Champ Kind Posted January 3, 2014 Share Posted January 3, 2014 I always shook my head when I saw the newly-minted SSgt pull up in his new BMW/Benz. They drove WAY nicer cars than I did, and I was making over 2x their base pay (not bragging). We do our young guys a disservice by not teaching a basic finance course at BMT/FTAC, even if it might fall on deaf ears. Plenty of O's, too. Link to comment Share on other sites More sharing options...
Jake_65_65 Posted January 3, 2014 Share Posted January 3, 2014 We do our young guys a disservice by not teaching a basic finance course in high school, even if it might fall on deaf ears. FIFY 2 Link to comment Share on other sites More sharing options...
Fuzz Posted January 3, 2014 Share Posted January 3, 2014 He had to file bankruptcy early Sorry just wanted to point this out, he fully admits he was young and dumb. Frankly I enjoy listening to him and his story about when he was young, because I and many young people can relate. He made all those mistakes that young people today make and it bit him hard. However, he got his shit together and recovered; personally I dont mind taking financial advice from someone that has been there and done that. I'm not a fanatic follower but for people literally drowning in debt his methods are simple and work. Link to comment Share on other sites More sharing options...
Hodor Posted January 3, 2014 Share Posted January 3, 2014 (edited) This is a good thread. I learned most of how not to manage money from seeing my parents struggle up until a couple years ago. I didn't learn all the lessons though, cause I took out the stupid USAA Career Starter Loan. I used some of it to jump start my Roth IRA when I graduated, but most of it I used for a car to replace my 27 year old truck. Well, the truck has out lasted the car and I just about have my student loans and my USAA loan paid off. I have enough to cover a few months expenses on hand plus half of that in cash, plus my Roth IRA (6k), TSP (2k), and Roth TSP. I've been in for a little over 2 years and am finishing up IQT, any pro-tips to help me get ahead of the curve as far as where to start with investing more aggressively? I know nothing. . . Edited January 3, 2014 by Hodor Link to comment Share on other sites More sharing options...
brabus Posted January 3, 2014 Share Posted January 3, 2014 Looking into opening an account with Vanguard...any feedback on them? A lot of their funds are enticing, especially with low expense ratios. Just looking for one last sanity check before I put a decent amount of money into their funds. Link to comment Share on other sites More sharing options...
Disregard Posted January 3, 2014 Share Posted January 3, 2014 I opened two Vanguard accounts recently: Roth IRA in VFIFX (0.18% expense ratio) and general investments in VTSAX (0.05% expense ratio). I haven't had my account for a while, but I'm happy that I finally moved the money from USAA. It took one month from opening the account to getting the money transferred, but some of that was probably due to the extra time to mail the forms from downrange. Link to comment Share on other sites More sharing options...
brabus Posted January 3, 2014 Share Posted January 3, 2014 Did you run all the transfer paperwork through Vanguard, or did you have to also work directly with USAA? I have money with another bank as well, so this may end up being a pain in the ass to transfer it all, but seems worth it based on my research. Link to comment Share on other sites More sharing options...
zach braff Posted January 3, 2014 Share Posted January 3, 2014 I transferred my USAA Roth to Vanguard this past autumn. It took about a month but it was no trouble. I did the application online with a rep on the phone, then mailed the paperwork. One day about 3-4 weeks later I had no money in USAA and a bunch in Vanguard. Didn't have to do anything on the USAA end. After the transfer you have to do one more ID verification with Vanguard before you can deposit/trade any more $$$, but you can do it by email. Super easy. So while we're on the net worth game - I started late after making a few dumb mistakes in my 20s. Now sitting okay but lots of catchup to do. Age 35 with about $75K(ish) between IRAs, TSP, kiddo's 529 and cash. No debt, good or bad (car is paid off, CCs paid each month, not a homeowner so no mortgage). Comm cyber O-3 with no bonus or flight pay, but pulling a little extra cash being overseas right now. Now I'm maxing IRAs for me & wife, plus loading the TSP & 529 as best I can. I'm not a very "active" money guy so my strategy is put as much away before I ever see it (via allotments & automatic deposits) - then I treat my checking account like I'm still in college - have as much fun as I can with it and zero that beeyoch out every month. zb Link to comment Share on other sites More sharing options...
Striper_WSO Posted January 3, 2014 Share Posted January 3, 2014 Looking into opening an account with Vanguard...any feedback on them? A lot of their funds are enticing, especially with low expense ratios. Just looking for one last sanity check before I put a decent amount of money into their funds. I've had an IRA with Vanguard for about 10 years. My wife has had one with them for about 8. Very satisfied customers. Expense ratios are the lowest in the industry. Website is easy to use. Once you get over a certain dollar amount (think it is 50K) that do not charge an annual maintenance fee. One potential downside may be the number of options for funds, ETFs, and stocks for your IRA. I have only put money in Vanguard Index funds with Vanguard. Not sure what the fees are if you wanted to do something different than that. Probably worth looking into if you want to do that and are going to put your money with Vanguard. 1 Link to comment Share on other sites More sharing options...
