leaving military for civilian equivalent job

[Anonymous]

let me start off by saying that i currently work 30 to 35 hour work weeks (rarely deploy, if i do it sucks, but i'm getting paid quite a bit for it). i'm making around 55k/yr with little to no stress, of course there is an occasional weekend i'll get called in, or some bureaucracy i will need to attend to, but over all it isn't that bad. as of late however i'm wanting to move onto bigger and better things, i feel as though my salary will be capped if i stay in the military and i will never be fully satisfied. my wife and i have been married for 3 years now, and i'm beginning to think it's time to get out and continue what i'm doing, just on the 6 figure side of things. i will of course be losing job security, increasing my work week, in return to make more money.

i've been in the military for 5 years and am an e-5, i've been promoted early every possible chance i've had so far. i think my original plan was to stay in for 20, get out with a pension and pursue my career. as of late there is much talk of our retirements changing; currently we are able to retire after 20 years and that next month receive our first pension check. if the change goes through, we will retire after 20 years and not see our first check until 60.

in my shoes what would you do, stay in or get out?

[Anonymous]

An E-5 is about the same as a GS 5 as a civilian fed employee. The chance of earning 6 figures is really slim. It's also not that easy to get a job. What is your skill set? Any chance you are a wounded or disabled veteran?

[Anonymous]

Anonymous wrote:An E-5 is about the same as a GS 5 as a civilian fed employee. The chance of earning 6 figures is really slim. It's also not that easy to get a job. What is your skill set? Any chance you are a wounded or disabled veteran?

I took home more money as an E-4 than I did as a GS-7.

I'd stay in, unless you have a degree and experience to switch to a GS-11 or higher.

[Anonymous]

Don't forget to account for the difference in income tax. What you're making in the military would translate to a higher salary in the civilian world.

[Anonymous]

Stay in, use Tuition Assistance to go back to school. You can have Masters by the time you get out, be in a better position to transition to a gov't or civilian career. Transfer your GI Bill to your child.

[Anonymous]

I retired in 2012 after 20 years. Staying 20 was the best thing I ever did. I earned both my bachelors and masters while on active duty.
That said, yes, they have the crosshairs on the military retirement. If I were in now, I would not count on it being there for me 15 years down the road.
Second, you need a degree. What field are you in? If it's IT, you need certifications as well as a degree.
Third, the taxes will be higher. BAH and BAS are not taxed. And then factor in health care costs - you'll be paying several hundred dollars each month to have health insurance, plus co-pays for visits and prescriptions.
Lastly, the economy sucks. It took me 6 months of looking to get a job - even with degrees and certifications and tons of experience.
Good luck!

[Anonymous]

The changes they have been talking about for the pension are marginal - changing the formula for cola etc, they are not talking about abolishing it altogether.

Unless you have any better options, I would aim to hit the 20, but making sure you acquire some useful skills/qualifications along the way.

[Anonymous]

op here -

there are some very valid points here, i have considered all of them. it's a difficult decision for sure, i'm just worried i will not make enough money in the military, because theres only so much more rank i can achieve. i have a BS in computer science and my MBA and management exp. i've had a few job offers making around 80k and there's certainly room to grow. i feel like this is the hardest decision of my life, work 30 hr week for 55k+ in the military or work 60+ hrs for 80k.

i also should mention my wife and i 24 years old with a reasonable amount (150k) invested in mutual funds, my wife is a social worker making around 24k a year (sadly she has her MSW making 24k/yr). new cars paid off - 13' bmw 335i and a 12' subaru forester (vehicles paid for by parents). our only debt is our mortgage at $1175/mo. i'm not sure if this would change your decisions.

[Anonymous]

also, in before ''youre living beyond your means with a 70k bmw'' parents paid for it.

