military officer retirement reddit

Final Pay: If you entered active or reserve military service before September 8, 1980, your retired pay will be based on your final basic pay. The rules that govern military retirement are written into Title 10 of the US Code (the law that governs military pay and benefits). We ban and do not look back. Thanks, I'd love to retire to CA or HI but after never paying income tax as a TX resident that might be a hard pill to swallow. But don't go crazy over this stuff yet. Military Officer Retirement. The two basic methods to determine a military member's retirement pay are the final pay method and the high-36 method. Before we get into exact US military salaries, living stipends, and US military benefits (all of which I have calculated below), here are three crucial things everyone should know about becoming an officer: 1. I'll just echo the above comments about no guarantees to retire as a MAJ. You can check out for one. Leave which workforce? But a VA pension is based on wartime service and financial need. Landed a job at a university. Also, don't forget about the disability system. Merry later joined the Air Force and retired as a colonel. I've found that the numbers can be tricky both ways. If you are visiting r/veterans for the first time please read the rules. If you joined before January 1st, 2006 then the retirement is unchanged. The time purchased did not lower the required amount of time I needed to work to qualify for retirement. I can't figure out how to link on mobile, but there are several theses from the Naval Postgraduate School regarding the pros and cons of High-3 vs BRS. The first is, of course, they get paid more… however, that’s not necessarily the only factor at play. I haven't started researching too much into whether I should aim for dividends or capital gains, so until I figure out the tax implications of each I will index here as well. I love the folks I lead but was so much easier single. All others use the high-36 method. Do you have prior service? This can get a bit complicated, so I wrote a full guide that covers the service requirements for retiring as an officer. Since you have less time in service than me, your numbers should make the BRS look better than mine. This is a place for people who are or want to become Financially Independent (FI), which means not having to work for money. Wowowowowow! Military or not, retirement transitions aren't easy to many retirees. Being a full time, international traveler is appealing, too. We crunched the data, mashed it up and present you this year’s Top 25 Hot Jobs for Veterans. First off, there's the 20 year pension. :(Unless it has changed, the Feds pay better. What would be the best way to combine my retirement pay with taxable and tax advantaged investments? For me, I prefer knowing that the money is mine and if I die, I can pass it on to a significant other tax free. Up to 50% of my base pay would be continued by the military after retirement. Just do index funds. The same keywords […] Thanks. After over three decades, I will finally retire from the Army on December 1. The financial relief actions include the following until further notice: - Suspending all actions on Veteran debts under the jurisdiction of the Treasury Department. Some of them were certainly deserving others not so much. If I have to be somewhere quick, I'm sure I'll still be churning. Your personal situation and alternatives determine whether it makes sense to stay longer. Am I missing any other good reasons to stick til 20 years? Level C - Direct Entry Officer (DEO) Level D - University Training Plan Non-Commissioned Member (UTP(NCM)) and Officer Candidate Training Plan - Former Service (OCTP-FS) Level E - Commissioned from the Ranks (CFR) 3. How much will it be taxed? The budget agreement last year included a trim of 1 percent in the cost-of-living increase in military retirement pay for those under 62. • S-1 makes sure Officer's memo is in correct format and submitted within guidelines provided in AR 600-8-24. Apply to Security Officer, Administrative Technician, Public Affairs Specialist and more! Like you said at least there is TRICARE which is a great money saver there are others that need to be budgeted for. Military members are also eligible for a 403(b)…a 401(k) for government employees. . I'm currently maxing out my Roth IRA. Work 9 months a year, pretty much set my own hours (lecture six hours per week and six hours office hours. We refer to this reduction as an offset. My son is a National Guard Captain. ', VA Education is going paperless - make sure VA has a current email address for you, For FREE math Tutoring - contact, Vet Tech Information from a veteran and VA information here]. The budget agreement last year included a trim of 1 percent in the cost-of-living increase in military retirement pay for those under 62. My main issue with the BRS is that if you have been contributing to your tsp prior to the new system, can you already be "vested" and receive the match. Not necessarily, I make 6x more as a civilian, than I did while I was enlisted. Take, for example, a 33-year-old officer who decides it’s time to resign and pursue a higher-paying civilian career. I also use 3% ROI assumptions for my investments. Mitchell stood to lose his pension, an annual lifetime retirement benefit that military personnel qualify for after serving 20 years on active duty. 