Money

[Christcorp]

Wilbur; I'm not going to argue with you. There are plenty of ways to tax defer investments. Including CD type investments. I.e. Self Directed IRA CD. But again; this is only one of many options. And I'm not going to argue with you. I don't need a new financial advisor. I've been doing fine for 30 years. And as with any financial investing, diversification is the key. And in this thread, I mentioned one possibility for what to do with an almost 0% loan. But you've got your own money, do whatever you want with it. I'm not providing you or anyone else financial advice. I'm simply mentioning financial options.

 

[wilbur5672]

" There are plenty of ways to tax defer investments. Including CD type investments. I.e. Self Directed IRA CD. But again; this is only one of many options."

IRAs will not work here unless one spreads them over several years which is my exact point in using future earnings in lieu of the loan. IRAs are limited to a maximum of $5000 per year. And, short of low rate tax exempt government bonds or offshore investments that will not be reported to the IRS, there are no others. And, OBTW, offshore accounts not reported to the IRS are illegial.

Christcorp, I never proposed that the entire loan be used for a car. My point is to simply forgo the loan not necessary for a dependable car and have more disposable income later for either tax deferred investments or unforeseen expenses. One can then take advantage of the TSP in addition to the 5k annual IRA limit.

I guess the lesson here would be for anyone contemplating taking the loan for tax deferred retirement purposes to receive competent help from a financial advisor prior to signing for the loan.

 

[Pima]

I can't tell you how many people we knew that always took the loans anytime they were offered. As it has been said it is 0% int, so even if you only get a 3% return, you're still making 3% more. The key is to spend wisely, so that you won't have to live on credit cards and go in debt while repaying it.

As many people that we have seen take it land up going in debt even further, because they spend like there is no tomorrow and buy everything they see that has no practical use in their life(do you really think you will have time to play the 5 new Xbox games while you are in UPT or use that $1K Mt Bike?)This is typically compounded because they get the TLA/DLA and it seems like there is an endless pot of gold...little do they realize that as soon as they move into that base house or close on a home on the economy the little things needed start really piling up...i.e. silly things like a BED or dishes or towels, curtains. Your 1st time to the commissary will always be several hundred dollars more (spices, aluminum foil, condiments, aren't cheap).
Thus, as you are tooling around in that Honda Spyder will you be happy at night sleeping on a blow up air mattress?

Believe it or not that happens alot for the young guys. Here is your reality for your 1st assignment
1. VOQ's cost about 900 a month (even as students they will have apartments on base for the students, but it ain't free)
2. Live in base housing:
a. Curtains (they don't come with window coverings) Cheapest Wal-Mart and you are still looking at 300 plus for both curtains and rods
b. Dishes, glasses, silverware, cookware...at least another 1K for the basics to include silly things like a coffee maker
c. Microwave (none in base housing) 100
d. Towels, bedding at least 300
e. BED...queen size good quality @1200
f. Sofa, even a futon 350
g. Kitchen table with 4 chairs at Sam's 500
h. Lamps 200
i. computer desk 100
j. LAWN MOWER (got to do it yourself) 200 and that doesn't get you the edger, or the other little toys to do it properly.
k. FIRST TIME COMMISSARY TRIP...300 (like I said, laundry products, dish detergent, garbage bags, ziploc bags, everyday stuff is expensive)

So just for the bare bones, no pictures on the walls, not buying a hammer to put up the pictures, or the plunger to unclog the toilet. I totalled out over 4K dollars and except the bed and table I was on the cheap side. Now you spent the big loan on the car and planned to take that PCS loan to set up your house. An O-1 under 2 yrs gets @2600 a month before taxes, or probaly closer to 2000 after. You will now owe them @175 a month for 12 months and still be short and additional 2K to set up the house, so what do you do you start charging! The very next month you are hit with the 175 for the military, and 500 for the charge cards, leaving you with @1400 to live...no problem right? Well now add in your insurance, cell phone, cable bill, gas and food...you are close to living on fumes, g forbid your a newlywed and she can't get a job, but took 40K in student loans! That sports car starts to lose it allure when you can't afford to drive it on Friday night to meet the guys at the club or pay your snack-o bill!

Be sensible, you can live a great life on the salary, but if you want to beat the Joneses, then beans and weenies here you come!

