The Cost Of Analysis Paralysis In BRS

Those lucky few that just joined the military in 2017 get to have instant 5% matching in their TSP if they Opt-in between 01 January 2018 and 31 Dec 2018. Otherwise you would have to wait 2 years before becoming fully vested! This is not the case those suckers that joined after 31 Dec 2017 only get 1% automatic match after 60 days and then 4% additional match after 2 years! If you are planning on never doing 20 years in the military then this is a no brainer to have opted into BRS in January 2018. The chart below is from the DFAS handout found here.

For those new O-3s that are still on the fence, I made a handy guide that shows how much money you have thrown away in match today, and what is worth after 30 years of compounding at the 2% with G Fund:

Base Pay Match Lost 30 yr @ 2%
Jan
$4,143.90
$0.00 $0.00
Feb $4,143.90 $207.20 $375.31
Mar $4,143.90 $414.39 $750.61
Apr $4,143.90 $621.59 $1,125.92
May $4,143.90 $828.78 $1,501.22
Jun $4,143.90 $1,035.98 $1,876.53
Jul $4,143.90 $1,243.17 $2,251.83
Aug $4,143.90 $1,450.37 $2,627.14
Sep $4,143.90 $1,657.56 $3,002.44
Oct $4,143.90 $1,864.76 $3,377.75
Nov $4,143.90 $2,071.95 $3,753.05
Dec $4,143.90 $2,279.15 $4,128.36

Now for those that have been in 8 or more years and are a O-4, but recently married some one that is about to hit their 20 in AD. Then it might be worth switching over for some free money in your last few years of Active duty if you are planning on getting out and not hitting 20 on your own:

Base Pay Match Lost 30 yr @ 2%
Jan
$6,601.20
$0.00 $0.00
Feb $6,601.20 $330.06 $597.86
Mar $6,601.20 $660.12 $1,195.72
Apr $6,601.20 $990.18 $1,793.57
May $6,601.20 $1,320.24 $2,391.43
Jun $6,601.20 $1,650.30 $2,989.29
Jul $6,601.20 $1,980.36 $3,587.15
Aug $6,601.20 $2,310.42 $4,185.01
Sep $6,601.20 $2,640.48 $4,782.86
Oct $6,601.20 $2,970.54 $5,380.72
Nov $6,601.20 $3,300.60 $5,978.58
Dec $6,601.20 $3,630.66 $6,576.44

For the rest of us here is what our LES shows since Feb 2018:

Since I opted in January 2018 the match did not show up until my February 2018 LES. The AGCY-AUTO is 1% and the AGC-MATCH is 4% of my O-4 base pay just like Chart 2-1 of the DFAS guide promised. I hope that more people take this BRS thing seriously, and not wait till December 2018 to realize how much money that screwed themselves out of.

-Derp

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