Guest Posted April 27, 2018 Share Posted April 27, 2018 Tax question aside, don’t you stand to gain more in compound interest by taking a lump sum and immediately investing the whole amount versus contributing your installment annually?Social security tax phases out at 128.4K this year. For married folks, the tax bracket under 165k is 22, at which point it goes to 24% up to 315k. The lump sum will almost certainly help you save on taxes and you’ll have the benefits of compounding interest. Link to comment Share on other sites More sharing options...
nunya Posted April 27, 2018 Share Posted April 27, 2018 (edited) On 4/27/2018 at 9:22 AM, Champ Kind said: Tax question aside, don’t you stand to gain more in compound interest by taking a lump sum and immediately investing the whole amount versus contributing your installment annually? I think the payments option is almost always better. *Spreadsheet removed. Edited April 28, 2018 by nunya Link to comment Share on other sites More sharing options...
SocialD Posted April 27, 2018 Share Posted April 27, 2018 14 hours ago, Klepto said: Latest testimony on the Pilot Shortage (5 minute vid). Man, they're still attacking that 1,500 hour requirement. In 2012 I was a first year regional guy and my base pay was $19,000 ($21/hr). At the same airline, it's now $37,000 ($41/hr) + $17,500 if you stay a year (somewhat pro-rated if you leave early). If nothing else this rule has forced the regionals to pay a basic living wage. This is a good thing...let's hope the military is not successful in killing this requirement. 1 2 Link to comment Share on other sites More sharing options...
HossHarris Posted April 27, 2018 Share Posted April 27, 2018 (edited) I think the payments option is almost always better. Lump Sum - Payments.xlsx You have a lot of odd assumptions in your spreadsheet. And I would expect $390k to do a little better than $200k Edited April 27, 2018 by HossHarris Link to comment Share on other sites More sharing options...
nunya Posted April 27, 2018 Share Posted April 27, 2018 (edited) What odd assumptions? Without tax considerations, I didn't really make any assumptions. The growth rate is adjustable. I was just showing that the single upfront payment growth isn't enough to keep up with the smaller payments. Edited April 27, 2018 by nunya Link to comment Share on other sites More sharing options...
Guest Posted April 27, 2018 Share Posted April 27, 2018 What odd assumptions? Without tax considerations, I didn't really make any assumptions. The growth rate is adjustable. I was just showing that the single upfront payment growth isn't enough to keep up with the smaller payments.In the past there’s been no reduced total amount with the up front option. The last time they offered it for the fighter guys, it was 112.5k up front with 9 annual payments of 12.5k. That’s clearly a better option than 9 payments of 25k. Are you suggesting that the 7-9 year lump payment 100k option means forgoing the remaining 110-170k??? Link to comment Share on other sites More sharing options...
nunya Posted April 27, 2018 Share Posted April 27, 2018 I looked for more information than what's in the posted graphic, but didn't find the source document. Is this more complex than an A or B choice? From the graphic, I read the 11F AvB as either (A) $35K/yr for 7-9 years, or (B) $100K right now. If there's more to it, I'd love to see the actual options. Link to comment Share on other sites More sharing options...
pcola Posted April 27, 2018 Share Posted April 27, 2018 The way I understand it is you get the same total amount with either option, the only difference is how much you take up front sts. For example, an 11F signs for 7 years = $245k total. You can choose to receive that 245 in 7 equal installments of $35k each or you can get $100k up front with the remaining $145k disbursed in the 6 remaining installments (of ~$24k each.) Maybe I misunderstood though... Link to comment Share on other sites More sharing options...
Krypto Posted April 27, 2018 Share Posted April 27, 2018 4 minutes ago, pcola said: The way I understand it is you get the same total amount with either option, the only difference is how much you take up front sts. For example, an 11F signs for 7 years = $245k total. You can choose to receive that 245 in 7 equal installments of $35k each or you can get $100k up front with the remaining $145k disbursed in the 6 remaining installments (of ~$24k each.) Maybe I misunderstood though... Concur. With the remainder after the lump sum still being paid out each year, it doesn't seem like there's much reason to not take the lump sum option. Unless you just know you're the kind of person who can't hold onto the money without spending it. Link to comment Share on other sites More sharing options...
nunya Posted April 27, 2018 Share Posted April 27, 2018 46 minutes ago, pcola said: The way I understand it is you get the same total amount with either option, the only difference is how much you take up front sts. For example, an 11F signs for 7 years = $245k total. You can choose to receive that 245 in 7 equal installments of $35k each or you can get $100k up front with the remaining $145k disbursed in the 6 remaining installments (of ~$24k each.) Maybe I misunderstood though... If that's the case then unregard me. Link to comment Share on other sites More sharing options...
