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Thread: Retirement

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    Retirement

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    We're 5 years out. What should we do to prepare?

    He'll be putting his résumé out there but as it stands now, he'll be working for the school district where we're from. The school board has contacted him to say they have a guy retiring right when he'll be retiring from the Navy and they want him. To try to keep our schedules similar I'll be applying with the schools as well.

    We own a rental property that will be paid off right around when he'll retire, too. But we will not live in it until all the kids are out of the house so I know we have to figure out housing. Mainly, do we rent or buy? The kids will be 19, 14, 1 month shy of 13, and 7.

    On a similar note with housing, I don't believe housing will be an option for us next duty station since we'll need a place for a few months after he retires so the kids can finish their school year. Currently, we have no idea where the next duty station will be.

    We already have his TSP and an IRA. The vehicles are paid off. And we currently have 2k on a credit card.

    Besides paying off the card, house, and stock piling money into savings I can't think of what else we can do. At least for the time being. Is there something I'm missing? And yes I know it is 5 years away but I'm planner and to help with a such a change I need a plan.
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    #2
    One thing my stepdad encountered (he retired like 15 years ago though) was not knowing where all his medical records were. It made applying for disability super tough (he's still trying to figure it out). So I guess I would just make sure you have paper copies of everything from boot camp up until now and then add to it until he's out.
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    Yes! Good idea! Our ODD already had her entire record lost. That was fun. I had to get her shot record from school and her new record starts off there.
  4. "If you don't like my attitude, quit talking to me"
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    save save save..

    I can't tell you how much of a financial hit it was to lose not only BAH, but cut in salary.. While we were somewhat prepared, we weren't prepared fully.
    Helath costs increase (medical, dental and vision).. You have to pay for Tricare in advance, if you don't you will be cut off from it. They also will not bill you for the first payment. If you miss that first payment you will be dropped. Dental for retirees right now is $150 for family, so if you can find something cheaper .. do it. Vision.. Tricare vision is $100.. so if you can find something cheaper.. do it.

    Be prepared to have a lower retirement check than you expect. Not sure if you plan to do the SBP or not, or if he did a redux or anything like that, but be prepared for a lower paycheck if you did. And any little thing that comes up will get deducted from his retirement paycheck. Also, you have to do your own state taxes. DFAS/Finance won't do it for you. I think he can go into MyPay after the first paycheck to add it, but I do not recall. They do take out federal, soc sec, and medicare taxes, but it is less than 5%, so make sure the tax amount is whatever you need it to be so you don't have to owe.

    Finances is really the major hit. It took hubby a few months to find a job, luckily he found one just before his official retirement date, but he still hasn't found THE job.. the one that pays what he wants, and the one that he really wants to do, but he has a job he likes...

    We haven't had any issues with records, but we have been at the same place since 2005 and all are still here.

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    #5
    also.. find a new 401k.. TSP is just a savings account, so you want something that will match and give you a bigger return. Once he is retired he loses the ability to add to his TSP. He can roll it over into something else.

    Also, life insurance.. he will lose SGLI once he retires, so you all will need something to take its place.

    Both of those are increase in costs that you previously didn't have, or if you did it was minimal. Like SGLI.. its roughly $20 for family.. when you do life insurance.. it can be anywhere from $40-$200 per month depending on who you use or what kind of plan.. potentially even more.

    There are 10 types of people in the world, those that understand binary and those that don't
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    I would also start thinking about hoarding leave. Obviously, you should be aware of the carryover limits at the end of each fiscal year because it is silly to hoard it and then lose days in October, but if he leave balances are at all low, I'd start saving days so that the fiscal year before he retires, he is at the max he's allowed to carry over, and then he should keep accumulating until he retires, so that he can have the max terminal leave (or payout) allowed, or as close as possible.

    Also, have him start getting any medical comditions, no matter how minor, treated and documented. Sore knee? Make an appointment and get it on file. Bad hearing? Get tested and get it on file. These things are so much easier to get documented while he's still on military medicine, instead of the VA. (So I'm told as we haven't done it yet, but like you, I am already gathering info, though DH is 4.5 years out, minimum, and will have to stay at least a bit longer do the the timing of orders, and may end up staying well past 20.)
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    Life insurance is definitely something we'll be getting but we need to look into. We're not really worried if I pass. We'll make sure I'm covered with something. But he needs to have the higher amount since if he passes I'll take a much bigger financial hit. He has quit chewing but it hasn't been that long, 1 year, and he has a history of high blood pressure and being on meds so I'm kind of worried what we could be charged.

