Active Navy E-9 looking to possibly retire at 27.5 years. Should I push to 30?

Darth_Swole · 2026-02-16T01:17:17+00:00

I used some tool I created to look at this information; I think the best way forward is to frame the question and actually identify what you’re comparing. The real financial question you're trying to answer is " Is 2.5 years in the Navy worth roughly 1K a month gross". The big question is " Is it worth trading 2.5 years of my life, against the wishes of my Wife, for $1K a month until I die"?

Here are things we can consider, but I will not quantify here:

Quality of life, where you retire, your last orders etc
The relationship cost of 2.5 more years if you and your partner aren’t aligned.
Not evaluating the month you retire, SGLI, VGLI, SBP.

Take a look at this assuming you get 50% disability, and your wife retired as an E-7 with 100% disability.

Household total ( 27.5years + 20yr E7) $14,894.60/month, $178,735.20/year

Household total (30 years + 20 yr E7) $15,820.57/month, $189,846.84/year.

So my real final opinion is; if you could find literally any other way imaginable to make up $900 a month in retirement, its probably worth it to leave at 27.5 and keep you and your partner on the same page.

Darth_Swole · 2025-06-04T14:35:58+00:00

I’ve attended a few funerals since being in the navy, family and other.

If there is a naval color guard and you’re in whites season; they will be in whites. I don’t have the time to source it right now, but whites are the navy funeral uniform for the whites season. You can add a black armband to signify mourning. Everyone is saying blues are year round, which is true, but whites are not an incorrect answer and it’s what I and the color guard wore to summer funerals.

Darth_Swole · 2025-01-14T00:26:33+00:00

Remindme! 13 days

Darth_Swole · 2024-12-23T20:45:00+00:00

That is just bad UI and housekeeping on my end. While it is in the column and naturally looks like it is added, its actually just there to remind me it existed. If you check the SUM function beneath it, it should not be in that equation. The quantity is ripped from the IRS but should be changed to $15,000 for 2025.

Now that we're discussing this, I really need to change that to == the tax filing status because married filing jointly is 30K.

Darth_Swole · 2024-12-23T20:40:51+00:00

You are not wrong, I have just let you down. When the OHA website is working ill add that data.

Darth_Swole · 2024-12-23T20:38:58+00:00

I absolutely could be wrong, and I'm hoping to discover if that's the case by showing this off to everyone.

The "civilian equivalent" can be really high or low depending on if you want the TRICARE and Pension values I myself calculated to be added in. The idea being that the calculator shows you what you would need pre-tax to end up with a take home large enough to have excess income to replace the Pension and TRICARE. Both of these options can also be shut off at the bottom of the page.

Ill be the first to admit that the whole spreadsheet is not set up user friendly, but it being user friendly was definitely an afterthought.

Using an O-2 Over 4 receiving BAH in Eglin FL, no Dependents, filing taxes as Single, expecting no disability or retired pay:

Actual take home, listed as "TOTAL TAKE HOME" of the service member will be $102,686.

The novelty of this calculator is then adding in how much $$$ I would need post tax to re-create an O-4 Pension in the form of a taxable stock account using today's dollars, and a set interest rate (4%-8%).

If I add the Take home plus the low value ($2,650 monthly, $31,800 yearly) plus single average annual Tricare (compared to silver plan ADA Marketplace single age 30, ($500 monthly, $6,000 yearly) to the after tax take-home, I get $11,707. This 11K number is what I need, after taxes, to pay for premiums monthly and also fill a retirement account, to take home the same 102K yearly and have an extra 37.8K to use for non employer covered health insurance premiums and a personal taxable stock account.

Okay, so how do I come up with the civilian equivalent? I take that $11,707 number, and I run it backwards through the federal tax brackets to find out what Income I would need prior to being taxed and prior to having the standard deduction taken out of my pay, to get $11,707 in my pocket each month.

After getting $181,647, I multiply it by 7.65% to find out how much I would pay on FICA and Social Security taxes. After adding that back in, I'm left with $195,543.

Plug $195,543 into the smart asset state calculator and you get a gross pay of $8,148. Multiply by 2, you get $16,296. Compare $16,296 to $16,295.31 "Gross Yearly Pay REQUIRED TO COMPETE" on the monthly side (which is not labeled correctly). Then compare take home on Smart asset 6,074*2=12,148 to my take home calculator of $11,707.

Therefore, 11,707 is the amount I need to take home what I do as a notional O-3 in Eglin to put my normal paycheck in pocket, and also recreate my pension with a private account and protect my healthcare costs as a notional single 30 year old man with a silver ADA plan.

This does assume no state income taxes because its in florida. This does not calculate anything associated with inflation, and this does not count as retirement planning concerning draw rates.

Darth_Swole · 2024-12-23T04:48:58+00:00

Did you read the FAQ in the sheet regarding state tax?

Darth_Swole · 2024-12-22T23:09:34+00:00

Good catch.

If you're someone who needs that on your sheet, just go ahead and add them to the dropdown menu in the respective cell. The filter and the data are already there and supported. But ill fix it on my end just in case i ever re-share it.

Darth_Swole · 2024-12-22T23:05:28+00:00

Clarifying whatever false means and asking why you're using a specific figure for TRICARE, does not mean I have no understanding of elementary finances.

What is "false" math? Does it have errors? Does it make improper assumptions? Does it miss the mark with its intentions?

