Military Pension/Social Security/Inheritance/Long Lost Grandmother

[bradgator2]

Some of you money nerds will find this interesting. My dad retired enlisted (E9 - Command Master Chief) Navy after 28 years in 1997. I've been going through all his paperwork since his passing. He kept track of some neat stuff.

His salary in 1997 was $44,000 a year.

I dont know what you military dudes call it, but he immediately started collecting his "Military Pension". It started at basically $2000 a month ($24,000 year) in 1997.
In 2022, it was $3766 per month ($45,193 per year). From 1997 to his passing last month (we'll call it an even 26 years), he collected $891,832 in military pension. I believe that was definitely more than what he made in his 28 years in the service.

Social Secuity. I love reading articles about when people should start taking it. Immediately and get a lower amount.... or delay and get a higher amount. I remember he started collecting right at 62, and my mom was pretty pissed about it. Well, in the 11 years that he collected SS, he received a total of $141,522.

My mom delayed it to 67, and she died a few years before him. She only collected $58,950.

 

[B52G8rAC]

Some of you money nerds will find this interesting. My dad retired enlisted (E9 - Command Master Chief) Navy after 28 years in 1997. I've been going through all his paperwork since his passing. He kept track of some neat stuff.

His salary in 1997 was $44,000 a year.

I dont know what you military dudes call it, but he immediately started collecting his "Military Pension". It started at basically $2000 a month ($24,000 year) in 1997.
In 2022, it was $3766 per month ($45,193 per year). From 1997 to his passing last month (we'll call it an even 26 years), he collected $891,832 in military pension. I believe that was definitely more than what he made in his 28 years in the service.

Social Secuity. I love reading articles about when people should start taking it. Immediately and get a lower amount.... or delay and get a higher amount. I remember he started collecting right at 62, and my mom was pretty pissed about it. Well, in the 11 years that he collected SS, he received a total of $141,522.

My mom delayed it to 67, and she died a few years before him. She only collected $58,950.

Is called Retirement Pay. Reduced compensation for reduced services. Still serving on the retired list and subject to recall.

 

[Detroitgator]

Is called Retirement Pay. Reduced compensation for reduced services. Still serving on the retired list and subject to recall.

You watched Space Cowboys again, didn’t you?

 

[bradgator2]

Part 3 of the story.

He would go to the bank twice a month, withdraw the deposit, and literally shove it into the mattress. We found $312,000 in cash hidden.

If he would have instead placed into a S&P500 index. So $1000 a month, every month, since 1997 (a total investment of $312,000)….. it would be worth $11,500,000 today.

 

[B52G8rAC]

You watched Space Cowboys again, didn’t you?

What's a Space Cowboy? I have several, well two, friends that were recalled after they had been retired for more than 5 years.

 

[FireFoley]

Part 3 of the story.

He would go to the bank twice a month, withdraw the deposit, and literally shove it into the mattress. We found $312,000 in cash hidden.

If he would have instead placed into a S&P500 index. So $1000 a month, every month, since 1997 (a total investment of $312,000)….. it would be worth $11,500,000 today.

I am sorry for your loss as I lost a parent about the same time a year ago. Regarding the mattress money your point is well taken, but if you decide not to give your new found wealth to your daughter to manage and do not want it, please just let me know and I will be happy to relieve you of it.

 

[BMF]

Some of you money nerds will find this interesting. My dad retired enlisted (E9 - Command Master Chief) Navy after 28 years in 1997. I've been going through all his paperwork since his passing. He kept track of some neat stuff.

His salary in 1997 was $44,000 a year.

I dont know what you military dudes call it, but he immediately started collecting his "Military Pension". It started at basically $2000 a month ($24,000 year) in 1997.
In 2022, it was $3766 per month ($45,193 per year). From 1997 to his passing last month (we'll call it an even 26 years), he collected $891,832 in military pension. I believe that was definitely more than what he made in his 28 years in the service.