    Ugh health insurance. We'll probably stick with Tricare. Even before he rejoined in 2001 with just the 2 of us and our oldest we were paying $350 a month. I don't even want to know what it would be now...or will be then...and we've added 3 kids.

    I didn't realize we couldn't add to the TSP after he retires. Yeah we'll need to find another account. I'll have to research that.

    Yep. He is actually on leave right now trying to burn leave cause he has so much and will be still be over come October if he doesn't take leave again by then. Not sure what he plans come that time. If he stock piles and takes it all at once he could pretty much be done working come Jan. 1 2020.

    He has brought up the medical documentation. I'll have to make sure he stays on top of that.

    One thing I'm curious about, he has 17 years active which for pay is obviously over 16. But he is paid as being over 18 because he was in the reserves for 2 years. I wonder if that'll continue for his retirement pay?

    Thank you ladies!!!! This is really helping!
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    I would stick with Tricare medial.. its is far, far ,far cheaper than any other medical. Dental and vision are different. We stuck with Tricare for dental only because it was easiest and our kids were already in the process of getting braces, and there wouldn't ever be a lapse in coverage should he (or I) be unemployed. Vision, not as important for us, so we chose to go with my company.

    Do you all have Military Benefit Association right now for the SGLI? If not, contact them, they gave us additional coverage without having to be seen by a doctor or any kind of medical history. They are pretty much 100% military and take mainly military active and retired.

    TSP definitely stops.. you can add to it (I think) if he is a federal employee, but if not, then it just sits there... so, better of applying it to another 401k or an IRA..

    I am not sure how retirement pay calculates for reservists.. I would have him talk to finance. They are the ones that will tell him what his retirement pay will be. I would find out sooner rather than later in case he needs to add additional active duty years to get to 20.... Then again.. 5 years out puts him at 22 years active... so it may not be an issue.

    Pay is based on the culmination of the last 3 years of active duty. I don't think its based on time in service. Its whatever his base pay was for the 3 years prior from date of retirement.

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    If he gets a job working for a school district, they will likely offer health insurance. You might be surprised about the rates, so definitely look into it. He'll still have Tricare, but if his job offers him health insurance, I think Tricare requires he use that as the primary. Same for you. Most school districts also offer likely retirement of some kind--likely a defined benefit pension plan. I think that's what most school districts offer still, at least. That's basically like military retirement, in that it pays a set amount (though there are age requirements), and isn't based directly on contributions like a 401k is. It is often in lieu of social security (though not always, probably), which means time working there would increase your SSI payout, but you wouldn't be paying into SSI, either.
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    The job the school board has contacted him about is working with the JROTC. They said they'd pay him whatever was left after his retirement check to meet his base pay. He needs to talk with them further about exactly what benefits come with it. I will just apply for something like working in the kitchen or a substitute teacher. We have a set amount we know we need to make but it'll be somewhat easy to get there with his retirement. Other than that, we just want to travel. Having the time off the school district would offer, we may consider working past the time we had decided we didn't want to.

    From what I know the years determine the percentage. And if he gets paid the remainder of his pay to meet base pay I'm not sure which one they'll be paying up to; the 22 or 24. And if he gets a percentage of disability...we're not sure if him accepting that position will be financially beneficial for us. The pay out from it may not be much at all and he could make more somewhere else. But that is something he'll have to discuss that with the school board.

    He is putting 20% of his base pay into the TSP. He actually just recently opened up a 401k but it really doesn't have anything in it yet. Maybe we can just put the amount we had planned on putting into TSP after retirement into the 401k instead.

    Yes, we have SGLI. I went to the Military Benefit Association website and on the real quick quote part I plugged in our info and was pretty surprised by the numbers. It was better than I thought. I'd like to contact them to see if we get plans as him being active if we can switch them to him being retired.
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