quote:

Originally posted by cgwife00:
For anyone who has elected to take the 30 year CSB, how long after your 15 year anniversary did it actually get deposited in the bank? Also, is there anywhere you can check the status of when it will be deposited? Thanks in advance!

quote:

According to the U.S. Code, Title 37, Chapter 5, S322, (d) (2), a member can elect to have the bonus made in two payments of $15,000 each - AND have $30,000 in TSP, within a 12-15 month period - TAX Free - No Combat Zone needed.


Ex. Member enlists in summer/fall of 19XX

Fast forward 14.5 years. Member must decide to take or not take CSB.

Member sets up TSP (if not already done so) and elects to take CSB in two payments.

Member has $15,000 sent to TSP before end of December of that year (I.e. End of Tax year).

Member then has another $15,000 sent to TSP, 12 months after receiving first $15,000.

Member is now at approx. 16 years in the CG and has $30,000, in which no taxes have yet been paid, working in TSP.

Member elect to mix it up in TSP, 30% I-Fund, 25% S-Fund, 25% C-Fund, 15% F-Fund, 5% G-Fund.

Member plans on retiring at 30 years, going after CWO4 and/or LT/LCDR.

Member retires at 30 years, receives 75% retirement of High-3 pay formula.

On Date of Retirement, assuming a modest 8% annual growth of the $30,000 - the TSP balance is now just under $100,000. (ah, but member cannot take any money out for another 10-12 years - assuming he/she came in a 18-20 years old - until member is 59.5 years old).

The $100,000 in TSP when member retires at 30 years of service (still in TSP - or at that point moved to another IRA broker), if kept in TSP for another 12 years, would grow to approx. $325,000 (again, assuming a modest 8% growth) by the time member is 60 years old.



There is a CSB Calculator to run numbers for various scenarios, to better educate anyone in this matter, at the DOD's OSD Website.


This may not be the best choice...but since no one ever discusses "Responsible Investing" and other alternative ways to invest with the CSB, and/or often referres to CSB as being on par with Getto Payday Loan Outfits, I thought I'd throw another log on the Point/Counter-Point fire!


Brian, and others on here, are real savvy with investing and numbers...I wish we could get these folks to chime in and provide a "fairy tale" version of making CSB a wise investment choice and how, possibly, a member could benefit.



One last thing - this is along the lines with the "fairy tale" scenario in the previous sentence.

There is often this talk of how a member will get 1% less COLA every year, until age 62 (catch-up COLA), and then continue to lose 1% per year.

What about this?

In a liberal, California State of Mind thinking/hoping, many future retired military members - who also vote (many who probably blew the $30k on a car, vacation, credit card debt, etc), will complain to their Reps/Senators that, "they didn't know" they were signing away the 1% COLA payment and ask to have legislation drafted to reinstate or eliminate the 1% COLA penalty (after all, it is a penalty, right?). They have already taken a hit on the lesser retirement percentage - how can the Government, which relied on these Military members for 20+ years, also take away a "measly" 1% COLA payment.

- How much you want to wager that we'll be reading that article/statement in Navy Times in 10-15 years?