Episode 018 - BRS Lump Sum

Summary

In this conversation, Mike and Amy continue their 3-part series Blended Retirement System focusing on the lump sum payment option at retirement.

Takeaways

• The lump sum payment option in the blended retirement system allows service members to receive a portion of their pension at retirement.

• The lump sum payment is calculated based on the present value of the pension from retirement until the age of 67.

• Taking the lump sum payment reduces the monthly pension payout until the age of 67.

• Factors to consider when deciding whether to take the lump sum payment include tax implications, discount rate, and personal financial goals.

• Consulting with a tax advisor and financial planner is recommended before making the decision.

Chapters

00:00 Introduction to the Lump Sum Payment Option

03:13 Calculating the Lump Sum and Present Value

06:29 Understanding the Present Value of the Pension

10:16 Calculating the Lump Sum Amount

19:19 Reasons to Consider Taking the Lump Sum Payment

20:17 Important Considerations and Conclusion

Links

https://militaryfinancialadvisors.org/blended-retirement-system-evaluate-the-lump-sum-option/

https://militarypay.defense.gov/Calculators/Blended-Retirement-System-Standalone-Calculator/

Operation Retirement Readiness: www.operationretirementreadiness.com

Schedule a consultation with Mike: https://nextmissionfinancialplanning.com/contact/

Schedule a consultation with Amy: https://www.instarfp.com/contact

Disclaimer: This podcast represents the views of the hosts and any guests. It is for informational purposes only and should not be considered tax, financial, or legal advice. All information is regarded to be from reliable sources. The hosts are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. This podcast is not intended to replace professional, individualized advice.