Re: Defense Unveils Options to Overhaul Military Retirement System
RMI,
Some of the 401(k) (TSP) proposal sucks. For example: Why wait for two years.
But, to me, a retirement that is not dependent on the whims of politicians is a good thing. A retirement fund that can be transferred to a civilian (or gubmint) employer retirement fund is a good thing. A retirement that one could invest properly (you know that your pension assets are all in the 'G Fund') is a good thing. Why should all those who put everything on the line for four years get nothing? Why should you - or anyone else in the military - count on future politicians to honor promises of past politicians.
5% without any contribution from the military person will not cut it, but it isn't as bad of a mistake as I made my first six years. If these young pups augment that 5% with another 5% or 10% (tax advantaged) and start early (guaranteed by the program) than these folks will do quite well. Much better than the pension. And, the assets would be transferable and outside the grasp of politicians.
To me, win win...
Lookin' up at the 'G Fund'!!!
Bookmarks