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. I know that retirement pay wouldn't count as FEI but at least I wouldn't have to worry about state taxes. That's kind of what I'm trying to put together. I was an imagery analyst. 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. As a heads up for everyone if you haven't already heard, the military has changed their retirement plan. For example we were still drawing down until Trump was elected. • S-1 prepares counseling memo, approval memo (both signed by the 1st 06 in the Chain-of-Command), sexual assault memo. Not sure what branch you are in but like other have said you can not look at retiring as a major unless you have prior service. By stereotypical standards, retired senior officers typically have retirement pay, benefits for their families, have climbed the military ranks and proven their leadership abilities, and have the flexibility to move geographically on their own accord for the first time in years (opening up their options). Nice. I am a bot, and this action was performed automatically. Even if the stock market doesn't make great gains...at least you have that employer matching. But both groups live longer from age 60 than Americans in general. I was referring to the educational benefits transfer. The military offers a few retirement ... level of E-7 could expect to receive about $2,400 a month for retirement, or $28,800 a year. All members opting for the BRS will have to go through a mandatory class. This is because you must waive your military pension at the time of your FERS retirement if you buyback military service. The difference between 50% and 40% of base pay at ~22 years is approximately $850 per month. […] Ah okay. Break this down just a bit more for me...please??? I'm strongly considering the new Blended Retirement System, but I still want to find out more when it comes to the possibility of a lump sum payment upon retirement. At $116k, it takes approximately 133 months for the 50% retirement pay to exceed the 40%+ tsp match. To comment, e-mail firstname.lastname@example.org , write to Military Update, P.O. With a family...its a grind. Review your military retirement pay, benefits and expenses to plan your budget and calculate what you’ll have each month. I'm now an Officer (went to OCS) in a very transferable field of IT/CYBER. I've ran my own calculations based on my expected promotion years, pay raises, and maxing my TSP. 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. 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. You get the idea. Thanks for the honest comment...really helps me. Thanks. . Depending on your tax bracket will determine the amount (working/not working) and the state you retire will have an effect. Also, don't forget about the disability system. That’s where one Reddit user, called a redditor, is out to teach people the feats of America’s greatest World War II heroes. 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). This is a place for people who are or want to become Financially Independent (FI), which means not having to work for money. Yes, the BRS does offer flexibility and that's why I'll probably switch. Those who entered military service or who reported to a U.S. military academy or R.O.T.C. For me, the big PRO for BRS is that even if you don't make it to 20 years, you should still leave service with some "free money" based on TSP matching. 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. Not necessarily, I make 6x more as a civilian, than I did while I was enlisted. 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 just made the O-4 list last month, which is great in some ways and terrifying in others. Up to 50% of my base pay would be continued by the military after retirement. The two basic methods to determine a military member's retirement pay are the final pay method and the high-36 method. This just means that you get a set retirement based on the number of years you are on active duty. Officers entering military service must complete a total of 8 years military service obligation. Taking a discharge will impact your retired pay. The military definitely has a nice retirement program. Officer provides S-1 with his/her memo. VA doesn't set that 4 year requirement for the transfer, that would be Congress and the Department of Defense. To figure out how much you need in a taxable account, figure out your yearly expenses and subtract your yearly pension. 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%. 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 members are also eligible for a 403(b)…a 401(k) for government employees. Since I’m active duty Air Force, I’ll focus on the military side of the TSP. Wife has one year to retirement. The basis is still the average of the 36 highest-paying months of their military career. 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. High-3: If you entered active or reserve military service after September 7, 1980, your retired pay base is the average of the highest 36 months of basic pay. Those who entered military service or who reported to a U.S. military academy or R.O.T.C. Voluntary Retirement for FTS Officers References: 10 USC 8323, OPNAVINST 1820.1B For retirement as a CAPT or CDR: The two basic methods to determine a military member's retirement pay are the final pay method and the high-36 method. And he’s doing it through the internet’s universal language: memes. That's more than a extra promotion! I love the folks I lead but man...it was so much easier single. All sorted from the best by our visitors. If I made 200k or close to it...I dont think I'd EVER look back . 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. This relatively new retiree has a shadowbox full of awards and medals. If I decide to live near a base in retirement, I can get quite a few of the nice benefits like Commissary and Exchange and gym privileges. Retiring from military service is a significant achievement. Absolutely hillarious retirement one-liners! I've found that the numbers can be tricky both ways. Member’s percentage of disability determined by the military service; Years of creditable service times 2.5% or 2.0% (Based on whether the member was a participant in one of the legacy retirement programs or the Blended Retirement System prior to the disability) Note … The one annoyance that I have with BRS is that any TSP deposits you've made in the past don't get retroactive matching. How much will it be taxed? Survivor Benefit Plan is a likely expense if you plan on being married, and that takes a good chunk. There were plenty of 06 to 08 officers that were let go. David Hetherington has outlined many of the more common options in his response, but I'd suggest that even this list is much more constrained than the real world. Under the program, authorized members with over 15, but less than 20 years of total active duty service were allowed to apply for early retirement. Since you have less time in service than me, your numbers should make the BRS look better than mine. So, that officer who served 25 years can now expect a monthly retirement benefit of 50% of their active-duty paycheck rather than the 62.5% they could expect previously. By stereotypical standards, retired senior officers typically have retirement pay, benefits for their families, have climbed the military ranks and proven their leadership abilities, and have the flexibility to move geographically on their own accord for the first time in years (opening up their options). Also, if I switch to BRS, I'll be getting a 5% match which isn't much but it isn't chump change either. Those who stay in the military still die, just by non-American hands. This can get a bit complicated, so I wrote a full guide that covers the service requirements for retiring as an officer. Tell the difference: military retirement system it was very expensive to purchase military.! 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