Comments on: Pension Max: Is It Right For You? http://www.figuide.com/pension-max-is-it-right-for-you.html FiGuide's free daily tips provides short, actionable strategies to help you achieve a successful, worry-free retirement. Fri, 10 Feb 2012 02:22:54 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Dan http://www.figuide.com/pension-max-is-it-right-for-you.html#comment-4610 Dan Thu, 01 Dec 2011 14:29:38 +0000 http://keenerfinancial.com/?p=1101#comment-4610 I am about to retire from the military. Let say I will be getting $1000.00 per month. The military offers the Survivor Benefit Plan for the spouse if I die first. That is, if I elect to par-take of the SBP they will withhold $100.00 per month to pay for it. My spouse will then get 55% of my retirement if I die first. The pros are as follows: I would only get taxed on $900.00 not $1,000.00. I would get a COLA increase every year. The set amount each year is Guarantee. The negatives are as follows: If I die first then my wife, say 2 years later, then everything stops. Nothing to pass on to my children. How would a Pension Maximization favor in comparison with the military's SBP? Dan. I am about to retire from the military. Let say I will be getting $1000.00 per month. The military offers the Survivor Benefit Plan for the spouse if I die first. That is, if I elect to par-take of the SBP they will withhold $100.00 per month to pay for it. My spouse will then get 55% of my retirement if I die first.

The pros are as follows:
I would only get taxed on $900.00 not $1,000.00.
I would get a COLA increase every year.
The set amount each year is Guarantee.

The negatives are as follows:
If I die first then my wife, say 2 years later, then everything stops. Nothing to pass on to my children.

How would a Pension Maximization favor in comparison with the military’s SBP?

Dan.

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