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.