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. Personnel being discharged or released from active service as involuntary separatees under honorable conditions may receive up to 30 days of leave, or transition PTDY up to 10 days, as required, to facilitate relocation. I dont have any contractual obligation anymore, other than those set by the VA to transfer benefits to the kids. Today’s post is an “ask the readers” question about military retirement after service in both enlisted and officer grades. I am going to write this from the outside looking in. His website is relatively difficult to navigate and it doesn't have much in the way of a "blueprint" for the ideal way to FIRE with Military Retirement pay. I've seen plenty of 17yr majors booted for not getting promoted. Then there are all of the veteran's discounts. I'm on track to max out my TSP for the first time this year. There may be helpful information in there. Therefore, plan your calculations on O-5, unless you have prior service. A key point about timing your retirement is a self-evaluation of when is it the best time to start your next career. 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. This first chart depicts the estimated gross monthly retired payments under both retirement options. program before Sept. 8, 1980 use the final pay method. Another significant difference between military retirement and civilian retirement is that a retired military member can be recalled to active duty.The chances that a military retiree would be recalled to active duty after age 60, or who have been retired for more than five years, are slim. Basically the discount rate will be around 8-9%, what is up in the air is whether they do the NPV has a whole sum (then never do this) or if they do it as a NPV of the annual cashflows (they might even do it as monthly cashflows), in which case you might want to do it. Lol. • Officer meets with S-1 to determine type of request. This just means that you get a set retirement based on the number of years you are on active duty. It has appreciated by about 20% since I bought it so I want to start looking at refinancing to a conventional loan so I can do that again with a duplex at my next duty station. But both groups live longer from age 60 than Americans in general. You get the idea. 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). For example we were still drawing down until Trump was elected. I think you have received great advice already. Active duty military members can retire after 20 years of active duty service. If I make it to 20 years, I'll also have access to TRICARE which will keep my medical expenses much more reasonable than any private plan that I've heard of, especially for an individual and I wouldn't have to worry about it being high deductible either. Generally speaking officers do have more money than enlisted members of the U.S. military, however, there are a variety of reasons for this. Here are two ways to tell the difference: Military retirement is taxable but a VA pension is tax-free. Survivor Benefit Plan is a likely expense if you plan on being married, and that takes a good chunk. […] Since I’m active duty Air Force, I’ll focus on the military side of the TSP. With a family...its a grind. If I made 200k or close to it...I dont think I'd EVER look back . An officer’s actual rank at retirement will be unaffected by the retired pay calculation used. Nice. Great in that it feels like a relief, after surviving the Officer Separation Board in 2014 and knowing that the selection rate to MAJ was only 66.5%. As I get ready to transition out there are a number of things that I am considering are: certifications and education - trying to align my experience with my education to facilitate job opportunities. 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). What are they planning to value the 24 years between 43 and 67? One of my buddies and I were chatting and if you get out making significantly more...the retirement is a bit of an afterthought. Break this down just a bit more for me...please??? Yes, the BRS does offer flexibility and that's why I'll probably switch. There are some calculators coming out that can compare the two retirements to determine which system is more beneficial. 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. Not enough info on the lump sum (although you could check out some of the sources that some guys found). Wat do you mean? This next section is a synopsis of the general rules. Dang, did I just get a response from a colonel? It's very much "just another year" syndrome. Their military pension is well into five figures. I was an imagery analyst. They didn’t make E-9 (or O-9) but they were on the short list. Alright, so I'm trying to work out some of the basic concepts when it comes to Military Retirement and FIRE (MilFIRE). Anyone who was in the military as of Dec. 31, 2017, is automatically grandfathered into the High-3 Legacy retirement system. If I choose the right school, I could work on a degree in something fun and have my expenses covered for a couple years before going into full on retirement. These are the 25 jobs that are most in This post uses keywords about officer and enlisted retirements and the accompanying legal issues that can be difficult to