Skitzo Posted January 3, 2014 Share Posted January 3, 2014 20K Liquid Cash....Emergency Fund in a Money Market 50K ROTH IRA w/Fidelity Value Discover, Perm Portfolio Fund and some Ford, Kohls and American Airlines Stock (My IRA) 10K ROTH IRA w/Fidelity Contra Fund (Wife's IRA) Prepaid College Plan for 3 x Kids Started a ROTH TSP last year, pretty small amount I'm thinking the market is going to be in for a major correction this year, kind of want to take a cash position or possibly bonds or something to mitigate the risk. Anyone else? I know I have a lot of years ahead before retirement, just don't want to see that much money go. Link to comment Share on other sites More sharing options...
Homestar Posted January 3, 2014 Share Posted January 3, 2014 (edited) I've been in for a little over 2 years and am finishing up IQT, any pro-tips to help me get ahead of the curve as far as where to start with investing more aggressively? I know nothing. . . I prefer the "set it and forget it" method. I'm a buy and hold kind of guy, but I'm only really making deposits into Roth IRAs and TSP funds right now. I think the only real pro tip should be to start early and be consistent with deposits. I'm 34, get pilot pay, married with 4 kids (wife raises the kids, so no income), and have 11 years of service this spring. Here are my balances: Checking and Savings (emergency fund cash): 63K TSP: 127K My Roth IRA: 64K Wife's Roth IRA: 33K Mutual Fund account: 24K Total net worth (assets minus liabilities) = roughly 327K. I include the resale value of my two (paid for) cars in my net worth figure. I don't own a home anymore. I'm putting $1,000/month into Roth TSP right now plus 5% into the regular TSP and max out both Roth IRAs. Haven't bothered much with the mutual fund account lately. I pretty much stick with USAA for everything because it's easy, I pay for everything with a credit card, pay off the balance each month, and use the 1% cash back to pay for Christmas every year. My overall goal has been 20% of pre-tax income to savings/investments and 10% pre-tax income to church/charity. (edit to fix pilot math) Edited January 3, 2014 by Homestar Link to comment Share on other sites More sharing options...
MilitaryToFinance Posted January 3, 2014 Share Posted January 3, 2014 Looking into opening an account with Vanguard...any feedback on them? A lot of their funds are enticing, especially with low expense ratios. Just looking for one last sanity check before I put a decent amount of money into their funds. I've had Vanguard accounts since 2001 and they are great. If you want passive funds with low expense ratio and no-load fees they are the best option in my opinion. As to the main question of the thread, I had a net worth of about $200,000 shortly after pinning on Captain but then I separated from the AF, moved to NYC and started graduate school. So I'm guessing when I turn 30 and graduate I will be starting back from $0 again if not a negative net worth. Link to comment Share on other sites More sharing options...
Day Man Posted January 3, 2014 Share Posted January 3, 2014 Plenty of O's, too. 2 FIFY Great point. I didn't learn all the lessons though, cause I took out the stupid USAA Career Starter Loan. Back when I took it, the interest rate was 2%, and you could get 4% through their savings. It was stupid not to take it. As with everything investing, YMMV. Link to comment Share on other sites More sharing options...
Vicious3027 Posted January 3, 2014 Share Posted January 3, 2014 If you have not registered for Mint.com I would HIGHLY suggest it. Its a completely free service and has apps on many platforms. (I have the iPhone and iPad apps, oh good for me) It is very easy to upload your financial info that downloads automatically, which you can get the up-to-date look at your finances. 1 Link to comment Share on other sites More sharing options...
AnimalMother Posted January 3, 2014 Share Posted January 3, 2014 The RZR pretty much said it all. Diversify your shit. You say you have $XX in the bank? That's cool, how much real wealth do you actually have though? Do you hold any foreign currency or equities? Any foreign real estate? Any real money? How much diversification are you actually achieving? Some food for thought: http://www.telegraph.co.uk/finance/financialcrisis/10548104/IMF-paper-warns-of-savings-tax-and-mass-write-offs-as-Wests-debt-hits-200-year-high.html Link to comment Share on other sites More sharing options...
rancormac Posted January 3, 2014 Share Posted January 3, 2014 (edited) For those quoting Dave Ramsey, did you just read his book? I'd like to get more savvy with investing. I'm 28 and as I start my USAF aviation career I want to invest smarter. I know there's a lot of options.... mutual funds, traditional/roth IRA, state tuition fund etc. So far I have $18k in stocks that I play with, $80k in 401k, and about $15k in cash. Single, no kids. Edited January 3, 2014 by rancormac Link to comment Share on other sites More sharing options...
