How to use a TSP to invest in real estate - We Are The Mighty
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

5 important investments that every veteran should make

Returning to civilian life after active duty can be confusing and somewhat daunting. Whether you have been in the military for many years or if you have returned home after a grueling tour, adjusting to your previous life is definitely not an easy task. While there is a myriad of questions you need to answer and many issues you need to tackle during this adjustment period, one of the most pressing questions is how to achieve financial freedom for your family.

5 Investment Opportunities for Veterans

Achieving financial stability can seem like a huge task for a veteran, but you can achieve it by creating passive income and even returning to the workforce. Most importantly, to achieve financial stability and freedom down the road, you need to make the right investments in your professional and personal realms. 

These investments range from setting up a retirement plan to actively investing in real estate, but this can also include upskilling and getting certified to take on a completely new career path. Let’s put the best options into perspective and look at some important life investments every veteran should make. 

Investing in health and life insurance

First and foremost, you need to set up your health insurance, which is especially important for veterans requiring long-term medical treatment, professional counseling, and more. Unless you have been in the service for 20 years and have health insurance through Tricare, you will have to look into health coverage outside of the military. Keep in mind–if you have a medical condition that is a direct result of your time on active duty, you may be eligible for Veteran Affairs health care coverage.

If you’re not eligible for either of these, then private health insurance is the way to go. You can find a plan that works for you through the Affordable Care Act or a new employer. Take your time to learn the key terms like deductibles, copays, coinsurance, and out-of-pocket maximums and how different insurers use them in their policies. You can extend your military healthcare coverage for up to 36 months post-service through the Continued Health Care Benefit Program to buy more time and sort out your health insurance. 

Consider Investing in Real Estate

The next big move you should make is to invest in real estate as a retired veteran. Due to rapid urbanization across the US and the world–real estate continues to be a thriving sector with many opportunities for long-term professional growth. Becoming a real estate investor allows you to sell properties for a quick influx of cash or rent real estate to business leaders and tenants to create a steady income. Both commercial and residential real estate investing are good options–and you should strive to invest in both over time.

Now, starting in real estate investing is best done with an experienced professional at your side – and by educating yourself first. There are many online platforms where you can learn the ropes quickly. The most -important step is to do your research to find up-and-coming real estate markets and good deals on properties and new developments. Over time, you should diversify your investments into commercial and residential properties–with a focus on sales-oriented and rent-oriented real estate. 

Get Certified and Invest in a New Career Path

Another great way to build financial stability over the long term while actively working is to change career paths through upskilling and online certification. For example, if you were a corpsman or a medic in any military branch– you might want to pursue a career in medicine and continue helping others in the civic healthcare system.

Now that the COVID-19 pandemic has created a need for highly-trained medical professionals– investing in advanced medical certification online is a great way for veterans to transition quickly into the healthcare industry and find stable employment. As a medic, you are already familiar with emergency response techniques and practices–now all you have to do is get the right certifications to work in a hospital or private practice. 

Because of the pandemic and many other socio-economic factors, the healthcare industry will be booming in the years to come, which is a great opportunity for you to thrive professionally. 

Set up a retirement plan

When you leave active duty, the first thing that can come to mind is how to ensure a healthy retirement. Naturally, you need money to do so, and you can do it by ensuring a steady cash flow from your real estate and other investments. However, you can also set up a retirement plan in other ways, mainly by saving up over the next few decades.

If you have 20 years of service, you are eligible for regular military retirement and a steady pension. If not, then you should start saving up now to meet your goals when you reach your retirement age. You can do this by opening up an individual retirement account (traditional or Roth), or you can contribute to a 401(k) plan. 

Invest in reducing your debt

Finally, make an investment plan to reduce your debt over the long term. It might not sound like an investment at first, but reducing and eliminating debt is one of the best ways to ensure a financially stable future. Make sure to set up a debt-repayment roadmap, and consider working with a financial advisor to minimize your losses and retain as much of your wealth as possible. 

Coming home from active duty can be tough–, and while you might want to deal with other immediate issues first, you should prioritize your finances and long-term stability. Consider making these investments now and over the next few years to build financial stability and freedom.

This article originally appeared on Active Duty Passive Income.

MIGHTY MONEY

4 basic things you should be doing with your money

Millennials as a group may be delusional about the future, but some are making good decisions with their money today.

Generally, many millennials have little to no credit-card debt, put a portion of their income toward retirement, and have a savings account, an INSIDER and Morning Consult survey found.

