Panetta: 401K instead of high 3 for military...

Discussion in 'Politics' started by ABikerSailor, Aug 16, 2011.

  1. ABikerSailor
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    ABikerSailor Platinum Member

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    Panetta: 'You Have to Consider' Military Retirement Reform - FoxNews.com

    Basically, this means that instead of a military person's retirement being calculated at their High 3 rate (you average the pay for the highest 3 years of pay and the member gets 50 percent of that for life).

    Now, they want to put our military on a 401k program that is going to be influenced by the stock market.

    Anyone remember the last crash and what it did to 401ks?

    Who thinks this is a good idea to do to our military? I mean, if an E-6 is deciding whether or not to stay, one of the considerations is how much they will get when they retire. With the high 3 you can calculate that, with a 401k, it's based on what stocks do.

    If they do that, the military is gonna lose a lot of mid level talent.
     
  2. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Wow. What a tough guy. Can't take market fluctuation.
     
  3. konradv
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    konradv Gold Member

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    401Ks are one the worst ideas ever. They mostly help financial institutions rack up fees and companies ditch traditional pensions. The average person doesn't have the time, patience or know-how to manage one properly. That should be left in the hands of experts.
     
  4. ABikerSailor
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    ABikerSailor Platinum Member

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    Hey.........I'm just saying that those who serve should have a pension they can COUNT ON rather than have to depend on the fluctuations of the market.

    I know I like having a steady check.
     
  5. Full-Auto
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    Anyone remember the last crash and what it did to 401ks?

    Result of government meddling.
     
  6. CrusaderFrank
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    CrusaderFrank Diamond Member

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    When you leave Mom's basement and get out into the real world you might change your mind.
     
  7. Modbert
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    Modbert Daydream Believer Supporting Member

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    Goldman Sachs and numerous other companies robbing their own investors blind is a result of government meddling? Interesting.
     
  8. Two Thumbs
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    Well, considering how shitty the pay is to begin with with. 50% of shit is still shit.

    It would be a great option though.

    If they did it, they would also have to have the rest of the Fed workers on the same program. Unions or not.
     
  9. ABikerSailor
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    ABikerSailor Platinum Member

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    Just out of curiosity, how would you set something like that up? Would you factor in a high 3 on retirement and put the money in stocks, or, are you going to tell the new recruit that they've got to start paying in as soon as they hit boot camp.

    But then, that brings up the question of what happens to those that serve only 1 or 2 terms? Do they lose the 401k, or can they carry it with them into civilian life?

    Personally? I think they need to keep the retirement as is.
     
  10. Two Thumbs
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    It's great to have options

    It would have to start after boot. We lost so many it would be a waste of time and money setting up 401ks.

    Like any 401, you can take it with you.

    given choices of high 3, 401 or a mix. I'd take the mix. A lower base after 20 + whatever my 401 would be, will more than likely be far more than base high 3.
     

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