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Old 08-09-2018, 12:13 PM
 
1,372 posts, read 2,089,104 times
Reputation: 1374

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Don't do it.

Trust me, the active pension is not what it seems. It's, quite frankly, a joke unless you're retiring as a senior Officer. And even then I don't think it's worth it. Do the math and see what a guy who did 26 years and retried as an E-8 makes. It's a little over 40K a year which is peanuts once once Uncle Sam and takes his cut. Then add in you're in your 40's and trying to find a new career. Trying to find a job in your 40's when your family expenses are at an all time high is not fun according to my friends. Do the math and see if 40K a year (less if you retire at 20) is worth the pain that comes with being active duty.

You're in a good spot now. Decent job, no moving involved and you're wife is also employed. The grass isn't always greener. Ask yourself why you want to be active again. I wouldn't do it.
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Old 08-09-2018, 12:38 PM
 
Location: New Mexico U.S.A.
23,760 posts, read 38,053,126 times
Reputation: 27716
Quote:
Originally Posted by Pyramidsurf View Post
Do the math and see what a guy who did 26 years and retried as an E-8 makes. It's a little over 40K a year.
Annual Pay Before Taxes: $43,349.80

https://militarypay.defense.gov/calc...36-calculator/
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Old 08-09-2018, 01:05 PM
 
1,372 posts, read 2,089,104 times
Reputation: 1374
Quote:
Originally Posted by Poncho_NM View Post
Annual Pay Before Taxes: $43,349.80

https://militarypay.defense.gov/calc...36-calculator/
Pretty close to my estimate.

Giving up a State Correction Officer plus Reserve Pension for 43K a year is nuts. That's assuming he even makes it to E-8 which a lot of people do not do.

A state pension plus reserve pension will be close, if not more, than the active pension once he can collect both. I personally would not do it.

Last edited by Pyramidsurf; 08-09-2018 at 01:13 PM..
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Old 08-09-2018, 01:32 PM
 
Location: Forests of Maine
29,445 posts, read 46,810,907 times
Reputation: 17140
Quote:
Originally Posted by Pyramidsurf View Post
Don't do it.

Trust me, the active pension is not what it seems. It's, quite frankly, a joke unless you're retiring as a senior Officer. And even then I don't think it's worth it. Do the math and see what a guy who did 26 years and retried as an E-8 makes.
Hmm, this really depends on how your portfolio is doing. How much you were investing during your Active Duty career, and how those investments have performed.

I retired at 20 years as an E6. I never made E7. I was eligible since my 10th year, but the board never selected me.

Of far greater value is the healthcare coverage. If I tried to get medical coverage for my family it would cost me more than what my pension pays.

Now if an individual has never budgeted his money and has never begun investing, then maybe the pension might be the primary concern.

I am very thankful for my pension. Since my investments paid for my housing, and the DOD covers my medical needs, my pension provides what pocket money I have.

Once you cover housing and medical, the majority of your monthly expenses are covered.



Even though I got out after 6 years, went to college for 4 and went back into the Navy, I was still able to retire at 42. That was 17 years ago, for me.

I look at people who work until they are 65 before they can get a pension, and I have to wonder, will they all live another 17 years? [I think that over half of them will die before they can reach 82]

Because I was able to retire at 42, I have gotten a lot more life as a retiree than what most people will get.

Besides if you are going to enjoy retirement, you need to retire before your body is not able to provide much enjoyment.
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Old 08-09-2018, 02:15 PM
 
Location: Wasilla, AK
5,431 posts, read 2,848,903 times
Reputation: 10774
Quote:
Originally Posted by Submariner View Post
Hmm, this really depends on how your portfolio is doing. How much you were investing during your Active Duty career, and how those investments have performed.

I retired at 20 years as an E6. I never made E7. I was eligible since my 10th year, but the board never selected me.

Of far greater value is the healthcare coverage. If I tried to get medical coverage for my family it would cost me more than what my pension pays.

Now if an individual has never budgeted his money and has never begun investing, then maybe the pension might be the primary concern.

I am very thankful for my pension. Since my investments paid for my housing, and the DOD covers my medical needs, my pension provides what pocket money I have.

Once you cover housing and medical, the majority of your monthly expenses are covered.



Even though I got out after 6 years, went to college for 4 and went back into the Navy, I was still able to retire at 42. That was 17 years ago, for me.

I look at people who work until they are 65 before they can get a pension, and I have to wonder, will they all live another 17 years? [I think that over half of them will die before they can reach 82]

Because I was able to retire at 42, I have gotten a lot more life as a retiree than what most people will get.

Besides if you are going to enjoy retirement, you need to retire before your body is not able to provide much enjoyment.

