5 Great Tips for Investing in International Real Estate - We Are The Mighty
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5 Great Tips for Investing in International Real Estate

Why Should You Invest in International Real Estate?

There are many reasons why you would want to stick to a familiar real estate market. Investing in your state or country is a good way to keep your assets close to you so you can manage them easily. What’s more, is that you’re able to learn about the market faster, discover lucrative opportunities quickly, and use the advantage of operating within a familiar legal system to make good long-term business decisions. Still, the allure of the international real estate market should not pass you by.

In the modern real estate world, success stories are built by diversifying your portfolio, not only by the asset class but also the geographical location of your assets. Imagine all of the lucrative opportunities that await in emerging economies around the world– particularly those that are undergoing rapid urbanization. With all of that in mind, let’s take a look at the best tips that will help you expand your real estate portfolio into international markets.

International Real Estate Investing Tip 1: Do Your Market Research

Every good business decision in real estate investing should be founded on tangible information and actionable reports. Your first step should be to research international markets that have a lucrative opening for foreign investors (such as yourself). You don’t want to enter an overly-competitive market only to get pushed out by the established local investors. Instead, you want to find a market that is experiencing an economic ascent and one that will allow you to enter a lucrative niche.

Start by researching real estate trends in one country at a time. Then analyze projections and forecasts for those up-and-coming economies of the Asian market–like Indonesia. Next, try to discover which regions are becoming commercial and which are emphasizing residential property development. Finally, keep close tabs on the local competitors so that you can learn from their best practices and capitalize on their mistakes.

International Real Estate Investing Tip 2: Choose Your Niche

To become a successful investor, you need to diversify your portfolio in numerous ways. One of those ways is to invest in a niche. This is especially important when you’re looking into international since you want to tap into the most lucrative sector right off the bat–even if it’s passively.

For example, many countries are focusing on sustainable real estate development–meaning that overseas investors should try to obtain properties within the green niche to capitalize on the emerging trend and appeal to the local buyers. Choose your niche and you will be able to secure your foothold in a sector with few competitors and a lot of long-term development potential.

One of the most important considerations, when you’re investing internationally, is that the local legal system will most likely be quite different than what you’re used to in your home country. This is why it’s important that you learn about the local real estate investment strategies and connect with local real estate professionals who can guide you through the legal processes that will help you acquire land and properties quickly. 

It’s important that you work with someone who understands the ins-and-outs of the market, the local culture, and what the local buyers want. This will allow you to make better investments over the long term.

Investing in International Real Estate Tip 4: Market Your Properties

Marketing is a big part of success in the real estate world. This is especially true for investors who are trying to solidify their position in a new and unfamiliar market. Your goal should be to build brand recognition and to sell or lease your properties quickly without getting overpowered by the competition. You should invest in marketing to build awareness, capture the attention of the buyers, and inspire them to put their trust in your brand.

Investing in International Real Estate Tip 5: Scale and Manage Your Growth

Finally, always remember that the road to long-term success in a new market starts with a small-but-smart investment. You shouldn’t go all-in on your first investment abroad, even if you have a lot of capital. Instead, find an affordable opportunity with a sound ROI potential and scale your growth by investing in bigger projects as time goes by.

Wrapping Up

By investing in international real estate, you’re tapping into exciting new markets and capitalizing on lucrative opportunities – especially if you find the right niche. Be sure to implement these tips into your strategy to become a successful international investor.

About the author: Mike Johnston is an avid blogger and content writer with a focus on real estate, home improvement, and the construction industry.

This article originally appeared on Active Duty Passive Income. Follow them on Facebook.

MIGHTY MONEY

Meet this combat veteran turned rapper and music label executive

This article originally appeared on Victory Capital. Follow @VCMtweets on Twitter.

Economic harmony

Raymond Lott is a decorated combat veteran. He spent 10 years in the Marine Corps as a war reporter and combat photographer. He earned the Combat Action Ribbon and an award for combat photography while deployed in Iraq. He is also a hip-hop recording artist, the CEO of Military Musician Platform, and owner of Ninja Punch Music.

When Lott left the Marine Corp he felt lost. He recalls “thinking why am I here? Why am I doing this?” He started to feel that he didn’t have a purpose. Yet, music was a form of therapy that helped calm the noise in his head.

Lott knew his savings would run out. He needed to get a job. But he spent the last money he had to buy a one-way ticket to LA.

Once in Los Angeles, Lott didn’t have a place to stay and was out of money.