Saskwatch Posted April 28, 2018 Share Posted April 28, 2018 I have seen the full PSDM and how pcola describes it is how it is written. I also talked to a reliable source at an FSS who say they have the PSDM but we’re told hold off on the official release maybe due to a possible change in it but I don’t know for sure. Link to comment Share on other sites More sharing options...
Warrior Posted April 28, 2018 Share Posted April 28, 2018 I have seen the full PSDM and how pcola describes it is how it is written. I also talked to a reliable source at an FSS who say they have the PSDM but we’re told hold off on the official release maybe due to a possible change in it but I don’t know for sure. That sounds about par for the course. How many changes were there to the IDE/SDE PSDM? I’m also super impressed with the myVector process for the winter VML. Link to comment Share on other sites More sharing options...
memelord Posted May 1, 2018 Share Posted May 1, 2018 Applied Friday, got the “denied” because it’s “not officially released” yet. Link to comment Share on other sites More sharing options...
DC Posted May 1, 2018 Share Posted May 1, 2018 (edited) What option is available to the 1-year takers from last year? If it's the Tier 6 (CE) option that forces at least 22 YAS that's not a nice thing to do to folks that gave you the benefit of the doubt to stick around to see if you fixed things. I know last year's PSDM gave no guarantees but extra mandatory years tacked on the end just because that's what's normally given to 5yr contract expirees is an insult and oversight if you ask me. I suppose the devil is in the details of this year's PSDM. I'm not a 1-year taker but I know quite a few that are anf would go to 20 years military service but not 22 YAS that'll now probably punch and look for AFRES options to get to 20. Edited May 1, 2018 by DC Link to comment Share on other sites More sharing options...
Swizzle Posted May 1, 2018 Share Posted May 1, 2018 The AvB AFI doesn't say anything about this issue that could affect 1 year takers this year. If this take-you-to-22 YAS service is a thing, talk about screwing over trust. Should've figured... Link to comment Share on other sites More sharing options...
Hunter Rose Posted May 1, 2018 Share Posted May 1, 2018 (edited) 53 minutes ago, Swizzle said: The AvB AFI doesn't say anything about this issue that could affect 1 year takers this year. If this take-you-to-22 YAS service is a thing, talk about screwing over trust. Should've figured... Welcome to the world of those who took a bonus only to see subsequent year groups get better deals for more money. It’s the gamble you take. Is anyone really surprised that the USAF still thinks they can get 6-9 year ADSC’s for peanuts in bonus money? Edited May 1, 2018 by Hunter Rose Link to comment Share on other sites More sharing options...
otsap Posted May 1, 2018 Share Posted May 1, 2018 The way I read the chart posted on the previous page is that Tier 6 and 7 can sign the bonus for a "minimum" of 3 years, but up to 22 YAS. Tier 8 has one option; 5 years. So if you took the 1 year option last year, you wouldn't be "initial eligible" (Tiers 1-5), but Tiers 6-8 would apply to you instead, and you'd be able to sign for 3 more years at a minimum, not to exceed 22 YAS. And I've never been wrong before. The most confusing part of that chart to me is how it applies to an 11U that is not initial eligible. It looks like such a person would be in Tier 6, but also Tier 8. Tier 8 gives an 11U $35K a year for 5 years ($175k), specifically. But if an 11U wanted to sign up for 1 year more, or 6 years total, then according to Tier 6 they get $30k a year (180k). So signing up for one more year only adds $5k to your total. It shouldn't be so convoluted. Link to comment Share on other sites More sharing options...
DC Posted May 1, 2018 Share Posted May 1, 2018 (edited) Hmmm I think youre right. I'll stand down my outrage. For now... Edited May 2, 2018 by DC Link to comment Share on other sites More sharing options...
