r/MilitaryFinance

I have been trying to figure out my BAH rate for an upcoming PCS and honestly the whole process is more confusing than it needs to be.

The DoD calculator is okay but there are so many factors - with/without dependents, different zip codes, and the rate tables change every year.

For me the trickiest part was understanding how they determine which duty zip code to use vs where you actually live. Took me a while to figure out why my number was different from what my buddy was getting.

What part of BAH calculation trips you up the most? Curious what others have run into.

I’m trying to clean up and improve my credit card setup, specifically for a better daily-use card. I pay all cards in full pretty much weekly and never have a balance on anything.

Right now my household card pool looks like this:

Amex Platinum — I mainly use this for travel perks, flights, lounges, etc. Not really a daily spender. (No annual fee due to SCRA)

Capital One VentureOne — This is my oldest credit line. I barely use it and only keep my Spotify subscription on it to keep the account active.

USAA Signature Visa — Was living in Europe for awhile and they didn’t take AMEX a lot of places so this is/has been my daily spender. I don’t really get much value in returns from this from this and would like to sock drawer it.

Costco Citi Visa — My wife has this, but we would really only use it for Costco and it’s her first credit card/only credit card.

I recently moved my banking to Navy Federal, so I was thinking about getting a Navy Fed card as my main daily-use card. I’ve been looking at something like the Navy Federal cashRewards or possibly the Flagship Rewards, but I’m leaning toward something simple with no annual fee as the flagship has a $49 annual fee.

My goal is not to collect cards just to collect them. I’m mainly trying to have:
Amex Platinum for travel/perks
Costco Citi for Costco
Capital One VentureOne kept open for credit history
USAA small subscription on to keep active
One new card as my everyday daily-use card that has better rewards/cash back.
I’m just wondering if getting another card for this purpose makes sense, or if I’m overcomplicating things.
Would you get another card in this situation? I’m mainly looking for a cash back type of card I think as my daily spending. I alternate cards and still use my AMEX frequently so it won’t go unused.

Have 2 years left in military, currently on shore duty. I have 44 credits of college completed from previous institutions. I aspire to be an accountant. My goal is to pursue a bachelors in accounting and use rest of GI Bill for a masters. I’ll be leaving Navy in 2 years. My goal is to use TA but I know I’m focused on going to AACSB institutions. I don’t have much options with TA due to the credit hour cost cap. I currently have 7.5 yrs in. What are some pathways that you guys recommend? What are some jobs I can get with no experience to break into accounting? CPA is a goal of mine as well, I just don’t know what to go for in my masters (later issue). What steps would you do if you’re in my shoes currently? Thank you in advance. I’m open to anything that can help me. In some need of some guidance.

How does the VA loan work with a Short Sale?

Hello everyone,

I'll be separating soon from the Air Force (2 months) and I want to buy a home back in the Chicagoland area. It'll be the first time I use my VA loan benefit. I purchased a 3 unit building before I joined using FHA back in 2016. I know there are many lenders like Veterans United but I wanted to know if I should use a broker or apply directly with the lender? Should I use a Chicago area lender? I just want the process to be as smooth as possible. Right now I'm going through a bit of a rollercoaster.

I'm currently deployed. By the time I return I'll probably have like less than 45 days to out process and find a job and a home. I'm currently working on my VA rating. I know I'll probably get asked for source of income so I'm not sure if the lender will take my current LES, possibly VA rating and my income I earn from my 1st property. I hope I can find a job ASAP once I'm back. It's hard to apply while being deployed, specially with the current operation going on out here. Should I still apply? Any recommend a broker or lender in Illinois/Chicagoland area? I can apply and hopefully my wife can start seeing some houses. I need to start somewhere. Thanks in advance.

Box 12 code Q for non taxable combat pay is being amended to $0.00 for every year. This directly affects box 1 “taxable income” and it seems as if I suddenly have $8,000 I need to pay taxes on retroactively from all years combined…..

I can’t find this on any LES and was told by DFAS that my original W-2s may have been correct because the customer service rep said he thinks it’s a common error with non-tax leave accrued in a combat zone being taken in a non deployment year??

I’m not really sure what to do about this or why this “mistake” was made 4 years consecutively and I cannot for the life of me find anything on an LES in the entitlement, leave, or notes section that mentions any non-tax income.

What do I do?

I'm currently in DEP waiting for my recruiter to notify me if I got a job. I’m 19 and honestly have no financial experience at all. I don’t even have any cards yet.

