INVESTING
I would like to know what types of retirement programs they have. I read a few articles about how they differ from regular civilian. I was wondering If you have to make payments to get the retirement of 20 years in the service. I was thinking If I had $200,000 at 28 I would have a passive income from that capital of at least $12,000 annually. There's so many different mutual funds available and I want one that has showed an average growth around 12% or more. Is that realistic? I've heard of Tax Lien Certificates earning 16 percent or more. I'm not sure what the stock market average is at and inflation is at 5% correct me If I'm wrong. So I would only be realizing a 7% effective rate. I really don't want to invest into an IRA Fund or annual/pension fund becuase I will only be able to see that money when my hairs are white or gray. Does anyone know of another type of tax - deferred program so I can retire at 40. Isn't there a way to wrap a corporate body around my portfolio where my gains wouldn't be taxed? I'm aiming for at least $1,000,000 at 40 over a 20 year period and a passive income of at least $80,000. And I would want to be able to draw that and still be in active duty Navy or a civilian job.
CAREER AND TRANSPORTATION
Also I would like to know If I would need a car
and how I would get around while going overseas, etc. I'm not thinking I would need one. Is there a library on the boat?
EDUCATION
Finnaly, I have chosen a profession and I think you get 16 free credits per year while on active duty. Do I have to use these towards my job rank, or could I use them for whatever I choose. I wanting some classes so I could use them for the course of my lifetime and I would use some credits to boost my income for the profession/career in the Navy. I'm not sure how I will get these credits If I'm traveling on the boat all the time. I've gotten some kind of 350x36 College Fund or something guarantee on my contract also. If this for education after active duty?

Sorry If my post is chaotic and thanks for your replys.

Enlisting in the Navy and want to retire a millionaire from it. My .02 is don't drink, don't smoke, don't spend anything in port in any country you get to visit. Don't buy a car. Don't buy anything in new condition. Sell blood and other bodily fluids when possible.

If you have a job in the Navy that affords you the luxury of being able to take a class or two then go for it. Depending on the degree you are going for you are looking at least 128 semester hours give or take.

You do not pay anything to get the retirement benefit. You have the option of getting a Thrift Savings Plan instead of a 401k.

If you are enlisting in the Navy to get rich you may be disappointed.

Wow I guess we should start with math 101. After taxes in the Navy you will probably clear $10,000 the first year, adding about $1,500 per year for each promotion you receive. Figure at E-3 you will clear about $15,000 per year. Now they will house you and feed you. There are cost for uniforms, but you have to buy clothes to go to most jobs. So 10 years in for a rough estimate you will have earned take home pay of $150,000. Assuming you are more frugal you might save half of that.

Now on your investment - you are in way over your head. Figure on a good growth or growth and income fund that earns 8% plus growth. Wrapping corporate shells around personal assets makes your a IRS target. It is called a personal holding company. My tax professor taught me that if you make the money, pay the tax. There are good tax deferral mechanisms - I am not a financial planner. I used to have a tax practice.

School - when I was in the Navy I was lucky to have time to do the courses for advancement. On ship I used to be lucky to have time to eat a real lunch - things needed to be done. If you are deployed it will be hard to study online. I can tell you that in my civilian career I have twice dropped out of grad school due to work. The military is a much more demanding boss.

Retirement - I was supposed to at 50 for health reasons. I like what I do. I am good at it. I have been doing it for a while. It give me pleasure to achieve. Five years ago when I was very sick I asked the social worker how to make the transition. We never got that far. Maybe I just come from a line of people who have to do.

Boat - a Boat is a Sub. A ship is what submariners call a target. There is liberty when in port. Ships by their nature spend a substantial amount of time somewhere else - at sea. There is no liberty while at sea, but in port there is when possible. Home port yes if you are not in trouble. Overseas is more complex. By the rules a certain number of people must always be on board a ship at all times - the duty section.

When I got out of the Navy I was broke. I am far from poor now. We like mutual funds. We pay a small fee and someone manages our investments. We have other things, but funds are easy.

At 40 you do not want to live on your investments - there will not be enough to go around at 70. What else can I say. If you want to be rich at 28 go to school and get a job on Wall Street. Or you can finish near the top in law school like and get a 6 figure salary at one of the huge law firms. Many things can make you rich. Being in the military as an Enlistee is not one of them.

This message has been edited. Last edited by: Dave_M,

In fourteen years at age 40, $1,000,000 will not have the same value as it does at this time. Even now, 1 mil is not a lot of money.

To MortgageGuru
But how do they fund the retirement plans then if the individual doesn't pay?

So your saying I'll probaly be working all day on the boa... I mean ship. (A Tug Boat isn't a submarine ). So I wouldn't have much spare time. I've read things about how you'll get 16 free credits a year and your able to college courses aboard and that's one of the main reasons I joined. As much as I believe and love
to work I was promised that the Navy wasn't going to neglect my brain in the process. But I guess you can't take for granted unless you have it written on the contract.

Sorry I screwed up your post by accident - I am a new moderator and meant to edit mine.