“I was broke. I didn’t have any money. So, my last resort was to go to the VA.”

The VA helped Lott get on his feet and helped him get into school. He eventually started earning money. The VA, Lott recalls, gave him the opportunity to focus on becoming the musician he set out to become. It put him on the path to financial stability. That allowed him the independence to be creative. It was his breakthrough.

Lott learned about the music business. That’s when things started to happen for him. He started posting short music videos on Instagram. The following he gained in those viral posts helped him start making money as an artist. From there he crowdfunded his first album. It was the springboard to building his music business.

Today, Lott publishes albums with other veteran musicians. He says it feels good to share their stories. But it takes money to make music. It takes money to run a business. That’s why having a financial foundation is so vital.

Leveraging the resources of the VA helped Lott gain the financial foundation necessary to build a successful music business. And there are other resources available to veterans. That’s why he offers this advice.

“Whether you’re looking to start a business or just get on your feet financially, those things are available for you. It’s out there. All you have to do is look…”

Some examples include:

1)      Veterans Entrepreneur Portal

Offers training and employment programs, and information and access to various resources to start, finance, and grow a business.

2)      The Small Business Administration’s Office of Veterans Business Development

Provides training, counseling and mentorship, and guidance on how to sell to the federal government.

3)      The National Veterans Foundation

A charity dedicated to advocating for veterans and members of the guard and reserves. Services include crisis management and job referral.

4)      Department of Defense Office of Small Business Programs

Provides veterans interested in starting their own small business links to the type of public and private programs that can support those efforts.

For more information and useful financial tools visit Victory Capital.

This article originally appeared on Victory Capital. Follow @VCMtweets on Twitter.

MIGHTY MONEY

They started at the bottom, now they are billionaire veterans

These are the guys who have lived the American dream. Five former enlisted warriors from various services who raised their right hand when it was time to serve, then got out and hustled to earn what they knew could be theirs.


These veterans went from E-1 to billionaire.

Related: 9 incredibly successful companies founded by military veterans

1. John Orin Edson, Army – Net worth: 1.6 Billion

Mr. Edson’s service began during the Korean War when he enlisted in the Army, where he spent three years in the signal corps.

Once out, Edson began selling his own racing boats from a parking lot in Seattle, Washington. He eventually bought the rights to Bayliner Marine for a reported $100.00 and developed the company. Edson sold it to Brunswick for $425 million.

He joined the billionaire’s club through sound investing and now reportedly spends his days flying helicopters and cruising yachts.

5 Great Tips for Investing in International Real Estate
Stays calm and makes billions (Image from Forbes)

2. Daniel Abraham, Army – Net worth: 1.8 Billion

When Abraham finished his service with the infantry in 1947 Europe, he returned stateside where he bought the Thompson Medical Company. At the time, the company had revenue of $5,000.00 annually. Today, the company is still around and is doing quite well.

He joined the billionaire’s club through his interest in the weight-loss industry, which led to his development of Slim-Fast Foods. You may have heard of it.

5 Great Tips for Investing in International Real Estate
Slim-Fast money! (Image from Gossipextra.com)

3. David Murdock, Army – Net worth: 4 Billion

Mr. Murdock dropped out of school in the 9th grade and was drafted into the Army during WWII. Once out, Murdock moved to Detroit and was homeless for a time, but he managed to get a $1,200 loan to buy a failing diner.

He flipped it for a small profit that he used to move to Arizona. There, Murdock began a career in real estate, acquiring many businesses, including the pineapple and banana producer Dole Food Company, which he developed into the giant it is today.

Murdock joined the billionaire’s club by selling his 98-percent share of the sixth largest Island of Hawaii. He believes in health and has vocal plans to live to see his 125th birthday.

5 Great Tips for Investing in International Real Estate
(Image via Kim Brattain Media YouTube)

4. Charles Dolan, Air Force – Net worth: 5 Billion

Charles Dolan served in the Air Force before beginning his endeavors in telecommunications. Dolan got his start producing sports clips that he sold for syndication.

In the 60s, he established Teleguide, a platform that provided information services through cable television to hotels in New York. Dolan created the predecessor to what would become HBO.

He served as executive chairman of AMC Networks, which includes AMC, WETv, IFC, and the Sundance Channel, as well as the independent film business, IFC Entertainment.

Dolan serves as chairman to Cablevision now and, after stepping down as CEO, he bought the Red Sox… No big deal.

