Tag: REDUX
Comparing E7 Retirement Pay: Active-Duty Versus Reserve

Comparing E7 Retirement Pay: Active-Duty Versus Reserve

This post has been updated using current pay charts, to determine E7 Retirement Pay... E7 Retirement Pay Consider two 18-year-olds who join the military on the same day. The first stays on active duty for 20 full years to retire as an E-7. They'll base their pension on 2.5% x 20 years = 50% of their High-Three ...

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Over a decade later, REDUX still sucks

Over a decade later, REDUX still sucks

    A reader e-mailed a new question on an old debate: I have a younger relative about to reach 15 years in the Army. Currently he is an E-7 and was presented with the pension choice of taking $30,000 and a 10% haircut on the pension along with 1% less COLA down the road. Off the top of my head I told him ...

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Effect of inflation on a REDUX military pension

Effect of inflation on a REDUX military pension

Veterans entering the service after July 1986 are eligible to choose between two different retirement systems. The first system, High Three, offers a multiplier of 50% at 20 years of service and raises it 2.5%/year to 75% at 30 years of service. Each year after retiring, the pension is raised by a cost of living ...

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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 ...

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Will Congress change military retirement?

Will Congress change military retirement?

Brandi commented in the previous post: I can’t wait to snag a copy of your book this summer, and I am looking forward to your post on asset allocation considerations when you are getting a military pension. I do have a question for you – with politicians in Congress in charge of our compensation, and the nation facing ...

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