check if CRDP or CRSC applies to restore your waived retired pay
- VA pension is needs-based with a 3-year asset look-back — don't fall for restructuring scams
- Military-connected consumers lost $584M to fraud in 2024 ($419M from veterans/retirees) — never pay for claims assistance
Module 2 Complete!
You now know how to check if you're maximizing your disability benefits and how to protect yourself from scams.
Module Handout
Healthcare & Long-Term Care
Managing VA healthcare, Medicare, TRICARE, and planning for long-term care needs
Learning Objectives
- Know VA healthcare priority groups and enrollment
- Understand CHAMPVA coverage for dependents
- Know how TRICARE for Life coordinates with Medicare
- Identify Aid & Attendance eligibility and 2026 benefit rates
CHAMPVA: Coverage for Dependents
The Civilian Health and Medical Program of the Department of Veterans Affairs covers dependents of veterans who are:
Who Qualifies
- Spouse or child of a permanently and totally disabled veteran
- Surviving spouse/child of a veteran who died from service-connected disability
- Surviving spouse/child of a veteran who was permanently disabled at death
Key Details
- CHAMPVA covers 75% of allowable charges
- Annual deductible: $50/person, $100/family
- Annual cap: $3,000 out-of-pocket
Medicare at Age 65
Veterans are strongly encouraged to enroll in Medicare Parts A and B at age 65, as VA benefits typically only cover care at VA facilities.
For military retirees, enrolling in Medicare Parts A and B is mandatory to keep TRICARE for Life.
TRICARE for Life
TRICARE for Life is a powerful wraparound secondary payer to Medicare:
- Medicare pays first as the primary insurer
- TRICARE covers remaining costs as secondary
- Result: little to no out-of-pocket cost for most covered services
Medicare Part B & Part D: Costly Pitfalls
Medicare enrollment has strict deadlines. Missing them can cost you permanently — and the penalties never go away.
Late Enrollment Penalties
- Part B: 10% surcharge for every 12 months you delay past your initial enrollment window — for life
- Part D: 1% of the national base premium per month of delay — for life
- These penalties compound — someone 3 years late on Part B pays 30% more forever
IRMAA Surcharges
- Income-Related Monthly Adjustment: Higher earners pay more for Parts B and D
- Based on tax return from 2 years ago (2024 income affects 2026 premiums)
- Thresholds start at $109,000 (single) / $218,000 (married filing jointly)
- Pension + TSP withdrawals + SS can push you over — plan your withdrawals
Missed the Window?
- General Enrollment Period (GEP): January 1 – March 31 each year for those who missed their initial window
- Coverage doesn't start until July 1 of that year — and late penalties still apply
Coverage Comparison: VA vs. Medicare vs. TRICARE
- VA Healthcare: Covers care at VA facilities only. No premiums for most enrolled veterans. Copays vary by priority group.
- Medicare: Covers any Medicare-accepting provider nationwide. Part B premium $202.90/month (2026). No VA facility requirement.
- TRICARE for Life: Wraps around Medicare after age 65. Medicare pays first, TRICARE covers the rest. Requires Medicare enrollment.
Prescription Drug Coverage Note
VA drug coverage is comprehensive but requires authorization by a VA provider and must be filled through a VA pharmacy or their mail-order system. Medicare Part D offers more flexibility for those who prefer local pharmacies or live far from VA facilities.
Your Healthcare After 65
What's your current plan for healthcare coverage when you turn 65? Are you counting on VA healthcare alone, or have you thought about how Medicare and TRICARE for Life fit together?
- Do you know if you're automatically enrolled in Medicare Part A?
- What would happen if you missed the Part B enrollment window?
- How does your VA priority group affect this decision?
VA Aid & Attendance Overview
A tax-free monthly enhanced pension for wartime veterans and surviving spouses who need assistance with Activities of Daily Living (ADLs) or require custodial care.
Custodial care = help with 2+ ADLs or 24/7 supervision due to cognitive impairment.
2026 Aid & Attendance Rates
(both must qualify for A&A)
Net worth limit: $163,699 (2026) with a 3-year look-back period on asset transfers.
