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Old 05-13-2013, 07:07 PM
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Gentlemen,

I have been debating this in my head and on paper for a few months now...

I am active military (officer) with 5 years until I can retire with about $3200/month in pension money plus medical.

There are prospective jobs right now that would significantly increase my current income(double),

BUT they would delay my pension until I turn 60. (I am 34).

HOWEVER, a few of these opportunities would generate significant retirement accounts along with the increased current income. (Time off would also increase).

Purely for financial considerations, is it better to stay put for 5 years and start drawing the pension money at 39?

Or move on to the civilian sector and take the employer match at 200% on 8000/year into a 401k and a bigger salary. (I will still make military retirement, just no payments until 60).

To muddy the waters even more, I will earn about $20-24,000 per year on top of the civilian salary for military duty.
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Old 05-13-2013, 07:14 PM
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And you are of the opinion that similar positions won't exist 5 years from now? If I were you, I'd take the chance, put in the additional five years, take the pension, and then put in for a job.
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Old 05-13-2013, 07:23 PM
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Don't take this the wrong way, but your signature quote contradicts your advice.

I don't want to make the decision based on security, I am willing to take a risk to increase the quality of my retirement.
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Old 05-13-2013, 07:27 PM
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IMHO you would be a fool to abandon military retirement with only 5 years to go. Be 39 and get your 3200 a month for life plus Tricare, then go do whatever civilian job you want. This is a no brainer in my book.
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Old 05-13-2013, 07:41 PM
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How about the numbers?

$75000/year for next 5 years, then guaranteed 39,000 for life + medical

OR

$100000/year guaranteed + 15,000 bonus + 22,000 additional + 24,000 into 401k. Also, 39,000/year after retirement at age 60?
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Old 05-13-2013, 07:42 PM
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$3200 a month from age 39 till you die?

Mind blown.
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Old 05-13-2013, 07:43 PM
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Stay in the Army for 5 more years. The 5 years will fly by in no time and then you will have a guaranteed pension at a young age.
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Old 05-13-2013, 07:46 PM
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Originally Posted by Flot View Post
$3200 a month from age 39 till you die?

Mind blown.
It didn't come for free.
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Old 05-13-2013, 07:46 PM
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Nothing is guaranteed in the civilian world.
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Old 05-13-2013, 07:48 PM
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Originally Posted by atcfris View Post
Nothing is guaranteed in the civilian world.

Good point.
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Old 05-13-2013, 07:57 PM
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First off-Thank you for your service.

Your young enough to be able to create a whole new career ahead of you. I don't think you could lose either way. But I sure regret not taking chances through my lifetime and settling for status quo. I have to work until at least 65 to retire and I'm already tired at 51. I know a few military people who got a great education and went on to be quite successful. Live the dream Dude. Its what you've been defending for the rest of us.
Good luck with your decision.
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Old 05-13-2013, 07:57 PM
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I'd stay even w/o the answer to the next question...but...in 5 years will you see any promotions?

You will still be able to find a similar job in 5 years...plus having a full ride from the military. I think you'll get the best of both worlds if you stay in the military.

This is nothing related to the topic...but we have a great friend who retired from the Army as Colonel and his wife as a Navy Master Chief (she's a piece of work!). They both are leading very successful second careers, own a shit load of real estate, and are planning on retiring to the Caribbean soon.
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Old 05-13-2013, 08:02 PM
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Stay for 5 years and collect your pension/medical. No brainer.
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Old 05-13-2013, 08:10 PM
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Thanks guys.
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Old 05-13-2013, 08:26 PM
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No brainer, stay the 5 get the pension. There is no civilian job out there that won't be there 5 years from now.
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Old 05-14-2013, 12:46 AM
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Originally Posted by rit.05 View Post
How about the numbers?

$75000/year for next 5 years, then guaranteed 39,000 for life + medical

OR

$100000/year guaranteed + 15,000 bonus + 22,000 additional + 24,000 into 401k. Also, 39,000/year after retirement at age 60?
The difference is the later is not guaranteed. The private sector changes, jobs disappear, pay changes, mergers happen and benefits get cut.

No way on earth I would not stick put the last five yrs.
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Old 05-14-2013, 04:29 AM
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Put in the 5 years. Having that $3,200/mo will allow you to find a second career that is right for you. You won't have to stick with a job you hate just so you can pay the bills.
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Old 05-14-2013, 04:39 AM
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The tone of your post makes it appear that you want to get out ......

I would say stick with it for the last 5 get your guaranteed money then find a good civilian carrier at age 40.... Those jobs will be available to you after you retire...

Thanks for your service !!!
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Old 05-14-2013, 05:48 AM
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To earn $3200/ month you would need approx $1.3 million in a 401k. Staying five more years means you get a free $1.3 million retirement fund ....... What's the question again?
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Old 05-14-2013, 05:53 AM
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Don't underestimate the value of the military retiree health insurance benefits. With all the changes on the horizon, benefits from civilian employers may be curtailed in the future.
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