Military Investing

James and his wife are both active duty Marines. Do they still need to put back 15% toward retirement if they plan to retire with the military? Dave recommends it so that they have options.

QUESTION: James in San Diego and his wife are both active duty Marines. Do they still need to put back 15% toward retirement if they plan to retire with the military? Dave recommends it so that they have options.

ANSWER: I’d like to see you putting 15% in as well. I apply that to anyone who has a good pension plan, and certainly, the 20-year plan in the military is a great pension plan. It would be cool to have that and a pile of cash, right? What that gives you is options to do all kinds of things like pay cash for a home, open a business after you retire, or buy a lake house. I don’t care. But you can’t do any of that with your monthly income at your 20-year plan. I want you to save for retirement in addition to that, but it sure does give you a great stability factor if you’re a 20-year man or woman. It’s pretty cool.