Of the 4,400 Americans polled, 1,207 identified as millennials, defined as ages 22 to 37 (237 respondents did not select a generation). The margin of error was plus or minus 1 percentage point.

Here are a few of the ways millennials are smart with their money, according to responses to our survey:


1. They have a savings account.

About 69% of millennials said they had a savings account, compared with 65% of Gen Xers, the survey found.

But while the existence of a savings account is inherently positive, it’s nothing without consistent contributions. A whopping 58% of millennials said they had under ,000 in a savings account, about 19% had between ,000 and ,000, and 11% had between ,000 and ,000.

How to use a TSP to invest in real estate

(Photo by Sharon McCutcheon)

Many financial planners recommend a high-yield savings account over a traditional savings account for an emergency fund or other short-term need. The best high-yield online savings accounts are offering an annual percentage yield between 2% and 2.5%, and many have no fees and low minimum deposits.

2. They have little to no credit-card debt

Millennials seem to know that keeping a balance on their credit cards isn’t going to make for a good credit score. About 32% said they had no credit-card debt at all — a greater share than Gen Xers (28%). Of the millennials who do have debt, a plurality (36%) said they had under ,000.

It might make sense that Gen Xers, who are older and presumably have more expenses, would be more likely to have credit-card debt, but in this survey the oldest millennials were 37 — and people’s 30s tend to come with houses, kids, pets, and expenses that are no longer limited to Gen X.

Two smart strategies to pay off credit-card debt, according to financial planners, are the “debt snowball,” which prioritizes paying off the smallest debts first, and the “debt avalanche,” which prioritizes paying off the highest-interest debt first. Either method is effective, so the best approach may be to pick the one you can commit to.

3. They would use a id=”listicle-2634449531″,000 windfall to pay off debt or save.

Given an extra id=”listicle-2634449531″,000 cash, 27% of millennials (a plurality) said they would choose to pay off debt, while 22% said they would save the windfall, the survey found. Only 6% said they would put it toward travel or shopping.

How to use a TSP to invest in real estate

(Photo by Artem Bali)

This is good instinct, as financial planners typically suggest stamping out debt with high interest rates first and foremost, even before saving for retirement or another financial goal. Carrying a balance on a credit card can erode your credit score, and fees and high interest rates can continually add to the overall debt load.

In the survey, the millennials who indicated they wouldn’t use the windfall to pay off debt or save said it would go toward outstanding bills (17%), necessities (12%), or an investment (9%).

4. They put more of their income toward retirement than Gen Xers.

Even though 52% of millennials said they didn’t have a retirement savings account, the ones who do are serious savers.

In the survey, nearly 16% of millennials said they set aside 11% to 20% of their income for retirement — more than any other generation. About 5% of millennials, the same share as Gen X, said they save more than 20% of their income for retirement.

A plurality (33%) said they put away between 1% and 10% of their income for retirement, which is a fine place to start. Experts recommend increasing savings rates annually or every time you get a raise.

One of the easiest ways to build wealth is through automatic and consistent contributions, starting with a retirement account. The contributions to a 401(k) or IRA are pretax, so the money will be taken out of your paycheck before it even hits your bank account. Many employers will match contributions up to a certain percentage or dollar amount. It’s basically free money, but you won’t get any of it unless you’re already contributing something on your own.

This article originally appeared on Business Insider. Follow @BusinessInsider on Twitter.

Articles

What is SGLI and do you actually need it?

How to use a TSP to invest in real estate
The white gloved hands of a member of the U.S. Air Force Honor Guard hold a folded United States flag. The triangular shaped folded flag and accompanying ceremony is an inspiring way to honor the flag and what it represents during solemn ceremonies. (U.S. Air National Guard Photo by Master Sgt. Vincent De Groot 185th ARW Wing PA


In the military’s acronym-packed lingo, SGLI stands for “Service Members Group Life Insurance,” and according to the U.S. Department of Veterans Affairs, it is a “program that provides low-cost term life insurance coverage to eligible service members.”

Troops that are eligible for SGLI are active duty in any of the service branches; commissioned members of the National Oceanic and Atmospheric Administration or the U.S. Public Health Service; cadets, or midshipmen of a U.S. military academy; members, cadets, or midshipmen of an ROTC unit and engaged in authorized training or practice cruises; a member of the reserve or National Guard and are scheduled to attend a minimum of 12 periods of inactive training per year; or a service member who volunteers for mobilization in the Individual Ready Reserve.