Eligibility & the 5 ADLs
Eligibility
- 90 days active duty, 1+ day wartime
- Non-dishonorable discharge
- Age 65+ or permanently disabled
The 5 ADLs
- Bathing
- Mobility / Transferring
- Dressing
- Toileting
- Eating
Planning for Long-Term Care
Think about someone you know — maybe a parent or spouse — who needed help with daily activities like bathing, dressing, or meals. How was that care paid for? What would you do differently knowing what you know now about Aid & Attendance?
- Do you know the current net worth limit for eligibility?
- Have you considered how the 3-year look-back period affects planning?
- What's the difference between Aid & Attendance and Medicaid?
Key Takeaways
- Enroll in Medicare A & B at 65 to keep TRICARE for Life
- TRICARE for Life covers what Medicare doesn't — minimal out-of-pocket
- Aid & Attendance provides up to $3,845/month (2026)
- The VA recognizes 5 specific ADLs for eligibility
- Medicaid approval reduces A&A to ~$90/month
Module 3 Complete!
You now understand how VA healthcare, Medicare, TRICARE, and Aid & Attendance work together in retirement.
Module Handout
Managing Your Retirement Income
Tax-efficient withdrawal order, RMD management, state tax impact, and managing debt on fixed income
Learning Objectives
- Understand how to stack income sources for tax efficiency
- Know federal and state tax treatment of your retirement income
- Manage RMDs to avoid penalties and control your tax bracket
- Recognize the impact of debt on fixed-income retirement
Income Stacking: Your Retirement Paycheck
Most military retirees have multiple income streams. Stack them to understand your total monthly picture:
- Military Retired Pay — Taxable, COLA-adjusted
- VA Disability Compensation — Tax-free (may offset retired pay)
- Social Security — Partially taxable, begins at 62-70
- TSP / IRA Withdrawals — Taxable (traditional) or tax-free (Roth)
- Employment Income — Second career, part-time, consulting
Map Your Retirement Income
Let's get personal. On a piece of paper, list every source of income you expect in retirement — military pension, VA disability, TSP, Social Security, part-time work. Now stack them up. Does the total cover your monthly expenses?
- Which of your income sources are taxable vs. tax-free?
- What's your biggest expense that might not be covered?
- How would your income picture change if you moved to a different state?
Federal Taxation
Taxable
Military retirement pensions are taxed as ordinary income at the federal level.
Tax-Free
VA disability compensation is completely tax-free at both federal and state levels.
State Tax Landscape (2026)
No State Income Tax
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
Fully Tax Military Retirement
California and a small number of other states tax military pensions with no special exemptions.
State Tax Impact
Does your state tax your military retirement pay? Have you considered how moving to a different state could affect your bottom line — and what other costs (property tax, insurance, cost of living) might offset any savings?
- Is the state tax savings worth the cost of relocating?
- What other financial factors change with a move — property tax, cost of living, VA facility access?
- How does your spouse's employment or family situation affect this?
Debt in Retirement: The Reality
Most people assume they'll be debt-free by retirement. The data says otherwise:
Action Steps
- Pay off high-interest debt before retirement — even if it means delaying retirement 6-12 months
- Don't tap TSP/IRA to service credit card debt — the tax hit plus lost growth makes it worse
- Consider mortgage payoff math: if your rate is under 4%, investing may beat early payoff. If over 6%, paying it off gives guaranteed return
- Avoid new debt in retirement — on fixed income, there's no earning power to dig out
Managing Required Minimum Distributions
Once you reach RMD age, the IRS requires you to withdraw a minimum amount from tax-deferred accounts each year — TSP, traditional IRAs, and 401(k)s. Missing an RMD triggers a steep penalty.
RMD Strategies
- Calculate your RMD: Divide your account balance (Dec 31 of prior year) by the IRS life expectancy factor
- Consolidate accounts: Fewer accounts means fewer RMD calculations to track
- Take it early in the year: Don't wait until December and risk missing the deadline
- Consider Roth conversions: Roth IRAs have no RMDs — converting some funds before RMD age can reduce future obligations
Inflation & Your Buying Power
A 20-30 year retirement means inflation will significantly erode your purchasing power — even at modest rates. Understanding which of your income sources keep up with inflation is critical.
