Has anyone received the 15 year $30,000 bonus? Just wondering when we can expect to recieve it. Will we get notification ahead of time or will it just show up in the bank account? Is there somewhere to go to check the status and expected date of deposit? Thanks in advance!

And of those who have taken this loan that can never be repaid, are there any success stories?

Has the member specifically asked to get it?

There is no automatic bonus.
If he did ask for it, there will not be $30K hitting the bank account, it will be ~$22k.


It it hasn't been asked for, get a LOT of finiancial counseling from a PROFESSIONAL FINANCIAL advisor, who completly understands BOTH military retirement systems. I am only half of that - the understanding the systems part, but I have not heard a single reputable financial advisor who understood the military retirement systems come up with any possible way that this is financially advisable. Now - that was back when this law came into affect, which was about 8 years ago. $30k was worth a lot more 8 years ago than it is today.

Yes, he has already filled out all the paperwork, I believe it was back in may. His 15 year mark is August 10th.

OK, I will let a YN answer the when for you. I would guess no earlier than 1 Sep.

PLEASE PLEASE PLEASE PLEASE, be very wise with that money. The first several hundred of it should be spent on a couple of hours with a financial advisor. You should probably do that now, before the money is sent as once you get it, you loose some tax favorable options.

I hope you and he talked extensivly about this before hand. This will cost you money, every single month of retirement, for the rest of his life. (OK, some good news, the year he is 62, you are good to go that year. It wont cost you a dime those 12 months. Every other month it will cost you money and the amount it costs you goes up every single year.)

This bears repeating...

"This will cost you money, every single month of retirement, FOR THE REST OF HIS LIFE."

It's a nightmare loan that can never be repaid.

To put real numbers on this:

His twin brother who didn't take this and he both retire on the same day with 20 years at age 41.

for every $1 his brother gets, he gets $.80
At age 61, for every $1 his brother gets, he gets $0.66.
At age 62, $1 for his brother, he gets 1$! First time ever (and only time) they are the same!
Age 76, for every $1 brother gets, he gets $.87.


The above example is based on an average COLA for retirees of 3%, which means brother gets 3% raise, he gets 2% raise.

BEST POSSIBLE CASE Scenario (both retire at 30 years service):

First year: $1=$1
Age 61: $1= $0.82
Age 62: $1=$1
Age 76: $1=$0.87

For an E-6 retiring at 20 in todays money, that gets up to $900 (less) a month for the year he is 61!

For an E-9 at 30, it is $1400 less a MONTH at age 61.

This message has been edited. Last edited by: Mightyz90_93,

quote:

Originally posted by cgwife00:
Has anyone received the 15 year $30,000 bonus? Just wondering when we can expect to recieve it. Will we get notification ahead of time or will it just show up in the bank account? Is there somewhere to go to check the status and expected date of deposit? Thanks in advance!

You and your husband need to read Section 5.E of the Pay Manual immediately. If I am reading it right, and I am sure I am, he can still change his election and turn down CSB before the day he hits 15 years service.

The time frame for when you get the money is there also.

Okay, it sounds like a bad idea. So what would be the sort of scenario in which someone would want this loan? In order to make a down payment on a house or something?

quote:

Originally posted by Brian_Jordan:
And of those who have taken this loan that can never be repaid, are there any success stories?

I know one individual that was able to put the entire bonus, tax free, into TSP by virtue of the fact that he was in a tax exclusion zone at the time. He is very happy with the results so far.

I don't know if that is a success story, I'll ask him again when he is 61

That's the ONLY circumstance in my opinion where it might not be that bad. In all other cases I agree with you and MC.

Matt

Mae, I'm sure people take the CSB for lots of different reasons. Some may use it for a down payment. Others pay down credit card debt or blow it on a new SUV, plasma TV, etc. etc.

It's better if people start planning for the future before they hit 15 years service. Saving 250 a month for 10 years will earn $30,000 plus interest.

This bonus is such a bad idea that it could probably be declared illegal!

Anytime Uncle Sam offers you something like this you know it is benefiting the Govt.

It is a "bonus" ONLY to the gov't, who won't have to pay so much $ to the retiree.
I suppose one could argue it's a "bonus" to the taxpayer...

quote:

For an E-9 at 30, it is $1400 less a MONTH at age 61.

MC,

Could you please explain how you came to this number?

does anyone know if the $8,000 they take out in taxes is federal and state? i'm a resident of a state that does not have state income tax.

That is only the Federal Tax. State taxes would be more.

Remember too, that is the WITHHOLDING, not the TAXES. You find out how much of it is TAXES in FEB-APRIL when you do your return.

quote:

Originally posted by strb725:

quote:

For an E-9 at 30, it is $1400 less a MONTH at age 61.

MC,

Could you please explain how you came to this number?

Wow, I didn't see this when you posted, I am very sorry about that.

OK,
I went back and looked at my spreadsheet and I had one wrong number in there. (That E-9 would have joined at age 9! )

Closer number is over $500 a month at age 61.

A good article on CSB/REDUX by Tom Philpott:

http://www.military.com/features/0,15240,173719,00.html