Category: Military Money
  • Sort by:
  • Latest
  • Hottest
  • Popular
  • Random
Asset allocation considerations for a military pension

Asset allocation considerations for a military pension

Here's the first part of a three-part post to answer the nitty-gritty details of the following question: If you're receiving a military pension, then how should you invest the rest of your portfolio? Frankly, to the majority of you readers, this will be a boring technical essay. The big picture of this week's ...

READ MORE +
Saving base pay and promotion raises

Saving base pay and promotion raises

(Thanks to SamClem of Early-Retirement.org for the story that led to this post!) Financial independence and retirement are accelerated by saving as much as possible in the Thrift Savings Plan, IRAs, and taxable accounts. Aspiring early retirees have two ways to accelerate their ER: earn more or spend less. ...

READ MORE +
TIPS and I bonds for military retirement?

TIPS and I bonds for military retirement?

Internet discussion boards have some perpetual topics. New members will constantly rediscover the same ground that has been trod by the older members, and occasionally a newbie will neglect to check the archives to see if the issue has already been beaten to death. On retirement forums, two of those perpetual topics ...

READ MORE +
COLA calculations

COLA calculations

    The Department of Defense applies the Social Security Administration's calculation for COLAs to military pensions. Although the money comes from different agencies, the numbers are the same. The COLA for the following year (applied in January) is calculated from the third quarter of the current year. ...

READ MORE +
Living with inflation

Living with inflation

The last post described the long-term effects of inflation and explained how a COLA pension (plus a portfolio of equities) can stay ahead. One of the issues with the COLA system is its reference: the Consumer Price Index, or CPI. Critics claim that the government manipulates the CPI to make each COLA as small as ...

READ MORE +
Effect of inflation on a dollar

Effect of inflation on a dollar

It's hard to appreciate inflation's corrosive effect on a retirement portfolio. From one year to the next it's so tiny that it's barely perceptible, and everyone has a different set of personal expenses that are affected by inflation at different rates. The following graph shows the corrosive effects of inflation ...

READ MORE +