Service members who are eligible for SGLI are automatically enrolled at the maximum rate of $400,000, though they may choose to decline or lower their coverage and make changes to it.

Service members retain their SGLI coverage for 120 days after separation from the service, though completely disabled veterans may extend that coverage for a maximum of two years after separation.

Reserve members who do not qualify for coverage are allotted “part-time” coverage.

So why do you need SGLI anyway?

Being a service member is obviously a high risk job. High risk jobs, according to CheatSheet, can cost as much as $2000 extra annually for life insurance companies, which is roughly 500 percent more than you’ll pay through your SGLI.

The bottom line is that SGLI is incredibly inexpensive, at just $29 a month, and it’s worth it for your family to have some peace of mind should something happen to you in the line of duty.

MIGHTY MILSPOUSE

These are the 2020 military pay dates

One of the greatest perks of military life is having a reliable, consistent paycheck. Military pay is issued once mid-month and once at the end of month. We have a chart for you to see exactly which dates are 2020 military pay days and when those funds are available through Navy Federal Credit Union* and United Services Auto Association. *NFCU funds availability is only shown for the active duty checking account, not their other programs.

Building a budget and living within your family’s means are both much easier when you know 2020 military pay dates and the USAA pay dates and NFCU pay dates.

How to use a TSP to invest in real estate
Articles

Here’s what Hardship Duty Pay is and how you qualify for it

How to use a TSP to invest in real estate
U.S. Marines with Task Force Koa Moana unload gear after arriving in Ancon, Peru, Sept. 2, 2016. Peru is on the list of locations that qualify for HDP-L.


Hardship duty pay is a compensation in addition to base pay and other entitlements for service members stationed in or deployed to locations where the living conditions are significantly below those in the continental United States, the mission lasts longer than a typical deployment or requires specific types of work (i.e. recovering bodies of fallen military members in other countries).

Under specific circumstances, some or all of your hardship duty pay may be tax free. For more information on what is taxable and what isn’t, consult your financial advisor.

There are three different types of hardship duty pay: location, mission, and tempo.

1. Hardship duty pay – location, or “HDP-L,” is paid to service members who are outside of the continental United States in countries where the quality of life falls well below the standard of living that most service members who are in the U.S. would normally expect. Service members who also receive Hostile Fire/Imminent Danger pay of $225 per month only rate $100 a month for HDP-L. Find out if your OCONUS station is on the list.

Who: All service members who are executing a permanent change of station (PCS), temporary duty (TDA/TAD/TDY), or deployment to a designated area.

How much: The rate is paid out in increments of $50, $100, and $150 per month, depending on the level of QoL at that location as determined by the Department of Defense.

Hardship duty pay – mission, or HDP-M, is designed for hardship missions.

Who: All service members, officer and enlisted alike.

How much: $150 per month, max.

Hardship duty pay – tempo, or HDP-T, is for service members operating at a higher tempo for longer times, like during extended deployments or when service members are deployed longer than a set number of consecutive days. The Navy sets that number at 220, for example.

Who: All service members, officer and enlisted alike.

How much: $495 per month, max.

Articles

Here’s a way for military families to get their taxes done for free

With the tax season upon us, service members and their families can access free tax-filing software and consultations to help them navigate the task of submitting their annual taxes.


Military members and their families can visit the Military OneSource website or call 1-800-342-9647 for the no-cost “MilTax” software, explained Erika Slaton, a program analyst with Military OneSource.

The Defense Department recognizes military members and their families have unique filing situations with deployments, relocations and various deductions and credits, she said.

Related: DoD extends online military exchange shopping privileges to veterans

The MilTax software, previously known as “Military OneSource Tax Services,” was created with the military situation in mind, Slaton said.

Expert Tax Consultants Ready to Help

Tax consultants are available via phone through Military OneSource, Slaton said. In-person tax filing assistance can be accessed at military installations at a Volunteer Income Tax Assistance location.

The tax consultants can inform eligible users about the unique tax benefits available to service members and their families, Slaton said.

Tax laws change each year, Slaton pointed out, adding MilTax consultants are experts on the nuances of the law and can help users get the tax credits they earned and deserve.

“That’s why it’s such a great program because it is a program that is specifically designed for those unique military tax situations,” she said.

How to use a TSP to invest in real estate
U.S. Air Force photo illustration by Senior Airman Aubrey White

Confidential, Secure Resources

MilTax is confidential and secure, Slaton said. The online filing program allows users to submit a federal return and up to three state tax returns, she said.