Hunter Rose Posted May 1, 2018 Share Posted May 1, 2018 (edited) 1 hour ago, otsap said: The way I read the chart posted on the previous page is that Tier 6 and 7 can sign the bonus for a "minimum" of 3 years, but up to 22 YAS. Tier 8 has one option; 5 years. So if you took the 1 year option last year, you wouldn't be "initial eligible" (Tiers 1-5), but Tiers 6-8 would apply to you instead, and you'd be able to sign for 3 more years at a minimum, not to exceed 22 YAS. And I've never been wrong before. Unfortunately I think you are wrong this time. The verbiage in the draft that someone posted on Facebook looks the same as last year. What it means is for contract expired folks, you can sign a second contract to either 22, 23, or 24 YAS but it must be a 3-year minimum. So if you are at 20 YAS, you’d have to sign until 23 YAS. I’d love to be able to sign another bonus contract for 3 years only, but sadly I don’t think that will happen. That being said, the draft I saw also had verbiage that lumped the 1-yr contract in with the initial eligible folks and then explained their options So I don’t think they won your guys will get screwed. Just got a wait until it’s actually released since they like to make last-minute changes. Edited May 1, 2018 by Hunter Rose 2 Link to comment Share on other sites More sharing options...
LeftyU2 Posted May 5, 2018 Share Posted May 5, 2018 On 4/26/2018 at 8:41 AM, bronxbomber252 said: Was given this with word that the official announcement will be today: So I've seen this floating around and it's nice to have for SA...but any idea when the official PSDM 18-34 will drop (again)? Link to comment Share on other sites More sharing options...
memelord Posted May 6, 2018 Share Posted May 6, 2018 So I've seen this floating around and it's nice to have for SA...but any idea when the official PSDM 18-34 will drop (again)?Rumor was last week sooooo....The links in the “officially released” PSDM still go to the old 2017 myPers pages and the application drop down menus are all old and don’t match the new tiers. This rollout has been breathtaking. Is it just me or is this the norm for bonus drop? Instead of getting everything behind the scenes squared away before the official release they wait to see how pissed everyone is at the offerings, THEN they make their final adjustments based on public outrage, and THEN officially officially officially release it? Edited for sport bitching. Link to comment Share on other sites More sharing options...
FourFans Posted May 7, 2018 Share Posted May 7, 2018 19 hours ago, memelord said: Is it just me or is this the norm for bonus drop? I was a 2015 taker (5-year option, thankfully). Yes, this level of buffoonery is completely normal. Opaque this new clear. Link to comment Share on other sites More sharing options...
Hunter Rose Posted May 8, 2018 Share Posted May 8, 2018 (edited) The problem to me is that the GOs who are the actual decision makers on things like the bonus seem to be perpetually years behind the issue. The bonus structure above should have been offered 3-4 years ago. $35K then might have gotten some contract expired folks (experienced IPs/EPs) to sign on until 22 YAS, but now it won't affect anyone. Even with 17.5 years in, it still amazes me the hesitancy HAF has for trying to retain pilots and previous bonus takers. They'd rather spend millions per UPT student and wreck the Air Force for 5-7 years while they "ramp up production" and train brand new inexperienced pilots than lobby to pay experienced pilots/IPs/EPs $55K-$65K extra a year of retention money (yet have no issues doing that for doctors or lawyers). It's as if they don't view your service as pure enough if money affects your decision matrix. They only seem to want the folks willing to sacrifice for peanuts. Edited May 8, 2018 by Hunter Rose 1 Link to comment Share on other sites More sharing options...
Right Seat Driver Posted May 9, 2018 Share Posted May 9, 2018 (edited) 11 hours ago, Hunter Rose said: Even with 17.5 years in, it still amazes me the hesitancy HAF has for trying to retain pilots and previous bonus takers. They'd rather spend millions per UPT student and wreck the Air Force for 5-7 years while they "ramp up production" and train brand new inexperienced pilots than lobby to pay experienced pilots/IPs/EPs $55K-$65K extra a year of retention money (yet have no issues doing that for doctors or lawyers). That's because people still embrace the up or out mentality. And IMHO, the fly only track will not solve anything until that mentality changes. Edited May 9, 2018 by Right Seat Driver Link to comment Share on other sites More sharing options...
JPIG_NAV Posted May 9, 2018 Share Posted May 9, 2018 Were any of you able to opt in early for the FY17 bonus? The way last year's and this draft is written seems like you can only opt-in if your ADSC expires in the same fiscal year. However, that contradicts the DoDI, the U.S.C., and the AFI, which all read that to be eligible your ADSC must be expired or expiring within one-year. Any thoughts? Link to comment Share on other sites More sharing options...
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