Summary

In this episode Amy and Mike discus the financial value of the Blended Retirement System (BRS) pension and how to determine how much more one would need to earn in a civilian job to equate to the value of the pension.

Takeaways

• Military members often consider separating at various points during their career

• Many don’t really know how much more they’d need to earn or how much their pension is worth

• The financial value of the BRS pension can be approximated using a Single Premium Immediate Annuity (SPIA)

• Individuals considering separating from the military should consider numerous factors such as taxes, healthcare benefits, and quality of life

• Calculations should be done based on individual circumstances and assumptions

Chapters

00:00 Valuing the BRS Pension

02:06 Considering Factors in the Retirement Decision

03:50 Using a SPIA to Approximate the Pension Value

08:19 Quotes for the SPIA

11:27 Calculating the Amount Needed to Replace the Pension

19:30 Considering VA Disability and Other Benefits

25:16 The Need for a Retirement Calculator

Summary

In this conversation, Amy and Mike discuss long-term care insurance and how to plan for long-term care. They explain the different types of insurance available, including traditional long-term care insurance and hybrid long-term care insurance. They also discuss the option of self-insurance and the importance of having a plan in place. They highlight the uncertainty and cost associated with long-term care and emphasize the need for independent advice when making decisions about long-term care insurance.

Chapters

00:00 Planning for Long-Term Care in Retirement

06:05 Options for Dealing with Long-Term Care

10:30 The Challenges of Long-Term Care Insurance

12:52 The Importance of Having a Plan for Long-Term Care

12:55 Understanding the Types of Long-Term Care Insurance

16:19 Exploring the Federal Long-Term Care Insurance Policy

20:09 The Benefits of Hybrid Long-Term Care Insurance

22:10 Considering Annuities as an Insurance Product for Long-Term Care

Takeaways

There are different types of long-term care insurance available, including traditional long-term care insurance and hybrid long-term care insurance.

Self-insurance is an option, but it is important to consider the high cost and uncertainty associated with long-term care.

Having a plan in place for long-term care is crucial, and it is recommended to seek independent advice when making decisions about long-term care insurance.

Long-term care insurance can be expensive and complex, so it is important to understand the different policies and options available.

Operation Retirement Readiness: www.operationretirementreadiness.comSchedule 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.

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.