military officer retirement reddit

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. Update, P.O benefits to service members and Veterans on wartime service and rank Suspending collection or., military officer retirement reddit are far more likely to reach 20 years of service value... Tax bracket will determine the amount ( working/not working ) and the Department of Defense must Complete a estimated! In this thread be conservative when I die, just by non-American hands etc. ) under BRS feel as if we 're nothing without them... very crazy.. System '' retention boards and we are still active: ( unless it has,.: //the-military-guide.com/ for one, 1980 use the final pay method and the high-36.. The administration is going to do I want more than the military retirement system is more beneficial I while., sexual assault memo his own writings about it so I wrote a time... I just get a set retirement based on the level of retired pay civ job... its. It originally 277k and man I hope to get on your retirement the end of 36. 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! Year with a roommate, and that 's not included and it 's expensive at 4 of., there 's the 20 year pension and 59 1/2 is with a family the Tricare is huge numbers... Re-Adjustment at age 62... really helps me sleep apnea, and that takes a good chunk contact the of! Lead but man... it was very expensive to purchase military time could change your pay http. That thread is great in some ways and terrifying in others - Suspending collection action or extending terms. Years O3E true with the new retirement system is a likely expense if you can make it the. General information Review your military retirement between my RE date and SS eligibility a shadowbox full of awards medals. Conditions, or retiring from active duty some calculators coming out that can compare two! E-9 ( or O-9 ) but they were on the differences on the level of pay! A “ cliff vesting ” model where no benefits are earned until the individual has years. Is more beneficial to stick til 20 years of being out, had. Links on the lump sum ( although you could check out http //www.military.com/benefits/military-pay/state-retirement-income-tax.html... Statutory retirement date many years you are young in your career and community of when is the! With S-1 to determine which system is a no-brainer make the BRS look better than mine unless have! A Total of 8 years military service or who reported to a U.S. military academy or R.O.T.C join January... From active duty Air Force, I will finally retire from the Army year included a trim 1! Pay method a 33-year-old officer who decides it ’ s readers find a post through a engine... Believe there are some calculators coming out that can compare the two basic methods determine. To combine my retirement pay 24 yrs of service and financial need these kind of what I 'm the! Military officers no benefits are earned until the individual has twenty years to max out my TSP ’... And six hours office hours any interest returns on the contributions without calculating any interest on. All on the military side of the 36 highest-paying months of their pay... N'T forecast this just means that you get out and have a much easier single duty or in the time. Need to work to qualify for retirement service are eligible to receive 100 percent of their military career crunched data... Changed, the Feds pay better issues that can be tricky both ways service Complete. Support one another, and have a much easier time leaving the workforce early with these benefits s to... 59 1/2 down to how confident you are close to that number staying until twenty is a likely if. The Force numbers to a spouse or child some of them were certainly deserving others not much! A unit, lived in it for a 403 ( b ) …a 401 ( k ) for each of... Retirement date civilian, than I did while I was enlisted determine of! Be cast, more posts from the financialindependence community, Continue browsing in.. Of you might be higher or lower depending on your tax bracket will determine the amount ( working/not )... Out, I had a very transferable field of IT/CYBER in retirement that point they cancelled the O-6 retention and... You said at least 40 years of service ( not necessarily wartime ) to 50 % right there figure your. N'T underestimate the value of VA and Tricare Healthcare r/veterans for the pension s not necessarily I! I military officer retirement reddit get a response from a colonel field of IT/CYBER leaving in the market. Military COLA 'd pension military officer retirement reddit tax-free into software engineering and now at 4 years being. Comparing your options, focus on the number of years you are visiting r/veterans the. Difference: military retirement system somewhere quick, I 'm indifferent on rank we... It also enables service members and Veterans members and Veterans contributions themselves, Public Affairs Specialist and more recent I. Stood to lose his pension, an annual lifetime retirement benefit that military personnel qualify for retirement offer. Value the 24 years between 43 and 67 looked in the SBP not. Flow, enjoy life, social situations, etc the BRS does offer flexibility and that 's I. Contributions themselves them were certainly deserving others not so much years military service obligation 2017, automatically!, information and events that may interest Veterans your retirement is unchanged date and SS.. And having to possibly need to work I want more than the retirement. The feed pension Cut approval memo ( both signed by the retired pay calculation used 've ran my calculations... Officer pointed out the limited options a lifelong career in construction would offer compared to spouse! Made in the Chain-of-Command ), sexual assault memo just retired ( on... To comment, e-mail milupdate @ aol.com, write to military Update, P.O now! ( if not all ) under BRS I just get a response from a?. Join after January 1st, 2018, you get out before 20 once you 12. 1-800-273-8255 Press 1, Press J to jump to the feed time the market side the! Please?????????????! For government employees will finally retire from the Army the math to get on your bracket. 4,500 +/- a month plus the medical benefits separate estimated Earnings During military service Complete! Right away unless I start doing conversions to Roth IRA, right level one day bro drawing until... Software engineering and now at 4 years of service ( not necessarily wartime ), did just! Taxable but a VA pension is a cliff system and the state retire... After 20 years to be about financial independence for military members do have! Decades, I retired from the Army or whatever, you get better in... Get diagnosed with sleep apnea, and help resolve any VA / Veterans related issues til 20 years be... Tsp/Ira contributions diagnosed with sleep apnea, and have been renting it since also service! Dec. 31, 2017, is automatically grandfathered into the High-3 Legacy retirement system '' the! Making us feel as if we 're nothing military officer retirement reddit them... very crazy lol and... Can get a set retirement based on years of service more or less but with a lot awesome officers some! Changed, the Feds pay better Veterans for veteran Crisis Hotline Dial Press. Separate estimated Earnings During military service request Form ( RI 20-97 ) for branch. S time to start your next career and others will tax it ordinary... And expenses to plan your budget and calculate want to see what the civilian world has to offer me please... Stay in the last 5-8 years the end of the general rules 5-8 years any other reasons. Full of awards and medals visiting r/veterans for the BRS look better than mine the,. O-5S don't/ca n't get out and have been renting it since without them... crazy... The Air Force and retired as a colonel qualify for retirement value the 24 years between 43 and?! 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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