Financial advice for a successful military career?

2015-12-03T10:31:59-05:00

Response by LTC Stephen F. made Dec 3 at 2015 10:34 AM

2015-12-03T10:34:38-05:00

I recommend that each time you get a pay raise that you apply a portion of that money to an investment such as an IRA or a Roth IRA. Set up your retirement account as a monthly allotment SPC(P) Private RallyPoint Member. This way you will gradually increase your retirement accounts without noticing much difference in your take home pay.
While you are young and healthy purchase a life insurance policy [whole life or some type of equivalent that is not term insurance because premiums on term insurance go over significantly each time you renew - usually at 10 years]. SGLI is great but it is transformed into VGLI term insurance after you leave the service.

Response by COL Jean (John) F. B. made Dec 3 at 2015 10:40 AM

2015-12-03T10:40:22-05:00

SPC(P) Private RallyPoint Member - I concur with the advice posted by LTC Ford. In addition, "live within your means" and avoid debt to the degree possible. When you do have debt, be current in your payments. Do not bounce checks (especially in AAFES or on-post facilities) or do other things that will get you unwanted attention by your chain of command. Don't base your lifestyle on combat pay, per diem, etc. that will not always be there.

The fact that you are asking is a sign that you are already on the right course.

Response by SrA Daniel Hunter made Dec 3 at 2015 10:41 AM

2015-12-03T10:41:05-05:00

1. Do not spend more than you have.
2. If you are aboard ship, when you get to a foreign port allow yourself one item to purchase. It should be moderately priced and be something that will last (not consumable or perishable).
3. Do not compare yourself or what you have with your MSG. They likely made MSG by following the first two points.
4. If you are single, stay that way. If you are married stay that way.

Response by SGT David T. made Dec 3 at 2015 11:08 AM

2015-12-03T11:08:14-05:00

1. Avoid any car dealership in the same town as the post.
2. Do not believe that a retired Sergeant Major or First Sergeant working for said dealership has your best interests in mind, they do not
3. Do not under any conditions use title loans, pay day loans or check cashing places.
4. Avoid credit card debt if at all possible. Having one that you carry a small balance on and pay off each month will help your credit. The star card never helped mine but when i didn't pay it my credit was impacted so avoid that one too.
5. Any interest rate over 12% should be avoided at all costs
6. SAVE SAVE SAVE SAVE!!!!!!!! I cannot stress this enough. DO NOT TOUCH YOUR SAVINGS UNLESS IT IS AN EMERGENCY!!! I got out after 9 years and had $13K saved up. It was gone on 4 months just to get me established as a civilian. You will at some point leave the Army be it after 4 years or 30 years, but you will eventually leave. Save for this and prepare.

I was a prime example of what not to do since I pretty much did the exact opposite of what I am suggesting. It took me years to fix my credit.

Response by Sgt Aaron Kennedy, MS made Dec 3 at 2015 12:45 PM

2015-12-03T12:45:05-05:00

1) Be frugal.
2) You don't "need" a car. You "want" a car. There is a lot that can be done on base, or near base, and the bus is a great way to get there, without a $300-400 car payment + insurance + gas draining your bank account. There is always time to get one later, and lower interest rates.
3) IRAs look them up.
4) USAA/Navy Fed. Look them up.
5) The chowhall is your friend. McDonalds will make you fat, and drain your bank account.
6) Every hour spent at PT is an hour not spent spending money. The hardest thing is not spending money. Find habits that don't drain your bank account. Kill habits that do (like smoking).

Response by PO3 Private RallyPoint Member made Dec 3 at 2015 12:45 PM

2015-12-03T12:45:05-05:00

1) don't marry a stripper .... That is what my senior chief advised me ....
2) We are not paid that much so don't donated your retirement away. Charity not always involve money. You can donate time, and you may earn a candy (Ribbon) out of it too.
3)TSP TSP TSP.
4) GI BILL GI Bill, my senior chief said:" When you get out of the military and your still don't have a BS degree in a usable major? you are dumper than I thought you are!!"
5)Don't buy high price tag item without a waiting period. mandate yourself to wait a week to buy things that at $XXXX range, and 2 weeks on $XXXX ... blah blah blah.
6)Don't waste money on sex and games. a wife or husband? look at rules 5.
7)Your uniform is cool and attractive! so don't spend money on expensive clothing. plus if your girls or men don't like your uniform ... they aren't suppose to be on your "money spend list" anyway.
8)Car is for commute, not for show off.
9)interest rate and interest rate, learn it and it will serve you well.
10) don't spend money on stripper too :).

