RE: http://www.military.com/opinion/0,15202,174632,00.html


Yes, its a RIPOFF. Another instance of sheep being led to the slaughter.

Face it people. Until the people of this nation take back control of the "Governors", the people will be at best second class citizens and the military will remain as third class. The only first class citizens are the Politicians themselves. They control the purse strings of all citizens and still vote themselves a raise and/or better pensions any time they wish, from our labors, not thiers.

I was offered the Redux program and it was explicitly told/messaged that if one opted into this program, you would lose a good portion of your retirement. A lot of people opted for this option because they wanted the money right then and there and weren't actually thinking about the ramifications down the line. Those that are griping about it are the ones that CHOSE to opt in to this program and are now reaping what they themselves sowed.

The government has always riped off the service man. In 1975 they came out with the "NEW" retirement plan, where no one??? would lose any money, Well I did my own math and if I stayed in the Navy after Oct. 1, I would lose $100.00 per month. When I complained about it I was transfered out of the squadron to Security and was told I was to keep my mouth shut.
Oct. 1, 1995 everyone that retired lost $100.00.

I'm sure no one twisted their arms to take the option that they choose. Just like people who took out ARM mortgages. They never read what the end result would be. They saw that lump sum of cash and jumped at it. No one to blame but themselves. It's the we want it all now generation just like in the civilian world.
What were these people e-1's just coming into the service.
TAK AMCS

Rockpicker
I don't know where you say about that new program that came out in 75. Are you sure about the date. I retired in Aug 76 and got the 50% of final pay.I don't remember any such program. Granted back then our pay was terrible.
TAK AMCS

They, the Government, are working on a new retirement program - from what I read, it was so sick, I threw up and I can't remember it. Something like you can start drawing your pay when you are in your late 50s. Thank the Lord, I retired in 1976 under the original retirement program and am extremely happy - especially over the Carter years when the CPI was going up twice a year - no wonder they came out with the new CPI index for calculations - wait to see this year's CPI and hear everybody cry except those elected officials that are constantly taking care of us.

I was a Financial Planner for many years. Over time I came to the conclusion that the "convenient time" never came for most people to start saving/planning for retirement: buying a house, education for the kids, nothing left over at the end of the month, etc. All were excuses to do nothing (I will think about it later; I have plenty of time). The EARLIER you start setting SOMETHING aside for retirement, the longer it has to compound. So start small, start early, on a monthly basis, and increase the amount as you go along (part of the next raise).

Take advantage of your company's 401(K), a Roth IRA, a self-employed Keogh Plan, but START! If you don;t you will have meager retirement and your kids will have to support you! Let them pay for a portion of their college education. They will appreciate it netter and work at it.
Some of the above us for non-military employees, but the basic premise is the same and the rest will apply when you leave military service

As for lump sum buyouts, MOST people will spend it (very often on things they can so without (a new and larger TV, etc.). Most people NEED a BASE retirement plan such as Social Security and a military pension that increases with inflation (although the COLA formulas have been cut, but that's another discussion). In addition to this build your own retirement program as discussed above. YOU WILL NEED IT!

The problem the government is facing is one of its own making. You can not cut taxes and print more money yo cover increased spending. The money spent by non-bid contracts and "pork" alone could have solved BOTH the Social Security and Medicare/TriCare problems without doubling the national debt to 10 TRILLION dollars in the last 7 years!

If Congress persists in this manner, I would like them change their and all federal government employees retirement programs in the same way! Just contemplating that may cause them to change their ways. However, I doubt that. It will take you and non-military citizens to wake up and FORCE the issue with our representatives.

i'm waaay out of my element here and really right now am just a girlfriend of a service member but, I really want for someone to explain this to me as i am a civilian. I just really would like more info on how it works and why it's such a ripoff.Thank you in advance on any insight.

I was a Financial Planner for many
years. Over time I came to the
conclusion that the "convenient
time" never came for most people
to start saving/planning for retirement:
“buying a house, education for
the kids, nothing left over at the
end of the month, etc.” All were
excuses to do nothing (“I will think
about it later; I have plenty of time”).

The EARLIER you start setting
SOMETHING aside for retirement,
the LONGER it has to COMPOUND.
EXAMPLE: $10,000 compounded at
10% will double every 7.2 years
So if you invest it at age 25 it will
be worth, in 36 years, at age 61,
$320,000.00. Let it sit another 7.2
years (age 68-69) = $640,000.00!
This is the stock market average the
past 40 years. If you are not as
optimistic about the future, use the
“Rule of 72”. Divide 72 by the rate
you believe in, the result will be the
number of years to double a sum money.
Divide 72 by 6 (%) and it will result in
12, the number of years a sum will take
to double. $10,000. In 36 years it will
double 3 times equaling $80,000. You
can also divide the number of years you
want money to double into 72 and it will
give you the percentage rate you need
to earn to accomplish it. Glad that you
paid attention to math in the 3rd grade!

So start small, start early, on a
monthly basis, and increase the
amount as you go along.
(Example: part of the next raise).

When you leave the military, take
advantage of your company's
401(K), a Roth IRA, a self-employed
Keogh Plan, but START! If you don;t
you will have a meager retirement
fund and your kids will have to support
you! Let them pay for a portion of
their college education. They will
appreciate it more and work at it.

As for lump sum buyouts, MOST
people will spend it (very often
on things they can so without (a
new car, a larger TV, etc.). Most
military people need a GUARANTEED
BASE retirement plan such as your
military pension and Social Security
that increases with inflation (although
the COLA formula has been cut, but
that's another discussion). In
addition to this build your own
retirement program as discussed
above. YOU WILL NEED IT!

The problem the government is
facing is one of its own making.
You can not cut taxes and print
more money to cover increased
spending. The money spent by
non-bid contracts and "pork"
alone could have solved BOTH
the Social Security and
Medicare/TriCare problems
without doubling the national
debt to 10 TRILLION dollars in
the last 7 years!

If Congress persists in this
manner, I would like them to
change (reduce) their, and all federal
government employees'
retirement programs, in the same
way they are doing for the military.
Just contemplating that may cause
them to change their ways. However,
I doubt that. It will take you, me, and
nonmilitary citizens to wake up and
FORCE the issue with our representatives.

Didnt someone say something about Govt Health Care or the Govt taken over health care. Ill say Social Security, Medicare.

Avoid disapointment, don't expect that wonderfull COLA adjustment! One thing I have learned is they don't intend to give you anything. Whatever promises he may have recieved mean nothing. I now live in Oklahoma; did you know most of this is indian treaty land? The Fed hasn't changed. I guess all of us know the COLA runs short of reality and its something like 35% to 50% behind right now with no plan to correct that. Just look at the price of one can of beans five years ago and now.