New Blended Retirement: Opinion Piece

What this tells me is that you absolutely MUST talk to an independent financial advisor AND do what he/she says in terms of investing (vs spending) a lump sum, etc. No one size ever fits all, especially when it comes to the rest of your life.
 
usna1985 said:
What this tells me is that you absolutely MUST talk to an independent financial advisor AND do what he/she says in terms of investing (vs spending) a lump sum, etc. No one size ever fits all, especially when it comes to the rest of your life.
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Yes!! I am sure it's being watched closely by financial advisor firms.
 
Independent financial advisor should mean fee ONLY, ( not fee based and no commissioned sales.) totally without conflicts of interest and a licensed fiduciary.
 
The BRS is a system designed to save the government money. It is not designed with the service member's best interest, imo. There is a range of people who would benefit from it, but it is not those doing a full 20yrs.
If you intend to leave prior to 20yrs, it makes sense. If you are going to retire, you will get less money in the long run, unless you make very high return investments.
 
Difficult decisions... just as they were in the corporate world. The new system is clearly a boon to young service members and those who don't ever get to 20 years.
 
I do find it an interesting decision for those of us with a few years in that can choose whether or not to opt in. Clearly, the consensus is that current retirement is better for those who choose to stay in for 20. Right now though, within my community, we're seeing a mass exodus of O-4s choosing to separate for the airlines. Conditions will change over the next seven years when my UPT commitment ends and I'm making my decision to stay or leave, but I am wondering if there's some value to opt-in to get some TSP matching and relieve myself of the pressure to stay in, just to make it to 20 years for retirement.

One disappointment is that if I were to opt-in right away, I will have lost out on 4.5 years of TSP-matching. I also would like to see more information about the 12-year continuation pay. All I can find right now is that it will be 2.5-13x monthly base pay. That's obviously quite wide range of a potential incentive bonus.
 
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