I’m only planning to do one 4-year contract. I don’t plan on getting married while in, and joining was mainly my priority because I know it’ll help me long term. I also grew up with parents who weren’t financially responsible, so I’m trying to learn as much as possible now and avoid making the same mistakes.

I already know the common advice like:

- don’t buy an expensive car

- use Tuition Assistance while in

- use the GI Bill after

- save money while living in the dorms, etc.

But I’d really appreciate more detailed advice, especially about:

- building credit

- investing

- TSP/retirement

- savings

- budgeting

- mistakes to avoid as a young enlisted member (since I have zero financial experience and guidance)

Basically anything you wish someone told you at 19 before joining. TIA

I’m spiraling gents.

33 male,

Currently working yet another shitty part time job. Mental health hasn’t been great but it’s gotten better.

Got out in 2017 when a pregnant recruiter literally shredded my reup contract. She genuinely wasn’t in her right mind and was NJP’d. I did 5 years active and 2 years reserves.

I thought I’d just get out at 25 and go back to college. Fast forward 8 years and I’m just now finishing my bachelors. I’m getting my masters in social work to work with the VA.

I’m 60% and between disability, school, job, I make about $4700/mo. Not terrible especially since I don’t have kids yet. Bills are only $1500/mo including food and gas.

I got depressed, goofed around for a few years, figured things would fall into place eventually. I saved around $150k and struggled in college but finally figured it out. No debt. Car paid off. Good credit. No problems. Just don’t have a career figured out yet.

My partner has her masters and works for the state. She has another 20 years before she retires.

I never thought I’d make it this far honestly. Kind of an idiot. Now we’re planning to start a family. It’s a lot. Too much. We can manage it but based on my projections we may be living on ramen for the next 20 years. Just enough to retire but not enough to live.

At best, we would both be making $60k each. After mortgage, childcare, insurance etc. we would be left with $1500 each month. Not terrible.

I just didn’t expect life to be this way. I need advice. Would you go back to the military if you were me?

Things I’m considering

Cons:

- Promotions aren’t guaranteed and I might not even get a retirement. Least that’s how they do things in the marines.

- I’ll lose my partner. She has to stay in NC to retire by 50.

- I am simply doing it for the money.

- I will most likely end my career as an E-6 only making an extra $1800/mo.

- I’ll be 47 if I rejoin by 34.

Pros:

- I wouldn’t be poor

- I’d get a retirement

- I could join as a butter bar

I really don’t know what to do. I’m still young and fit and could easily rejoin but it might not make sense for me. I really need help.

Hello everyone I’ve been recently contemplating on withdrawing money from my TSP account in order to pay off debt. I am currently active duty Navy been in 7 years. I’m at this point where I want to cross rate in to a different rate that requires a TS but one of the issues I have is debt about 30-35k. No the debt is not from stupid decisions just unfortunate circumstances. Trying my best not to file bankruptcy or anything but I feel like I’m backed into a wall and don’t have many options out. Any advice would be helpful.

To take advantage of SoFi’s highest APY for their HYSA, you must set up direct deposit with them. This gets you 6 months of 4.0 APY and after that, it drops to 3.3%. I know that .7 for 6 months isn’t much, but it’s not about that, that is just a plus I guess? Also, I know there are higher APY’s out there. however I like SoFi’s app (the simplicity, and the options you have within the app, such as opening / starting an investment portfolio) also I have heard good things about their customer service. I use Navy Fed as my main bank. I do not want to make SoFi my main bank, so is it possible to only get have only like ~10% of my pay check deposited into AOFI and the rest into Navy Fed and still get the advertised APY?

IF any of yall have any other recommendations let me know please.

Something not talked about much (from what I’ve seen) is the topic of capital gains and military exemptions. I’m talking capital gains harvesting.

While the military provides a lot of great investment opportunity, the breaks and benefits you receive often go unnoticed until you separate or retire. The basics usually discussed is the cheaper healthcare, nontaxable pay- BAH, special pays, etc. not a topic trying to discuss here, as there’s plenty of info on other benefits.

Also well known is the home exclusion for gains on selling a home as long as you have lived in it for 2 years. For military the extension is up to any 2 years in the last 15 vice the standard 5 as long as you have PCS orders.

Here you are: trying to maximize your retirement nest egg. You’re doing everything right! TSP Roth- maxed out (spread out to December if you’re BRS to maximize match). Roth IRA- maxed out. Backdoor Roth if needed, and then you have a taxable brokerage for remaining investment money.

But what about that capital gain tax in that brokerage account? When do you realize those gains?

