This video is spot on. As a ret O4 with va bennies and that gs13 position you referred to, i can agree with most of your observations, esp the disney trip (which is exactly what we did). My biggest regret is not recognizing the benefits of prompt retirement and what lies behind. I see friends still in and i advise to leave when they can... There is way more on the other side.
You're right right about "leave when they can..." My view is that the only reason to stay is to wait out your "working years". Some folks need just a couple more years of work to get the kids out of the nest. Staying in under those conditions make sense. But if you are going to need to work for 10-15 years, making the jump can be the best way to go.
Jeez, the pay chart has gone through the roof compared to when I retired 24 years ago! Even if you don't get a significant VA Disability check, which I don't, if you can't live on that much, you have other issues. Prepare to work after you retire from the military, end of story. Oh, and it probably won't be as a GS 13 in some govt position. Reality is poor paying jobs with few benefits and civilian supervisors are your future.
Wow. This video had me check the Roth IRA income limit for single filers, definitely easy to overshoot that for retirees. I only do Roth 401K, which has no such restrictions and allows a lot more in terms of contributions. Married filing jointly is the way to go. The single most important financial decision in most anyone's life is in whom you marry.
While I don't disagree entirely with this video, it is a bit misleading. The biggest piece that is misleading is that the newly affluent retiree cannot (because of change in tax bracket) continue to do what they did before. The certainly can. In your hypothetical, they would still retain access to TSP/401k type retirement and could contribute significantly more than they were likely doing on active duty - now up to $30.5K per year. Similarly, they could likely still do a Roth IRA or a regular IRA for several more thousand a year (more if married). As for the truly uber affluent (or even those of lesser means) there are retirement vehicles that act like a Roth IRA that are, in my opinion, even better than a Roth. They have uncapped contribution limits (I have some clients doing hundreds of thousands a year) and have non-taxable withdrawals. But, admittedly, you would likely not know about these unless you did a lot of personal research or used a financial advisor. One key mistake many retirees take (because they don't know better) is taking full SBP. This is almost always a bad idea (though taking threshold SPB is almost always the best idea). They do this not just because they don't know better, but they have no idea it is even a question to ask. One final thing. The overall "regret" about needing to have more specialized financial advice is one that I would agree with. You have a greater capability now and with that simply comes more responsibility. For example, let's pretend you won the lottery and are now highly affluent. Instead of just being a driver, you purchase a plane or a decent size boat. You would need to understand a lot of new, previously irrelevant, information in order to effectively utilize these new vehicles. Licensure, specialized and mandated maintenance schedules, storage/moorage fees, navigation and unique communication languages and capabilities, etc. So, these new capabilities simply come with new responsibilities. Professional financial advice should be virtually free if you consider its impact and you do your due diligence. The issue is NEVER the "cost" but the "value" that should offset the "cost".
@MiklRngr, good run down. I particularly like the point about "value" vs. "cost" from financial advisors. The point that I glossed over is that there is ROTH IRA contributions are limited by income. If a married couple gets north of $250,000 modified gross adjusted income, they stop being eligible to contribute. www.irs.gov/retirement-plans/amount-of-roth-ira-contributions-that-you-can-make-for-2023
@@the_bureaucrat I agree that high income families lose the ability to do a Roth IRA ... but they can still do the Roth 401k/TSP. Even your E-8(R) now GS13 will not approach this high number (assuming his VA benefits are not taxable and he gets certain deductions that do modify his income bracket). That said, the Affluent Roth IRA (which is better) is still available to even those making millions a year in income. But better brings some complexity because the ERISA was passed for normal people and not rich people (who have resources to devise their own plans). Small criticisms aside, I love your work. Always informative and well produced. You have a perfect persona for educating via video.
