My husband is an Air Force Officer with 8 years left to retirement. We have just been made aware of the option for Voluntary Separation Pay with which he can opt to get out within the net year for a large lump sum payment. The lump sum would be subject to federal/state taxes and we would lose the pension and medical benefits that would come with retirement. We are tempted to take advantage of this, but I would like to go over the pros and cons and know exactly what we would be giving up so that we can make a truly informed decision. I would appreciate any suggestions or ideas. I just don't know what to think right now.
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