5 Great Tips for Investing in International Real Estate
Go Sox! (Image from NetWorthHQ.com)

Also Read: 5 essential business values from a veteran-owned company

5. John Paul DeJoria, Navy – Net worth: 4 Billion

Born in Echo Park, California to immigrant parents, John Paul served two years in the Navy before getting out. He went from homeless to living in his car to Billionaire through pure hustle.

He went salon to salon, selling hair products wherever he could, developing his company Paul Mitchell Systems with partner Paul Mitchell.

His true rags-to-riches, American-dream story continues as DeJoria is still part of several businesses, including the Patron Spirits company.

He’s also a former member of the Hells Angels. How’s that for keeping it real?

5 Great Tips for Investing in International Real Estate
Started at the bottom now he’s here! (Image from Forbes)

MIGHTY MONEY

How to use a TSP to invest in real estate

Military members are accustomed to significant challenges. Combat tours, deployments, and frequent transfers are a few of the difficulties they face frequently. Because of this stress, many military members experience significant struggles when it comes to getting ahead financially.

Possibly one of the greatest benefits to U.S. government or military service is the Thrift Savings Plan. The Thrift Savings Plan (TSP) is a retirement savings and investment plan offered to current employees of the military and federal government.

Since it’s a “defined contribution” retirement plan, the retirement income you receive from the TSP will depend on how much you (and your agency, if applicable) contribute during your working years–along with how well your investments perform over that time. Though it offers numerous advantages for retirement savings, the TSP is an under-appreciated and under-utilized benefit offered by the federal government.

Being a service member gives you access to investment opportunities that civilians don’t. That’s a great thing! At the same time, many service members are young and haven’t had much formal financial education, so navigating the investment options to invest is tough. Though sometimes confusing, investing early is the key to wealth! I know several retired service members who made it a point to start early. They didn’t just rely on their retirement, but also bought rental properties in areas where they were stationed, and invested in taxable accounts. After 20 years, they were set for life.

Why TSP?

To start with, the TSP is cheap.

When you make any investment, the investment company is going to take some of your money as a service fee; nobody works for free. The TSP currently charges a service fee of 0.04%, which is probably the lowest you will find anywhere in the world. Even index funds, which some investors swear are the best investments, normally have service fees at least twice as high as the TSP. Most employer-sponsored retirement savings plans are at least three to four times more expensive than the TSP.

The TSP is also a tax advantage. Since the TSP is a tax-deferred or tax-qualified retirement program, you are making a deal with the IRS that you won’t use this money until you are close to retiring. In return, the IRS says it won’t tax you on a portion of that money. This is one of the big selling points of any retirement savings plan. With traditional TSP contributions, you get a tax break now and pay taxes in retirement. Conversely, you make Roth TSP contributions with after-tax dollars. So, you don’t get a tax break now, but the account grows tax-free over the years. Additionally, your withdrawals in retirement are tax-free.

Can a real estate investment be funded using a TSP?

The TSP can be invested in real estate with some conditions. The only option is to use the funds for a residential loan, which is real estate that one is living in as a primary residence. In theory, one could rent out a couple of extra bedrooms, which would be considered an investment. However, if you are still employed, you may be able to transfer some of the TSP funds to an IRA or solo 401k, which both allow for investing in real estate. If you are retired, the entire TSP balance can be transferred.

Using your funds to buy an investment property

Borrowing against your TSP contributions can be an easy way to establish a down payment and closing costs for your investment property. The loan is limited to the funds that you have contributed to your TSP account – not matching funds from your agency or service – and any accrued earnings. The loan amount must be between $1,000 and $50,000 and gets repaid at the interest rate for the G Fund at the time of processing. A $50 processing fee gets added to your loan as well.

Benefits of buying an investment property with TSP

Interest from a TSP loan gets paid to you – not a commercial lender – and payments can be taken directly out of your paycheck. When you repay your loan, you repay it with interest. The repayment amount gets deposited back into your TSP account and is invested according to your most recent contribution allocation. There’s also the option to amortize the loan as needed to change repayment details like extending the payback period for up to 15 years– which tweaks the number of payments or adjusts its amount.

How does a TSP loan work?