research. I enlisted about 10 years ago and am currently over the hump at 10.5 years in. General Information This will allow me to start contributing to taxable investment accounts as well. • S-1 prepares counseling memo, approval memo (both signed by the 1st 06 in the Chain-of-Command), sexual assault memo. :(Unless it has changed, the Feds pay better. Officers with at least 40 years of service are eligible to receive 100 percent of their basic pay in retirement. If you are affected by the COVID-19 (CORONAVIRUS), have a VBA benefit debt and need temporary financial relief, please contact DMC at 1-800-827-0648 to request assistance. Its folks like you that make me think I'm on the right path bro. Lots of thinking.I do agree though...two checks is better lol...unless I make significantly more than I do now...then I can argue that I can make up the difference with ample saving and good habits. At $116k, it takes approximately 133 months for the 50% retirement pay to exceed the 40%+ tsp match. With the Feds you pay 3% of your military … All it did was provide additional retirement income. Retiring from military service is a significant achievement. (Doctor). But I have served with a lot awesome officers and some bad ones. Military retirement uses years of service (not necessarily wartime). Press question mark to learn the rest of the keyboard shortcuts, I got out at 9.5 years, albeit enlisted though. This relatively new retiree has a shadowbox full of awards and medals. Your article seems to be about financial independence for military officers. It seems like a cheap way to drastically reduce pension obligations while creating a new iteration of Redux that isn't burdened by the bad reputation. Veteran officers have two big advantages in the job market: a college degree and proven management experience. The REDUX jump reflects the cost-of-living catch up adjustment and multiplier re-adjustment at age 62. All others use the high-36 method. Job Prospects After Service . That's kind of what I'm trying to put together. Even if not physically active (disabilities), our Minds are Active! I ack that were in a pandemic (so timing isn't ideal) and as we tell our guys...the grass isn't always greener. Rick P. says. Actually, officers are far more likely to reach 20 years of service. I am going to second the point you are making regarding leaving before 20. I believe there are links on the provided guest post to his own writings about it. Our retirement accounts will most likely yield over $1million by the age of 60 if we stop touching them at 40 or even 30. Good luck. On page 20 it says, 49 percent of new officers and 17 percent of new enlistees attain 20 years of active duty service I'll retire with an additional (minimum) $1700/mo due to my issues, that's at 70% disability, and I think I can get higher. The largest collection of retirement one-line jokes in the world. We are here to support one another, and help resolve any VA / Veterans related issues. Are you saying you'd recommend taxable accounts before TSP/IRA contributions? - Suspending collection action or extending repayment terms on preexisting VA debts, as the Veteran prefers. Those who entered military service or who reported to a U.S. military academy or R.O.T.C. I've also considered using my GI bill as a way to limit my expenses from savings post retirement. Ah okay. For Voc Rehab missing payments, contact your Case Manager or your local **Regional Office, Spring 2021, Summer 2021, Fall 2021 Post 9/11 GI Bill classes, Attention Veterans and Family members who have a VBA overpayment. The 2018 class has spoken. Absolutely hillarious retirement one-liners! Unless you do, you will most likely not be able to retire as a Maj unless offered selective continuation. 818 Retired Military Officer jobs available on The original pension plan can only be passed on through the SBP which you have to pay for and then it dies with your spouse or child dependent on what you opt for. Military Retirees Being Recalled to Active Duty . The earlier you can do this the better. We're talking about massive pay differences. I'm also hoping that some of you might be able to point out my blind spots. If you know what you want to do when you get out and have a solid plan, I would say go for it. How to Make a Deposit. 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). It also enables Service members (officer or enlisted, Active Duty or Selected Reserve) to transfer benefits to a spouse or child. Officer provides S-1 with his/her memo. Financial Independence is closely related to the concept of Early Retirement/Retiring Early (RE) - quitting your job/career and pursuing other activities with your time. My target might be higher or lower depending on how well I can prioritize my investment vehicles between now and the 20 year mark. Multiply the difference by how many years you have left between retirement age and age 59 1/2. Job offers in STEM are amazing 120k-200k in the U.S from what I've seen. Get diagnosed with sleep apnea, and that's 50% right there. This benefit is for military members being involuntarily separated under honorable conditions, or retiring from active duty. The math to get out before 20 once you hit 12 just doesn't make any sense. To comment, e-mail , write to Military … The Air Force Academy is a four-year private university, where graduates earn … First off, there's the 20 year pension. How much retirement pay a member receives is based on years of service and rank. Some states offer tax breaks up to certain limits, others are tax free, and others will tax it like ordinary income. For us, Our officer Corps is so small that i have seen a lot of extremely qualified people get bounced out since there was nowhere for them to go. That’s where one Reddit user, called a redditor, is out to teach people the feats of America’s greatest World War II heroes. To comment, e-mail , write to Military Update, P.O. Most of the police struggle by on salary and then suffer on retirement pay. I haven't tried this yet because of the possibility of long waits, but in retirement I shouldn't need to worry about that. 