Those eligible for MilTax include members of the Air Force, Army, Navy, Marines and National Guard. Coast Guardsmen serving under Title 10 authority are entitled to the services as well. Retired and honorably discharged members are authorized for up to 180 days past their separation. Spouses, dependent children and survivors are able to use the free services as well.

Calculations are backed by a 100-percent accuracy guarantee, Slaton said.

The deadline to file taxes this year is Tuesday, April 18. The traditional tax deadline day is April 15, but it falls on a Saturday this year, and the following Monday, April 17, is Emancipation Day, in the District of Columbia — a legal holiday — according to the IRS.

Call, Click, Connect

Slaton wants the military community to know about the range of services and resources available at no cost through the Defense Department-funded Military OneSource, including related to health, family relationships, education, employment, financial issues, deployments and transitions.

Military members and their families, she said, can “call, click and connect today” to access these services.

“We encourage service members and their families to learn more about Military OneSource, MilTax and all of the services that are available because it is a benefit that they deserve,” she said.

MIGHTY MONEY

Gary Johnson speaks out on California Guard repayment scandal

How to use a TSP to invest in real estate
Maj. Gen. William H. Wade, the adjutant general for the California National Guard administers the oath of enlistment to Soldiers of Bravo Battery, 1st Battalion, 143rd Field Artillery during a recent visit Victory Base Complex, Iraq in 2007.


Libertarian presidential candidate Gary Johnson had strong words for the National Guard and the Pentagon after allegations emerged that the DoD is forcing California Guard troops to reimburse the government for enlistment bonuses it paid in error.

“It is beyond the bounds of decency to go after our veterans and their families a decade later,” he said in a statement obtained by We Are the Mighty. “These are rounding errors to the Pentagon, but these demands for repayment are ruining lives and causing severe hardships for service members whose sacrifices for the nation can frankly never be adequately be repaid.”

Johnson was referring to a Los Angeles Times story that alleges the National Guard is forcing nearly 10,000 guardsmen from California to repay reenlistment bonuses they were awarded 10 years ago.

According to the paper, more than 14,000 California Guardsmen were awarded the reenlistment bonuses as a result of the Army’s incentive program to retain soldiers during the height of the Iraq war.

The U.S. government investigated the California Guard reenlistment bonuses and found a majority of the requests had been approved despite the soldiers’ not qualifying for the bonus. There has been no suggestion that any of the Guardsmen who received the reenlistment bonuses were aware that they did not qualify for them.

The Los Angeles Times reports that Army Master Sgt. Toni Jaffe was the California Guard’s incentive manager at the time, and that after the Pentagon discovered the overpayments 6 years ago, Jaffe pleaded guilty to fraud. She was sentenced to 30 months in federal prison. Three other officers associated with the fraud also pled guilty, receiving probation after being forced to pay restitution.

Major Gen. Matthew Beevers, the deputy commander of the California Guard, accused the nearly 10,000 soldiers of owing a debt to the Army.

In his statement to The Los Angeles Times, Beevers claimed that the soldiers were at fault and that the Guard couldn’t forgive them. “We just can’t do it. We’d be breaking the law,” he said, not addressing whether the Guard was breaking the law by reneging on the contracts.

Several of the Guardsmen went on to deploy to Iraq and Afghanistan, many of whom sustained injuries as a result.

Military Times reports that the Pentagon is searching for ways to overcome the issue. “This has the attention of our leadership, and we are looking at this to see what we can do to assist,” Pentagon spokesman Captain Jeff Davis said Monday.

A host of lawmakers have stepped forward to condemn the Pentagon for harassing the Guardsmen who received the reenlistment bonuses, calling for congressional investigations into the matter. Though as of publication, no presidential candidate other than Johnson had addressed it.

Calling on President Obama and Congress to act immediately on the impacted Guardsmen, Johnson said, “The Pentagon needs a good dose of common sense far more than it needs these dollars, and making our service members pay for the government’s incompetence is beyond the pale.”

How to use a TSP to invest in real estate
In a statement obtained by We Are the Mighty, Governor Johnson called for immediate action to be taken to keep the faith with California National Guardsmen.

Humor

24 people to marry with better benefits than a US service member

Recently, the military healthcare system Tricare posted a photo on its Facebook page that had its fans in a frenzy.


People got pissed; they complained; they shared the post with harsh words; some even used “caps lock” in their comments. It was terrible.