Response by MSG Brad Sand made Dec 3 at 2015 1:01 PM

2015-12-03T13:01:58-05:00

The best advice I can give you is avoid debt like the plague and invest wisely at a young age and keep at it. While I do not know your age, I am guessing you are closer to 17 than you are to 35. A young investor has the advantage of time. Every dollar you will invest at 18 has then same value as $4 at 35 and probably $64 at my age. I would tell you to set up your Thrift Savings Plan now. Put 3-5% of your before tax dollars into it. I would tell you to consider more aggressive areas, as you are young, because the long term grow is better. Spread the plan out into a couple area and leave it alone. After this is done, have a nest egg. When the market adjust, great time to invest and it is best to do it in protected plans. Do your research into Roth and Standard IRAs. Not telling you to not have fun, or purchase a house, BUT wait just a little while and retire as a millionaire instead of being broke and broke?

Response by CMSgt James Nolan made Dec 3 at 2015 1:29 PM

2015-12-03T13:29:42-05:00

Start with staying away from any of the "right outside the base" predatory loan joints. If it says buy here/pay here, flee

Response by LCDR Private RallyPoint Member made Dec 3 at 2015 1:30 PM

2015-12-03T13:30:30-05:00

PV2 Aday-Probably the most relevant topic I've seen all day on RP!

LTC Ford has laid out some good advice; I'll add to that the following: You're not making much now, and having any "extra" to set aside is probably a challenge...it was for me.

If you're not married/with dependents...hold off on those decisions until you have more security in your military career, or, if you know you will be charting another course, wait until you've made the transition, and settled into that new life.

Avoid debt wherever you can. A nice ride makes it easier to enjoy your time off...but trust me, the ladies prefer a guy who takes them to places other than the bar off base (concerts are cheaper than car payments)...no matter what he drives. Living on base sucks...but it beats shelling out 3/4 of your pay every month to pay rent. BAH is a "rigged" game in most military towns-they know what you get, and what you don't get. Look out for the gals who know that too.

Probably wouldn't hurt to identify someone senior who is doing what you want to be doing in ten years. Wisdom used to say five, but things are changing. Figure out what they did "right"...do that. Figure out what they did "wrong"...don't do that.

Finally, please believe me when I say that things do get better with time...I know that's hard to believe, but it happens. Like on mission-think a few steps ahead, and you'll have your head in when it hits the fan.

Good Luck!

Response by MSG Gerry Poe made Dec 3 at 2015 3:38 PM

2015-12-03T15:38:42-05:00

Need to find an alternate retirement plan to invest in to make up the difference! For you Jacob, you need to made good with your GI Bill and go to college if you haven't yet. There is always a life after the military, even if you put 20 years in. I started putting money in growth fund since I was 19 and a PFC, now it is up there where it will help when I decide to hand up the uniform. I got 22 years in and every year of service I have found some way to help my retirement fund a little to a lot. Just be smart and made smart decisions. Good luck!

Response by LTC John Shaw made Dec 3 at 2015 10:03 PM

2015-12-03T22:03:54-05:00

SPC(P) Private RallyPoint Member I love the advice already given, I will focus on retirement savings.
TSP is a must, you need to save 15% of your current income for retirement and invest mainly in the C, S and I funds for growth over the course of your lifetime this strategy of dollar cost averaging will pay off.
If 15% seems high then start at 6% and increase 1% every year until you get to 15%.
I know it seems like a lot but you will quickly build up a meaningful retirement account that you will need now that the retirement program is changing.
Use the TSP for low cost, solid investment, do not get sucked into Annuities or 'loaded' (those with sales charges) mutual funds.

Response by SSG David Dickson made Dec 6 at 2015 9:43 AM

2015-12-06T09:43:44-05:00

Live below your take home. Save, don't spend your bonuses as downpayments on $40000.00 Mustangs, Charges, and Camaros,

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2017-12-27T06:39:20-05:00

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