This message has been edited. Last edited by: Dave_M,

I think I may understand your question about the school credits. You can get college credits for your job that you do. Basically certain jobs give you certain college class credits. And you get Tuition Assistance from the Navy, but i believe it is on an amount of money per fiscal year. So it all depends on the college you go to. I think my wife was able to get 6 free classes a yr. Then you need to have your GI bill, and maybe even student loans. Also for colleg as an active duty you can take clep test on most bases for free. Those are great ways to bypass actully having to take your generals.

ok...I'm just going to be blunt with it. The programs are in place where you can take classes and get a degree while enlisted. The only problem that you will find is that you are going to work long hours on a regular basis. There really isn't a lot of time left at the end of the day.

Retirement is paid by Uncle Sam. TSP is there so you can save even more for retirement.

No problem as long as you got to read it. So does this mean that since I'm not guaranteed
Advanced Technical Training which I hear is a few credits shy of an Associate's Degree that I wouldn't be able to take it(I was guaranteed A-School)? And about the Thrift Saving's Plan I read an article about it on the military.com website about how you can put up to around $15,000 into it a year. What's the minimum age you can take your money out without getting penalized? Would I need to hire a financial planner to set my own investment portfolio up?
Also, what's the difference between a military and civilian bank account? Do they have a set interest rate on savings and do they have options like standing transfers into your investments? About college, you mean on shore duty? My job spends 65 percent aboard and the rest on shore. Im thinking I just need to experience it and see what I can do, but I'm trying to make sure everything's in place before I go off to boot camp for 2 months. And then I go off to A - School for awhile. It just sounds sort of chaotic working 14 hour shifts, going here and there for 4 years, having no free time to studying investments. I looked at this picture of these people playing basketball and all this. My dad told me about how his chief would tell him not to go to this place becuase it's bad news and when they went there the chief would be there where he told them not to go. Maybe this is all during the paid vacation every year. So If I wanted to receive extra education I would pay $100 a month for 12 months for the G.I. Bill and take these courses during my vacations? I got this guarantee on my contract that states something about a $350x12 month fund. Not sure what that is either. From what I'm getting is that I use the Tuition Assistance and don't have to pay out of my base pay to develop a career in the Navy and that I would have to use the G.I. Bill during my 30 days paid vacation and that I wouldn't have any free time during any day until then. Do i work on weekends? I've always got paid by the hour don't really understand this salary business.

Thanks for your time and thanks for understanding.

You are guaranteed A school. For Advanced technical training you need to be in one of the programs with a 6 year commitment.

The TSP offers the same type of savings and tax benefits that many private corporations offer their employees under "401(k)" plans. TSP regulations are published in title 5 of the Code of Federal Regulations, Parts 1600 — 1690, and are periodically supplemented and amended in the Federal Register.

You may elect to contribute any percentage (1 to 100) of your basic pay. However, your annual dollar total cannot exceed the Internal Revenue Code limit, which is $15,000 for 2006.

The rules for withdrawal are complicated - but basically you can take the money out after you leave the service. You can roll the money over to a traditional IRA. Or you can take the money out in several forms and pay taxes on it as ordinary income.

A bank account is a bank account. Unless you are talking about the TSP. Good deals for young sailors is the Navy Federal Credit Union, but you might like a major bank.

You will not want to go to school on vacation. We did not only work. We did have a life. I was married to my first wife for my second year in the Navy. But when in school or aboard ship I worked hard. I was trying to add a stripe, but also looked at getting an AS with the credit. I did apply my military credit to electives for my business degree.

There are some good online programs that I could recommend for getting a degree once you get settled. First get you first real command, then look to the future.

Slow down and go to boot. It is a total experience. When you get done catch your breath and do A school.

When I went in I had 2 years of college. I finished when I got out.

"numbers" and Dave_M


Upon reading and re-reading your posts about the Navy, college and money, IMO, it appears to me that the both of you enlisted to better yourselves financially and further your education, rather than to serve this Country. Perhaps I'm wrong, but that's what your posts seem to be all about.

I have been out of the Navy 30 years. I went in to serve and do something I was interested in for many years. When I left with a disability I went back to school. I am just trying to point the boy straight. You do not make much money in the service. I learned a lot of skills I use today.

Let's not get on the offensive here, after all we all are American. The majority of this post was about finances becuase this is the financial section. I joined the Navy for experience, education, and the leadership skills. And if the benefits are available then I want to know every benefit available so I won't get suckered. The country rewards those greedy and domimant people becuase we are a capitalist economy. If it was more about the country as a whole then we would be more leaned towards socialism. As much as I support the old industrialized America, I'm just trying to evolve and get the financial freedom that I want. Life, liberty, and the pursuit of all those who threaten it. I think I will take Dave's advice and just wait until those first orders. Money has always been a controversial topic, sorry If I offended anyone, and Thanks to everyone for the help. Someone's going to have to take over as leaders in future America as the other leaders hand there throwns over. Thanks again for the advice.

quote:

Originally posted by 10807670:
snip~ Money has always been a controversial topic, sorry If I offended anyone, and Thanks to everyone for the help.

No offense taken and the best of luck in boot camp.

Edit: I enlisted in the Marine Corps at 18 yoa even though I had a well paying job at the now starving Bethlehem Steel Company. I had it all, but my true dream was becoming a Marine. After I did my time, I returned to "Bessie," only later to take over my Father's business at age 23, in 1973. I attended school P/T until I sold it in 1977, after which I attended school F/T and then again P/T, when I became a Police Officer in 1978.