Lets say someone has 15 years (active duty) in and recently got a salary offer of 135k from a major defense contractor doing something that he is good at and would love to do full-time. We can even take it a step further and say that person will be moving up to management soon if picked up for CPO (E-7) this year and is worried he will lose touch with his technical skills.
Assuming this person could keep a salary this high (or higher) for the forseeable future, would it offset the loss of active duty retirement pay if that person decided to finish out his 20 in the reserves? Of note, the reserve recruiter is saying this person's particular skillset qualifies him for a $12,000 enlistment bonus.
That is a tuff call. In the Navy you will be some one respected not just another gray sute. Your pay is around 65,000 a year with benifits that are not taxed. When I retired in 2005 I was making about 75,000 gross as an E8 over 28 but I only payed taxes on about 30,000. If you get out and go in the reserve, If you can get an E7 billet, In 8 years you will have 20 or 22 good years and at age 60 you retirement pay will be about $1,800.00 a month. Drill pay will be about $1,000 a month. If you go into the civilian work force you will not have to travel or go to sea eny more. Your tax rate will be 25% so your take home will be about 75,000 a year.You will have to pay probely twice as much for medical and dental Insurance, around 1500 to 2000 a year. You will have to wonder ever year if the company is going to get another contract, will you have a job next year. In todays world you can expect to be mobilized for a year or two as a reservist. Althow I don't think the Navy Reserve Is mobilizing like the Army Reserve and Army Guard. My PIBD was 1963, spent two years in the Navy reserve and then spent four years as a PH. one year at A school and at an NAS the three on a CVA. I got out in 68 as a PH1, Had to be a better place than on a carrer. Stayed in the Reserve, graduated from collage with a BBA and worked in the Civilian community at a job I enjoyed. In 1977 I changed to the Army reserve. In 1985 my wife and I were making 50,00 a year, was an E-7 in the reserve and the bottam fell out of the Oil market in Texas. I was almost 40, with a BBA and I could not find an equivalent paying job. Luckely I was able to get a recall to active duty in 1990. My family became an Army Family and I have not regreted going back on active duty. I have a handy capped child, I whould never have been able to pay for all of her medical expenses if I had not returned to activeduty. If you retire at 38 or 39 you will still have 20, 25 years to explore a new occupation, and you will have your retirement pay to get you over the ruff spots. If it were me I whould put in my warrent packet and do another 10 years before I retired. Good luck what ever you decide.
I have known several guys who have taken that route. They were hired on because of their expertiece in a certain weapons systems. They were let go when that system was replaced/updated.
Some were retained and grew with the company. My advise, have a written agreement with the company before you make that decision. If possible, talk with people in that company who were in your position.
I worked for a company that trained Soldiers and Airmen being deployed to Iraq and Afghanistan. It was a GREAT job! A few months after the new contract was signed, we were told by the lead contracting company that the Army was going to pull the contract as well as others. It seems that the Army was cancelling all contracts under 5 million to save money. Please make sure this move will be beneficial to you and your family in the long run! Check with the company recruiter or HR person on the contract. See if other contracts by other companies are in place that would do the same as yours. What about traveling out of area, do they pay for that? Special clothes that you might have to wear, do they pay or you? 5 more years till retirement…or more…? Difficult question… Wish you and your family all the luck in finding the answer!
I hope that you are looking at more factors than money while you are trying to choose what to do here. 1. Tricare for reservists is a hassle. 2. Limited BX and commissary privileges if you go in the reserves. 3. How long does the contractor expect to have the contract? No guarantees for civilians. My husband learned this from experience. Best of luck to you, whatever you choose.
After I retired in 1982 I had a young 12yr E-7 tell me that at that time a Defence Contractor both of us had been associated with was offering him a job at 65k a year. Remember this was 1983. I told him that he would probably retire as a 20yr E-9 and while that particular job might not be available, that there would be others. He took my advice, stayed in for 20 yrs and retired as an E-9. He did get a Defence Contractors job at a pretty hefty pay grade and then moved up to a Civil Service job with the Air Force. My advice is to stay in, get your 20 and retire. I am sure that those Defence Contractor lobs will still be around. If you are good enough for that knid of pay now you should be worth at least that much if not more later. Good luck
DIRSUP As far the reenlistment bonus, usually you get about $1000.00 upfront, then at the end of every year completed, you get an equal amount for every year as you complete the remaining years. The bonus is also taxable. From what I know, depending on your MOS for which the bonus is offered, 1st reenlistment get the bonus. Not the 2nd or 3rd. HOWEVER, with the retention problem, present operations, things may have changed. Good luck, Buzz.
