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A written plan that gives each account a job and sets a rule for falling markets is what investment management for veterans at First Command Financial Services delivers to military retirees. It is built for people who live on retired pay, a survivor annuity or both, and who also hold an IRA, the Thrift Savings Plan (TSP) and sometimes a second-career 401(k).
Expect the setup to take weeks rather than days, because the TSP and IRA custodians confirm beneficiary forms and transfers by mail. After that, the written plan is checked at every review.
Most people come to this after doing it alone stopped being simple. There was one TSP account and now there are three or four. A spouse died and left an inherited account with its own rules. The kids are grown, the second career added a 401(k), and nobody remembers which form names whom.
The only dollars that are really yours to spend are the ones earmarked for withdrawals over the coming two or three years. If retired pay or an SBP annuity plus Social Security covers most bills, investment management sorts each account by job: near-term spending, long-term growth, and money that will likely go to heirs.
In practice that covers the IRA, the TSP (including a beneficiary participant account inherited from a spouse) and any second-career 401(k). For each account, the work sets the stock and bond mix and the rebalancing bands. It also decides which dollars get sold in a down year. The service usually suits households with $500,000 or more spread over 3 or more accounts, and anyone who sold stocks in the last crash and regretted it.
Here is where the firm's position shows. First Command Financial Services writes down in advance what happens when stocks fall 20%: rebalance from bonds or cash, and leave the stock funds alone. That way the call isn't made on the worst headline day. Investments can lose value, and a written plan does not prevent that. It only keeps you from adding a panic sale to the loss.
Start with the top line of the table below, because that task is the one this firm owns. First Command Financial Services sets the mix and rebalances. The custodian, and the TSP for the inherited account, holds the assets, sends statements and mails Form 1099-R by January 31. Your CPA checks withholding. Your attorney prepares the will and the powers of attorney. Only the account owner can sign a beneficiary form.
| Task | Who does it | When |
|---|---|---|
| Set target mix and rebalancing bands | First Command Financial Services | Written plan, then each review |
| Hold assets, send statements and 1099-R | Custodian and the TSP | Statements monthly; 1099-R by January 31 |
| Sign IRA and TSP-3 beneficiary forms | Ruth, the account owner | First review; after any family change |
| Check withholding on withdrawals | CPA | Before year-end and at filing |
| Draft will and powers of attorney | Attorney | Once; after a health or family change |
A good answer names a rule and a source of dollars, such as rebalancing back to the target mix from bonds while the next 2 years of withdrawals are already set aside. A weak answer predicts where the market is going next and never says what will be sold.
Ask whether the firm counts retired pay, an SBP annuity and VA payments as income before it sets the mix. A firm that ignores them is managing the portfolio without knowing what your household lives on.
Ask how the cost is set. The right answer is that the exact cost sits in a written agreement you read before any work begins. And ask whether the review covers beneficiary forms and inherited accounts, or only the money the firm manages. Forms are where the expensive surprises hide.
The finished written plan is short. It has one line per account (IRA, inherited TSP, any 401(k)), the target mix and the band that triggers rebalancing, and the dollars set aside for upcoming withdrawals. It lists the named beneficiary and contingent on each account. It ends with one sentence saying what happens when stocks fall 20%.
They shouldn't wait past the first review after the death. A form that still names the late spouse, or lists no contingent beneficiary, sends the account through the estate, and that can shorten the payout window for heirs from 10 years to 5.
A hypothetical household shows the cost. Ruth, 67, is the widow of an Army sergeant major. She gets an SBP annuity, lives in a paid-off house near her grandchildren and holds about $600,000: $400,000 in her own IRA and $200,000 in the TSP account she inherited. Her TSP-3 already names both of her children. Her IRA form still lists her late husband and no contingent.
If she died before her required distributions began, the IRA would go to her estate, which generally has 5 years to empty it. That is $400,000 ÷ 5 = $80,000 a year, or $40,000 for each of her 2 children, on top of their paychecks. Named directly, the children get 10 years: $400,000 ÷ 10 = $40,000 a year, or $20,000 each. Ignoring growth, each child's yearly taxable add-on falls by half. The fix is a form, not a trade.
Generic advice causes a second leak. Following the age-in-bonds slogan literally put Ruth's mix at 67% bonds at age 67. That ignores that her SBP annuity already pays her bills and that her heirs have a horizon of decades. Assume for illustration that stocks out-earn bonds by 3% a year. On the $200,000 her children will likely inherit, the bond share is $134,000 ($200,000 × 67%), and about $4,020 a year of growth can be lost ($134,000 × 3% = $4,020).
Our quick test: if any beneficiary form names someone who has died or whom you have divorced, or lists no contingent, the form gets fixed first. Nothing in the portfolio is bought or sold until it is.
Other events justify a review now. A new grandchild or a divorce in the family means checking per stirpes wording and the contingent names. A health change calls for a durable power of attorney, and many custodians also want their own POA form before an adult child can act. Starting Social Security or reaching RMD age changes the cash coming in, so the mix gets rechecked then.
One limit applies. If all your savings sit in one TSP L Fund and you have never sold in a slump, ongoing paid management may add little, because the L Fund rebalances itself at very low cost. A one-time check of your beneficiary forms may be the better first step.
If the TSP is all you own, you may not need to pay. L Funds rebalance cheaply. Paid management earns its cost when you hold an IRA, an inherited account and a 401(k) together, and need one rule for which dollars get sold in a 20% drop. First Command Financial Services builds that rule across all of them.
Use it only if the 401(k) is your whole picture. That service sees one account. It usually can't see your retired pay, your SBP annuity or your IRA, so it can't decide which account to sell from. Ask what it costs in writing, then compare it with a review covering every account.
If your primary beneficiary has died and no contingent is named, the IRA generally goes to your estate. If you die before your required distributions begin, heirs then often face a 5-year payout instead of 10 years, which doubles each year's taxable withdrawal. After that date, the estate's payout follows your remaining life expectancy. Call the custodian and ask for a new beneficiary form. Only you, the account owner, can sign it.
Each document answers a question the written plan depends on. Gather them before the first conversation, and don't worry if a few are missing; the custodians can send copies.
This article is general financial information only, not investment advice tailored to your circumstances. Investing involves risk, including loss of principal. Before making any financial decision, consult a qualified professional about your specific situation.