I have never valued my military retirement in my portfolio. It has crossed my mind that I would need a large lump sum to produce the COLA’d monthly income. Like you the practicality of having it is I can better tune out all the noise and do what’s I think is prudent with my portfolio - I am 50/50 stock bonds with a treasury ladder. I have no need nor want for a lot of market risk at this point (age 64) in life.For my purposes I'm comfortable approximating the present value of my military retirement pay as [ gross monthly payment *12 ] * [ life-expectancy in years per SSA ]. I re-calculate at the end of each calendar year once the new COLA values come out along with an updated life-expectancy.
I'm fortunate that it covers my non-discretionary spending in real terms; the practical effect is that I take a bit more risk with an AA of 75/25 equities/fixed and can better tune out the noise of layoffs (still taking 4-6 shits a month), inflation (I like eggs), and market variability.
FWIW,
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As far as regularity and job stress when I get nervous I usually have more frequent bowel movements; you must be at peace with the more aggressive 75/25 portfolio only going once a week or so. Or the eggs could be a factor.
In squadron officers school in 1985, my quasi home room teacher said my sense of humor was inappropriate at times. That was accurate. If we couldn’t laugh we would all go insane as my hero jimmy buffett used to say. Thanks for your service - we are lucky to have our pensions.
Statistics: Posted by Parkinglotracer — Thu Mar 06, 2025 3:17 am — Replies 14 — Views 922