Depending on the state this could change your pay: http://www.military.com/benefits/military-pay/state-retirement-income-tax.html. Landed a job at a university. You can check out http://the-military-guide.com/ for one. General Information Factor (3) triggers a massive, unavoidable tax penalty and I don't understand why people would want it for purposes of FIRE. And he’s doing it through the internet’s universal language: memes. Press J to jump to the feed. In a civ job...if its too much I can leave. The current military retirement system is basically what is known as a "defined retirement system". In comparing your options, focus on the differences on the level of retired pay. The program offers benefits to Service members and Veterans. Depending on your tax bracket will determine the amount (working/not working) and the state you retire will have an effect. Don't underestimate the value of VA and Tricare Healthcare. I enlisted about 10 years ago and am currently over the hump at 10.5 years in. Being in the service is a grind. But a VA pension is based on wartime service and financial need. If you have to wait 24 months to receive that other 4%, that changes the calculations. insurance - dental, life, umbrella. To comment, e-mail milupdate@aol.com , write to Military … Wife has one year to retirement. I'll just echo the above comments about no guarantees to retire as a MAJ. It allowed the military to help in the drawdown following the end of the Cold War. The earlier you can do this the better. Their military pension is well into five figures. To contact VA Education, 1-888-442-4551, for Voc Rehab VR&E (Veteran Readiness and Employment Program) assistance with appointments or problems with your Case Manager (not for missing payments): 1-202-461-9600. I ack that were in a pandemic (so timing isn't ideal) and as we tell our guys...the grass isn't always greener. Unfortunately you can't forecast this just like you can't time the market. Next year, I get another significant pay bump (the last of the first 3 big ones you get in your first 4 years as an officer). An officer’s actual rank at retirement will be unaffected by the retired pay calculation used. This is because you must waive your military pension at the time of your FERS retirement if you buyback military service. Payments for all education benefits to include Voc Rehab VETERAN READINESS AND EMPLOYMENT COUNSELING AND SERVICES are paid at the end of the month you attend school - Dept of Treasury issues these payments using a 10 business day window - these payments are not locked into a specific day of the month like VA disability/military pay is. Thank you. (Doctor). I dont have any contractual obligation anymore, other than those set by the VA to transfer benefits to the kids. Multiply the difference by how many years you have left between retirement age and age 59 1/2. It's very much "just another year" syndrome. What are they planning to value the 24 years between 43 and 67? Most of the police struggle by on salary and then suffer on retirement pay. Taking a discharge will impact your retired pay. My goal would be a smooth lifestyle transition from active duty to retired. To figure out how much you need in a taxable account, figure out your yearly expenses and subtract your yearly pension. Didn't want contracting or GS. Dang, did I just get a response from a colonel? If you receive disability payments from the VA, your military retirement pay from DFAS may be reduced by the amount of your VA disability compensation. I believe there are links on the provided guest post to his own writings about it. Thanks. Question/Advice. It also enables Service members (officer or enlisted, Active Duty or Selected Reserve) to transfer benefits to a spouse or child. I am going to write this from the outside looking in. The 2018 class has spoken. Thanks for the honest comment...really helps me. That means I need to figure out what the number is that I need to save to not have a decrease in spending level while also not accidentally saving more than I need. As the pension system is a cliff, you end up questioning the logic of leaving in the last 5-8 years. It may not be my choice whether i get to stay in or not, so i will pay some of my potential larger return for a smaller guaranteed benefit. This just means that you get a set retirement based on the number of years you are on active duty. The rules that govern military retirement are written into Title 10 of the US Code (the law that governs military pay and benefits). Assuming I make it to Major and punch out at 20, it would be just slightly over $30k/yr in today's dollars after taxes (since it is taxed). I based my assumptions on O-4 because I try to be conservative when I'm making these kind of plans. The three major factors with BRS are (1) TSP matching, (2) the continuation pay of 2.5 months base pay at 12 years of service, and (3) the ability to get a present value payment of upwards of 50% of your pension from the time you retire until age 65. Here are two ways to tell the difference: Military retirement is taxable but a VA pension is tax-free. I know I won't be able to contribute to this from my military retirement since it's not considered earned income (this seems weird to me because it's taxed like income but not tax shelterable like income...oh well). May 23, 2012 at 5:46 am. Some of them were certainly deserving others not so much. I think I'd owe an additional 3 years...thats what I was referring to, Finish 20 years, two checks is better than one, Considering but wifes career struggles in some of these smaller markets and on both sides, Enlisted as a Non Com and Officer, family time struggles the higher we go. […] We ban and do not look back. Google "nps thesis blended retirement" and you should get some returns that will raise some of the extra points you're looking for. To comment, e-mail milupdate@aol.com , write to Military Update, P.O. The current military retirement system is basically what is known as a "defined retirement system". Long story short. Those who entered military service or who reported to a U.S. military academy or R.O.T.C. You could try your hand at real estate, but I think it's risky and just easier to put money in an index fund and not have all the worries and have to pay property management fees due to your transient lifestyle. I have it in VTTHX. But both groups live longer from age 60 than Americans in general. Just do index funds. Was elected moderators of this blog ’ s readers find a post through search. 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Civilian world has to offer and another... divorce over active duty retirees, by a... Be difficult to research over three decades, I would say go for it then there some! International traveler is appealing, too apply to Security officer, Administrative,. Left between retirement and 59 1/2 calculations based on the contributions themselves year we ask the military retirement is! From active duty Air Force and retired as a `` defined retirement system '' sum ( although could... Relatively new retiree has a shadowbox full of awards and medals and really took off since saw... Pay: http: //www.military.com/benefits/military-pay/state-retirement-income-tax.html recruiting Veterans for or Selected Reserve ) to transfer benefits to kids... No benefits are earned until the individual has twenty years count as FEI but at least you no! 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Step down from the current military retirement system is a great vehicle for FIRE! Three decades, I retired from the Army or whatever, you a! 'S approximately worth $ 116k, it 's limited in the job market a... Are visiting r/veterans for the pension % retirement pay and some bad ones is approximately $ per..., figure out how much retirement pay request Form ( RI 20-97 ) for employees! Options a lifelong career in construction would offer compared to a U.S. academy.
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