Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Making Millions
Old 08-16-2005, 03:46 PM   #61
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,505
Re: Making Millions

Nords,

As maddy said (I believe it was her), there are "early outs" in the federal system; if you're offered them anyway. I can "early out" as soon as 50 years old (since i'll have 20 years+ of service then) and get a reduced pension + healthcare benefits.

If i can afford to and if i'm offered one then, I might very well take it. Too many unknowns now though.
__________________

__________________
azanon is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Making Millions
Old 08-16-2005, 05:00 PM   #62
Recycles dryer sheets
 
Join Date: Jun 2005
Posts: 56
Re: Making Millions


Geeman-

I was in your shoes 10 years ago: 22, no savings, making $45k and saving 25% after taxes (17% before taxes).

With any luck, I will have $1M in liquid assets within 5 years at age 37. Work hard and pay yourself first and you'll get there.

I have no regrets about forgoing nice cars and the like, I much prefer the freedom that having some wealth offers.

-W4B





__________________

__________________
work4beer is offline   Reply With Quote
Re: Making Millions
Old 08-16-2005, 06:09 PM   #63
Recycles dryer sheets
 
Join Date: May 2005
Location: In the fog of San Francisco
Posts: 241
Re: Making Millions

azanon, I think the rule is at least 20 years of service and at least 50 years of age, or 25 years of service and any age. The hit on the pension when we had our last early out 2 years ago was pretty significant for me, as the high-3 was lower and I had the extra 2 years of reduction (plus we'd just paid the house off and my cash reserves were very low).

This year things are definitely "good enough" so 29 and 52 is out for me.

cheers,
Michael
__________________
Michael Moore is offline   Reply With Quote
Re: Making Millions
Old 08-17-2005, 07:32 AM   #64
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,505
Re: Making Millions

Quote:
azanon, I think the rule is at least 20 years of service and at least 50 years of age, or 25 years of service and any age.
That's correct. I wasn't stating the actual rule as you can see in my post above; just stating when i'd first be eligible, which is using the first aspect of the rule. Going by the latter aspect of that rule, I wouldnt be eligible until i was 52 (my 25 year point).
__________________
azanon is offline   Reply With Quote
Re: Making Millions
Old 08-17-2005, 07:11 PM   #65
Full time employment: Posting here.
Arif's Avatar
 
Join Date: Jun 2005
Posts: 761
Re: Making Millions

What most people don't realize with military pensions is although you get 50% after 20 years it is only 50% of base pay. So although you may be getting an allowance for housing (BAH) of $1000 per month and $200-300 for food (BAS). That is not calculated in your retirement. Most soldiers don't think about it till they get that first retirement check. So for instance if I stayed in the Army and retired as an 04 making $80k my retirement would be $33k. Not chump change but not quite 50% either. Part of the reason I decided to make my own pension instead of doing another 10 years.
__________________
You take the blue pill - the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill - you stay in Wonderland and I show you how deep the rabbit-hole goes.
Arif is offline   Reply With Quote
Re: Making Millions
Old 08-17-2005, 08:57 PM   #66
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Re: Making Millions

Quote:
Originally Posted by Arif
What most people don't realize with military pensions is although you get 50% after 20 years it is only 50% of base pay. So although you may be getting an allowance for housing (BAH) of $1000 per month and $200-300 for food (BAS). That is not calculated in your retirement. Most soldiers don't think about it till they get that first retirement check. So for instance if I stayed in the Army and retired as an 04 making $80k my retirement would be $33k. Not chump change but not quite 50% either. Part of the reason I decided to make my own pension instead of doing another 10 years.
Absolutely, but the best data available, scant & anecdotal as it is, indicates that at least 85% of those officers use their pension as a launching pad for a new career.

I think the biggest advantage of a military pension, small as it may be, is that (1) you survived to receive it and (2) it solves ER's challenges of healthcare & inflation.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Making Millions
Old 08-17-2005, 09:18 PM   #67
Full time employment: Posting here.
Arif's Avatar
 
Join Date: Jun 2005
Posts: 761
Re: Making Millions

Quote:
I think the biggest advantage of a military pension, small as it may be, is that (1) you survived to receive it and (2) it solves ER's challenges of healthcare & inflation.
Very true. Witnessed it first hand when a coworker (retired military working GS job) was diagnosed with cancer. He said the best benefit of retiring was not the paycheck but the health benefits as the bills he racked up fighting lung cancer was astronomical.
BTW-Got a ballpark quote for health insurance (wife, son and I) in Panama of $130 per month. They are suppose to be sending me more details on what it covers and doesn't. I might be comparing apples and oranges at this point but Tricare (COBRA) for a family was $8k per year! If I chose that option that would be half of my annual living expenses in Panama. For that much money I'll just clone some body parts for spares. Pretty sure it would come out cheaper.
__________________

__________________
You take the blue pill - the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill - you stay in Wonderland and I show you how deep the rabbit-hole goes.
Arif is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Making the Best of Investment Real Estate emi guy FIRE and Money 7 02-27-2007 06:28 AM
Making marriage last Martha Other topics 105 07-22-2006 07:52 AM
Still making money in RE Arif FIRE and Money 14 05-20-2006 03:48 PM
Addicted to making money shiny FIRE and Money 25 03-23-2006 01:51 PM
Making Sure smooch FIRE and Money 7 02-12-2006 01:06 PM

 

 
All times are GMT -6. The time now is 12:30 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.