One of the biggest shocks after leaving the military is how much you’ll be paying in Federal and State taxes.

In the military, approximately 35% of your pay was not subject to taxation. Once separated or retired, all of your income will be subject to being taxed, including your retirement retainer.Please talk to a civilian tax accountant/ strategist before you leave the service. Get an accurate picture of your immediate financial future. Project which tax bracket you will be in and adjust your withholdings as appropriate.

Take action now to protect as much of your income as possible.