Social Secuity. I love reading articles about when people should start taking it. Immediately and get a lower amount.... or delay and get a higher amount. I remember he started collecting right at 62, and my mom was pretty pissed about it. Well, in the 11 years that he collected SS, he received a total of $141,522.

My mom delayed it to 67, and she died a few years before him. She only collected $58,950.

E9 pay ain't no joke! @CGgater (I think CG got 29 years).

I started collecting my reserve pension at the age of 50 (birthday is late August, I retired Sep 1 and got my first pension check Sep 30) - I did over 10 years of active duty post-2008 when congress changed the rules for collecting reserve pension (every 90 days of active duty post-2008 you can draw your pension 90 days early, up to 10 years - so I maxed it out). I left the fire department early, but my last 6 years on the FD I was on military leave - so I started collecting my FD pension in 2016.

On the FD they call somebody who dies young a "pension builder" - I hope to be a pension killer. My father was retired Navy and died 9 years after he retired.

Interesting thoughts on collecting social security. I doubt I'll be working full-time, but if I can still pick up 30-90 day emergency management gigs I'll hold off on collecting. I turn 62 in 2032 - which, I believe, is the year 'they' are saying SS will "run out of money"....go figure. lol

 

[bradgator2]

I am sorry for your loss as I lost a parent about the same time a year ago. Regarding the mattress money your point is well taken, but if you decide not to give your new found wealth to your daughter to manage and do not want it, please just let me know and I will be happy to relieve you of it.

We found 2 sets of old Christmas cards for the 5 grandkids, that he never sent out. $200 in each card. So the 5 grandkids each got $400 over the weekend from the Grandpa.

4 of them immediately started talking about what they wanted to buy. My daughter that you are referring to above turned to me, handed me the money, and said "you know where this goes". God I love that kid

 

[FireFoley]

We found 2 sets of old Christmas cards for the 5 grandkids, that he never sent out. $200 in each card. So the 5 grandkids each got $400 over the weekend from the Grandpa.

4 of them immediately started talking about what they wanted to buy. My daughter that you are referring to above turned to me, handed me the money, and said "you know where this goes". God I love that kid

For the sake of not wanting to go to jail, please let me know the day your daughter that you so dearly love, turns 18. I want to marry her!!!

 

[Gator By Marriage]

For the sake of not wanting to go to jail, please let me know the day your daughter that you so dearly love, turns 18. I want to marry her!!!

The hell with that; I want her to manage my money!

 

[bradgator2]

I've been doing a little reading regarding the Social Security "timing" regarding my parents. Maybe you old geezers already know this. But this is what I found:

If you wait until the age of 70 to start taking benefits, then you would need 9 years to break even (total cumulative benefits) vs if you started taking at age 62. After the age of 79, then your gamble worked and you will be paid more in the long run.

If you wait until the age of 66 to start taking benefits, then you would still need 9 years to break even (total cumulative benefits) vs if you started taking at age 62. After the age of 75, then you win.

My dad started at 62, and died at 73. Total SS paid out $141,522.
My mom started at 66, and died at 70. Total SS paid out $58,950.

I'd love to know how much both paid in federal/ss taxes over their lifetime.

 

[g8r.tom]

I've been doing a little reading regarding the Social Security "timing" regarding my parents. Maybe you old geezers already know this. But this is what I found:

If you wait until the age of 70 to start taking benefits, then you would need 9 years to break even (total cumulative benefits) vs if you started taking at age 62. After the age of 79, then your gamble worked and you will be paid more in the long run.

If you wait until the age of 66 to start taking benefits, then you would still need 9 years to break even (total cumulative benefits) vs if you started taking at age 62. After the age of 75, then you win.

My dad started at 62, and died at 73. Total SS paid out $141,522.
My mom started at 66, and died at 70. Total SS paid out $58,950.

I'd love to know how much both paid in federal/ss taxes over their lifetime.

As I get closer to being able to collect, I find myself reading about when its "best" to start collecting.

 

[Concrete Helmet]

I've been doing a little reading regarding the Social Security "timing" regarding my parents. Maybe you old geezers already know this. But this is what I found:

If you wait until the age of 70 to start taking benefits, then you would need 9 years to break even (total cumulative benefits) vs if you started taking at age 62. After the age of 79, then your gamble worked and you will be paid more in the long run.

