Buying Back From The Military

Amy and her husband have 2 choices for saving their money; either buy back his military pension or invest it elsewhere.

QUESTION: Amy’s husband has a chance to buy back his 4 years of military service so he can retire sooner. Is it worth the $10,000 a year that it will cost?

ANSWER: No, it’s not. Mathematically, it’s better to take that money and invest it instead of pouring it into a pension plan that dies when he dies. It might have a survivor benefit to you, but when you both die, it’s definitely gone.