Loan payments are paid proportionally from your traditional and Roth balances, and from each TSP fund in which you have investments. Applying for a TSP loan is easy and there are no denials as long as there’s sufficient money in your account. If you default on your TSP loan, your credit isn’t affected– because although the remaining balance becomes taxable income, the default isn’t reported to credit bureaus. Before taking out a TSP loan, be sure you’re not sacrificing your long-term retirement goals by doing so. There are possible financial ramifications to TSP loans, including having to postpone retirement to replenish your nest egg. TSP accounts grow through contributions and compounded interest both of which are reduced by loans taken out against them. It is always recommended to speak to a financial counselor before taking out a TSP loan.

When you’re underwriting potential deals, include the payment from your TSP loan in the cash flow analysis and budget ahead of time for the payroll deduction. If it still makes sense for you after all expenses including the loan repayment, it can be an amazing opportunity to fund your investment properties.

This article originally appeared on Active Duty Passive Income. Follow them on Facebook.

MIGHTY MONEY

Why these female veterans will never struggle for work again

Female post-9/11 veterans are the fastest growing demographic within the veteran population, but they’re also the greatest risk of experiencing homelessness after their service ends. Just like their male counterparts, they experience all the financial trappings that come with leaving the military. As of this writing, the national unemployment rate stands at 3.9 percent and is falling. But for female post-9/11 vets, unemployment is a solid 5.5 percent.

That’s why the Institute for Veterans and Military Families at Syracuse University decided to change all of that — by showing women veterans how to start their own businesses and never have to look for a job again.


Female vets are a valuable, knowledgeable part of the workforce. More than half of transitioning women have a college education and are twice as likely as men to have a background in science, technology, engineering, or math career fields. Despite this, many women have difficulty transitioning to civilian life and navigating their benefits, taking up to three months longer than male counterparts to find a job once they leave the service.

With this in mind, Syracuse University’s Institute for Veterans and Military Families launched its premiere entrepreneurship training conference, Veteran Women Igniting the Spirit of Entrepreneurship (V-WISE), with the help of the U.S. Small Business Association. It helps female veterans and military spouses find their passions and teaches them the skills they need to turn passion into a profitable business venture in just three phases.

5 Great Tips for Investing in International Real Estate

65 percent of these women will start businesses after the V-WISE conference and 93 percent of those will still be in business five years later.

(Institute for Veterans and Military Families)

Phase I of the V-WISE program is a 15-day online learning experience designed to teach participants the “language of business,” how to understand opportunity recognition as it relates to growing a sustainable venture, and present actionable strategies related to new venture creation.

The conference phase of the V-WISE experience is a three-day training offered to cohorts of 200 women at locations across the country. Participants must complete Phase I before attending Phase II.

The conference includes more than 20 distinct modules of training (representing over 40 hours of coursework) designed for both new business owners and to support the needs of existing ventures. Topics addressed include business concepts, financing, guerrilla marketing, human resources, legal challenges, profit models, and more.

Phase III, V-WISE Biz Support, provides program graduates with technical assistance to start and grow their business. Graduates will have access to incorporation services, financing services, mentorship, and opportunities for further education and skill-building with the IVMF and its partners, often at a reduced or waived cost. These services are available through a password-protected website.

And the system works. The V-WISE program is only six years old and has many of the three-phase programs under its belt but can boast more than 3,000 entrepreneurs — 93 percent of whom are still in business to this day. On Sept. 14, 2018, the Institute for Veterans and Military Families will host its 20th event in San Diego, Calif., where the slate of speakers will include:

  • Remi Adeleke, Transformers actor and former Navy SEAL
  • Angie Bastian, Co-Founder of Boom Chicka Pop Popcorn
  • Larry Broughton, Co-Founder and CEO of BROUGHTONadvisory and Founder and CEO of broughtonHOTELS
  • Neale Godfrey, founder and CEO of Children’s Financial Network
5 Great Tips for Investing in International Real Estate

The V-WISE class in Phoenix, Ariz. in 2017.

(Institute for Veterans and Military Families)

The V-WISE conferences are open to all women veterans, active duty female service members, and female partners/spouses of active service members and veterans who share the goal of launching and growing a sustainable business venture. It is just one of a slate of eight national entrepreneurship programs and three resources offered by the Institute for Veterans and Military Families — a slate the IVMF calls, “The Arsenal.”

Syracuse University’s Institute for Veterans and Military Families is the first interdisciplinary national institute in higher education focused on the social, economic, education and policy issues impacting veterans and their families post-service. Its dedication to veteran-facing programming, research and policy, employment and employer support, and community engagement allows IVMF to provide in-depth analysis of the challenges facing the veteran community.This one-of-a-kind dedication to the military-veteran community creates real, sustainable changes in the lives of military veterans, as showcased by the successful women who have graduated from the V-WISE program.

