Future Decision Help

[RetireEarly50s]

Hey Everyone, I read here a lot but don't post very often. I am trying to decide what to do in about 7 years and would like your help and opinions. I am currently 34 and wife is 35 (dinks). I am in the miltary and have been in for 12.5 years and have 7.5 to go until I can receive the pension. I was originally planning on staying in the military and doing 26-28 years and retiring and living off the pension and my investments. But lately my wife and I have been talking about maybe me getting out right at 20 and working for the other 6-8 years at a civilian job. I really did not want to work after the military but 6-8 years as a civilian might be better than staying in the military longer. I am looking that if I stay past 20 I may have to do a couple remote or overseas assignments as well as deployments. I really don't want to move much anymore because we love the weather where we are and I would not want to be away from my wife and ofcourse the luxuries of life. We are settled where we are and don't want to sell the house,rv, boat etc. to go overseas. I am pretty much guaranteed to stay here until I hit 20 but would have to leave after that with promotions etc. Here is the scenario at 20 years my pension would be about 23k but at 26-28 years it could be from 30k-45k depending on promotions. The civilian job would be 8 hours no exercises, overtime, deployments, family seperation etc. but I would be missing out on a bigger pension. That is my dilemna. I would still have about the same amount of investments over 600k which I could draw 25k from so still would be able to retire early at 49 or 50 but just looking at the best way to do it. welcome any comments.

 

[W2R]

You could get a job as a civilian federal employee, and continue to add to your pension that way. Just a thought....

I am a federal employee, and a lot of my co-workers are former military. Veterans get selection preference for federal jobs, too.

 

[jIMOh]

The difference in pensions is 7k. If you could manage to save an extra $175,000 in investments over the 8 years you work as a civilian, you will come out "equal".

What type of civilian job could you get? Could you save $20k per year above what you do now?

 

[RetireEarly50s]

Thanks for the replies, I was already thinking about federal employment it would be my best option. How would I increase my pension? Looking at the federal retirement system I would have to work until 57 and have at least 10 years? I am in Health Care Management so I could get a federal job fairly easily. There are quite a few positions at each clinic. I could either do that or if I could find a decent paying job in the private sector I would love to work in the travel industry.

I like the idea of making up my pension by using the 7k x 25 formula. I could save 20k extra a year by living off my income and investing most of the pension.

 

[W2R]

Thanks for the replies, I was already thinking about federal employment it would be my best option. How would I increase my pension? Looking at the federal retirement system I would have to work until 57 and have at least 10 years? I am in Health Care Management so I could get a federal job fairly easily. There are quite a few positions at each clinic. I could either do that or if I could find a decent paying job in the private sector I would love to work in the travel industry.

I like the idea of making up my pension by using the 7k x 25 formula. I could save 20k extra a year by living off my income and investing most of the pension.

You would be vested in your federal pension much earlier. I think it was either 3 years or 5. Then you would get the pension (but no health insurance) at 62. So, maybe that is helpful in your case, or maybe not. Just wanted to mention it.

I am not ex-military, so I'm a little fuzzy on the details but I think you can combine pensions into the one you like the best? Anyway, read, read, read on US Office of Personnel Management and see what you can find out. Also, there's a great message board at FederalSoup.com - A place to share, debate and discuss. that could be helpful for answering your questions.

 

[jambo101]

I would test the waters on the reality of how easily that civilian job can be had before making the big jump.