tion of extraordinarily low expenses
(about 1/20 of the average commer-
cial mutual fund), an excellent fi xed-
income option (Fund G), and the
ability to save $16,500 annually (plus
an additional $5,500 if you are over
age 50) make it an excellent choice
for long-term retirement savings.
‰ The Post-9/11 GI Bill: The bene-
fi ts of the Post-9/11 GI Bill, combined
with its long-sought-after transfer-
ability option, could be a godsend
for currently serving families with
depleted college funds. While the
benefi t of 36 months of the highest
in-state tuition rate (plus the housing
allowance and book stipend for qual-
ifi ed recipients) isn’t enough to send
three children to Harvard, it will be a
moves because of local housing mar- nifi cant numbers of currently serving big help to many families. One major
kets, second-career military retirees servicemembers and their families caveat is you must transfer at least
have been forced to rethink college- face tough challenges, but there also one month of benefi ts to each family
funding plans for children due to job are many opportunities. Keep the member you want to support before
losses and eroding Section 529 col- following in mind: you retire or you will lose the trans-
lege savings plans, and retirees have ‰ First-time home buyer credit: ferability option. For more specifi cs,
seen carefully shepherded nest eggs If you have not owned a primary visit
www.moaa.org/gibill or www
lose up to half their value. residence in the past three years,
.gibill.va.gov.
Financial professionals are reas- you are eligible for a fi rst-time home
sessing long-term projections, lower- buyer tax credit of 10 percent of the Second-career military
ing anticipated rates of return while purchase price — up to a maximum retirees
increasing expected infl ation rates. of $8,000 — if you purchase a home Having a guaranteed COLA-adjusted
Add longevity and rapidly growing by Dec. 1, 2009. There are adjusted income and basic health insurance
long term care (LTC) costs, and a fi - gross income (AGI) limitations of coverage is a huge benefi t as the
nancial plan that might have seemed $75,000 for singles and $150,000 national unemployment rate con-
sound two to three years ago might for married couples. One pitfall is tinues to increase. Many of the tips
be severely outdated now. So with you must repay the credit if you sell for those currently serving also are
all the gloom and doom out there, is the home within three years of the applicable to second-career military
it time to throw in the towel? Abso- purchase date, which could have retirees, with the Post-9/11 GI Bill
lutely not. signifi cant implications for service- fi guring prominently. Here are some
Read on for smart moves you can members who make a PCS move. additional tips to consider:
make regardless of whether you are ‰ Commit to saving 10 percent ‰ Upgrade your employment:
just starting your career, transition- of your pretax income: Even if you Even though the general unem-
ing from the military to civilian-sec- plan to serve enough time to receive ployment rate is high, those with
tor employment, or fully retired. military retired pay, you still should strong skills, leadership ability,
commit to saving 10 percent of your and a proven track record still are
Currently serving pretax income in a dedicated retire- in high demand. Don’t let the cur-
With the stress of multiple deploy- ment fund. While the Thrift Savings rent state of the economy dissuade
ments, frequent PCS moves, and Plan (TSP) gets a bad rap in some you from making a career move if
unstable housing markets surround- military circles because there are no it makes sense. For many, the adage
ing many military installations, sig- matching contributions, the combina- “be happy you have a job” keeps
64 MILITARY OFFICER NOVEMBER 2009
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