Before deciding future, check all the angles - Army News | News from Afghanistan & Iraq - Army Times

Before deciding future, check all the angles

If you’re thinking of punching out of the service for life in the CivDiv, you need some rock solid intelligence. John Gannon, Vice President for Investor Education at Financial Industry Regulatory Authority (SaveandInvest.org), helped create this essential, pre-decision checklist.

• How stable is the target company? You don’t want to go to work for a company that starts laying people off three months later. As much as possible, look at the company’s key financial prospects. “Unfortunately, in this economy, the last ones in are the first ones out,“ Gannon said.

• It’s more than just the salary. Apples-to-apples salary comparisons can be misleading. The private-sector salary likely will be higher that your straight military compensation, but your various military benefits are valuable. That’s especially true for people who have served more than 10 years and have a military pension in sight. “If you’re close to retirement, do you really want to leave before you get your pension?” Gannon said.

• Don’t assume there’s a 401(k) and health insurance. It’s hard to put a dollar amount on a retirement plan, health care, and similar benefits, but don’t ignore these factors. Most private-sector companies have a 401(k) plan and some form of health insurance, but you’re smart to compare them with your current deal. “Does the employer even offer a 401(k) plan?” Gannon said. “If they do — which is not a requirement — what are their matching contributions, if any?”

Equally important is health insurance. If you have a child with special needs, for example, the military’s total coverage is hard to beat.

• Unexpected costs. Leaving the service and moving across the country could cost you thousands in unanticipated moving expenses. Reimbursement for moving expenses is limited, so know your anticipated costs and entitlement. “How much of that cost will you have to pick up yourself?” Gannon said. And if your spouse has a job, also consider whether he or she would be able to find similar work in the new location.

• The slumping housing market. Now is not a good time for anyone to sell a home. And even if you can, it may take quite some time, Gannon said.