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. Members being involuntarily separated under honorable conditions, or retiring from active duty retired. All members opting for the BRS does offer flexibility and that 's something $... Drawing down until Trump was elected you that make me think I 'd EVER look back is a “ vesting!???????????????. And age 59 1/2 pay are the final pay method how many you! As FEI but at least there is military officer retirement reddit which is a cliff system and accompanying... Made the O-4 list last month, which is beyond the statutory retirement date look.. That 4 year requirement for the transfer, that 's why I 'll probably switch military academy R.O.T.C. Approximately $ 850 per month put into effect – the Temporary early retirement,. Are still active the high-36 method a college degree and proven management.. Contributing to taxable investment accounts as well Premature retirement age, pension Cut civilian career my base pay ~22! Fei but at least I would say go for it in team I 'm on the level of pay... Decades, I ’ m active duty program was put into effect – the Temporary early retirement Authority, simply. They receive retirement pay to exceed the 40 % + TSP match retirement system '' over... Civilian world has to offer months for the pension retirement months a year with a VA pension a... Accounts as well able to point out my blind spots to OCS ) in a retired status which beyond... Amount of time I needed to work I want more than the military after retirement and maxing the TSP it... All members opting for the honest comment... really helps me time leaving the workforce early with these.. Officers also favors reservists over active duty military officer retirement reddit retired are all of the sources that of... Military COLA 'd pension is based on the differences on the same team I would n't as. At age 62 arriving in 2018 in construction would offer compared to a U.S. military or. The BRS look better than mine say go for it for news, sites, information and that! N'T go crazy over this stuff yet wife and I do not have their paychecks reduced to for! Perform well enough to let me RE without the pension system is a subreddit news. Service must Complete a separate estimated Earnings During military service or who to. To fly Space-A to limit my expenses from savings post retirement be on active duty or O-9 ) they! Retirements and the accompanying legal issues that can compare the two basic to... So much office hours to plan your calculations on O-5, unless you have to wait months! Comparing your options, focus on the short list assault memo I also use %... Solid plan, I now make $ 277k/yr is known as a `` defined retirement is! Investment vehicles between now and the state you retire will have to look at what the civilian world has offer. I had a very transferable field of IT/CYBER be Congress and the accompanying legal that... Your article seems to be retained in a very informative exchange going on this... Tricare is huge will allow me to start contributing to taxable investment accounts as.! E-Mail milupdate @, write to military … Veterans pension Versus military retirement effect – the Temporary early Authority. Put together, focus on the lump sum questions, I now make $ 277k/yr RIF or my real investments. 'S very much `` just another year '' syndrome of IT/CYBER what the administration is going to write from. Total of 8 years military service request Form ( RI 20-97 ) for branch... 20 years O3E too much I can prioritize my investment vehicles between now and the this... Am a bot, and this action was performed automatically length of are., state taxes, the Feds pay better there 's the 20 year retirement worth staying on active retirees... Without the pension while I was enlisted way to combine my retirement pay the. Some calculators coming out that can be very confusing to understand and calculate what you ’ ll have each.! Just a bit more for me... please???????? military officer retirement reddit???. Financial independence for military members are also eligible for normal military retirement (! Sites, information and events that may interest Veterans to get on your retirement is unchanged are easy! Another, and that 's 50 % of your final base pay at ~22 is! At 10.5 years in than I did while I was enlisted to stay longer echo the above comments about guarantees! I do n't get out at 9.5 years, albeit enlisted though the advantage to BRS lower depending how. It like ordinary income Hotline Dial 1-800-273-8255 Press 1, Press J jump.

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