USAFA 401k

Discussion in 'Air Force Academy - USAFA' started by ServantoUSA, Jan 4, 2018.

  1. ServantoUSA

    ServantoUSA USAFA '22

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    I was recently appointed Class of 2022 and was wondering if you can start putting money into the 401k or TSP as a cadet or does that not begin until after commissioning.

    Thanks for any help!
     
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  2. Stealth_81

    Stealth_81 Super Moderator 10-Year Member Founding Member

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    You will have to wait until after you commission for the TSP. You can put money into an IRA/Roth IRA while at the Academy, however.

    Stealth_81
     
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  3. ServantoUSA

    ServantoUSA USAFA '22

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    Thanks for the help! Is there a way to automatically contribute a portion of the paycheck albeit small to an IRA to avoid the temptation of spending it? Also, I was wondering if there is a way to pay a part of the ACE Loan beforehand so that your paycheck can be larger.
     
  4. BlahuKahuna

    BlahuKahuna 5-Year Member

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    I would just use USAA to set up any investments/autopay. Don't know about ACE Loan.
     
  5. raimius

    raimius 10-Year Member

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    Automatic funds transfers from your bank account works very well. (Fewer screw ups than relying on finance/dfas.)
     
  6. FMHS-79

    FMHS-79 Parent

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    It was easy to setup to setup a USAA Roth IRA with automatic monthly investments (funded by direct transfer from his USAA checking account). We also setup a USAA investment account that we transfer additional funds to whenever my DS's checking account gets over $2,000. We'll use funds from his investment account for special items like his class ring, etc.
     
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  7. mommahedg

    mommahedg Parent

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    Our DS also did the USAA Roth IRA and set up monthly auto contributions from his USAA checking acct. We will move extra funds into an USAA savings account for class ring, plane tickets etc. It's great that so many of the cadets are already looking at saving money and investing.
     
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  8. AROTC-dad

    AROTC-dad Moderator 5-Year Member

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    Given their long time horizon and the fact that most cadets/mids will be in the lowest tax bracket during the SA/ROTC years, a Roth IRA generally makes the most sense until they are eligible for the TSP.
     
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  9. ServantoUSA

    ServantoUSA USAFA '22

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    Thanks for all the responses, but does anyone know about the ACE Loan? Is it possible to pay it down beforehand so that the paycheck is greater?
     
  10. Stealth_81

    Stealth_81 Super Moderator 10-Year Member Founding Member

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    The term ACE loan is not a USAFA acronym so that might be why no one is answering. I think the ACE (Advance for Clothing and Equipment) loan is for USNA.

    The answer to your question is no, paying it early will not increase your paycheck. You will get the same net pay as everyone else and if the loan is payed early, the extra goes into a “held pay” account that you would get when the normal loan pay off time arrives. My son had this due to an outside scholarship that was applied to his loan each semester. He didn’t see the money until everyone else did.

    Stealth_81
     
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  11. ServantoUSA

    ServantoUSA USAFA '22

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    Oh, my apologies for the wrong term. hmm, interesting, Thank you though! I appreciate all of the insight everyone!!
     
  12. FMHS-79

    FMHS-79 Parent

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    Since the cadet "Advance Pay" does not carry any interest/finance charges, I've suggested that my DS put all "extra" funds into an interest bearing account to help build a firm financial base.
     
  13. Gaittrainer

    Gaittrainer Member

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    Regarding the loan, I'm guessing you will have to wait and see. DS 2018 did have a higher paychecks his c4c or freshman year because of scholarships he took with him. The difference from other posters might be the type of scholarship ie for any college related costs. DS never inquired if he could use his savings to pay off the loan early. There was no need as no interest%.
     
  14. Capri120

    Capri120 Parent

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    USAFA does not hold back funds. If you have scholarship or pay for other items in advance, you will see more money in your paycheck. DD has a 4 year scholarship that has been covering at least her books. She has a larger net paycheck as a result.
     
  15. Stealth_81

    Stealth_81 Super Moderator 10-Year Member Founding Member

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    I see that this has changed then. That is why I tend to moderate more than post. My information is now almost 10 years old and things change each year.

    Stealth_81
     
  16. ServantoUSA

    ServantoUSA USAFA '22

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    Thank you, both... I am very grateful for this forum! I accepted my appointment today feeling very confident in the information gathered.
     
    Last edited: Jan 7, 2018
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  17. keeperkat90

    keeperkat90 Member

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    If your asking about the career starter loan that we receive as juniors at usafa, you don’t want to begin paying it off until graduation (unless you take navyfederals and Usaa’s) they want you to pay off the loan in $600 payments each month once you start. It’s a lot better if you invest the loan.
    C/o 2018
     
  18. raimius

    raimius 10-Year Member

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    The career starter loans are a great deal, if you use them wisely. The interest rate is often LESS than inflation!
     
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  19. ServantoUSA

    ServantoUSA USAFA '22

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    Hmm this makes me wonder, what does the normal 4dig get paid? I've seen a table before but can't seem to find it. Thanks!
     
  20. FMHS-79

    FMHS-79 Parent

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