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    Donna's Avatar
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    redux

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    So I have read the regs on it, but I am still lost. Anyone BTDT know a list of pro's and con's with it. Decision time us coming up quick for DH.
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    Yup, I do. You can YIM me anytime at kaymarabiotch if ya want
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    Quote Originally Posted by Donna View Post
    So I have read the regs on it, but I am still lost. Anyone BTDT know a list of pro's and con's with it. Decision time us coming up quick for DH.
    There are a lot of pros and cons and it determines who you ask. I personally took the CSB however I invested it and I have already made 16 percent return to date on my investment therefore I am ahead of the game.

    The main thing you need to think about it is what are you going to do with the money and how long your DH plans on staying in.

    When you elect the csb you will be getting 40 percent vice 50 percent. You will loose a percentage on the COLA each year. However if you stay in over 20 then your base pay increases on retirment by 3.5 percent. So if I make Chief then I will retire at 24 and will be entitled to 52.5 percent.

    A lot of Sailors blow the money away. Look at TSP for a place to put over half of it in tax free. As long as you earn more than 7 percent a year then you aren't loosing any money in the long run.
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    if you can invest the entire 17,000 ( after taxes) then like Rex you will be ok.

    but if you use it to pay off debt, by a car take a vacation- in the long run ( 25-30 yrs after retirement)
    you will take a 17,000 loan and have a 400 thousand dollar pay back.

    if you stay in til 30 it is a wash= and the pay catches up- except for the 1% cola loss per yr-
    you will have that for about 20 yrs- for a total cola loss alone of 20%.

    we did not take it- and DH will retire at 23-

    you can google military retirement calculator and it will allow you to do the redux and the High -3 so you can see the difference.

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