Well that depends. Does your state tax capital gains? Not all do. A majority do, at up to their standard income tax rate for the state level.

However, some states give exemption for military capital gains. Usually this is tied via the exemption for state ordinary income tax.

So, have you considered realizing those gains prior to separation? If you don’t, and you get a job outside the military, establishing residency and a source of income, you now are going to (likely) pay capital gains tax on those realized gains.

So: consider your ability to realize those gains while active duty. You will still owe federal tax, so there are numbers to crunch there on how much you realize at a time. However, if you make over 98,000 you’ll pay 15% on long term gains. Unless you have over 500k of gains, that will be the flat rate. If you make less than 98k AGI, the. You could convert/realize gains up to the 98k limit with zero tax on the gain.

Entering argument. Lots of other factors but hopefully stirs some thought and planning from those who haven’t considered it before but looking at large tax bill on the “outside”.

I am in ARNG attending BOLC next month and was told by BDE that my orders don't require a lease to get BAH since my orders are 31 days or more. I know I needed a lease when I went to BCT and OCS, but is this true for BOLC? It says in my welcome letter that guard and reservist require their 5960's and original leases

My bills are my mortgage, utilities, and insurance. That's it. I have a small savings account, but I feel like I should be enjoying life in my 30s when I'm not on duty.

What are some good low risk investments?

For those of u with USAA if I have my paycheck deposited into savings not checking (more interest and easier for me with bills to have a separated account) does USAA charge for non network balance checks.

I just checked my savings balance from a non network ATM and then did a withdrawal from the ATm. The ATM charged me $4.95 for the withdrawal and then navy Fed charged me another $1 and $1 for the balance check. So to withdrawal $20 I just paid $6.95, it was a family event that didn’t advertise cash only anywhere so I got burned.

Hello,

I am a relatively new military spouse who is originally from Wisconsin and my spouse is from a different Midwest state. We are stationed in a different state now for orders. I have a completely remote job (so 1099) with a company that does not have a physical office. Does anyone know if I should pay quarterly taxes to Wisconsin, my husband's home state, or the new state we are in for orders?

Thanks for your help in advance!!

Curious if anyone here has used their VA home rights recently and if they were able to get up to 4% concessions and any additional concessions IE closing cost partially or all covered.

Every situation is different but curious to hear what your purchase price was vs asking price. What did you end up overall negotiating.

A example I’m thinking of since it’s a buyers market is offering full asking price on a home . Hope it appraises and ask for concessions towards closing cost if not all and up to the VA 4% entitlement towards points, taxes and insurance

Hey yall, my wife and I recently got approved to stay at Rucker since I’m no longer medically cleared to fly. Looking for some advice on finances.

Currently have about $80k in a HYSA @3.5% (saved up during deployment last year), $18k in my checking, and $110k in TSP (investing about $1700 / month). We’re about to close on a $250k home using 30 year VA loan at about 5.99%. My wife has about $8k left on her student loans and we have about $43k to pay on a new car we bought recently.

We plan on paying off the student loan in one or two payments after we close on the house, and pay off the car within 3 years. How would yall manage the assets? I realize having this much cash on me is not how most people would handle it, but I’ve fucked up investments in the past and am nervous to try again. Let me know what yall think.

Thanks🫡

Currently in a pickle with my house. I have been living in my house for 2 years now and I was tagged with an oconus PCS I was not expecting. I haven’t built enough equity in the house so if I sell the house as is, it would cost me ~13k out of pocket to close. If I rent it out, after property manager fees, I would be paying close to 450$ a month to rent it out and pay my mortgage.

Although it hurts, I can pay the closing cost for the house since I do not want to short sale the house, but realistically speaking, I won’t be coming back to this house for +3 years. No other debt other than the mortgage.

Should I sell the house to get it over with or rent it out at a deficit until I built enough equity?

i recently opened another Roth IRA account with Fidelity to have another account next to my TSP, Robinhood & Emergency Fund. My IRA isn't fully invested and i'm not sure what option to choose.
•Index Funds
•Asset Allocation Funds
•Target Date Funds
•Fidelity Go
It looks like Asset Allocation yields the most and is like the TSP, but i'm not completely sure how they all work.

I need some advice about applying for Ohio SCRA for a debt incurred after I joined. TLDR I am an Ohio resident, currently in the space force stationed in Colorado, I got a loan for a vehicle that I bought while in service using a Ohio bank, I reached out to my bank requesting for them to apply SCRA and they replied I only qualify for the SCRA if I am deployed or deployed OCONUS. Is this true or should I qualify for SCRA?