Determine your retirement date and your last day in uniform.  You’ve already determined when you’ll be clear of all service obligations.  You’ve calculated when you’re eligible for pay raises that affect your retirement.

Officers must retire on the first of the month, enlisted on the last day of the month.

Now take a look at your leave status.  Do you want to take terminal leave or sell it back?  This is usually determined by what your follow-on plans are.  Do you want the time off with pay or do you want the cash?  I encourage you to do the calculations for payback.  The amount may surprise you.  And remember, you accumulate leave while you’re on leave.

Because you’re retiring, you also get an additional 20 working days of Permissive TDY if you retire INCONUS and 30 days if retiring OUTCONUS.  Verify with your Administration or Personnel Department how they interpret this instruction and how they will write your orders.

Take into consideration the time of year you’ll be leaving active duty.  If you’ll be moving from warm weather to cold…….do you want to that in February?   I made a move once from Chicago to Atlanta in February.  Let me tell you, watching the movers take my china hutch down an ice covered ramp in a white out blizzard was not my idea of a good time!  Or theirs!  Nor did I relish driving in that weather on unfamiliar roads.

Maybe the kids need to finish a school year.  Or your spouse has job or school considerations.  This is where it becomes important to have already discussed any other agendas with your family.  You have a unique opportunity being able to choose when you’ll transfer….so consider ALL the variables.

Starting from midnight the day prior to your chosen retirement date, count backward, using up leave days first, then PTDY days.  Remember to skip the weekends if you’re taking only working days for PDTY.  What does that make your real last day in uniform?

How does this date work with doing a turnover with your relief?  Do you or the boss need or want a turnover?  If your date is near your PRD, this might not be a big issue.  This may be an appropriate time to talk it over with leadership and let them know that you’re planning to retire.

Keep in mind that your last 30 days in uniform will NOT be the best time for a turnover!  You will not be thinking about turnovers or daily routine.

This is part of a complete step-by-step military retirement checklist. I’ll be posting weekly action steps here, so please subscribe over in the right-hand column so you’re sure to get each update.

Okay, it’s settled.  You’re leaving the service.  In order to accomplish a successful stress-free transition, you’ll want to clear some space on your calendar.  Decide now how much time you will invest in the process of creating your future.  This will be time spent primarily accomplishing the activities in this book as well as anything else you must do before you leave the service.  Can you commit a couple of hours a day or a week to your transition?  Maybe you have 30 minutes at lunch, or an hour before dinner.  It could be a couple of hours early on Saturday mornings.

No time?  You can make some by letting go of other activities temporarily.  Put aside the bowling league for a season or step down from your leadership role in the sailing club.  Now please don’t sacrifice your sanity!  If bowling gives you an outlet for stress and you enjoy spending this time with friends, keep doing it.

Ask yourself what is the most important thing in your life right now.  Which activities will move you quickly through this transition and which will slow it down?  (Your answer will depend largely on how much time you have remaining in uniform.)

This is part of a complete step-by-step military retirement checklist. I’ll be posting weekly action steps here, so please subscribe over in the right-hand column so you’re sure to get each update.

Before you leave the military, take a good look at your current and future financial situation. If you’ve never done this before, I can offer some practical suggestions for getting started. You may want to begin by learning the basics about financial statements, the different types and what each tells you.

Begin with a simple Income and Expense breakdown. List all of your current income sources and their monthly amounts. Then list all of your monthly expenses. If you’ve never done this and would like help, contact the Fleet and Family Support Center or your Command Financial Counselor. They have pre-printed forms and can help you fill them out.

Next, project what your Income and Expenses will be after you leave the service. For a retirement pay projection, there are several online sites that offer this service. Do you have any debts that could be paid off before you leave the service? How might you simplify your lifestyle to lower expenses? Remember to include your new State and Federal tax bills.

One of the most frequently asked questions by people leaving the military is, “How do I calculate the equivalent civilian salary to my military salary?” Or “How much income do I need to maintain my current lifestyle?” A broad estimate would be to increase your gross military pay by 35%. {gross MIL salary + (gross MIL salary x 35%) = gross CIV salary}

For those of you comfortable with your Income and Expense Statement, complete your Balance Sheet listing all your assets and liabilities. I define assets as those things that generate income, and liabilities as those things that create expenses. By this definition, your home is a liability. Yes, its value may be appreciating long term but it does not generate income. It doesn’t put money in your pocket every month. Think about it…

Assets are things like bank Certificates of Deposit, rental income property, your own business, and interest earning savings. Liabilities are things like such as your mortgage, credit card balances, school loans, and car and boat loans. Is your Asset column larger than your Liabilities? How might you increase your assets? What could you buy that would generate positive cash flow every month? Are there any liabilities you can reduce?

A clear picture of your financial situation will help when you go into salary and benefits negotiations with a prospective employer. And if you plan to start your own business, your Balance Sheet may be required as part of a bank loan request package.

Which brings up an often asked question, “Will prospective employers use my military retirement retainer and benefits as bargaining chips during my civilian salary and benefits negotiations?” The answer is that they should NOT.

All the major corporate Human Resource Officers I’ve spoken with have told me they would never consider military retirement in calculating an offer. It’s clear discrimination.They don’t ask about your dividend payments from stocks or other income sources, why should they ask about your military retirement?

Your retirement is a benefit you’ve earned and is not to be used as a bargaining chip. If you’re asked about it, I suggest you say it’s not on the table for discussion. If they persist, you may want to go to another company. That one isn’t ethical.

Start the next chapter in your life on solid financial ground. Know where you are now, where you want to be in the future, and create a plan to get there. Manage your money with integrity and it won’t end up managing you!

Recommended Reading List

* Military Resumes and Cover Letters, by Carl Savino and Ronald Krannich

* Jobs and The Military Spouse, 2nd Edition, by Janet I. Farley

* Retiring From Military Service, by K. C. Jacobsen

* Military-to-Civilian Career Transition Guide, by Janet I. Farley