What was so offensive about the post, you ask? If you hadn’t already seen it, it was a wedding photo with the comment “You had me at #TRICARE.” See below.

How to use a TSP to invest in real estate
Tricare recently posted what was supposed to be a humorous post to its Facebook page. Instead, it got a lot of backlash!

As someone who works online almost exclusively, I had to laugh at the post. In fact, I laughed a lot. I could understand why some people were upset (hello, pushing a negative stereotype on female military spouses), but mostly I couldn’t understand how the marketing department at Tricare saw the post and said “Oh hey, THIS post is an EXCELLENT idea!”

My first reaction when I saw it, honestly, was “I wonder how long whomever approved this post will have a job?” I post all kinds of crazy things on my own personal Facebook page, but I’ve been called into more than one come-to-Jesus meeting with a boss over a poorly planned social media post.

When that’s your job, you have to be aware of your audience.

And who is the audience for most of Tricare’s social media pages? Probably spouses who want to keep up with changes in Tricare benefits. So it’s no small wonder that a whole bunch of them were butthurt.

So I did what any responsible journalist in my position would do: I shared the flub on my personal Facebook page and asked for hilarious feedback. My friends did not disappoint.

The idea? If we were to marry someone for his benefits, couldn’t we have chosen someone with better perks?

The military benefits are great, don’t get me wrong. But what about if you married:

1. A mob boss

All the Italian food your heart desires and the destruction of your mortal enemies. (this is obviously my first choice)

2. Prince Harry

Crowns and gowns, you’d never have to work! (wait. maybe this is my first choice)

3. United State Senator or Representative

The best health care your tax dollars can buy. Plus no one’s allowed to hurt your feelings. (gag me now)

4. A doctor

All you can eat hospital food! (food? queue the fat dependa jokes, because I AM IN)

5. A dog breeder

Picks of the litter! (meh, I’m not really a puppy person. Don’t shoot me, I prefer a full-grown rescue)

6. Donald Trump

If you ever go bald or are in desperate need of a tanning bed, you’re already in the right place! (If you can stomach this, its an option for those of you under 25!)

7. Any president

Free food, vacations all over the world; top private schools for kids; secret service body guards; couple cabins in the woods; free airfare!! (Woah woah woah…. someone sign my husband up!)

8. A Masseuse

Happy massages for days. (Okay I’m really torn between this one and Prince Harry. Can we choose two?)

9. Bill Gates

When one door closes the windows are always open!! (I’m a Mac girl, so…)

10. A handyman

All the crap around the house might actually get done! (Except my daddy raised me to be able to DO all the crap around the house, so this isn’t an issue here.)

11. Cesar Milan (the dog whisperer)

Maybe he can make the kids behave! (Wait, I have to choose between behaving kids and Prince Harry? Adulting is hard.)

12. A plastic surgeon

Think this speaks for itself. (Meh, not really my cup of tea)

13. A Starbucks barista

I think this also speaks for itself. (Okay, so do you think Harry could make coffee AND be a mob boss AND be a masseuse? Someone with connections find this out for me?)

14. An airline Pilot

Get to travel for free or for little out-of-pocket when there are seats available. (I’m married to a pilot. I see how he drives, I DO NOT want to fly with him.)

15. A personal trainer and chef

Never have to cook again and always fit into your skinny jeans! (I already fit into my skinny jeans. I just buy them bigger now.)

16. A hotel manager

Free room and board with complimentary continental breakfast! (I do enjoy food…)

17. A mechanic

(Free oil changes?)

18. Matt Damon

He’s my fantasy celebrity boyfriend and I’m waiting for his proposal. (Obviously this wasn’t my suggestion. If it’s not obvious, I super like Prince Harry. Just saying.)

19. A farmer

Cheap help from laborers, tractors and back hoes to dig as many holes as I need to bury the bodies. Then, when the old man ain’t worth it anymore I just take him out to pasture on the back 40! (So maybe not husband material, but maybe as a side piece while I’m married to the mob boss? Questions need to be asked here.)

20. A coffee importer

I would always have the best coffee. Ooh or someone who owns a bookstore too! Unlimited coffee and books for life it can’t get any better than that. (Just out of curiosity, does anyone know if Prince Harry has a library? Asking for a friend.)

21. The owner of a winery

(Also need to find out how Harry feels about wine)

22. A civilian so you never have to sleep alone

…Or worry. (I know, too serious)

23. A Costco employee

I used to work at Aetna. Let me tell you — those folks get great insurance. Or they used to. Free glasses once a year for all members of the family. (It IS time for me to get new glasses.)

