Hey all. For those who know, my laptop is still inop and I’m still very limited in what I can do blog-wise. But my phone still has Twitter! So I decided to take advantage of some free time this weekend and I wrote out a bunch of thoughts that have been bouncing around my brain about the Blended Retirement System (BRS). And thanks to the glory of technology, I can recreate that thread here without having to retype it.
Technology is a wonderful thing.
So here is my very long Twitter thread, presented in its entirety for Military Monday. Where applicable, I’ve also included the links that are embedded in the tweets so you can select them directly from this post instead of going over to Twitter.
I’m working on getting you guys an update on the BRS straight from the Pentagon. I’ll let you know if that happens by, ya know, posting the update here 😁
Alright, let’s get into it!
My Twitter mega thread on BRS
I’m starting to gain more #military followers, and we are halfway through 2018, so it’s time to talk about the #BlendedRetirement System again.
Here’s what I plan to cover:
Basics
Myths
BRS for leaders
BRS for eligible members
Other(long thread)
— Military Dollar (@Military_Dollar) July 14, 2018
(this one above is actually a link to the Twitter thread if you want to read it that way and/or see people’s responses. The rest of this is screenshots)
(link to the myths part of my series)
(link to Kate Horrell’s incredibly thorough BRS resource)
(link to the comparisons part of my BRS series)
(link to my post on people leaving the military)
Completely understanding all of that, I definitely regret having switched. I rushed in the first month of the year so I wouldn’t lose out on matching. A few months later on deployment discovered FIRE. My only reason for switching was that I thought getting out sooner was the easiest option since I definitely would need to work again after the military. Now that I’ve realized this could easily be the last job I ever have to work, I wish I could undo my opt in. The matching plus CP with 7% interest is only $150K, so 4% rule = $6,000 of the $10,000 a year I’ll get less in pension now.
Now, I still am planning investing enough from here on out to make sure that I have enough set aside to retire for good post AF. Just means I have to save more money along the way than I would have needed with high 3.
I suppose (2018 dollars) $4,000 loss per year in retirement really isn’t that much of a loss in a 6 figure budget when it comes with the peace of mind that I’ll at least have the matching to show for if I end up separating and not retiring. But since I discovered FIRE I’ve had a whole new outlook on life and increased motivation at work so I really don’t see myself getting out at this point.
But hey, if I end up wanting to get out, or getting forced out however unlikely, then I’ll be glad I took the BRS. For now it’s just regret…
I am surprised someone in the FIRE community would regret it, as it makes it much easier to separate when you are mentally done instead of wearing those golden handcuffs.
But, it would also depend on how many years you have in. If you have more than 10 and can moderately confidently say you plan to stay 20+, that’s different than if you are under 6. Lots of people plan to stay when in their first or second assignment but get out on the third or fourth. I didn’t personally experience a single thought of leaving until year 9, assignment 4, when I was about done and one conversation was what “saved” me.
I see every tweet has a like… I wonder who did that!? 😉
Anywho, I switched on the first day that I could and I have no regrets. It felt like such a relief to drop down my contribution while I pay off my debt and know that I am still putting at least 10% percent into my retirement. I cannot wait to bolster it back up when I’m done.
Granted, I will hit 3 years in September, so it was a no-brainer to me. Curious question, are there any differences between BRS for enlisted vs. officer? As I prepare to switch over, I feel like I heard something about one small difference. I could be wrong though.
Twitter fairy!!
Well now you have me curious. Offhand, I can’t think of any differences. But I’ll ask/look around and if I find any, I’ll let you know.
Nice job Military Dollar.
I separated about 2.5 years ago and boy do I wish I had the BRS as an option. I think it is a no brainer for folks to go with this option if they are getting in. But lets face it, most of the enlisted side are not going to have great training on this benefit and fewer role models who are showing them how to use it. That will be the unfortunate part, unless the military is REALLY doing a good job of making this training interesting and useful.
Hopefully soldiers of your caliber can have great impact with their units by taking some of the younger kids and giving them a personal class on how important personal finance and this retirement system can be. It was one of the first classes I gave my platoon when I took over and it was a pretty big hit to actually put numbers in front of their faces.
Keep up the good work brother!
The reports I’m hearing from the field is that the training is not good, which is such a shame because they put a lot of money into it. But silly commercials and boring CBTs are no replacement for having someone who really understands it sitting there and talking in a two way conversation.
I love that you wrote a mega Thread on Twitter! That is a very creative way of dealing with laptop problems.
Hahaha, thanks! I probably won’t be trying it again anytime soon, though 😂
Genius way to get around writing a full blog post on your phone 😉
It was even more painful this way 😭
Lots of info, 280 characters at a time.