(Originally Published | March 5, 2012)
If I were asked to recommend the best career-path or strategy for building a secure financial future, my response would be to develop as many income streams as possible within the least number of years. May sound like a strange answer to such an important life planning question, but it isn’t … not really. Not when you objectively assess how the last 30-40 years of employment, career development, specialty education and personal savings and investment performance have affected the majority of middle-aged to older Americans. The facts speak for themselves, and here are a few:
Using all the benefits of this strategy, this young person could have chosen the US Armed Forces—as a public-sector career path—and have the government pay for their education; any specialized training and contribute towards their future retirement benefits. All but the retirement benefits would be available immediately and the latter in twenty short years. Ongoing education, medical and other lifetime benefits offered to retirees coupled with free training for transitioning to civilian careers would have kept their personal financial commitment minimal. However, a private-sector person would have likely incurred many expenses, including student loans and unreimbursed job-related expenses which they would have had to pay for out of their normal living expenses... In contrast, the military retiree would have secured a guaranteed lifetime income that would have adjusted annually with inflation--as it has for all but one of the last 40 years. When you factor in that for the past 40-years private-sector wages have lagged in relation to annual cost-of-living adjustments, this is a big thing. During this same period, the average American loss buying power almost every year while public-sector retirees were subsidized. Even with the loss of their second job or career, they would still have income to depend on. Perhaps most confirming about my public-sector recommendation is the unquestionable fact on what guaranteed lifetime income means in lieu of the other data. If our young person followed this suggestion and retired at age 40 from the military (or other public-sector career), depending on rank and other separation benefits, the average beneficiary may receive from $900 - $1,450 per month in income which, over the course of the next 35-40 years of life expectancy would be equivalent to $432,000 - $740,000 of guaranteed income. Officers and high-ranking administrators would, of course receive significantly more in retirement and over a cumulative period. Monthly income ranging from $2,500 - $8,500 is not uncommon among higher-ranking retirees. This would mean that the US government is committed to paying such retirees $1,000,000 - $4,000,000 even after their fully covered period of service. This has been Uncle Sam’s way of subsidizing and securing a comfortable lifestyle for those considered to have served this nation well. While choosing a career should not be solely based on its’ income potential, let’s face it, what you earn during your working years determines your quality of life while earning it and when retired. At least 20% of Americans will pursue public-sector careers in the 21st Century and maximize their chances for multiple income streams. Given the vast array of career fields and opportunities the public-sector will offer, the private sector should give serious thought to implementing similar, competitive terms and benefits. |
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