Changes to retirement passes first hurdle.

[webmaster]

I'd argue a good majority of JO's make terrible financial decisions...more than the junior enlisted ($500 bar tabs anyone?). However, they make more than enough money to keep them outta the poor house after one of those kinda weekends.

$500 bar tab = good memories. Live in the moment. Play credit card roulette.

I had a $1200 bar tab on an RCL cruise right after my retirement. I still consider that money well spent "sandblasting" my liver.

Save for the future. I agree with that. But there are definitely fun things you can do with your $$ in the present.

 

[Brett327]

($500 bar tabs anyone?)

Sounds like a good investment to me.

 

[Hopeful Hoya]

Thank you for the advice @nittany03 and @Tycho_Brohe ... don't want to derail the thread from the important stuff being discussed but I'll definitely reach out to you guys once the paychecks start coming in.

 

[bert]

Thank you for the advice @nittany03 and @Tycho_Brohe ... don't want to derail the thread from the important stuff being discussed but I'll definitely reach out to you guys once the paychecks start coming in.

There is a thread on these kinds of questions here. Chances are some of the older guys here have already come across decent answers to most of the questions you might run into, so ask away.

 

[KilroyUSN]

http://www.militarytimes.com/story/...2015/05/31/retirement-reform-chiefs/28088495/

I think some of this has already been covered, but there was a specific segment of this article which made alarms go off in my head.

" Welsh also said the chiefs will recommend that the individual contributions and the dollar-for-dollar match should not begin until after a service member completes his or her first term of enlistment.

"You should not be able to up your matching to 5 percent until you re-enlist the first time, and that way you actually think through: How much of your money do you really want to put in this TSP account?" Welsh told airmen during the virtual town hall meeting. "

I am confused.... so the proposal is that they won't allow members to put money into TSP until after their retirement or that the military won't match a members contributions until after their re-enlistment.
To me, this invalidates a huge portion of the "positives (for service members)" for reforming the retirement policy. I guess you get "something" aka the 1% toward retirement, but if you don't stay in past your initial enlistment, then the 1% is almost a slap in the face. On top of that, enlistment lengths are different depending on what community you join. So someone who has a longer initial enlistment, due to extra school / more money spent to train you, is punished, by losing out on retirement benefits.

 

[Spekkio]

"You should not be able to up your matching to 5 percent until you re-enlist the first time, and that way you actually think through: How much of your money do you really want to put in this TSP account?" Welsh told airmen during the virtual town hall meeting. "

That would ridiculously skew the numbers provided in the commission's report on retirement pension value. One of the biggest factors of a compound interest retirement fund is starting early. I think I calculated that I cost myself something like $20-30k in 2014 dollars by the time I enter retirement age by starting investing at 28 instead of 22.

In addition, I'm pretty sure the 5% match from day 1 is what made the plan so popular among those polled for the commission's survey. I don't think they'd get nearly as much positive feedback if they told respondants that they couldn't get a match in their initial enlistment, because that's barely anything above what we already have right now.

 

[Ralph]

Is the age you can cash out going to change to 60.

 

[KilroyUSN]

Is the age you can cash out going to change to 60.

Anything put into TSP (government or yourself) would only be accessible after 60. The 40% pension when retiring at 20 years, would still be given right after retirement. At least that is my take on the changes.