Military Retirement Financial Advisor Secrets to Building A Custom Wealth Insurance Plan

Have you noticed how financial advice for military retirees often speaks to the masses, leaving little room to address your unique goals and aspirations? Transition briefings typically present plans like the Survivor Benefit Plan (SBP), Thrift Savings Plan (TSP), and Veterans Group Life Insurance (VGLI) as catch-all solutions.

While these programs can be helpful, many retirees discover they don’t align with their specific post-military objectives—like starting a business, pursuing a second career, or building long-term financial independence. The problem isn’t that these plans are flawed; they’re designed to fit everyone, leaving little room for personalization or flexibility.

When I began helping retirees navigate their benefits, I quickly realized how generalized advice limited their ability to adapt to civilian life. Retirees were often funneled into plans that didn’t reflect their unique goals, such as creating tax-advantaged income streams or supporting a multi-generational family. I understood that retirees need a financial strategy to protect their earnings while opening doors for growth and opportunity. To address these specific needs, I honed in on personalized retirement planning strategies that considered each retiree’s individual circumstances and goals.

That’s where custom wealth insurance comes in. It’s a strategy that combines tax-advantaged tools like indexed universal life insurance (IUL) and private pensions to offer flexibility, growth potential, and security. More than just a financial product, it’s a war chest—designed to empower you to adapt, thrive, and take control of your financial future. In this article, I’ll share insights from over a decade in financial services to help you craft a plan tailored to your life.

The Limitations of Traditional Military Financial Advice

Most military retirees are steered toward familiar financial products. These include SBP for survivor benefits, VGLI for life insurance, and TSP for retirement savings and income. While these options seem convenient, they come with financial and personal hidden costs that many retirees don’t see until it’s too late.

The Hidden Costs of Following the Herd

Opportunity Costs

Many retirees unknowingly sacrifice their financial freedom by following the herd. It’s time to rethink these traditional tools and explore options that align with your goals.

What Is Custom Wealth Insurance?

If traditional financial tools like SBP, VGLI, and TSP fall short, what’s the alternative? The answer is custom wealth insurance—a personalized approach to financial planning that adapts to your unique goals, health, and circumstances. Unlike standardized plans, custom wealth insurance gives you control over your financial future.

A Flexible Alternative to Traditional Tools

Custom wealth insurance isn’t a single product; it’s a strategy. At its core, it combines financial tools like indexed universal life insurance (IUL) and private pensions, such as Fixed Index Annuities (FIA), to provide:

Adjustable Death Benefits and Long-Term Care

Who Is Custom Wealth Insurance For?

This isn’t a one-size-fits-all solution. Custom wealth insurance works best for retirees who:

• They want to reduce their reliance on government-controlled programs like SBP or TSP.
• Are in good health and can benefit from lower insurance rates.
• Have specific financial goals, like creating a legacy for their family, starting a business, or pursuing a second career.

A Plan Tailored to You

Let’s consider a real-world example:

When Colonel Dave began his retirement planning, he discovered that the costs of SBP were higher than he expected. The benefits needed to be more flexible to meet his needs. Instead of paying into SBP, he redirected those funds into a custom wealth insurance strategy.

• Over ten years, he built a $2.5 million tax-free death benefit and $400,000 in cash value.
• He later used this plan to supplement his retirement income with over $1 million in tax-free withdrawals.

For Colonel Dave, the ability to control his financial future was life-changing.

Custom wealth insurance offers the flexibility, security, and growth potential that traditional plans can’t match. It’s not just about having a safety net—it’s about having a springboard for your financial goals. Suppose you’re ready to step away from generic advice and build a plan tailored to your unique needs. In that case, custom wealth insurance is the solution.

Secrets to Building Your Own Plan

The idea of building your financial plan may seem overwhelming at first, especially if you’re used to relying on pre-structured tools like SBP and TSP. But the truth is that creating a personalized strategy can be simple. With the right steps, you can craft a plan that works for your unique goals—even if you’re navigating the uncertainties of transitioning from military service to civilian life.

Step 1: Assess Your Starting Point

Before you begin, take stock of where you are:

• Your Benefits: What government benefits (like SBP, TSP, or VA disability) do you currently rely on?
• Your Health: Are you in good health? If so, you may qualify for lower insurance rates.
• Your Goals: Do you want to ensure income for your spouse, build a legacy for your children or maintain flexibility for life’s uncertainties?

Step 2: Identify the Right Tools for the Job

Once you’ve assessed your situation, explore the tools available to you:

• Indexed Universal Life Insurance (IUL): Provides tax-free growth, living benefits, and flexible access to funds for retirement or emergencies.
• Private Pensions (Fixed Index Annuities – FIA): Create a predictable income stream that complements your military pension, offering financial stability regardless of market fluctuations.
• Convertible Term Insurance: As you transition out of the military, cash flow might feel uncertain. Convertible term insurance allows you to lock in low-cost coverage now, with the option to convert to a permanent policy later. This ensures you maintain essential protection without overextending your budget during the transition.
• Long-Term Care Riders: Include benefits for medical or caregiving expenses to cover the unexpected.

Step 3: Focus on Flexibility and Growth

Your financial plan should grow with you. Look for tools that offer:

• Adjustable contributions and death benefits can be scaled up or down depending on your needs.
• Protection against market losses while still allowing for index-linked growth.
• Tax-free income to minimize your tax burden in retirement.

By incorporating flexible solutions, you’ll be free to adapt as your life and financial goals evolve.

Step 4: Partner with the Right Advisor

A knowledgeable advisor specializing in military retiree financial planning can make all the difference. Look for someone who prioritizes your goals over selling a product. They should be willing to:

• Evaluate your existing benefits and help you identify gaps.
• Explain your options clearly so you feel empowered to make decisions.
• Help you design a plan that adapts to life changes and uncertainties.

A good advisor isn’t just there to manage your money—they’re there to help you manage your future.

By taking these steps, you’ll be well on your way to creating a financial plan tailored to your life. The best part? You’ll finally have the control and confidence you need to secure your financial future. With tools like convertible term insurance and custom wealth insurance in your arsenal, you can easily navigate the transition process and build a plan that lasts for decades to come.

Take Control of Your Financial Future

Traditional tools like SBP, VGLI, and TSP are designed for some. They’re rigid and outdated and leave little room for flexibility or growth. Custom wealth insurance offers a better way—one that’s personalized to your unique goals and empowers you to take control of your finances.

With solutions like indexed universal life insurance, private pensions, and convertible term policies, you can protect your assets, secure tax-free income, and adapt your plan as your life evolves. It’s not just about financial security—it’s about creating opportunities and thriving in retirement. Whether you plan to use TSP for income or want to explore other insurance options, we can help you fit your military benefits into your retirement plan.

Ready to build a plan that works for you? Schedule a consultation today to explore how custom wealth insurance can help you achieve your goals.