What Has COLA
- Military retired pay — annual COLA (matches CPI)
- VA disability compensation — annual COLA
- Social Security — annual COLA
- Private pensions — most have NO inflation adjustment
- Fixed annuities — purchasing power declines every year
- Savings accounts — interest rarely keeps pace with inflation
Key Takeaways
- Stack your income sources — know which are taxable vs. tax-free
- Your state's tax treatment of military pensions can save (or cost) thousands
- Never miss an RMD — the 25% penalty is unforgiving
- Consider Roth conversions before RMD age to reduce future obligations
- Pay off high-interest debt before or early in retirement
- Military pay, VA pay, and Social Security all have COLA — private income doesn't
Module 4 Complete!
You now understand how to manage your retirement income: tax-efficient stacking, RMDs, state tax impact, and keeping debt under control.
Legacy & Estate Planning
Make sure your family is taken care of and your wishes are clear
Learning Objectives
- Understand your SBP coverage (or options if you declined)
- Know how DIC interacts with SBP after the 2023 offset elimination
- Ensure your estate documents and beneficiary designations are current
- Protect your estate from fraud and exploitation
Understanding Your Survivor Benefit Plan
If you elected SBP at retirement, your surviving spouse receives 55% of your selected base amount as a guaranteed, inflation-indexed monthly payment for life. If you declined, there may still be options.
SBP Pros
- Lifetime guarantee — beneficiary cannot outlive the benefit
- Inflation-indexed via annual COLA
- DoD-subsidized — often cheaper than equivalent commercial annuities
- No medical exam required
- Premiums deducted pre-tax, lowering current income tax
SBP Cons
- Irrevocable — one-time decision via DD Form 2656
- No access to principal — it's insurance, not an investment
- If beneficiary dies first, no refund of premiums paid
- Benefits are taxable to the surviving spouse
- Coverage is suspended if beneficiary remarries before age 55 (reinstated if that marriage ends)
Premiums & Paid-Up Status
- Premium: 6.5% of selected base amount, deducted from pre-tax retired pay
- Paid-Up: Premiums stop after 360 months (30 years) of payments and reaching age 70 — both conditions required
- COLA: Payout increases annually with Cost of Living Adjustment
- No medical exam required for enrollment
What If You Declined SBP?
If you didn't elect SBP at retirement, you're not automatically out of luck. Congress has periodically opened enrollment windows, and there are alternative strategies to consider.
Options to Explore
- Congressional Open Seasons: Congress has authorized SBP enrollment windows (most recently 2023-2024 via the NDAA). Watch for future opportunities.
- Term Life Insurance: May be more affordable than SBP if you're healthy. But it expires or gets very expensive with age.
- Permanent Life Insurance: Provides a death benefit regardless of age, but premiums are significantly higher.
- Investment Strategy: Some veterans self-insure by building a dedicated investment portfolio for their spouse. This carries market risk.
Your SBP
Do you currently have SBP? If so, do you understand what your spouse would receive? If you declined, what's your plan to ensure your spouse is financially secure?
- If you have SBP, do you know when your premiums will stop (paid-up status)?
- For those without SBP — do you have alternative coverage in place?
- Has anyone calculated what their spouse's income would look like without their military pension?
Dependency & Indemnity Compensation (DIC)
DIC is a separate, tax-free VA benefit paid to surviving spouses of veterans whose death was service-connected. The base 2026 DIC rate is $1,699.36/month (effective December 1, 2025), with additional amounts for dependent children.
Estate Essentials & VA Burial
Four Documents Every Veteran Needs
- Will — directs asset distribution
- Durable Power of Attorney — financial decisions if incapacitated
- Healthcare Power of Attorney — medical decisions
- Advance Directive — end-of-life care wishes
Free help: Military legal offices and VSOs offer free estate planning.
VA Burial Benefits (Free)
- National cemetery gravesite at no cost
- Government headstone/marker
- Burial flag & Presidential Memorial Certificate
- Burial allowance: up to $2,000+ (service-connected)
Pre-plan: File VA Form 40-10007 now.