I am a retired Marine with 21 years in. From my personal experience. Many things to consider. First, every day I thank God that I stayed in and did my 20. My retirement check comes in on time every time and that is nice because I can count on it, additionally TRICARE is pretty good. Also, when you get out in the civilian market, nothing and I do mean nothing is guaranteed, they can promise you the world with an excellent salary and the very next year you may be SOL in the unemployment line, especially now a days with the economy the way it is. As you know in the military unless you step in your poncho your paycheck is guaranteed. Another thing is, in the civilian world there are very few leaders, mostly managers (barely) whose motto is "Do as I say not as I do", it was an eye opening experience for me. Having said that..... the flip side of that coin is, it's nice not to deploy anymore and knowing what time I am going to be home every day. Bottom line, there are Pros and Cons to this whole situation, ultimately it's a very personal decision. For me, I knew it was time to go but then again I had my 20 plus. Can't speak about the reserves, don't really know much about it. Finally, remember 15 is real close to 20. Good luck.
My advice is to stay in until 20. You will then have a pay check every month. I was working in Korea as a contractor and had to terminate my employment do to the fact they decided to enforce a rule on the books that was never enforced as to who could work there legally as a contractor.I did not make much money, but some contractors who made in excess of $100,000 had to just terminate thier employment. Nothing is guaranteed, just like when I joined I was promised free medical care for life if I stayed in twenty years and retired.
Always an age old tuff choice when afforded to a member of the Armed Forces. My experience when afforded a job at Broad&Wall with Paine/Webber at 10 years AD was tuff, decission maker was to stay for the long haul. I liked what I was doing, it was challenging and there was still plenty left to do in life following retirement if I opted at age 37. The other was, do I stay on serving the DoD, at age 42? Opted not to, nor remain in the beltway, leaving a GS11 job on the table. The beltway bandits, & contractors jobs even then (early90s) was volatile. Time fer somthing new & challenging. Today, I've heard from many new friends here in SW OK, as I did 15 years earlier in SE OK, how they reflect on had they taken the opportunity to have Served in the Armed Forces. They might have made it a career with retirement. Our Armed Forces is even more challenging with it's current missions. The deployments with its mission have greater impact on either going or staying. Impressive on how many are staying and why. So my advice to anyone Serving today, with an opportunity fer the big bucks as a contractor. Reflect on why you continued to Serve, and what is gonna' give greater gratification 10 or 15 years from now the job you had in uniform, or the one that their offering the big bucks for? Will that job give ya long term gratification?
Like some others have said, stick it out till 20. Try to keep your hand in the technical side of the field till you get out. After retiring, I worked a techrep job for about 6 months. Their contact was on an annual basis. I started looking and landed an Instrumentation job in a Nuclear Power Plant. I started at step 4 of a 10 step wage structure. Retired again after 18 years with another retirement, which is more than my military one and also great benefits. Utility sector jobs are real plums if you can get in one.
I was Oversea's with 23 years in USAF when a call came in from a Major Airline offering a large sum and the question of "When can you quit and how fast can you get here". The only thing was I was OS. They could retire me but with a year to go they would not get a replacment so it was denied. Still got the job a year later. Tuff call.
A veteran - whether active duty, retired, national guard, or reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The 'United States of America', for an amount of 'up to and including my life.'
An old saying "A bird in the hand is worth two in the bush." Defense contracts are ONLY as good as they're valid. Bailing out at 15 years, is not a good option. Recommend you stay until 20 years, retire, then ____________. You'll be surpised how many veterans I meet on a regular bais that "I shouda, could have, etc).
Having a monthly retirement check is priceless, it increases your options considerably.
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