military benefits and the budget
12-16-2013, 08:15 AM
#51
Libertarian Resistance
Joined APC: Feb 2007
Position: 757 FO
Posts: 1,057
Here's a thought experiment:
Convert your military pension into a lump sum and adjust for the time value of money. If you could cash out right now how much of a discount would you take? I bet most would take south of 50% in a second.
This is not the end of the story. The government has no money and will be back for more of yours--taxes to offset SS by the amount of multiple pensions/annuities; means testing SS; federal wealth taxes. Not saying I like it, but that is what is coming.
The Bonus Army
WW
12-16-2013, 10:53 AM
#52
Gets Weekends Off
Thread Starter
Joined APC: Jun 2010
Posts: 333
This is one of the least surprising news items I have seen in a long time.
Here's a thought experiment:
Convert your military pension into a lump sum and adjust for the time value of money. If you could cash out right now how much of a discount would you take? I bet most would take south of 50% in a second.
This is not the end of the story. The government has no money and will be back for more of yours--taxes to offset SS by the amount of multiple pensions/annuities; means testing SS; federal wealth taxes. Not saying I like it, but that is what is coming.
The Bonus Army
WW
Here's a thought experiment:
Convert your military pension into a lump sum and adjust for the time value of money. If you could cash out right now how much of a discount would you take? I bet most would take south of 50% in a second.
This is not the end of the story. The government has no money and will be back for more of yours--taxes to offset SS by the amount of multiple pensions/annuities; means testing SS; federal wealth taxes. Not saying I like it, but that is what is coming.
The Bonus Army
WW
Someone should make a movie about the bonus march...
12-16-2013, 04:14 PM
#54
Gets Weekends Off
Joined APC: Dec 2007
Position: Retired
Posts: 404
This is one of the least surprising news items I have seen in a long time.
Here's a thought experiment:
Convert your military pension into a lump sum and adjust for the time value of money. If you could cash out right now how much of a discount would you take? I bet most would take south of 50% in a second.
This is not the end of the story. The government has no money and will be back for more of yours--taxes to offset SS by the amount of multiple pensions/annuities; means testing SS; federal wealth taxes. Not saying I like it, but that is what is coming.
The Bonus Army
WW
Here's a thought experiment:
Convert your military pension into a lump sum and adjust for the time value of money. If you could cash out right now how much of a discount would you take? I bet most would take south of 50% in a second.
This is not the end of the story. The government has no money and will be back for more of yours--taxes to offset SS by the amount of multiple pensions/annuities; means testing SS; federal wealth taxes. Not saying I like it, but that is what is coming.
The Bonus Army
WW
12-18-2013, 04:54 AM
#55
Otto
Joined APC: Jul 2013
Position: Turkish Pile Driver
Posts: 1,806
Looks like the senate failed to amend the budget bill. I have not done the math but have read the losses for an enlisted retirement could be around $70k between retirement and age 62, who knows what an O-5 retirement will lose. And of course, what's to stop congress from just eliminating the retroactive reinstatement when that payout looks to be a little inconvenient? But hey, at least we're paying welfare to illegal immigrants
http://www.foxnews.com/politics/2013...o-budget-bill/
Hey wait, is that ringing in my ears? I feel like I'm coming down with some tinnitus. Also, my back seems to be hurting far more than it has recently, as well as a few other joints... Too bad sleep apnea is such a PITA to deal with, or I might have some of that too.
http://www.foxnews.com/politics/2013...o-budget-bill/
Hey wait, is that ringing in my ears? I feel like I'm coming down with some tinnitus. Also, my back seems to be hurting far more than it has recently, as well as a few other joints... Too bad sleep apnea is such a PITA to deal with, or I might have some of that too.
12-18-2013, 07:45 AM
#57
Get me outta here...
Joined APC: Oct 2008
Position: Boeing right seat
Posts: 1,541
12-18-2013, 08:57 PM
#59
Gets Weekends Off
Joined APC: Jun 2007
Position: Legacy FO
Posts: 4,105
Thanks guys. As an aside, the mutual fund industry "boom" took off after the 401(k) retirement plan was declared operational in 1981.
