Save Money Before Your Transition

There I was ... I actually secured my BS in Professional Aeronautics and my MEd in Education long before I retired, for promotional purposes.

I was in my golden retirement assignment, Ft. Shafter, Hawaii, two years before my retirement, when I heard about this organization called Army Pilots to Airline Pilots. Unfortunately the online organization is no longer around. It was packed with all former Army helicopter pilots who made it to the big time. They gave great advice, websites, networking information, literally everything a pilot needed to make that transition.

I began first by realizing my goal for life after the military, to become an airline pilot.

Second, I made a list of all the requirements, then prioritized them, with realistic dates to achieve the goals. Yes, a checklist for success. I still have the original list, with a slight two year delay in the middle due to the aftermath of 911.

Third, I began this strategic planning like an air assault mission, having my primary goal as airline pilot but having three alternates. It was a lot of work. My alternates were air traffic control, something I did as enlisted, supply guru as a GS-10+, and finally an elementary school teacher. Also, I even considered JROTC instructor and did the entire packet ... as an alternate.

I highly recommend saving money prior to retirement for the transition period. As I review my social security document, there is a significant dip in income for the first year after retiring, about one fifth the pay. It was difficult. I was a single parent. With my youngest two kids, 12 and 13, I rented a studio. I slept on the couch and they on air mattresses. We all had to sacrifice.

I took odd flying jobs to build the multi-engine time required for a commuter. I also had some family separation time while I took a five month stint in the Mainland, and my mom helped watch the kids. Luckily two months of that time my ex had the kids for the summer.

Finally, I landed my dream airline pilot job at a small commuter here in Hawaii. I've been here over four years and enjoy captain status.

I can still aim higher for a major airline, but I am happy with my job security, such as it is (they are furloughing pilots as I write -- lucky I have a lot of seniority) and my flight benefits.

My bottom line recommendations are:

1. Begin planning a post retirement career immediately -- it's never too soon. And plan for what you have always really wanted to do.

2. Own a house by retirement. (I would've but I lost over $80K in divorce/custody battle disputes -- don't get divorced and if you do, share the kids).

3. Plan for alternates. Being flexible and having that degree in education held me over during my starving years, the first year out and the first year pilot pay. I supple mented my income with substitute teacher pay.

4. Save money for at least a year, stand alone, not counting your retirement pay. I know most financial institutions recommend six months for an emergency fund, but at a minimum one year would have been better for me. It took me four years to pay off all the legal and aviation bills.

Good luck and dream on! I took nine vacations last year, eight this year when it ends and have two major vacations already planned for next year. I absolutely love retirement, especially at 60 percent.

(Submitted by CW4 (RET) Terry Salazar)

Comments

[John Sepulveda]

Saving money is the best idea going. It's like having employees working for your profit. The more money you have saved up and earning 3.75 or 4.25% APY the more money it will make for you at year's end. Then you can use some of that money to pay taxes and the rest to pay your phone bill and other incidentals like gasoline. The important thing is that our country's economy is sound and your money is worth more than the paper it's printed on. But don't just spend all your time saving all your money; live a little. Buy that 8 ozs of Starbucks for a $1.50 every once in a while. Enjoy the Dream. You've earned it.

[money-saving-tips]

Made this transition myself, and for those that have lived in military provided housing, don't underestimate the costs of living in the real world.

Not just housing, but groceries as well. The on-base/on-post commisary really does give great deals, and you'll miss them.

On the other hand, you can look forward to better raises !