To learn more about the V-WISE program and learn how you can be in the next cohort, visit the V-WISE website.

Articles

A brief history of the Thrift Savings Plan, and why you need it

5 Great Tips for Investing in International Real Estate
Airmen 1st Class Diego Rojas-Rodriguez, far left, and Rolando Rodriquez, center left, speak to members of the 341st Comptroller Squadron mobile finance team at Malmstrom Air Force Base.


Where did the thrift savings plan come from and why do you need it?

In the beginning there was work; and then people died. Back in the day, American civilians simply worked until they couldn’t work anymore, and then they either relied on family to care for them, or they passed away. In the mid 1800s, a couple of companies took a look at the military’s retirement system and decided to give it a try.

The Thrift Savings Plan as we know it came into effect long after the civilian version of retirement due to the Federal Employees’ Retirement System Act of 1986. The TSP is the public sector’s version of the 401(k) that was established under the Revenue Act of 1978.

But the TSP was not the military’s first pension plan. According to Pension Research Council, pensions for the military predate the Constitution, but the U.S. Navy and Army struggled to manage pension funds — so much in fact that the new government had to bail them out at least three separate times.

Despite early issues with managing pension funds, the Army and the Navy continued to offer them as a means to attract and retain men in the services.

Eventually corporate America got on board and started to adopt its own retirement system modeled after the public pension system offered by the American military.

The private pension system was designed to reward line workers (those who worked in factories or on production lines) for years of service to one company. This worked both to the advantage of the individual as many skills were not transferable outside of a specific industry, and to employers because it guaranteed most of their employees would be loyal to them.

There were two problems with the way the pension system was set up: companies had to figure out how much money every year to set aside based on the number of employees they had, and many companies mismanaged that money just as the military had a century prior.

Thus, the 401(k) Individual Retirement Account, or IRA, was born by an act of Congress in 1978. With this system, employers agreed to set a predetermined amount of money aside, and employees agreed to manage it themselves.

As a result of the remodeling of the private pension system, our modern day public pension (the Thrift Savings Plan) was designed nearly a decade after the private pension plan.

So why do you need a TSP? Regular military retirement pay was never intended to fully provide for normal retirement.

The TSP was designed to supplement retirement pay, and while it is optional for military members, it makes money sense to set aside funds throughout your career to supplement the retirement pay that was never intended to fully financially support you.

In short, the TSP makes sense, and you should have one.

For more information on the TSP, you can check out the Thrift Savings Plan website.

MIGHTY MONEY

Deadline to transfer GI Bill benefits coming this July

Soldiers with over 16 years of service who want to transfer their Post-9/11 GI Bill to a dependent must do so before July 12, 2019, or risk losing the ability to transfer education benefits.

Last year, the Department of Defense implemented a new Post-9/11 GI Bill Transfer of Education Benefits, or TEB, eligibility requirement, which instituted a “six- to 16-year cutoff rule,” said Master Sgt. Gerardo T. Godinez, senior Army retention operations NCO with Army G-1.

Further, soldiers who want to transfer their education entitlement must have at least six years of service, he said. All soldiers must commit to an additional four years of service to transfer their GI Bill.


However, soldiers who are currently going through the medical evaluation board process cannot transfer GI Bill benefits until they are found fit for duty under the new DOD policy.

5 Great Tips for Investing in International Real Estate

(U.S. Army photo)


“For Purple Heart recipients, [all] these rules do not apply,” Godinez said.

Prior to the new policy, there were no restrictions on when a soldier could transfer their education benefits.

Since 2009, over 1 million soldiers have transferred their GI Bill benefits, Godinez said.

“To transfer their GI Bill, soldiers have to go into milConnect website, login with their common access card, then select the tab there that talks about the transfer education benefits,” Godinez said.

If a soldier needs additional help, they can visit their installation’s service and career, or education counselors. In July 2019, the new rules will be in effect and those soldiers with more than 16 years of service will not be eligible to transfer education benefits.

“Soldiers need to [review this benefit] to make an educated decision,” he said.

This article originally appeared on United States Army. Follow @USArmy on Twitter.

Articles

The Air Force just escalated its war with the airlines

The Air Force has just escalated its response to efforts by the airlines to hire away military pilots. They’re throwing huge retention bonuses to the pilots and boosting flight pay to $1,000 a month.