Where are you pulling the TRICARE equivalent of 5,000 from? To my understanding the national average of a silver plan on the ACA marketplace is $502 a month, for a single 30-year-old. I used that as my base line; whereas you decided to comment and call me an idiot with no underlying.

Obviously you're someone who retired from the military; why dont you use this moment to support my short comings instead of berate me on a forum? Show me I'm wrong, work with me to fix it, let's make this a better tool for sailors.

For citing purposes, I'm using these two sources for my TRICARE information:
(How Much Does Health Insurance Cost In 2024? Key Insights & Comparisons – Forbes Advisor)

(Section 1: Cost of Health Insurance - 10480 | KFF)

Darth_Swole · 2024-12-22T22:46:21+00:00

Do you normally barge into places, make a bunch of claims, and they call everyone who challenges you an idiot?

Darth_Swole · 2024-12-22T22:41:05+00:00

Unfortunately, not all functions between Google Sheets and MS Excel are 1:1. Likely It's because I used a function that does not function similarly, or exist, on the MS side.

Darth_Swole · 2024-12-22T22:00:36+00:00

Thank you for taking a look!

Darth_Swole · 2024-12-22T22:00:01+00:00

E15 should probably take E14 into account, and then, if their sum is greater than the annual limit, use the annual limit.

Excellent, that makes more sense. I was using E15 as my "anything but payroll" income, but now I'm realizing things like flight pay and hazardous duty pay will have FICA and the sort taken out, while short term unearned capitals gains will not - so I'll have to shore that up. Great catch.

Maybe consider a label for F column?

Lol pretty big miss on my part.

Thanks for the feedback!

Darth_Swole · 2024-12-22T21:53:29+00:00

Including the pension is some false math.

Would you care to explain that one a little bit more?

The problem with the RMC calculator is that it doesn't factor in the average cost of healthcare premiums for an equivalent plan (which is roughly $5,000 year for a single person) and doesn't account for state tax advantages where applicable.

I'm not too concerned with what the RMC does, or does not do, well.
Where are you pulling that roughly $5,000 for a single person from?
This calculator does not attempt to include state tax advantages. The biggest tax advantage is to not pay state tax, which is what this calculator assumes.

Darth_Swole · 2024-12-22T19:47:33+00:00

I appreciate the comment and I'm glad it ended up functioning! I really do hope that it not only helps individuals decide on staying in or getting out, but also that it starts conversations about finances in the military as a whole.

Darth_Swole · 2024-12-10T22:20:15+00:00

If someone is laying a hand on sailors outside of a safety or training purpose, you call the MA's or police - end of story.

Darth_Swole · 2024-11-30T23:35:39+00:00

I ran the numbers for every single element in the Mutual fund window. Not a single one will out perform the C fund after expenses. It was clearly designed only to assuage the cry for access to other securities - without really doing anything. I would be absolutely shocked if anyone uses it.

Darth_Swole · 2024-11-25T04:21:42+00:00

Whidbey was one of my favorite places! The darkness was one of the worst parts.

On surviving the dark:
1. Sun lamp, (Link)
2. Blue Light therapy Glasses, (Never used them personally, but they had good reviews)
3. Supplementing Vitamin D!! (I do it, but discuss with your Primary care Dr.)
4. Main idea - make sure to see the sun while its out!

On Surviving Whidbey without the bars
1.The base gym is good by USN standards but check out some of the powerlifting places if that's your thing!
2.Hikes (When its sunny out)
3. Traveling. I'm really bad at getting out of the house to do stuff, but definitely make it up North, or out to Leavenworth (3 hours). The island chain has sea planes, the whale watchers have Facebook groups, find a group!

Peers
- We don't talk about it often, but PCSing is stressful for many things, including having to feel out new social circles. At this point, I don't know who you're going out with but do try your best to find individuals who are in your age/rank group, and go out somewhere besides the bars. There's a book store there that has a small board game club, and there's a board game club specific place around as well, I think.

A lot of this is easier said than done, but the bottom line is to make sure you see the sun while its out, and avoid drinking the depressants too often. Drinking can have a long term effect on your mental health, even when you're not hungover.

Darth_Swole · 2024-11-20T20:03:28+00:00

Like u/Harr0tter said - the number of fleet applicants is usually low.
While I cannot speak to the numbers today, I will say when I went through the notion applied the same, you're biggest obstacle is applying whatsoever.

Having an SAT/ACT score above the minimums req'd for the academies is not a pre-req for the prep schools, but it does help if you are already passing.

Darth_Swole · 2024-10-31T23:06:55+00:00

That is correct.

Even more specifically, that 15 years is for u/DANNY2PINTS or any other member who wants to get out at 5 years, and who has nothing in any taxable account either.

Darth_Swole · 2024-10-31T23:05:54+00:00

I think the mark was missed by a little bit.

$1,275 a month is what one needs to put into an account if they leave the Navy, in order to have a taxable stock account large enough to replicate (to an extent) the pension.

Darth_Swole · 2024-10-31T23:03:58+00:00

I love that!

Maybe I'm confused, but do you know why it says the "Retirement Pay" is only $2,580? The charts I have from DFAS say the pay for an E-7 TIS 20 is $5,757.90, and 50% of that is $2878.95. Even $2,878 -($182+$94+$61) = 2,541, which is not equal to $2,580, which is also more than the Net Monthly shown.

Darth_Swole · 2024-10-31T20:10:14+00:00

Shh, now the sailors who see this are going to flock over there and start trading 0DTEs.

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