Getting a Mortgage Without a Credit Score
Episode 121: Learn about getting a mortgage without a credit score– one of the caveats of financial independence! Paying Mortgage Insurance Premiums Kevin hasn’t had much time to spend money […]
Supporting Anti-Racism Through Giving 2 Frugal Dudes
Do-It-Yourself Debt Relief Options 2 Frugal Dudes
Our Tiller Money App Review 2 Frugal Dudes
How to Work On Your Business Instead of In Your Business 2 Frugal Dudes
Tips for Managing Finances in the Military
2 Frugal Dudes
Podcast: Play in new window | Download
Subscribe: Apple Podcasts | Android | Google Podcasts | Stitcher | RSS
Episode 122: Wondering how to manage your finances when you’re serving in the military? In this episode, we’re talking about military tax tips and military money management tips.
On this episode, we’re talking to Scott Vance of the Sheepdog Financial podcast. Scott is a fee-only financial planner focusing on military members and is sharing information on managing personal finances for military service members.
Scott enlisted in the army right out of high school, completed his college education, and was commissioned as an officer. He retired from the army a few years ago and now focuses on financial planning and tax services.
Scott has always been great at putting money away, but not so good at leaving them to gain compound interest.
The traditional military retirement system was putting in 20 years, then getting half your salary for the rest of your life. Now, if you do 20 years, you get 40% of your salary. In both plans, you’d get a higher percentage for additional years above and beyond 20. If you retire before 20 years, there’s generally no pension.
The Thrift Savings Plan is a contribution set up that’s similar to a 401k. This is ideal for improving returns upon retirement and extremely helpful for those who don’t reach 20 years of service before retirement. Keep in mind, the reasons for retiring before 20 years vary. Injuries are a factor, family dynamics, etc.
With the Thrift Savings Plan, 1% of your salary is contributed in the first year, then the military matches any contributions you make yourself.
Many people in the service are unaware of the tax breaks that they’re eligible for, especially the state-specific breaks.
The Military Spouse Residency Relief Act (MSRRA) is meant to protect the interests of a military spouse who moves as a result of the services. The MSRRA allows the spouse to retain their residency for tax and voting purposes.
Not only does the MSRRA simplify state taxes, but it also allows military spouses from tax-free states to retain those rights if they’ve accompanied their spouse elsewhere.
If you’re in the military and haven’t taken advantage of the MSRRA, you can claim back as far as three years.
If you’ve rented out your home to someone else as a result of deployment, you can track your expenses as though you’re a business. It falls under investment properties, and understanding that there are extra taxes and tax breaks to consider.
If you have to rent a home as a result of your posting, looking into VA loans and VA rental options available in your area.
Scott operates Trisuli Financial Advising. Scott uses his expertise to help service members with personal finance, working within the jargon, knowing the tax loopholes, and planning for life beyond the service.
Music: https://www.bensound.com/royalty-free-music
Disclaimer: Kevin and Sean are not professional financial advisors. Do not take any advice they give without first speaking with a professional and performing your own due diligence.
Tagged as: personal finance, military, retirement planning, service members, military family, military spouse.
2 Frugal Dudes October 4, 2019
Episode 121: Learn about getting a mortgage without a credit score– one of the caveats of financial independence! Paying Mortgage Insurance Premiums Kevin hasn’t had much time to spend money […]
Post comments (1)