According to a report by BreakingDefense.com, the flight pay boost will add an additional $1,800 a month to the paychecks of officers. Enlisted men will see their flight pay go from $400 to $600 a month, a 50 percent increase, and taking their pay up $2,400 a year.

5 Great Tips for Investing in International Real Estate
Maj. Kurt Wampole, assisted by Capt. Matt Ward, 774th Expeditionary Airlift Squadron pilots, taxis a C-130H Hercules back to its parking spot. (U.S. Air Force photo by Master Sgt. Ben Bloker.)

“We need to retain our experienced pilots and these are some examples of how we’re working to do that,” said Secretary of the Air Force Heather Wilson in an Air Force release. “We can’t afford not to compensate our talented aviators at a time when airlines are hiring unprecedented numbers.”

In addition to announcing the increased flight pay, Secretary Wilson announced the creation of an “Aircrew Crisis Task Force” under Brig. Gen. Michael G. Koscheski. This task force’s formation is a sign that the pilot shortage the Air Force is facing has not improved. The Air Force release noted that at the end of Fiscal Year 2016, the Air Force was short 1,555 pilots overall, including 1,211 fighter pilots.

5 Great Tips for Investing in International Real Estate
An F-16 Fighting Falcon pilot, assigned to Detachment 1, 138th Fighter Wing, dons his helmet in preparation of a barnstorming performance for reporters, Feb. 1, 2017, in Houston. (U.S. Air National Guard photo/Tech. Sgt. Drew A. Egnoske)

The Air Force is looking to bring back 25 retired pilots to fill staff positions through the Voluntary Rated Return to Active Duty program, allowing pilots who are still current to be returned to front-line duties. The staff positions are non-flying, but retired pilots could have sufficient expertise to handle them.

This past June, the Air Force increased its Aviation Bonus cap from $25,000 a year to $35,000. These bonuses are paid to pilots who commit to stay past their service commitment for up to nine years.

The Air Force was also seeking to reduce the number of non-flying assignments for pilots, including headquarters positions and developmental opportunities. The Air Force is also trying to reduce additional units and add more flexibility for Airmen with families and children.

Articles

What is Career Incentive Pay and why do you need it?

5 Great Tips for Investing in International Real Estate
The Seawolf-class fast-attack submarine USS Connecticut (SSN 22) departs Puget Sound Naval Shipyard for sea trials following a maintenance availability.


Career Incentive Pay is another part of the U.S. military’s Special and Incentive pay system and is intended to help the Services address their manning needs by motivating service members to volunteer for specific jobs that otherwise pay them significantly more in the civilian sector.

Each career incentive pay amount is in addition to base pay and other entitlements.

Title 37 U.S. Code, chapter 5, subchapter 1 outlines several types of S&I pay, and sections 301a, 301c, 304, 305a and 320 address incentive pays that are career specific.

Section 301a

1. Aviation Career Incentive

Who: Military pilots

How much: $125 to $840 per month, dependent on number of years serving as an aviator. This lasts the duration of the pilot’s aviation career.

Section 301c

2. Submarine Duty Incentive (SUBPAY)

Who: Navy personnel aboard submarines.

How much: The Secretary of the Navy has the ability to set SUBPAY up to $1,000 per month, but it is currently between $75 and $835 per month.

Section 304

3. Diving Duty

Who: Service member divers.

How much: $340 for enlisted personnel and $240 for officers per month.

Section 305a

4. Career Sea

Who: Naval officers who’ve been assigned duties above and beyond what might be typical for an officer in the same rank and which are critical to operations.

How much: $50 – $150 per month, dependent on rank. There is a limit on payments made to O-3s to O-6s, and only a certain percentage of personnel in each rank can qualify for the pay.

Section 320

5. Career Enlisted Flyer

Who: Enlisted personnel on flight crews for the Air Force and Navy.

How much: $150 – $400 depending on years in the aviation field.

For more information on hazardous duty incentive pay and other S&I pays, check out Military Compensation.

MIGHTY MONEY

Senior executive with Navy Federal Credit Union says now is the time to buy

In the midst of COVID-19, there is really good news for veteran and military home buyers: It is the perfect time to buy.

Kevin Parker is the Vice President of Field Mortgage Originations for Navy Federal Credit Union. Parker shared that now, more than ever, is the perfect time for veterans, service members and military families to buy. He explained that the market currently has great rates, no “junk” fees and experienced VA loan lenders ready to work for them.


