Not completely true - Zomglawlz.
You will recieve a partial monthly VA check until the severance is payed back.
Help with Decision
- Thread starter Soldiergurl
- Start date
You will recieve a partial monthly VA check until the severance is payed back.
That's great to know. I misunderstood how the repayment worked. Thanks for the clarification.
No Problem! I know this because that is what is happening to me.
Well, whatever works best for you and your life is what really counts.
I'm glad to see you're thinking about all options as so many people think only short term and this really bites them in the end.
I hope all turns out well for you and yours. If your mate can get his 20 year retirement and discharge in good health, you will both have a solid base to work from through your retirement years - which will be a couple of decades to be sure!
Planning now for a future of retirement time - whether either of you work or not - whether either of you choose to work or not - is good thinking. Can't tell you how many folks out there HAVE to work until age 60 - age 65 - age 70 - due to lack of retirement funding until they reach a senior old age. By the time they can finally retire, many are too frail too fragile to really enjoy their "golden years".
At least both of you will still be young(er) than most retirees, and if you choose to work another career, you can, and will still be able to retire (again!) and be able to more fully enjoy your "golden years".
Best of luck to you and yours!
Let us know what you decide and PLEASE let us know how this severance pay/VA issue finally works out. There are a few Forum members who do take severance pay instead of fighting for their PDRL, and these questions of how it works after you sign your DA 199 does come up from time to time.
If you have time, will you let the Forum know how DFAS does your payments (lump or several checks) and how long it takes for you to get your after-tax severance paid to you? That way, when the next person asks about the timeline and how this works, you will be able to pass this along for them to read and help them out.
V/r,
nwlivewire
Oh. I'm sure you may already know this, but both of you have VA Home Loan rights, so it is possible that you can both use your VA Home Loan rights - which is why I mentioned qualifying under separate income loans as opposed to a joint income loan. This can open up a few more doors of opportunity, too.
Well there you go! It sounds like you have thought this out and weighed the pros and cons. As for my post above, I was thinking long term and factoring in the possibility of your husband ending up in the same situation you are in now (worst case). Medical injuries, force shaping, budget cuts, etc. all make the military not nearly the safe bet it was 15-20 years ago. There are no guarantees.
I know it is a long shot, but if something were to happen and he were to separate (not retire) and you had taken severance vs. retirement, neither of you would have a pension, Tricare or any of the other benefits. Also, you may not have kids now, but what about 5-10 years out? Having a kid is expensive, especially if you have a premie like we did (born in her 5th month). Aside from medical coverage, when/if you do have kids and every dollar counts, you will look at the Commissary differently (from experience)
I'm just throwing out long term thoughts and the need for contingencies. But, it sounds like the severance makes sense for your situation now as long as you have plans for the long term and worst case scenario. If you chose the severance pay and are careful with it, you'll do fine.
This relates to Tricare Prime vs Tricare Standard, you will still have Tricare if you live outside of the 50 mile radius, but it is Standard vs. Prime. Both have their pro's and con's, but both are decent programs (for now
)
Yes I know that you will still have tricare, I was talking about Prime which is a better fit for me and my family and I've used it my whole Miltary career with no hiccups
There is a lot of good information on this thread. As for me, I would probably take the severance...but would definitely talk to a CPA in order to crunch some number in regards to tax brackets and such.
A side question: Someone gets discharged/separated, gets severance, and goes through the VA and gets approved for disability. Let's say it takes a year or so for the VA disability pay to start up. Is the amount recouped through the VA equal to the full amount recieved through severance?
For example, I get involuntarily discharged, get $30,000 for severance then get apporved disability. I put the $30,000 away for a year in an interest bearing account then pay VA back the $30,000 after a year when the VA disability pay starts up.
I am just wondering if this would make sense fiscally. I hope this may go along with this thread and not merely a hijack.
Thanks.
A side question: Someone gets discharged/separated, gets severance, and goes through the VA and gets approved for disability. Let's say it takes a year or so for the VA disability pay to start up. Is the amount recouped through the VA equal to the full amount recieved through severance?
For example, I get involuntarily discharged, get $30,000 for severance then get apporved disability. I put the $30,000 away for a year in an interest bearing account then pay VA back the $30,000 after a year when the VA disability pay starts up.
I am just wondering if this would make sense fiscally. I hope this may go along with this thread and not merely a hijack.
Thanks.
This is an excellent perception on how to make the best out of a situation. The only bad part is that any investment vehicles (outside of stock related) are only paying between .3% to 1.2% per year.
That's true I suppose. I have actually been thinking about because it very may happen to me. I am going to get VA disability but it may take about a year to come through after my discharge. I am thinking about taking the severance pay of about $30,000 just in case it takes my family and I to transition out and get a decent job. I figure I'd just pay it all back in a lump sum as soon as the disability pay starts.
Does anyone out there have any experience with this?
Does anyone out there have any experience with this?
I do not believe you will be able to pay it back in a lump sum, also keep in mind for that year after discharge you will be able to amend your file and anythign minus obvious trauma etc. will be easier to service connect. The VA will only recoup. however for the initial item/rate you were discharged for- so for instance you get your 30K severance for a DoD 10% severanced item, through your struggles you get a 50% va rating for multiple items, that original 10% is item the DoD booted you for is the recoverable item etc. so if somehow an invested 30K made you more than the recoupment over the period of recoupment then maybe it could work. Best to fight for the highest DoD percentage possible in most cases. The OP is only unique due to mil to Mil rating and at what she has stated her severance would be is either a mid tier officer or has quit a few years in service, and its the total amount of difference between her DoD/VA rating that makes it in my book.