First, I have to say that it's quite an honor to be discussed on the MMM forum. Thanks.
I'll try to be brief but want to respect all of the points made.
If you don't want to read everything below, just know that:
- My book is a unique, personal story out of millions
- The article about the pension reduction is an attempt to make sure more people know that military pensions were reduced by 20%, and troops are being asked to make up the shortfall, but their match is worse than other federal employees
Having said that...
@spartana, asked "why didn't this E7 save while in?"Sorry for the confusion. I am not retired from the service. I did a 5-year AD contract from '03-'08. The article I wrote was in response to the changes in the pension system, which I feel is a step toward full privatization, which has been voted on more than once, and was heavily supported by Senator John McCain. Knowing all that we give in just one contract, I can't bear the idea that our career troops could get stuck with more of the bill from these wars.
@Nords, your reply brought up some great points that I can clarify. I've enjoyed your interviews and other work, and think it's pretty cool to have a chance to talk with you, even if just here.
This Marine was on the fringe that he qualified for welfareAbsolutely, and I was surprised that this barely-mentioned reference in
War Poems sparked a discussion, because it's actually from a poem about my wife's birthday when I was in Falluja. She was worried about money and asked me not to send her a present. I discuss many things, mostly about our life together, briefly noting that we qualified for these benefits, but didn't take them.
Why stand on ceremony for food stamps, but take the Earned Income Credit?The quote where I say "I'm a man yada-yada-yada" is one of prideful ignorance. Pride in that I wanted to provide for my wife and children, but ignorant in that I did not even know what the Earned Income Credit, Child Tax Credit, Child Care Credit, etc. were. I knew to file my taxes, but had no idea why I got such a large refund.
Why did he get such a large tax refund?You hit the nail on the head. When I filled out my W-4, I put down Single and Zero. Why? Because a wealthy boss I'd had before the military said that's what he did.
Did he take advantage of free financial services on base?For my first 3.5 years I was generally in the field, deployed, or on a special assignment. Thankfully, as we prepared to buy a home at my 4.5 year mark, we had to see someone to lock in a rate of 5.75% (in 2007) promoted by Onslow County for 1st Time Home Buyers. This terrific guy was a retired Marine who not only helped us with the paperwork, but explained the W-4 to me. That simple change added $250 to my monthly income. It was an incredible help.
Your UBI referenceA military pension is nothing like UBI, though I have heard some people refer to veterans as "getting" their pensions, like it was for free. But when I think of my wife's tinnitus and other ailments, she'd probably trade them all for the $2,001.69 she received on the 1st. When I think of my PTSD, COPD, trauma-induced ADD (this is apparently a thing), I can only imagine what someone with 20 years leaves with.
My reference to not buying alcohol or cigarettes, or taking lavish tripsIf I'd been a reader of the tirade I wrote, I'd wonder where the money went, so wanted to be clear that we weren't wasteful. After all, you get base housing and healthcare, so how can you fall short?
Did you buy a giant pickup truck when gas was $4+ a gallon? We were very fortunate to have stayed away from things like alcohol and smoking, and also not to have had car payments, cable, Internet, or video games. We did subscribe to the
Jacksonville Daily News and
The Economist, and my oldest had private music lessons.
Where we really fell short was that we didn't budget, and I was a LCpl with 2 little kids wanting to have more.
Federal employees have to vest before getting their matchCompletely true, but at least they get a match on day 1. Troops under the new plan are not getting any match for 2 years. Going back to my argument,
Marines serving as White House guards can't get a match, but all other White House employees do. Now, federal employees forfeit the match if they don't stick around, but the new troops with a reduced pension don't even have the match to lose.
Calling 5% withholding a "sacrifice"I don't personally think of "sacrifice" as a negative thing, but to think someone isn't going to feel the $100 coming out of a $2,000 income is just incorrect. I know this because I opted to put another $600 into the Montgomery GI Bill, and while it was a very worthy trade, it was still a sacrifice where I gave up some money up front to get more later on, just as one does with a "sacrifice" in baseball.
Despite my positive outlook on sacrifices, the changes to the pensions are extremely negative. The old school military pension was cut by 20%, and to make up for it, troops need to put in 5% of their own pay, which from year 3 onward, they'll get matched.
Compare military pensions to those in the corporate worldNo.
The businesses I worked for never needed me to extract someone from their home at 3:00AM. And if they had, I'd have made much more than the $3,000 I took home with a housing allowance in Jacksonville, NC in 2008. I know this from offers I had from
Triple Canopy and
General Dynamics.
The E-7 retires on Long IslandSuffolk County, NY is home to the largest population of veterans in the US. There is a large Army base in Brooklyn, multiple reserve units, and Kings Point Academy. Because of our trading ports, we have many Coast Guard stations. Also, we are not far from West Point and other large installations. There are also many recruiting offices because of the dense population.
The E-7 has to move when he retiresIf he lives on base, this is obviously true, and many people choose base housing to initially get to know an area, or because they don't want to be bothered with the annoyances of home ownership. Even some of the annoyances with renting can be avoided by being on base.
My vitriol sells booksI wish! It took me 15 years to publish a book -
War Poems was not my first by a long shot - and commercial success has not yet come. I'm currently trying to find a publisher for the next book, which might be another 15 years and 5+ manuscripts from now. When I give a keynote address, as I did at the 2018 Iowa State Veterans Conference, I pay my own way, because while [I'm told] I'm very good, and do a great job of interacting with as many attendees as I can, I am simply not worth paying. I once tested this by asking an event coordinator to forward my travel itinerary, and she said I had to get myself there, or they'd have a local colonel fill in. The bright side was that I took one of my daughters, and we had a terrific mini vacation that she still talks about.
As a complete commercial failure, I am free to express myself as I wish, because the work is the payment. So when veterans get fucked on their pensions, I'm not afraid to say it just like that, or to get blackballed from
The Journal of Accountancy for an article unrelated to this one.
Perhaps this freedom will lead to something that will hit, but if it doesn't, it doesn't.
He uses the Dave Ramsey calculatorI do. It's simplest calculator out there. To be conservative, I always use a 7% ROR, especially since there might be some G Fund in the mix, or the reitree might pull funds out during an economic downturn. Additionally, for the audience at iHateTheUSMC.com, it's the right tool because it helps them
crawl before they walk.
A separate note about iHateTheUSMC.comThe site where the pension article is posted is a destination usually found by someone who Googles the phrase "I hate the USMC." He is typically a 21-year-old enlisted troop with a year left, and is thinking of quitting, even if it means a General or OTH discharge. The former Marines and I who respond to people on this site are basically trying to keep them in. Sometimes we also talk to family members who are suffering because of something related to someone's service. Some guys have written in just to say that reading the stories on the site made their last months a little more bearable.
Again, everyone, thanks for reading my work at all. If anyone wants a copy of the book (hardcover or pdf) shoot me a message, and I'll gladly send you one.