Parker advises the new service member to do their research first though. “Talk to lenders early and become familiar with the company that funds them. Many who provide [originate] don’t service the loan. Navy Federal Credit Union services every one,” he said. Parker also shared that it is important to compare both the rates and the fees. He explained some lenders will even offer an estimate of fees before you apply, making it easier to understand the total costs associated with the home loan.

For many active duty military families, purchasing a home can be intimidating and even anxiety provoking. This can be attributed to the frequent moves associated with military life and the concern of being able to sell the home when it is time to PCS again. But Parker wants military families to be at ease when considering purchasing a home. “Historically, it is a good investment and can create investment power in terms of future income,” he explained.

He also suggested that military families work with Realty Plus through NFCU.

Realty plus is a program through NFCU that pairs you with a coordinator who then connects you to a real estate agent who is specifically trained to work with military families. This program also comes with a cash back offer if you close on your home with one of those agents.

Veterans or recently separated service members may have different ideas in mind for their home purchase. Many are looking at states which will be their retirement homestead. Parker suggests that they pay attention to the economy in general and seek areas with good value for their money.

Parker also said that finding an area with NFCU branches wouldn’t hurt either.

The NFCU website states that they aim to, “Be the most preferred and trusted financial institution serving the military and their families.” NFCU was Founded in 1933 and is the world’s largest credit union. When they opened their doors, they had seven members.

Now, they have over nine million members.

Membership is open to all Department of Defense, Coast Guard Active Duty, veterans, civilian and contractor personnel and their families. They pride themselves on their original charter being to the military community and for having over 40 years of experience in servicing loans. In fact, half of their loans are VA home loans.

Parker credits NFCU’s success to the company’s commitment to the culture of focusing on the families. The NFCU website also promises that, “Once a member, always a member. You can leave the military, change employers, move, retire, get married – yet always stay with Navy Federal. Your life is our mission.”

To learn more about Navy Federal Credit Union, click here. To see their current VA and Conventional Fixed Home Loan rates and decide if a mortgage with NFCU is right for you, click here.

Articles

Advocates rally to stop Senate plan to cut Basic Allowance for Housing

Military advocates are rallying to stop a proposal in the U.S. Senate to reduce military housing allowances.


The Senate Armed Services Committee’s version of the 2017 National Defense Authorization Act, which sets policy and spending targets for the fiscal year beginning Oct. 1, would curb the military’s Basic Allowance for Housing, or BAH, for new entrants beginning in 2018 by only covering what they actually pay in rent. It would also reduce the combined value of the benefit received by military couples or roommates.

“We’re not in favor of the language in there,” Michael Barron, deputy director of government relations at the Military Officers Association of America, an advocacy group based in Arlington, Virginia, told Military.com. “We’ve got some major concerns with it.”

The Senate panel led by Sen. John McCain, a Republican from Arizona, wants the monthly BAH — which varies by paygrade, dependent status and region in the U.S. — to be more like the Overseas Housing Allowance — which covers only housing expenses.

Section 604 of the Bill S.2943 is titled, “Reform of Basic Allowance for Housing.”

Beginning Jan. 1, 2018, the legislation would set the allowance for new entrants at “the actual monthly cost of housing” or an amount “based on the costs of adequate housing” for each military housing area, according to a copy of the legislation. It also states two or more service members occupying the same housing would split the allowance.

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Senate Armed Services Committee Chairman Sen. John McCain, R-Ariz., Ranking Member Sen. Jack Reed, D-R.I., and Sen. Jim Inhofe, R-Okla., listen as retired Gen. David Petraeus testifies at a hearing in Washington, Sept. 22, 2015.

It’s unclear whether the full chamber will approve the language when it votes on the defense authorization bill at a later date. Republican Sens. Lisa Murkowski of Alaska and Susan Collins of Maine have already introduced amendments to strike the provision. The House didn’t include similar language in its version of the bill and the Defense Department hasn’t requested the change.

In addition, Congress is already supporting a Pentagon plan to slow the growth of Basic Allowance for Housing over five years so service members on average pay 2 percent of their housing costs this year, 3 percent in 2017, 4 percent in 2018 and 5 percent in 2019 and thereafter. Troops won’t see a modification in the allowance until they change duty stations.

Senators argue the housing allowance has become “bloated and ripe for abuse” and note the change could save an estimated $200 million, according to an article by Leo Shane III, a reporter for the Military Times newspapers who first reported the proposal.

