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Category Archives: military transition
Weekend Wrap-up: Military Personal Finance Articles You Should Read (3/25-3/31)
To round out the personal finance section, we have a side-by-side comparison of Roth vs. traditional IRAs (hint: the difference has a lot to do with before retirement tax rate vs. after retirement tax rate, as well as the length of contribution period). Also, FI Guide has a guide for those of you looking at post-military employment where HSAs are relevant. We have 4 ways to tell if you’re financially ready for retirement. If you’re looking for a new car, you might be interested in this Consumer Reports list of the 10 worst cars on the road. Finally, Claire Emory presents the perils of relying upon an inheritance before you actually receive it. Continue reading
Posted in military transition, sbp, transition, Weekend Wrap-up
Tagged college aid, emergency fund, ira, kate horrell, refinance, retirement, roth ira, sbp, sbp open season, traditional ira, transition
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What’s Your Biggest Concern About Your Military Transition?
Cash flow is king, or so the saying goes. Almost everyone that I’ve talked with has stated cash flow as a concern for their post-active duty life. It seems that a lot of these concerns boil down to two questions: Continue reading
Job Risk Mindset After Retirement – What to Consider When Starting Your Second Career
While I normally try to write to people looking to either retire or separate, this article is intended for people who plan to retire. However, there are some items of consideration for separating members as well. This article is the … Continue reading
Three Reasons You Should Stay Local After Transitioning From the Military
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
My Personal Experience With the Post 9/11 GI Bill
When the Post 9/11 GI Bill was signed into law in 2008, one of the first things that I did was review the Navy’s instructions for transferring benefits to my children. At the time, one of the stipulations was that I had to agree to an additional 4 years & sign a Page 13 (Administrative Remarks) that started the clock. I knew that I was planning to retire, but I wanted to start the clock as soon as possible so I did not have that hanging over my head. In my opinion, this turned out to be a stroke of fortune, as I’ve talked with several of my colleagues at other commands who were burned because the paperwork wasn’t routed properly (probably a shock, since the military is known for making sure the paperwork doesn’t get lost, right?). In one case, a shipmate had to postpone his retirement because he reached the 20-year mark before he realized that his paperwork got lost, and the time he was tracking did not count. Continue reading
What Will My Military Pension Look Like After Retirement?
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
Three Things to Consider About a VA Loan
1. You can finance up to 100%, but should you?
Lenders generally require a 20% down payment on the purchase of a home, or they will require that the borrower obtain private mortgage insurance. This is to protect the bank’s investment in the case of a default. However, there is another argument that can be made: ‘skin in the game’ is an important consideration. Continue reading
Retirement Journal – January 2016
This is the second in my series of retirement journal blog posts. In case you missed my first article, you can read it here. Although this post isn’t an update on my personal situation, I wanted to cover something that … Continue reading
What is the Survivor Benefit Plan, and What Does It Mean to Me?
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
What You Should Know About the Affordable Care Act & Form 1095
If you’re like me, you might have spent some time wondering about that new 1095 form. You know, the one that DFAS will start dropping into our MyPay accounts by the end of January. Don’t know what I’m talking about? … Continue reading
Military in Transition 