The "invest for the long term, don't pull your money out" mantra was pushed by all the companies, along with fancy charts and high powered theories why "riding out the cycles" is best. Fidelity, one of, if not, the, mutual fund powerhouse in the world, had the Magellan Fund, run by Peter Lynch. He wrote "One Up on Wall Street" copyrighted 1989 (note the year) which turned into a NY Times Bestseller, eagerly consumed by the American public, who in the feel-good 80's, was happy to follow Magellan's founder's teachings and get rich.
Corporations (and the US Govt) hired professional marketing folks to push 401(k)/FERS type programs onto employees and get them away from "old school, archaic pensions." When you retire, why be "tied to your old employer via his pension, why not let the market determine your wealth, and feel what freedom feels like".
With Prince's soundtracks making the top 40, cocaine use reaching all time highs, and parachute pants being in style, the new "hot" retirement program called 401(k) found little resistance in the workplace.
The thing is, that mutual fund managers are paid (amongst other methods) by % of AUM, or Assets Under Management. So, they do not want anybody pulling money out of accounts when times get tough or stormy.
We (well most of us) learned, post 2000 internet crash, and post 2008 real estate fueled crash, that "riding things out" does not work.
Ask the Enron investor (Enron was on the SP 500) how "holding for the long term" worked out for him. Chart below
In the end, (have we seen this show before?), the mutual fund managers, corporate CEO's, and others, "got theirs", and the line employee did not.
Thread Drift Alert from Military Benefits and Budget....my apologies
The "invest for the long term, don't pull your money out" mantra was pushed by all the companies, along with fancy charts and high powered theories why "riding out the cycles" is best. Fidelity, one of, if not, the, mutual fund powerhouse in the world, had the Magellan Fund, run by Peter Lynch. He wrote "One Up on Wall Street" copyrighted 1989 (note the year) which turned into a NY Times Bestseller, eagerly consumed by the American public, who in the feel-good 80's, was happy to follow Magellan's founder's teachings and get rich.
Corporations (and the US Govt) hired professional marketing folks to push 401(k)/FERS type programs onto employees and get them away from "old school, archaic pensions." When you retire, why be "tied to your old employer via his pension, why not let the market determine your wealth, and feel what freedom feels like".
With Prince's soundtracks making the top 40, cocaine use reaching all time highs, and parachute pants being in style, the new "hot" retirement program called 401(k) found little resistance in the workplace.
The thing is, that mutual fund managers are paid (amongst other methods) by % of AUM, or Assets Under Management. So, they do not want anybody pulling money out of accounts when times get tough or stormy.
We (well most of us) learned, post 2000 internet crash, and post 2008 real estate fueled crash, that "riding things out" does not work.
Ask the Enron investor (Enron was on the SP 500) how "holding for the long term" worked out for him. Chart below
In the end, (have we seen this show before?), the mutual fund managers, corporate CEO's, and others, "got theirs", and the line employee did not.
Thread Drift Alert from Military Benefits and Budget....my apologies
12-19-2013, 03:56 AM
#60
Otto
Joined APC: Jul 2013
Position: Turkish Pile Driver
Posts: 1,806
I've got a friend who is an IP at my unit who has diagnosed sleep apnea and has already gone through the USAF rigmarole to get his flying waiver. With all the work the USAF forced him to do getting his FAA waiver was basically no effort at all. Have you got a bud who was diagnosed and couldn't get the waiver?
Please correct me if I'm wrong, but medical records are private. You either have or don't have your 1st class medical. Whatever waivers required to get it are not your employer's business.
But I digress, the point wasn't about disabilities real or imagined. This thread is about our elected officials breaking faith with the one group of people who have sacrificed more than anybody else while receiving less press coverage than if Kim Kardashian wore a mismatched outfit to an awards show.
Once this is law, it will NEVER go back. It will quietly be forgotten until congress wants to spent more money on entitlement programs for people who have done nothing to earn them. They will look back and see how easily they got away with this travesty and go for more. First will be the retroactive reinstatement, then COLA all together, and finally they will just say fuggit, no more retirement thanks for playing.
