Air Force

March 22, 2013

Lessons from a pro: Invest for retirement now

Staff Sgt. David Salanitri
Air Force Public Affairs Agency

WASHINGTON (AFNS) — A member of the Air Force Civic Leader program and financial expert recently addressed several ways Airmen can prepare better for retirement.

John O’Connor, the chairman of J.H. Whitney Investment Management, spoke about what Airmen can do now, in order to take away a substantial pension by the time they retire.

Currently, only 13 percent of enlisted and only 16 percent of officers collect a pension, he said.

According to O’Connor, thinking about the future can be hard, but starting young can make life easier down the road.

“The whole secret to getting where you want to be is starting with a plan,” O’Connor said.

He emphasized the first step Airmen should take is to educate themselves on their finances.

“The biggest mistake people make is overspending,” O’Connor said. “They get used to carrying some sort of consumer debt. The best investment you can make is to pay down debt if you have it.”

Once debt is paid down, Airmen should begin saving and letting compound interest work on their behalf, according to O’Connor.

“Once you begin to save, you begin to earn interest on your interest,” he said. “Time can either be on your side, or time can be your adversary.”

O’Connor stressed that all Airmen should enroll in the thrift savings plan, or a similar retirement plan, as soon as possible. That retirement plan can then be “the keystone tool around which a lot of your other choices can be made,” he said.

He added that Airmen shouldn’t be afraid to ask for help as solutions may be one calculation away.

“Because it was born as a math problem, it can be fixed as a math problem,” O’Connor said.

The next step is to understand the true value of a dollar. O’Connor said that people need to learn how to spend money wisely.

“Always think of the price of something, not as what’s on the sticker, but in terms of the pretax money I have to earn to pay for the price on the price tag,” he said.

O’Connor stressed the importance of why it’s important to invest in a retirement plan, and not to solely rely on the pension Airmen receive after 20 years of service.

In the military “you earn no credit toward your retirement until you’ve hit your 20 years,” O’Connor said.

While serving, O’Connor said Airmen have the perfect, stable foundation to begin good savings habits.

“Build something to take with you when you leave the service,” O’Connor said.

All and all, he summarized his advice this way.

“Pay off debt, understand it’s up to you to plan for the future, and plan for the unexpected,” he said.

For more information on financial options for Airmen, visit www.militaryonesource.mil and for more information on TSP, visit www.tsp.gov




All of this week's top headlines to your email every Friday.


 
 

 

U.S. Air Force to kick off COOL program

MAXWELL AIR FORCE BASE, Ala. (AFNS) — The Community College of the Air Force officially launched the Air Force Credentialing Opportunities On-Line program March 16. Air Force COOL is a pathway for enlisted Airmen to earn industry recognized professional certifications and licenses to enhance their active-duty work and to prepare them as they transition to...
 
 

Military leads the way in equal opportunity

VANCE AIR FORCE BASE, Okla. — What does it take to change a nation? What force has the power to move millions of people in their fundamental views of the world? For Christopher Daniels, a U.S. Air Force colonel, that answer is simple: leadership. In his words, “The true agent of change is true leadership.”...
 
 

AFAF gives all Airmen a chance to pay it forward

NELLIS AIR FORCE BASE, Nev. — It’s Sept. 12, 2005. Senior Airman Dennis Hutchison is recovering from a hard day’s work on the flightline of Robbins Air Force Base, Georgia, when he receives a call that tragedy had struck. “I got a notification from my family that my father had passed away,” Hutchison said. “I immediately contacted...
 

 

OTS eliminates component distinctions

MAXWELL AIR FORCE BASE, Ala. — The Air Force Officer Training School here has removed all service component distinctions from its line officer commissioning courses. Regular Air Force and Reserve cadets no longer receive their commissions through Basic Officer Training or Air National Guard cadets through the Academy of Military Science. With the start of...
 
 

Increase your sphere of influence

JOINT BASE SAN ANTONIO-RANDOLPH, Texas — In his November 2013 Roll Call, Chief Master Sgt. of the Air Force James A. Cody said that a nomination to a developmental special duty is an honor and expresses the faith and confidence leadership has in an Airman to purposefully shape our future. Earlier in 2013, 10 special...
 
 

AF announces 23 AFSCs on reenlistment bonus list

Joint Base San Antonio-Randolph, Texas (AFNS) — Enlisted Airmen in 23 Air Force specialty codes may be eligible to receive a selective reenlistment bonus (SRB) effective March 12, Air Force officials announced March 12. The Air Force is moving forward with a higher end-strength, so AFSCs eligible for the SRB program will increase to address retention of...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


Directory powered by Business Directory Plugin