Day Man Posted January 3, 2014 Share Posted January 3, 2014 Haven't read his shit, but you don't sound like Dave Ramsey's target audience. Like AM said, how diversified are you? Do you have $18k split between 3 auto/airline/fleshlight stocks? Look into ETFs that offer inherent diversification like mutual funds, but usually have lower fees and higher liquidity. Link to comment Share on other sites More sharing options...
rancormac Posted January 3, 2014 Share Posted January 3, 2014 (edited) I'd actually like a detailed, math focused source that gets in the weeds. Everything I've seen on Amazon is super novice and seems simple -- get out of debt, diversify, etc. My 3 stocks are split between solar, tech, and airline (specifically SPWR, MU, and DAL). Using Scottrade. I've used Vanguard for mutual funds before when I was really young. I know I'll eventually need some IRA stuff, just a matter of when. And whatever exists. Edited January 3, 2014 by rancormac Link to comment Share on other sites More sharing options...
Spur38 Posted January 3, 2014 Share Posted January 3, 2014 Investing? I just started with the Motley Fool letter. I have watched them off and on and finally decided to dive in....anyone else have experience with their recomendations? Link to comment Share on other sites More sharing options...
xaarman Posted January 3, 2014 Share Posted January 3, 2014 For those of you looking to get smart on long term retirement saving/investing, I can't recommend this book enough: http://www.amazon.com/gp/aw/d/0071747052/ref=mp_s_a_1_1?qid=1388770069&sr=8-1&pi=SY200_QL40 I am a Boglehead, subscribe to the thought of long term, diversified, low expense ratio index funds are the key to success. I'll post more, but on iPhone currently. Link to comment Share on other sites More sharing options...
MilitaryToFinance Posted January 3, 2014 Share Posted January 3, 2014 I'd actually like a detailed, math focused source that gets in the weeds. Everything I've seen on Amazon is super novice and seems simple -- get out of debt, diversify, etc. My 3 stocks are split between solar, tech, and airline (specifically SPWR, MU, and DAL). Using Scottrade. I've used Vanguard for mutual funds before when I was really young. I know I'll eventually need some IRA stuff, just a matter of when. And whatever exists. If you want something with more meat on it and not the typical stuff like you mentioned then ignore Ramsey, he is worthless. Here are probably two of the best books to start from. Intelligent Investor: http://www.amazon.com/The-Intelligent-Investor-Practical-Counsel/dp/0060155477/ref=sr_1_3?ie=UTF8&qid=1388771737&sr=8-3&keywords=intelligent+investor Security Analysis: http://www.amazon.com/Security-Analysis-Edition-Foreword-Editions/dp/0071592539/ref=sr_1_1?ie=UTF8&qid=1388771785&sr=8-1&keywords=security+analysis For a modern take on this style of investing I recommend Greenwald's book. http://www.amazon.com/Value-Investing-Graham-Buffett-Finance/dp/0471463396/ref=sr_1_1?ie=UTF8&qid=1388771814&sr=8-1&keywords=bruce+greenwald There's also Peter Lynch's classic. http://www.amazon.com/One-Up-Wall-Street-Already-ebook/dp/B006YDFYW6/ref=sr_1_1?ie=UTF8&qid=1388771861&sr=8-1&keywords=one+up+on+wall+street 1 Link to comment Share on other sites More sharing options...
Fud Posted January 3, 2014 Share Posted January 3, 2014 Did you run all the transfer paperwork through Vanguard, or did you have to also work directly with USAA? I have money with another bank as well, so this may end up being a pain in the ass to transfer it all, but seems worth it based on my research. They will take care of all the transfer stuff for you. I moved my kid's education funds over as well. However, I did make one call to USAA and when asked why I was closing my investments, I told them my reasons were personal. I am very happy with Vanguard for my long term investments, but my emergency fund is still with USAA in a money market fund for easy accessibility. Link to comment Share on other sites More sharing options...
rancormac Posted January 3, 2014 Share Posted January 3, 2014 Awesome, thanks for the info dudes Link to comment Share on other sites More sharing options...
Fud Posted January 3, 2014 Share Posted January 3, 2014 I'd actually like a detailed, math focused source that gets in the weeds. Everything I've seen on Amazon is super novice and seems simple -- get out of debt, diversify, etc. My 3 stocks are split between solar, tech, and airline (specifically SPWR, MU, and DAL). Using Scottrade. I've used Vanguard for mutual funds before when I was really young. I know I'll eventually need some IRA stuff, just a matter of when. And whatever exists. Go see a certified CFP for a consultation. They will do it all for you, but the good ones are expensive. Personally, I don't have the time to read about all the companies I wish I had invested in years ago (Netflix, Apple, etc...) Link to comment Share on other sites More sharing options...
Day Man Posted January 3, 2014 Share Posted January 3, 2014 ...all the companies I wish I had invested in years ago (Netflix, Apple, etc...) This is important...hindsight is 20/20, and you can't go on kicking yourself or saying "I should have..." Take a look at why those companies have done so well, and how it can help you find the next GOOG/NFLX/PCLN. 1 Link to comment Share on other sites More sharing options...
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