Reenlistment Bonuses

[Deror]

Gentlemen,

First let me state that I am absolutely NOT joining the military for the paycheck, my question is asked primarily out curiosity, but also to gain insight to prudent financial planning as an officer from people who have BTDT.

That said, I have read that naval aviators earn an annual retainment bonus after their initial contract is up. Is their an average amount that I can expect to earn down the road?

I ask, because I have began setting up a long-term financial plan to purchase a house without a mortgage in a decade or two. I plan on saving a percentage of my paycheck each month in a high-interest account, and was wondering how much I can expect to add to that sum from miscellaneous sources.

Thank you all for your service, time and consideration.

 

[wlawr005]

Your location reminded me of this...

 

[OnTopTime]

I have read that naval aviators earn an annual retainment bonus after their initial contract is up. Is their an average amount that I can expect to earn down the road?

Hard to say now, as the bonus program changes every year to influence retention numbers and is based on many different factors, including (obviously) retention projections, platform and YG. Some will get big bucks, others will get nothing.

I plan on saving a percentage of my paycheck each month in a high-interest account...

What kind of account and what kind of interest rate? There aren't many sure things these days paying more than a few percent.

 

[Steve Wilkins]

There aren't many sure things these days paying more than a few percent.

Au contraire. It's all about who you know.

 

[Deror]

What kind of account and what kind of interest rate? There aren't many sure things these days paying more than a few percent.

I suppose "high" is a relative term. I was planning on an account that automatically invests in certificates of deposit when certain benchmarks are met.

 

[OnTopTime]

Au contraire. It's all about who you know.

Thanks, Steve; that brought a smile to my face.

 

[FlyinSpy]

What kind of account and what kind of interest rate? There aren't many sure things these days paying more than a few percent.

I always thought this was an interesting little deal - the Savings Deposit Program. 10% interest rate, compunded quaterly (but only available if you're drawing hostile fire pay). Try beating that in a money market!

http://www.dfas.mil/militarypay/woundedwarriorpay/savingsdepositprogramsdp.html

 

[OnTopTime]

I always thought this was an interesting little deal - the Savings Deposit Program. 10% interest rate, compunded quaterly (but only available if you're drawing hostile fire pay). Try beating that in a money market!

http://www.dfas.mil/militarypay/woundedwarriorpay/savingsdepositprogramsdp.html

Yeah, that's a good deal, but there are severe limitations on the program, starting with what you mention: you have to be drawing hostile fire pay to be eligible to make deposits. Also, deposits are limited to $10K, and the account stops earning interest 90 days after leaving the combat zone.