Everyone knows if you qualify for a retirement as a Military Reservist, your pension payments don’t begin until you turn 60, right? Well, maybe not, if you were mobilized after January 2008, you may qualify for a reduced age retirement, which means that your pension payments can start as early as 50. Included in the 2008 National Defense Authorization Act is a provision to begin payments early based on the number of days spent on Active Duty in support of the Global War on Terror or any of its derivatives on or after January 28th, 2008.
I am a big history fan and of course a big fan of personal finance, so in honor of Veteran’s Day I thought I’d highlight a few financial planning lessons we can learn from some of the greatest military leaders in history. Sun Tzu, Julius Caesar, Napoleon Bonaparte, Dwight Eisenhower, and George Marshall have all carved out a spot in the Parthenon of military leaders. There is no reason however that those lessons should only apply to the battlefield, their lives can also help us in living out the financial lives we both desire and deserve. I hope you enjoy it, and to any veterans reading,
Individual retirement accounts can be a fantastic vehicle for helping individuals save money for retirement. They can be used in conjunction with workplace retirement plans and social security to help provide income for retirees when they have left the workforce. When it comes to IRAs, they come in two different flavors, traditional and Roth. We will discuss how these two types of retirement accounts are the same, how they are different, and which one may be right for you.
When people find out that I am a financial advisor, the first question I am usually asked is “What should I invest in?” or something close to that. My answer is almost always the same, “What is it you are investing for?” If your advisor is telling you what to invest in, before you have talked about what you are investing for, I highly recommend you find another advisor. When I think about investing, I often think back to my military education days and learning about the three levels of war; Strategic, Operational, and Tactical.
When I talk to people about the Thrift Savings Plan the most common complaint I usually hear is how difficult it can be to withdraw funds from your account. Well, you may not believe it, but there is a bi-partisan effort underway in Congress to improve these rules and allow for greater withdrawal flexibility for TSP participants. In April, Senate Bill 873, The Thrift Savings Plan Modernization Act was sponsored by Senators Portman and Carper, and at the end of June, a companion bill, HR 3031, was sponsored in the House of Representatives by Representatives Cummings, Meadows, and Norton.
Getting to Know Your TSP Fund Options
You Switched Jobs, Now What Should You Do With Your Old 401K?
Understanding the Military’s New Blended Retirement System, Part 2
Understanding the Military’s New Retirement System, the Blended Retirement System
For years, those who have served in the military have had one constant; if you serve 20 or more years, you get a pension for life, if you don’t, you get nothing. This changed a little when the Thrift Savings Plan (TSP) came into effect in the late 1980s. With the TSP, the government did give service members a mechanism for saving money direct from their paycheck. The big key here is that it was ONLY the service members money, Uncle Sam kicked in nada. If you contra