If you wait until the age of 66 to start taking benefits, then you would still need 9 years to break even (total cumulative benefits) vs if you started taking at age 62. After the age of 75, then you win.

My dad started at 62, and died at 73. Total SS paid out $141,522.
My mom started at 66, and died at 70. Total SS paid out $58,950.

I'd love to know how much both paid in federal/ss taxes over their lifetime.

Great point....it certainly makes me rethink the process especially since 78-82 seems to be in my genetic age code...

 

[Gator By Marriage]

I've been doing a little reading regarding the Social Security "timing" regarding my parents. Maybe you old geezers already know this. But this is what I found:

If you wait until the age of 70 to start taking benefits, then you would need 9 years to break even (total cumulative benefits) vs if you started taking at age 62. After the age of 79, then your gamble worked and you will be paid more in the long run.

If you wait until the age of 66 to start taking benefits, then you would still need 9 years to break even (total cumulative benefits) vs if you started taking at age 62. After the age of 75, then you win.

My dad started at 62, and died at 73. Total SS paid out $141,522.
My mom started at 66, and died at 70. Total SS paid out $58,950.

I'd love to know how much both paid in federal/ss taxes over their lifetime.

If I already knew this, does that mean I'm a geezer?

 

[bradgator2]

If I already knew this, does that mean I'm a geezer?

To be fair... everyone here already knew that

 

[Altitude Gator]

Part 3 of the story.

He would go to the bank twice a month, withdraw the deposit, and literally shove it into the mattress. We found $312,000 in cash hidden.

If he would have instead placed into a S&P500 index. So $1000 a month, every month, since 1997 (a total investment of $312,000)….. it would be worth $11,500,000 today.

Yeah, but then you might have to pay estate taxes (isn't the bottom limit for that $12M?).

 

[oxrageous]

How do you deposit $312,000 in cash without scrutiny? Seems like the feds would be up your ass in seconds.

 

[Concrete Helmet]

How do you deposit $312,000 in cash without scrutiny? Seems like the feds would be up your ass in seconds.

He didn't...he cashed his pension checks......time to badger someone else for a donation for a change...

 

[Detroitgator]

How do you deposit $312,000 in cash without scrutiny? Seems like the feds would be up your ass in seconds.

"Open 20+ LLCs that make/do absolutely nothing, each with a bank account, deposit there..." - The Big Guy, circa 2017

 

[bradgator2]

How do you deposit $312,000 in cash without scrutiny? Seems like the feds would be up your ass in seconds.

I just did this today actually.

Your question is/was obviously a big concern. We talked to several people, and they all said the same thing: "It's no big deal as you have a good reason. (which we obviously did). Take pictures how you found it. Deposit it all at one time."

The official banking rule is: if you deposit more than $10,000 in cash, then the bank has to complete a "currency transaction report".

https://www.fdic.gov/news/financial-institution-letters/2021/fil21012c.pdf

Currency Transaction Report (CTR): Use in Banking and Triggers

A currency transaction report (CTR) is used in the banking industry to monitor and report cases of potential money laundering.

www.investopedia.com

So my sister and I split it up. My sister has an account with the same bank that my dad banked at. Last week, I went ahead and opened one with them too. We both talked to our branches to let them know we were making a very large cash deposit this morning so we could do it at the same time. All this money was withdrawn from his account with this bank, so the story can be easily "tracked". We just want it to be as transparent as possible.

Even with the "heads up", it still caused a little stir. My half fit in basically a shoe box. That bank has a greeter at the door and asked if I needed help when I walked in. I told her the scoop. Eyes wide open, she asks, "Can I feel how that much money weighs"

I got to go into their vault. They counted it twice with their fancy machines and they hand walk me to the teller with a digital deposit slip and electronically filled out the CTR. Whole thing took an hour. I felt like the manager was just a tad annoyed during the whole ordeal, but was very pleasant once it was done.