I am a Dave Ramsey fan. His method of eliminating debt and accumulating wealth is virtually foolproof, and that’s the appeal. I don’t agree with everything he says, however. For example, on at least two occasions, Mr. Ramsey has encouraged military members to take the CSB/REDUX retirement option, trading reduced retirement benefits in return for a one-time $30,000 payment. If you’ve followed this blog for a while, you know that I think the REDUX is a terrible idea for military members. Read Tom Philpott’s article on REDUX and you’ll understand my concerns.
I actually e-mailed Mr. Ramsey and sent him this article, but apparently I didn’t convince him. Military members need to research this option completely before making their decision. A great place to do this reseach is the Department of Defense Pay and Benefits web page.
Mr. Ramsey does make a point when he argues that military retirement benefits stop with the death of the retiree. Military members should consider a combination of the Survivor Benefit Plan and term life insurance to reduce the risk to their dependents.