Beneficiary Designation Checklist
Beneficiary designations override your will. Review these annually and after any major life event:
- SBP (DD Form 2656): Spouse, former spouse, or child
- SGLI / VGLI: Life insurance beneficiary (can be anyone)
- TSP (Form TSP-3): Thrift Savings Plan beneficiary
- VA Life Insurance: Beneficiary for any VA-sponsored policy
- Bank / Investment Accounts: Transfer-on-death or payable-on-death designations
- Retirement Accounts (IRAs): Primary and contingent beneficiaries
When Did You Last Check?
Here's a tough but important question: when was the last time you reviewed who's listed as your beneficiary on SGLI, TSP, and your bank accounts? Has anything changed — divorce, remarriage, new children — since you last updated them?
- Do you have a current will, or are you relying on state law?
- Have you set up a power of attorney and advance medical directive?
- Who in your family knows where your important documents are stored?
Protecting Your Estate
Elder financial exploitation is one of the fastest-growing crimes in America. Veterans are especially targeted because of their guaranteed income streams.
Warning Signs
- Someone pressures you to change your power of attorney or will
- A caregiver or family member controls access to your finances
- Unexpected changes to bank accounts or beneficiary designations
- Being asked to sign documents you don't fully understand
Protective Steps
- Set up a "trusted contact" at your financial institutions — someone they can call if they suspect exploitation
- Use a durable power of attorney with specific limitations, not blanket authority
- Review bank statements monthly for unauthorized transactions
- Consider a revocable living trust to avoid probate and add a layer of protection
Planning for Cognitive Decline
Nobody wants to think about this, but it's one of the most important financial decisions you can make while you're still sharp enough to make it.
Act Now, While You Can
- Durable Power of Attorney: "Durable" means it stays in effect if you become incapacitated. A regular POA does not. Make sure yours says "durable"
- Trusted Contact Person: Authorize your bank and brokerage to contact someone if they notice unusual activity. This is free and takes 5 minutes
- Successor Trustee: If you have a trust, name a backup trustee who can step in
- VA Representative Payee: If you can no longer manage VA benefits, the VA can appoint a fiduciary. Nominate someone you trust before it's needed
Key Takeaways
- Know your SBP status — and explore options if you declined
- SBP-DIC offset was eliminated in 2023 — survivors receive both in full
- Every veteran needs a will, POA, and advance directive
- Review beneficiary designations annually — they override your will
- Set up trusted contacts at financial institutions
- VA burial benefits are free for honorably discharged veterans
- Set up a trusted contact at your bank — it takes 5 minutes and can prevent exploitation
- Tell your family where your documents are and what accounts you have
Course Complete!
Congratulations! You've completed all five modules of the VUB Financial Readiness Course.
Module Handout
Review & Post-Test
Five modules behind you. One short test ahead. Let's lock in what you've learned and measure how far you've come.
What We'll Do Today
- Recap the key takeaway from each of the five modules
- Identify one or two action items to start this week
- Complete the post-test — the same 20 questions you saw on Day 1
- Compare your score to your pre-test to see how much you've grown
Module 1 — Know What You Have
Your retirement income is a stack, not a single check. Most veterans have three or four streams that interact in ways your monthly statement doesn't show.
Key Takeaways
- High-3 retirement: average of highest 36 months × 2.5% × years of service
- VA disability is tax-free and doesn't reduce Social Security
- TSP: Traditional is taxed on withdrawal; Roth is tax-free if 5-year rule + 59½ met
- Social Security: claiming at 62 = ~70% of PIA; at 70 = ~124%; FRA is 67 if born 1960+
- RMDs kick in at 73 or 75 (depending on birth year); penalty for missing is 25%
Module 2 — Disability Benefits
Two big ideas: (1) it's never too late to file or increase a VA claim, and (2) free, accredited help exists — nobody should pay to file a claim.
Key Takeaways
- File or increase a VA claim through a free, accredited VSO (DAV, VFW, American Legion)
- Secondary conditions (PTSD → sleep apnea, back → knees) are commonly missed
- CRDP (50%+ rating, automatic, taxable) vs. CRSC (combat-related, DD 2860, tax-free)
- VA Pension 36-month lookback on asset transfers — never trust an "asset restructuring" pitch
- Veterans lost $419M to scams in 2024 — if someone charges to file a claim, they're operating illegally
Module 3 — Healthcare
The most expensive mistake in this course: skipping Medicare Part B at 65 because "I have the VA." Don't be that veteran.
