Category Archives: military pension

Three Reasons You Should Stay Local After Transitioning From the Military

Posted on January 28, 2016 by Forrest Baumhover

There comes a time in everyone’s life where they have to make the decision to get out of the military.  Whether it’s retirement or separation, everyone will eventually have to part ways with their service.  In doing so, they will … Continue reading →

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What Will My Military Pension Look Like After Retirement?

Posted on January 21, 2016 by Forrest Baumhover

One of my friends asked me to write about the impacts to your cash flow when you retire. While your cash flow may go up or down based upon a lot of non-military factors, such as relocation or your follow-on career, this blog post will attempt to address the military-specific changes that occur, and which you should take into account when you’re planning for separation or retirement. Continue reading →

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What is the Survivor Benefit Plan, and What Does It Mean to Me?

Posted on January 11, 2016 by Forrest Baumhover

When a military retiree passes away, their pension automatically stops. Without a plan to replace this lost income, the family’s quality of life could definitely be at risk. In 1972, Congress established the Survivor Benefit Plan (SBP) and its reserve counterpart under Title 10, specifically to help military retirees and their families protect themselves from the risk of financial loss.

SBP and its reserve component counterpart, RC-SBP, are annuity plans designed to replace a military pension once a military retiree passes. Under SBP, you pay a certain percentage of your retired pay (currently capped at 6.5%) in exchange for the right for your dependents to receive 55 percent of your retirement pay. For example, if you have $1,000 per month in retired pay, you’d pay $65 per month for SBP. When you die, your spouse would receive $550 per month. After 360 months and you reach the age of 70, you are considered ‘paid up’ and there is no additional cost to you.

Here are four unpublished reasons you should strongly consider SBP: Continue reading →

Posted in military, military financial planning, military pension, military retirement, military transition, pension, retirement, sbp, survivor benefit plan, transition, westchase financial planning | 2 Comments

Retirement Journal (Initial Entry)

Posted on December 31, 2015 by Forrest Baumhover

One of the things I wanted to do with this blog is to chronicle the transition from my military career to my new civilian career as a fee-only financial planner in the Tampa Bay area.  One of my 2016 New … Continue reading →

Posted in military financial planning, military pension, military retirement, military transition, retirement, retirement planning, transition, westchase financial planning | Leave a comment