Separating from the military is one of the most significant financial transitions you’ll ever make. The decisions you make in the first 12 months after separation have an outsized impact on your long-term financial trajectory. Here are the ten most important moves to make — in order.
Move 1: File Your VA Disability Claim Immediately
This is the single most important financial move you can make at separation. File your VA disability claim before you leave the military if at all possible — ideally 180 days before your separation date through the Benefits Delivery at Discharge program.
Document every condition that was caused or aggravated by your service. Don’t minimize your symptoms. Don’t assume something isn’t ratable. Let the VA make that determination.
Your disability rating affects your monthly compensation, your property tax exemptions, your VA loan funding fee, your access to VA healthcare, and dozens of other benefits. Getting it right from the start is worth significant time and effort.
Move 2: Open a High Yield Savings Account and Build Your Emergency Fund
Before you invest a single dollar, build your emergency fund. Three to six months of essential living expenses in a high yield savings account. This is your financial shock absorber during the transition period and beyond.
The transition out of the military is unpredictable. Having cash reserves removes the pressure that leads to bad financial decisions.
Move 3: Open a Roth IRA and Start Contributing
Open a Roth IRA at Fidelity or Schwab and start contributing as soon as you have earned income from civilian employment. The 2025 limit is $7,000 per year.
Invest in a simple three fund portfolio — VTI, VOO, and QQQM — and automate your contributions. This account will grow tax-free for decades in the background while you build everything else.
Move 4: Understand Your Healthcare Options
Many veterans are eligible for VA healthcare. Enroll at va.gov as soon as possible after separation — there are enrollment windows and priority groups that affect your access and costs.
If you need civilian health insurance during the transition, COBRA allows you to continue your military coverage for up to 18 months, though it’s expensive. Marketplace plans through healthcare.gov or employer-sponsored coverage are typically better long-term options.
Move 5: Get Pre-Approved for a VA Loan
Even if you’re not ready to buy right now, get pre-approved. Pull your Certificate of Eligibility and connect with a VA-specialized lender. Understanding your purchasing power and getting your credit in shape positions you to move quickly when the right property appears.
If you’re ready to buy, remember the house hacking strategy — use your VA loan on a multifamily property, live in one unit, and let your tenants cover your mortgage.
Move 6: Roll Your TSP Into a Roth IRA or Leave It
You have several options for your TSP balance at separation. You can leave it in the TSP, roll it into a new employer’s 401(k), or roll it into a Roth IRA.
For most veterans rolling into a Roth IRA makes sense — you get access to better investment options and consolidate your accounts. Note that rolling a traditional TSP to a Roth IRA is a taxable event. If your balance is large, consider rolling to a traditional IRA first to avoid a large tax bill.
Move 7: Update All Beneficiaries and Legal Documents
Update the beneficiaries on all your financial accounts — TSP, Roth IRA, life insurance, bank accounts. These designations override your will, so keeping them current is critical.
If you don’t have a will, get one. Many states offer free or low-cost legal services to veterans through legal aid organizations and Veterans Service Organizations. A basic estate plan including a will, power of attorney, and healthcare directive is essential for any adult with assets.
Move 8: Connect with a Veterans Service Organization
The DAV, VFW, American Legion, and similar organizations offer free benefits counseling, claims assistance, and advocacy. A VSO can help you navigate your VA benefits, file claims, and access resources you may not know exist.
This costs nothing and the potential upside — a higher disability rating, access to additional benefits, connections to veteran business and employment resources — is significant.
Move 9: Build Your Credit Score
Your credit score affects your mortgage rate, your business loan terms, your insurance premiums, and more. If your credit needs work, start now.
Pay every bill on time — this is the single biggest factor in your score. Pay down credit card balances below 30 percent of your limit. Don’t open too many new accounts at once. Check your credit report at annualcreditreport.com and dispute any errors.
You can also monitor your credit score for free at Credit Karma — it updates weekly and alerts you to any changes.
A credit score above 740 unlocks the best rates on every financial product you’ll use to build wealth. Get there and stay there.
Move 10: Build a Plan and Write It Down
The veterans who build serious wealth after the military are not smarter or luckier than the ones who don’t. They have a plan and they execute it consistently.
Write down your financial goals. What do you want your net worth to be in five years? Ten years? What income do you want from real estate? When do you want to be financially independent? What business do you want to build?
Get specific. Write it down. Review it regularly. Adjust as you learn.
The military taught you to operate from a plan. Apply that same discipline to your finances and the results will compound in ways that will surprise you.
The Bottom Line
Separation is not just a transition — it’s an opportunity. The veterans who treat it that way and make the right moves in the first 12 months set themselves up for decades of financial momentum.
File your claim. Build your emergency fund. Open your Roth IRA. Get your VA loan pre-approval. Roll your TSP. Update your documents. Connect with a VSO. Build your credit. Write your plan.
Ten moves. Twelve months. The foundation of everything.
For a beginner friendly guide to taking control of your finances from scratch, Broke Millennial by Erin Lowry is one of the best starting points for veterans building their financial foundation.