24. The heir to a million dollar business with really nice in laws

No wait.. better! Heir to an awesome chocolate company. (Note to self, find out how Prince Harry feels about wine and chocolate and masseuse school and libraries and…)

I just realized that Prince Harry is in the military as well, so maybe I just really appreciate a man in uniform and the benefits aren’t really even the icing on the cake.

Articles

The Air Force is running out of pilots

While the Air Force has gotten the F-35A to its initial operating capability, the service is having a ton of other problems — problems that could place the ability of the United States to control the air in doubt.


According to a report by FoxNews.com, the service is short by about 700 pilots and 4,000 mechanics. This is not a small issue. A shortage of well-trained pilots can be costly.

How to use a TSP to invest in real estate
F-16s fly beside a KC-135 during a refueling mission over Ramstein Air Base, Germany. (U.S. Air Force photo/Airman 1st Class Preston Cherry)

In World War II, the United States had a strict policy of rotating experienced pilots back to the states. This is why John Thach, the inventor of the Thach Weave, had only seven kills in World War II, according to Air University’s ace pilots list.

He was sent back to train the pilots needed to fly the hundreds of F6F Hellcats and F4U Corsairs. By contrast, Japan kept pilots on the front line until they were shot down or badly wounded. It cost them experience.

Maintenance personnel also matter. A fighter on the flight line does no good if it can’t fly, and the mechanics are the folks who keep it functional. The thing is, no mechanic — no matter how good he or she is — can fix two planes at once.

How to use a TSP to invest in real estate
Senior Airman Clay Thomas, a 355th Aircraft Maintenance Squadron load crew member, loosens paneling screws from an A-10C at Davis-Monthan Air Force Base, Ariz., Oct. 24, 2016. (U.S. Air Force photo/Airman 1st Class Ashley N. Steffen)

So why is the United States Air Force facing this much of a shortage? An Air Force release notes that the decline took place over the last ten years, but was exacerbated by the sequestration cuts of 2011.

“The risk of manpower shortage is masked and placed on the backs of Airmen,” Air Force Chief of Staff Gen. David L. Goldfein said in that release. “Because if you go back and look at the data and the way we measure readiness, did we taxi? Yes. Did we launch? Yes. Did we make the deployed destination and accomplish the mission? Yes.”

But accomplishing the mission came at a price, Goldfein explained. “What’s masked is the fact that the shortage of people has fundamentally changed the way we do business in terms of the operational risk day to day.”

How to use a TSP to invest in real estate
Airman 1st Class Zachary Bradley (left) and Airman Joseph Glenn, 20th Equipment Maintenance Squadron aircraft structural maintenance apprentices, remove leading edge tape prior to painting an F-16CM at Shaw Air Force Base, S.C., Dec. 14, 2016. Leading edge tape serves as a repellent against rain and prevents the F-16’s wing edges and tail flaps from rusting and corroding. (U.S. Air Force photo/Airman 1st Class Christopher Maldonado)

When asked for a comment by the writer, Elaine Donnelly of the Center for Military Readiness said,

“I’m not aware of an official survey to confirm what may be going on, but it appears that the mystique of being an [Air Force] pilot has been eroded by a combination of budget cuts and social agendas; e.g., Air Force Secretary Deborah James’ Diversity Initiative Fact Sheet. Mandates such as this clearly indicate that qualifications and high standards are not very important, and certain types of applicants need not apply.”

Donnelly also pointed to aircraft readiness issues in the Navy and Marine Corps, as well as the many aging airframes in the U.S. inventory.

Also of note – FoxNews.com noted that in 1991, the Air Force had 134 fighter squadrons. Today, there are only 55, marking a reduction of 59% in the number of fighter squadrons.

MIGHTY MONEY

Coronavirus hit the stock market hard, but how worried should you be?

With thousands of confirmed cases of COVID-19 in China and South Korea, and a rapidly growing number in Europe and the United States, the question is no longer if the coronavirus will have an effect on the global economy but rather whether it’ll be a small scratch or a giant crater.


Increasingly, the latter appears to be a distinct possibility. On Monday, analysts at the Organization for Economic Cooperation and Development predicted that a continued spread of the novel coronavirus would cut worldwide GDP growth fully in half.

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This is a scary prospect for a lot of reasons, although the most immediate impact has been a hammering of 401(k)s and other investment accounts. Last week alone, the SP 500 took a nearly 12-percent hit as skittish investors ran for the exits. No doubt, many others are thinking about the same move.