 

[wannabe2013]

Believe it or not that happens alot for the young guys. Here is your reality for your 1st assignment
1. VOQ's cost about 900 a month (even as students they will have apartments on base for the students, but it ain't free)
2. Live in base housing:
a. Curtains (they don't come with window coverings) Cheapest Wal-Mart and you are still looking at 300 plus for both curtains and rods
b. Dishes, glasses, silverware, cookware...at least another 1K for the basics to include silly things like a coffee maker
c. Microwave (none in base housing) 100
d. Towels, bedding at least 300
e. BED...queen size good quality @1200
f. Sofa, even a futon 350
g. Kitchen table with 4 chairs at Sam's 500
h. Lamps 200
i. computer desk 100
j. LAWN MOWER (got to do it yourself) 200 and that doesn't get you the edger, or the other little toys to do it properly.
k. FIRST TIME COMMISSARY TRIP...300 (like I said, laundry products, dish detergent, garbage bags, ziploc bags, everyday stuff is expensive)

So just for the bare bones, no pictures on the walls, not buying a hammer to put up the pictures, or the plunger to unclog the toilet. I totalled out over 4K dollars and except the bed and table I was on the cheap side.

How much would this generally cost to ship from base to base?

 

[Zaphod]

The best financial advice you will ever get:

DON'T USE CREDIT CARDS!!

Ask me how I know......

 

[Christcorp]

How much would this generally cost to ship from base to base?

Another benefit of the military. You DON'T PAY to move. Uncle Sam pays for your moving. Your household goods, family, even a car.

 

[Zaphod]

I really don't want to know how you know that!
But I betcha there could be a good bar story in there

Nah. Just a bad marriage along with a lot of other stupidities.

 

[Pima]

The military may pay for your moves, but let's remember how they award those contracts...to the lowest bidder. I recall moving our grandfather clock(bought in the UK), the most expensive item we had as an O-2 (3K in 90). We had it for 10 yrs and everytime it was moved it was re-boxed, except for the last move, when they said we'll box in the warehouse...they didn't, instead it stayed strapped to the truck, but after moving across country in that manner it had tourqued and when they brought it off the truck on the dolley all of the glass fell and broke on the driveway. The replacement cost stateside was 10K. We hd it repaired. The next move the movers carried out the pendulum wrapped in paper and foam, I thought they are going to just place it on the truck, when twe received our HHGs in VA, they took the pendulum and stuffed it in a box with my cushions, again we had to repair it. When we left VA, we locked it up, made sure we had everything done properly that time. Lone and behold we got to NC, and the movers took the keys to unlock it!

SO the lesson for all of you is if it is priceless to you, make sure you keep an eye on it, or don't ever buy it if you can't part with it. Bullet built me a dollhouse right before we got married, I did not have that move with us for the first 13 yrs, it stayed at my Moms and we brought it from there. I did not want to lose it.

ANother thing that the movers decided they should have was my wedding gown. That was stolen on one move, and I only realized it years later (typically when 300 boxes need to be unpacked with little kids around your legs, you don't think where is my wedding gown).

The movers favorites items to steal are XBox, PS games, CD's and DVD's, very easy to pocket! To avoid that ask the movers to leave a box and you pack them yourself.

 

[Zaphod]

I have heard that many times. I am always sorry to hear about such things.

Let me put it to you this way....

When my first marriage finally fell apart, the debt had a good bit to do with it. We were both responsible for it, so I'm not pointing fingers.

However, if you added up the total debt that we had put on the cards over 6.5 years, and the interest, and the penalties, we had enought to have paid CASH for our house.

I regret that I STILL have not fully learned the lesson, but I'm much better at it now.

This is why those four words are the FIRST thing I think of whenever ANYONE asks for financial advice: DON'T USE CREDIT CARDS!!

It's right up there with "STUDY YOUR ASS OFF AT USxA!!" in the great pantheon of Wisdom That Zaphod Should Have Followed Himself.

 

[Zaphod]

The military may pay for your moves, but let's remember how they award those contracts...to the lowest bidder.

<snip>

SO the lesson for all of you is if it is priceless to you, make sure you keep an eye on it, or don't ever buy it if you can't part with it.

<snip>

The movers favorites items to steal are XBox, PS games, CD's and DVD's, very easy to pocket! To avoid that ask the movers to leave a box and you pack them yourself.

Amen to all the above.

If it's priceless or simply the sort of thing you don't want "lost", then pack it yourself and MOVE it yourself. In my case it was some personal items (some silver my mother had given me, my computer, etc.) and my firearms. NO ONE moves my firearms but ME, and I can give you a list of obvious reasons as long as your arm as to why.

 

[Christcorp]

Movers usually LOVED me and my wife. They NEVER packed one thing of ours. We packed everything. All they ever did was to take it out of our house and put it in the crates on the truck. But I agree, be careful if it's fragile or valuable. later... Mike....