Navy Active Duty to Reserves

[Randy Daytona]

Now go find one or two rental properties (sooner rather than later) and pay off all of your various mortgages by retirement age, and you can easily clear $100k a year in retirement not doing a damn thing.

I have the same plan, maximizing a Navy Reserve retirement and having some rental houses. However, make sure you have a cash reserve for repairs as well as unexpected jumps in taxes / insurance. In addition, the eviction moratorium could really hurt some small landlords - the government mandating that tenants can stay in the rental houses without paying rent while not providing a seamless method of covering the landlord’s bills seems to be a poor case of execution by the Biden administration.

 

[Hair Warrior]

I have the same plan, maximizing a Navy Reserve retirement and having some rental houses. However, make sure you have a cash reserve for repairs as well as unexpected jumps in taxes / insurance. In addition, the eviction moratorium could really hurt some small landlords - the government mandating that tenants can stay in the rental houses without paying rent while not providing a seamless method of covering the landlord’s bills seems to be a poor case of execution by the Biden administration.

My plan is Airbnb/Vrbo only. Year long rentals are a losing game - they will always complain. Short term renters might leave a poor review but most of them are on vacay and don’t care if the light switch is loose or the gutter is dented. No eviction problems either.

 

[Randy Daytona]

My plan is Airbnb/Vrbo only. Year long rentals are a losing game - they will always complain. Short term renters might leave a poor review but most of them are on vacay and don’t care if the light switch is loose or the gutter is dented. No eviction problems either.

I have had the opposite experience: one of my houses had the same tenant for 7 years, another house has the tenants getting ready to sign for an 8th year. As these are suburban houses, I prefer the steady, predictable income over the more lucrative short term rentals.

 

[Hair Warrior]

I have had the opposite experience: one of my houses had the same tenant for 7 years, another house has the tenants getting ready to sign for an 8th year. As these are suburban houses, I prefer the steady, predictable income over the more lucrative short term rentals.

Hey, if it ain’t broke, don’t fix it. You do you.

 

[ABMD]

I have had the opposite experience: one of my houses had the same tenant for 7 years, another house has the tenants getting ready to sign for an 8th year. As these are suburban houses, I prefer the steady, predictable income over the more lucrative short term rentals.

Yup, I'm only a few years into my rental, but the first tenants stayed 2 years and I managed it myself. Maybe 3 calls in 2 years? The new tenant I decided to get a property manager (due to possible deployment) and yes I lose a bit per month, but it's a write-off. Don't be a slum lord and maintain the property and due your diligence when screening potential tenants and you should be good. My property manager has a less than 1% eviction rate, they say that is because they are very thorough in their screening process.

 

[nodropinufaka]

Yup, I'm only a few years into my rental, but the first tenants stayed 2 years and I managed it myself. Maybe 3 calls in 2 years? The new tenant I decided to get a property manager (due to possible deployment) and yes I lose a bit per month, but it's a write-off. Don't be a slum lord and maintain the property and due your diligence when screening potential tenants and you should be good. My property manager has a less than 1% eviction rate, they say that is because they are very thorough in their screening process.

I have two rental properties. In Hawaii.

Cannot do VRBO or AIRBNB here.

But my rental properties already cash flow about 1000 per month. By the time they are paid off since it is in a HCOL area the cash flow will be significant.

I tried managing myself. Too much a pain especially with work.

 

[Flash]

When computing your expected Reserve Pension, remember to also factor in the 6.5% premium for the Survivor Benefit Program (SBP).

https://militarypay.defense.gov/Benefits/Survivor-Benefit-Program/Overview/

It is actually more for reservists with the Reserve Component Survivor Benefit Plan, according to the link below it can be 10-12.5% of your base pay if you take the default option (Option C) which provides SBP for the beneficiaries immediately after death even if it is before the age of 60 when a reservist usually starts drawing a pension:

Option A - There is no charge. This election is to defer to make an election until age 60. If you were to make an election at age 60, the average cost is about 6.5% of your gross monthly retired pay. (If you die prior to making an election, no one will receive RCSBP benefits)

Option B (Deferred Annuity) - With spouse/former spouse as beneficiary the average cost is approximately 8.5 - 10% of your gross monthly retired pay at age 60.

Option C (Immediate Annuity) – With spouse/former spouse as beneficiary the average cost is approximately 10 -12.5% of your gross monthly retired pay at age 60.

 

[nodropinufaka]

It is actually more for reservists with the Reserve Component Survivor Benefit Plan, according to the link below it can be 10-12.5% of your base pay if you take the default option (Option C) which provides SBP for the beneficiaries immediately after death even if it is before the age of 60 when a reservist usually starts drawing a pension:

Option A - There is no charge. This election is to defer to make an election until age 60. If you were to make an election at age 60, the average cost is about 6.5% of your gross monthly retired pay. (If you die prior to making an election, no one will receive RCSBP benefits)

Option B (Deferred Annuity) - With spouse/former spouse as beneficiary the average cost is approximately 8.5 - 10% of your gross monthly retired pay at age 60.

Option C (Immediate Annuity) – With spouse/former spouse as beneficiary the average cost is approximately 10 -12.5% of your gross monthly retired pay at age 60.

When do you sign up for this?

 

[Flash]

When do you sign up for this?

When you become retirement eligible, or more accurately when the Navy figures it out. I think it took them over a year after I was retirement eligible to send me my letter.

 

[nodropinufaka]

When you become retirement eligible, or more accurately when the Navy figures it out. I think it took them over a year after I was retirement eligible to send me my letter.

When can you actually drop your retirement paperwork?

Looking at the instruction you can drop it at 1 year out? So at 19 years?