That it’s a fool’s errand to time something as complex and unpredictable as the stock market is pretty much Retirement Planning 101. And yet there’s a basic human instinct to run for the nearest exit when danger looms. Surely, it’s better to jump before the ship sinks any further, right?

Well, no. The speed with which stocks plunged last week can lead one to conclude that the freefall is going to continue. But the fact is, no one knows whether that’s true or not. Stocks actually gained nearly five percent Monday on news that central bankers are ready to take serious counter-measures (although even that doesn’t mean the sell-off is over).

Certainly, emotions are going to run high when you open your online account and see a dramatically smaller balance than the one you glimpsed just a couple weeks earlier. Now, more than ever, it may be time to simply look away for a while. For long-term investors, in particular, it’s important to keep in mind that volatility is part of the game when it comes to stocks. The point is that, over periods of a decade or longer, the market has consistently rewarded patience.

You don’t have to look back very far to see what can happen when investors start hitting the panic button. As the housing market collapse started to expose some pretty egregious risk-taking from Wall Street banks in 2007, the stock market fell into its worst bear market in recent memory. In the span of 17 months, the SP 500 lost more than half its value, falling to 676.

But here’s the key point: those who kept buying during the downswing saw the biggest gains when things eventually turned around. Even after last week’s bloodbath, the index is now past the 3,000 mark.

Kevin Mahoney, CFP, of the Washington, DC-based financial planning firm Illumint says he’s telling his primarily Millennial-age clients to sit tight when it comes to their retirement accounts. “Whether this is the bottom or not, I’m not particularly concerned,” says Mahoney. “They’re keeping their money in for another 30 or 35 years.”

Indeed, this is the beauty of dollar-cost averaging, where you invest a fixed dollar amount from each paycheck, even when the financial news looks ugly. By continuing to buy when prices drop, you end up obtaining more shares with the same amount of cash. When the market eventually turns the corner, this steady-as-she-goes investing style ends up providing you with bigger gains.

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For those who have money on the sidelines in, say, a savings account, this may actually be the perfect time to enter the market. Warren Buffett himself has used this contrarian approach to great effect, once declaring: “Be fearful when others are greedy and greedy when others are fearful.”

As long as people can tolerate a fair amount of volatility in the short term, Mahoney says the recent headlines shouldn’t cause would-be investors to lay low. “Stocks are now lower than in previous weeks, so if they need motivation to act on their savings, they can view this as a financial opportunity,” he says.

Things are a little trickier, of course, for couples who own brokerage accounts that they hoped to tap in the next few months for a new home or other big-ticket purchases. “These individuals may want to evaluate whether they can be flexible with the timing of their upcoming financial goal, such as funding a down payment,” says Mahoney. “If the market continues to struggle, they may be better off waiting and continuing to save.”

For anybody else, obsessing over the latest financial news isn’t going to do you any favors. Just ask the folks who exited the market the last time stocks took a nose-dive.

This article originally appeared on Fatherly. Follow @FatherlyHQ on Twitter.

MIGHTY MONEY

DoD says military doesn’t spend enough taxpayer dollars on MWR

How to use a TSP to invest in real estate
Boatswain’s Mate 3rd Class Alexandria Hall poses for a picture with a camel during the Sunset Safari tour sponsored by USS Dwight D. Eisenhower’s (CVN 69) Morale, Welfare and Recreation office. (Photo: U.S. Navy)


The Department of Defense says the service branches aren’t spending enough taxpayer dollars to fund their morale, welfare, and recreation (MWR) programs, according to a memo sent to each of the services last month.

Military Times reported this week that Todd Weiler, assistant defense secretary for manpower and reserve affairs, sent the memo to each branch to remind them that they were responsible for using a specific percentage of taxpayer funds to operate MWR programs.

“These standards are not optional and are not subject to Military Department waiver,” Weiler wrote.

MWR programs are required to receive a percentage of funding from Congress through either appropriated funds or non-appropriated funds, or a combination of the two.

The DoD requires that programs determined to be “Category A” must receive 85 percent of funding from taxpayer dollars. “Category A” are considered “mission sustaining programs” and “promote the physical and mental well-being of the military member,” according to Military One Source.

“Category B” requires 65 percent of operational costs to come from taxpayer dollars. Those programs consist of community support programs like child development centers, which charge families for use and therefore get some funding from customers.

“Category C” are programs that are nearly fully self-funded and include golf courses, base clubs, and recreational lodging. These programs are authorized some limited appropriated funds.