Key Takeaways
- Enroll in Medicare A & B at 65 — required to keep TRICARE for Life
- Part B late-enrollment penalty: +10% for life per year delayed
- TRICARE for Life wraps Medicare; most covered services = $0 out-of-pocket
- CHAMPVA covers spouses/dependents of permanently disabled or deceased veterans
- Aid & Attendance: up to $3,845/month tax-free for veterans needing help with daily activities
Module 4 — Managing Income
Your COLA-protected income (military + VA + Social Security) is one of the strongest inflation-protected income stacks in America. Most retirees don't have it.
Key Takeaways
- Stack your income: know which streams are taxable vs. tax-free
- Up to 85% of Social Security can be taxable based on provisional income
- State tax matters: 9 states have no income tax; many fully exempt military pensions
- Never miss an RMD — the 25% penalty is unforgiving
- Pay off high-interest debt before retirement — fixed income leaves no room to dig out
Module 5 — Legacy
Beneficiary forms override your will. Outdated SBP, TSP, and SGLI designations are the single biggest money leak after divorce or remarriage. Check them annually.
Key Takeaways
- SBP = 55% of base amount, lifetime, COLA-adjusted, government-subsidized
- SBP-DIC offset eliminated in 2023 — survivors now receive both in full
- Every veteran needs: will, durable POA, healthcare POA, advance directive
- VA burial benefits are free for honorably discharged veterans — pre-file Form 40-10007
- Set up a trusted contact at every financial institution — takes 5 minutes, free, prevents exploitation
Action Items — Start This Week
Knowledge that doesn't move into action gets forgotten. Pick one or two of these and do them in the next seven days.
Quick Wins (15-30 minutes)
- Set up a trusted contact at your bank
- Update your TSP-3 beneficiary form online
- Verify your most recent RAS on myPay
- Pre-file VA Form 40-10007 (burial pre-need)
- Bookmark va.gov/ogc/accreditation.asp to find a VSO
Bigger Steps (this month)
- Schedule a VSO appointment to review your rating
- Verify your Medicare enrollment status (or plan for it)
- Tell your spouse where your documents are stored
- Review and update your will and durable POA
- Find a fee-only financial planner at napfa.org
What Will You Do First?
Go around the room. Each person picks one action item from the list and commits to doing it before next Monday. Saying it out loud makes it more likely to actually happen.
- What's the smallest step that would still feel meaningful?
- Is there someone in your family you'll need to talk to about it?
- What's the one number, form, or website you'll need to do it?
Take the Post-Test
The same 20 questions from Day 1. No judgment — this is how we measure how much the course actually helped. Take your time and answer with what you know now.
What to Expect
- 20 multiple-choice questions, same format as the pre-test
- ~15 minutes to complete
- Submit at the end — results go straight to your instructor
- Compare your score against your pre-test to see your growth
Course Complete!
Congratulations — you've finished the VUB Financial Readiness Course. The work doesn't stop here, but you now have the vocabulary, the resources, and the framework to navigate the next chapter.
Review & Practice
Knowledge Quiz
10 multiple-choice questions covering all five modules. Test your understanding of retirement benefits, disability compensation, healthcare, investments, and legacy planning.
Flashcards
60 interactive flashcards for self-study. Covers key terms, eligibility rules, benefit amounts, forms, and financial strategies from the course material.
Additional Materials
- Study Guide — Comprehensive written review with practice questions and glossary
- Audio Overview — Podcast-style discussion of course topics
- Infographic — Visual summary of the full retirement benefits landscape
- Slide Deck — Presentation slides for reference
Printable Handouts
- Retirement Transition Checklist — Timeline and action items for separation planning
- TSP Retirement Income Guide — Withdrawal options, RMD rules, and fund comparison
- CRDP vs. CRSC Comparison — Side-by-side eligibility, taxation, and application details
- Healthcare Benefits Reference — VA, Medicare, TRICARE, and CHAMPVA quick reference
- SBP Decision Worksheet — Pros/cons analysis and financial modeling guide