[Anonymous]

Anonymous wrote:op here -

there are some very valid points here, i have considered all of them. it's a difficult decision for sure, i'm just worried i will not make enough money in the military, because theres only so much more rank i can achieve. i have a BS in computer science and my MBA and management exp. i've had a few job offers making around 80k and there's certainly room to grow. i feel like this is the hardest decision of my life, work 30 hr week for 55k+ in the military or work 60+ hrs for 80k.

i also should mention my wife and i 24 years old with a reasonable amount (150k) invested in mutual funds, my wife is a social worker making around 24k a year (sadly she has her MSW making 24k/yr). new cars paid off - 13' bmw 335i and a 12' subaru forester (vehicles paid for by parents). our only debt is our mortgage at $1175/mo. i'm not sure if this would change your decisions.

Have you considered OCS? You could make more money on the officer side.

[Anonymous]

Yeah, I'd love to attend ots though currently the funding isn't there

[Anonymous]

I'm an officer in a somewhat similar situation, but O4 with ten years experience. I decided to resign my commission, but it has as much to do with family considerations as money. I didn't want to keep moving, and the promotion rates are getting rough. They still need to cut 80,000 Soldiers by 2015. I think it's even worse for the enlisted side. You'd have to be willing to deploy, take a Korea assignment, or move to the middle of nowhere if you want to stay in. This may not work for your spouse if she wants to stay employed.

Some financial things to consider:
Do you plan to work private sector or public if you leave the military? If you go federal public, you can purchase your time towards your civilian retirement. You can also use your time towards a military retirement if you stay in the reserves. Two retirement pensions would help offset the lower military pension.

What is your earning capacity after 20 years of service? Part of the reason I'm getting out is that I'm much more marketable now. Will you have the same ability to get a job after 20 years in the military - at your age and skill level will you be marketable for equivalent civilian positions?

Are you planning on having children? Consider staying in if you want a child. I stayed extra time so I could transfer my GI Bill to my child. 4 years of college at an instate school is a huge benefit.

[Anonymous]

Anonymous wrote:The changes they have been talking about for the pension are marginal - changing the formula for cola etc, they are not talking about abolishing it altogether.

Unless you have any better options, I would aim to hit the 20, but making sure you acquire some useful skills/qualifications along the way.

The changes they made are minor. However, there is much talk about making it the same as a civil servant retirement. Google it.

[Anonymous]

Anonymous wrote:op here -

there are some very valid points here, i have considered all of them. it's a difficult decision for sure, i'm just worried i will not make enough money in the military, because theres only so much more rank i can achieve. i have a BS in computer science and my MBA and management exp. i've had a few job offers making around 80k and there's certainly room to grow. i feel like this is the hardest decision of my life, work 30 hr week for 55k+ in the military or work 60+ hrs for 80k.

i also should mention my wife and i 24 years old with a reasonable amount (150k) invested in mutual funds, my wife is a social worker making around 24k a year (sadly she has her MSW making 24k/yr). new cars paid off - 13' bmw 335i and a 12' subaru forester (vehicles paid for by parents). our only debt is our mortgage at $1175/mo. i'm not sure if this would change your decisions.

With that education you'd do fine and make a lot more. You can also look at other services options for OCS.

[Anonymous]

Anonymous wrote:

Anonymous wrote:op here -

there are some very valid points here, i have considered all of them. it's a difficult decision for sure, i'm just worried i will not make enough money in the military, because theres only so much more rank i can achieve. i have a BS in computer science and my MBA and management exp. i've had a few job offers making around 80k and there's certainly room to grow. i feel like this is the hardest decision of my life, work 30 hr week for 55k+ in the military or work 60+ hrs for 80k.

i also should mention my wife and i 24 years old with a reasonable amount (150k) invested in mutual funds, my wife is a social worker making around 24k a year (sadly she has her MSW making 24k/yr). new cars paid off - 13' bmw 335i and a 12' subaru forester (vehicles paid for by parents). our only debt is our mortgage at $1175/mo. i'm not sure if this would change your decisions.

With that education you'd do fine and make a lot more. You can also look at other services options for OCS.

Why did you join the Army? I take it that it wasn't to pay for those degrees (since, if your parents can pay for your car, they likely would've paid for your education). Did you come straight in as an E-4? Have you met the goals that you intended to meet while in the service?