Buying Back From the Military

Dear Dave,

My husband served four years in the military before becoming a state trooper. He now has the chance to buy back his four years from the military. This would enable him to retire four years sooner. The problem is that the buyback cost is $10,000 a year. Do you think it’s worth it? 

Amy

Dear Amy,

Mathematically it’s a bad idea. You’d be better off investing the money.  Now, if there’s a happiness factor involved – if he hates his job, or something like that – it might warrant some additional consideration. Otherwise, you’re basically pouring money into a pension fund that dies when he dies. Even if there’s a survivor’s benefit for you, it just disappears when both of you are gone. You can’t take it with you! 

There are three things you can do with money. You can spend it, you can save it, and you can give it away. I want you to make smart decisions and live like no one else, so that later you can live like no one else! If the money just disappears, you’ll have no chance to change your family tree or make a huge positive impact on your community through giving.    

- Dave

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