The vast majority of enlisted personnel know nothing about investing and don't have an inventory of rental units. You are an anomaly in that respect. OP is most likely better off staying where he is and advancing in the ranks at both his civilian job and the Guard/Reserve. Stay long enough and E-8 or E-9 is attainable. I only had to wait seven years to collect my E-8 Guard pay, which is much higher than your E-6 pay. And staying put would be much less disruptive to his family. To me, that's a huge consideration.
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Old 08-09-2018, 02:38 PM
 
1,372 posts, read 2,089,104 times
Reputation: 1374
Quote:
Originally Posted by Submariner View Post
Hmm, this really depends on how your portfolio is doing. How much you were investing during your Active Duty career, and how those investments have performed.

I retired at 20 years as an E6. I never made E7. I was eligible since my 10th year, but the board never selected me.

Of far greater value is the healthcare coverage. If I tried to get medical coverage for my family it would cost me more than what my pension pays.

Now if an individual has never budgeted his money and has never begun investing, then maybe the pension might be the primary concern.

I am very thankful for my pension. Since my investments paid for my housing, and the DOD covers my medical needs, my pension provides what pocket money I have.

Once you cover housing and medical, the majority of your monthly expenses are covered.



Even though I got out after 6 years, went to college for 4 and went back into the Navy, I was still able to retire at 42. That was 17 years ago, for me.

I look at people who work until they are 65 before they can get a pension, and I have to wonder, will they all live another 17 years? [I think that over half of them will die before they can reach 82]

Because I was able to retire at 42, I have gotten a lot more life as a retiree than what most people will get.

Besides if you are going to enjoy retirement, you need to retire before your body is not able to provide much enjoyment.
We get it. You retired early to a low cost of living area to not have to work. But some people don't want to go that route.

The vast majority of high paid professionals that I work with have zero desire to leave the workforce at 42. I know it may seem odd to some people, but not everyone hates their profession and wants to leave it. Some people like to work and I work with many people who could walk away but feel more fulfilled at work.

That being said, walking away from a state and reserve pension plan to stay on active duty is not a great idea in my opinion. The active pension is not a huge amount of money. Healthcare is good, but I'm sure your state job provides healthcare options that are better than going through Tri-Care.

I'm sure everyone who retired from active will tell you what a great deal it is. I often wonder how much of it is them telling themselves they did the right thing. You can be very well off with an active duty pension. But, you can also be very well off without one. All I'm saying is they are not mutually exclusive.
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Old 08-09-2018, 08:43 PM
 
Location: Forests of Maine
29,445 posts, read 46,810,907 times
Reputation: 17140
Quote:
Originally Posted by AlaskaErik View Post
... I only had to wait seven years to collect my E-8 Guard pay, which is much higher than your E-6 pay.
E-8 base-pay is certainly higher than E-6 base-pay.

Take home pay is a different topic. Since base-pay might only be a small fraction of take home pay.

But if you were in a careerfield where base-pay was a large portion of your pay, then maybe not.
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Old 08-10-2018, 04:26 PM
 
165 posts, read 123,430 times
Reputation: 152
My Salary
Correctional SGT $61k
Warrant Officer $7193.04 (AT and Drill)

Wife
Assistant Principal $45k +Bonus
Sell Cosmetics $$$

Mother in-Law
Disability Annually Check $13200

Vs

Active Duty $50,774.40 + Bah, Tricare, Dental
Wife Home again
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Old 08-10-2018, 06:02 PM
 
Location: Wasilla, AK
5,431 posts, read 2,848,903 times
Reputation: 10774
Quote:
Originally Posted by Mr.910nc View Post
My Salary
Correctional SGT $61k
Warrant Officer $7193.04 (AT and Drill)

Wife
Assistant Principal $45k +Bonus
Sell Cosmetics $$$

Mother in-Law
Disability Annually Check $13200

Vs

Active Duty $50,774.40 + Bah, Tricare, Dental
Wife Home again

I think you just answered your own question.
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Old Today, 02:08 PM
 
Location: East Helena, MT
732 posts, read 443,431 times
Reputation: 1885
Money isn't everything. What makes you miss active duty? Is your job boring? I have friends that thought that they missed active duty, but what they missed was the camaraderie, the excitement. Wearing the uniform, doing things that civilians can only dream of. Those friends went into law enforcement. They are doing much better now than if they had of returned to active duty. In most states, a law enforcement pension pays much higher than a military pension. I know that you are in a form of law enforcement, but it isn't the same. I am assuming that you are in good physical condition since you are thinking of going back to active duty.


You may be able to ask for a shadow assignment to see if law enforcement is for you. Corrections is normally a recruitment source for most agencies. I wish I could go the law enforcement route. Up here in the boonies, you can still join up until age 50, as long as you can make it through the obstacle course. My bad legs keep me flying a desk, unfortunately.


Just something to think about.
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