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Don’t Take the REDUX!

Here’s a great synopsis of why the REDUX retirement plan is a BAD idea for military members:

$30,000 Knife Has Careerists Cutting Their Own Retirement

By Tom Philpott

Summer 2004

Career counselors advise against it. Financial experts say it’s a poor deal. Economists estimate that a typical enlisted member with 20 years of service will cut the lifetime value of his or her retirement by $309,000.

Read the rest of the article by clicking the title, but taking the REDUX option of a one-time $30,000 (taxable) payment, has a dramatic impact on your total lifetime income.

Another great information source is Office of the Secretary of Defense Military Retirement Comparison site.

As a commander, I refused to sign off on a REDUX payment until the member had viewed this site and been counseled about the implications of accepting the payment.

In 2 years I never successfully talked anyone out of taking the payment!

Discussion

One thought on “Don’t Take the REDUX!

  1. I’ve been telling people that for five years now and people still don’t listed.Hi, I’ve created a blog very similar to yours and would like to know if we could exchange links. Let me know if you are interested.Thanks.Money for Militaryhttp://moneyformilitary.blogspot.combjone6@gmail.com

    Posted by Money for Military | May 8, 2008, 1:45 am

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