Barron said the allowance is part of regular military compensation designed to retain and recruit talented people into the military. He also noted in the 1990s troops paid roughly 15 percent of their housing allowance out of pocket and that lawmakers in Congress had “done a lot of work” over the past decade to reduce that expense.

“We really don’t think they should be trying to make these reductions for new entrants coming in. We just don’t think it’s the right thing to do,” he said.

“You’re already asking a service member to pay more for retirement savings,” he added, referring to the recent overhaul of the military retirement system that incorporated a 401(k)-style plan. “You’re asking them also now to pay more for housing.”

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Are there any military spouse retirement benefits?

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Mrs. Hyun Crites, wife of Chief Master Sgt. James Crites, 9th Operations Group superintendent (right), is presented the Military Spouse Medal during her husband’s retirement ceremony. | U.S. Air Force photo by Senior Airman Bobby Cummings


Military retirement often marks the end of a long road.

As a military spouse, you’ve put in months of waiting on your service member to come home from long trainings or deployment, all while holding down your home and taking care of your family. You’ve battled career challenges for yourself, planning disasters, cross-country moves and everything Murphy’s Law could throw at you.

But other than the long-sought break from the challenges of military life, what’s in military retirement for you? Although your service member is who put on the uniform every day, military retirement isn’t without perks for military spouses or ways that you can still benefit from the community.

And while all of the benefits available to you are by virtue of your spouse’s service, it doesn’t mean you shouldn’t take full advantage of them.

Military spouse retirement benefits

Health and dental care. After military retirement, you are eligible to continue using Tricare, the military’s health care system. If you are near a base, you may even still be able to be seen in the military treatment facility or hospital if that is your wish. You can also sign-up for a dental plan for military retirees.

Commissary and shopping privileges. Now that you’re not a part of the active-duty military anymore, you might find that your living expenses go up. But as the spouse of a military retiree, you still have access to the military commissary and exchange systems. Although just how much you save at those stores over civilian markets is an often-debated topic, everyone agrees there is some benefit to shopping at them.

Military lodging and recreation. As a military retiree, you still have access to the military lodging and recreation systems. Although there are some rules restricting who can stay in military lodges overseas, most allow military retirees. Maybe now is the time to take that girls’ or guys’ vacation you’ve been dreaming about for the last 10 years.

GI Bill and education benefits. If your service member transferred the Post-9/11 GI Bill to you while he or she was still on active duty, you can use it to go back to school. Through it, you will receive a monthly housing allowance, an annual books stipend and, depending on where you are going to school, all of your tuition costs and fees covered. The GI Bill must be transferred while the service member is on active duty for this to be available.

If you don’t have the GI Bill and your service member has died, you might be eligible for Survivor and Dependents Educational Assistance.

Survivor Benefit Plan. If your service member chooses to set up the Survivor Benefit Plan, an insurance policy, at the time of his retirement, you will have access to that money after he or she dies. That plan can be complicated and confusing, so go here for the full explanation.

VA benefits after your service member’s death. Although a service member’s pension checks end with his or her death, you may have access to Dependency and Indemnity Compensation, and the Veteran’s Death Pension.

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Inspector General claims US Army can’t account for trillions of dollars

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In a report released earlier this summer, the Department of Defense Inspector General has determined that the Army’s finances are a world-class mess. Reportedly, the service made $2.8 trillion in adjustments to make their books balance just in one quarter of 2015 in spite of the fact that the entire defense budget for that fiscal year was $585 billion.

According to Reuters, the Army’s books are so jumbled that they may be impossible to audit – and the Army is facing a September 30, 2017 deadline to be ready for one. The harsh IG report concluded the Army “materially misstated” its financial statements for 2015.

Making the task of squaring the Army’s books harder is the fact that over 16,000 documents have vanished from the Army’s computer system. The Defense Finance and Accounting Services (DFAS), the Pentagon’s primary agency responsible for accounting services, routinely changed numbers without justification at the end of the year, something employees of that agency referred to as the “grand plug.”

“Where is the money going? Nobody knows,” DOD critic and retired analyst Franklin Spinney told Reuters.

The Army has taken issue with the IG report, claiming that the total discrepancies total just under $62.5 billion. An Army spokesman said, “Though there is a high number of adjustments, we believe the financial statement information is more accurate than implied in this report,” that and that the Army “remains committed to asserting audit readiness” and that steps are being taken to root out the problems.

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