Weiler had previously sent a memo in June to remind the services to return their feedback on MWR funding by August, but both the Army and the Navy missed their deadlines.

Rather, the Army decided to cut $105 million from MWR funds, and the Navy only sent feedback on its Category A funding.

“I thought we needed to up our communication,” Weiler said in response to the Army’s planned slashing of the MWR budget.

The executive director of The National Military Family Association, Joyce Raezer, told Military Times that, due to budget cuts, sequestration, and changes to various other budgetary items, she believed families didn’t expect much from the services. “There are too many other worries,” she said.

Of the services, only the Marine Corps did not meet the 85 percent requirement, coming in at 77 percent of Category A program expenses funded by taxpayer dollars.

Every service fell short of utilizing the required percentage of taxpayer funding for Category B programs.

Weiler called out the Air Force specifically for not having met the requirements for four straight years, with no plan in place to correct the issue.

In the memo sent to the Army, Weiler asked Army Secretary Eric Fanning to halt the planned $105 million cut, a plea that was accepted and approved by Fanning. The Army plans to complete an analysis of its MWR programs and funding later this year.

Military.com reported that Colonel James Love told them that the $105 million cut would go into effect once the Pentagon approved the Army’s requested changes. He blamed a lack of “good business” practices, such as not raising prices for MWR programs, for the decision to cut the Army MWR budget.

“It’s good for families,” Love told Military.com. “But it’s not sustainable.”

MIGHTY MONEY

The Air Force just announced its ballin’ aviation bonus for 2019

The Air Force announced Jan. 23, 2019, the details of the fiscal year 2019 Aviation Bonus program.

The fiscal 2019 AvB program is designed to augment continuing aircrew retention efforts across the Air Force, by offering experienced aviators bonuses for signing tier-based contracts, ranging from three to 12 years of continued service.

Congress raised the annual maximum aviation bonus from $25,000 to $35,000 in the fiscal 2017 National Defense Authorization Act and required the Air Force to present aviation bonuses based on a business case analysis. The Air Force evaluates its rated inventory every year to ensure the AvB program is tailored to meet the service’s needs.


For the fiscal 2019 RegAF program, the following bonus amounts and contract lengths are being offered to active duty aviators whose initial undergraduate flying training service commitment expires in fiscal 2019:

Bomber pilots (11B), fighter pilots (11F) and mobility pilots (11M)

  • Annual payments of ,000 for contract lengths of three to 12 years
  • Lump-sum, up-front payment options of 0,000 exist for seven to nine year contracts and 0,000 for 10-12 year contracts
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Lt. Col. Benjamin Bishop completes preflight checks before his first sortie in an F-35A Lightning II.

(U.S. Air Force photo by Samuel King Jr.)

Remotely piloted aircraft pilots (18X/11U) and special operations forces pilots (11S)

  • o Annual payments of ,000 for contract lengths of three to twelve years

Command and control/intelligence, surveillance and reconnaissance pilots (11R) and combat search and rescue fixed wing pilots (11H)

  • Annual payments of ,000 for contract lengths of three to nine years and ,000 for contract lengths of 10-12 years
  • A lump-sum, up-front payment option of 0,000 exists for seven to nine year contracts

Combat search and rescue rotary wing pilots (11H)

  • Annual payments of ,000 for contract lengths of three to nine years

Combat systems officers (12X) and air battle managers (13B)

  • Annual payments of ,000 for contract lengths of three to six years and ,000 for contract lengths of seven to nine years

For aviators whose contracts have expired or who have never signed a previous AvB agreement, the following bonus amounts and contract lengths are being offered:

Pilots (11X) and RPA pilots (11U/12U/13U/18X)

  • Annual payments of ,000 to ,000 based on the three to six year rates of the member’s core community identification as set above for contract lengths ranging from three to nine years
  • Contracts may not extend the airman beyond 24 years of aviation service

Combat systems officers (12X) and air battle managers (13B)

  • Annual payments of ,000 for contract lengths of three to five years
  • Eligible airmen must have 19 years or greater of total active federal military Service and contracts may not extend the airman beyond 24 years of aviation service

The application window for airmen interested in applying for the fiscal 2019 AvB program will be open until Aug. 30, 2019. For full eligibility requirements and details about program changes in fiscal 2019, airmen should visit the myPers website at https://mypers.af.mil.

This article originally appeared on the United States Air Force. Follow @usairforce on Twitter.

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