YMM Reading List

Thursday, May 1, 2008

Don't Take the REDUX!

Here's a great synopsis of why the REDUX retirement plan is a BAD idea for military members:

$30,000 Knife Has Careerists Cutting Their Own Retirement

By Tom Philpott

Summer 2004

Career counselors advise against it. Financial experts say it's a poor deal. Economists estimate that a typical enlisted member with 20 years of service will cut the lifetime value of his or her retirement by $309,000.

Read the rest of the article by clicking the title, but taking the REDUX option of a one-time $30,000 (taxable) payment, has a dramatic impact on your total lifetime income.

Another great information source is Office of the Secretary of Defense Military Retirement Comparison site.

As a commander, I refused to sign off on a REDUX payment until the member had viewed this site and been counseled about the implications of accepting the payment.

In 2 years I never successfully talked anyone out of taking the payment!

1 comment:

Money for Military said...

I've been telling people that for five years now and people still don't listed.

Hi, I've created a blog very similar to yours and would like to know if we could exchange links. Let me know if you are interested.

Thanks.
Money for Military
http://moneyformilitary.blogspot.com
bjone6@gmail.com