Military Family with 2 Housing Payments! | Millennial Real Life Budget Review Ep. 17
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- čas přidán 8. 08. 2023
- This military family is living in two locations for the next 12 months: double the house payment, double the groceries, plus 2 kids and 3 dogs. This budget needs work!
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They didn't provide enough information to make this a useful financial review. Military family finances are rather unique, and if you aren't familiar with various military allowances, entitlements, pay, expenses, etc., it makes it even more difficult to provide a useful financial review, too. First, though, you mentioned off the top that they want a once a month travel from TX to CO over the next year, which wasn't included in the budget. The monthly pay isn't an actual static amount, since a big chunk is BAH with dependents, since presumably the husband is on a TDy of some sort at Ft. Bliss; moreover, if so, he's also getting lodging and per diem while attending. Since a chunk of the pay is BAH (over $2k) isn't counted as income. Since BAH is an allowance and not income it also isn't a fixed revenue, since it will vary depending on duty location. Depending on if he has chosen blended retirement or not, will also influence savings and retirement savings priorities. Another expense not included in the future section but should be is a PCS fund. If enlisted, any upcomming reenlistment bonuses? Also, husband is more than likely eligible for the post-9/11 GI bill, which can be transferred to dependents if he signs up to do so now with a minimum service requirement, that should be considered when determining amount into a 529. Anyway, they needed to provide far more information.
Hi! We receive BAH from Colorado Springs. He is not TDY, he is an unaccompanied bachelor, so he does not receive per diem or any other entitlements. I used his GI bill to complete my bachelors and my masters.
Travel to/from COS from El Paso is only the cost of gas, which is factored in.
Also, no further reenlistments, he’s been in for 22 years 🤣🤣
@@The3Gregorys the additional information is useful and would have provided some more clarity in the financial review. If unaccompanied bachelor rather than TDY, you would be eligible for FSA. travel to/from COS-El Paso isn't just gas. You have to account for some additional wear and tear on the vehicle, snacks, etc.
@@The3Gregorys no further reenlistments isn't a function of being in 22years, it's a function of him having signed up for voluntary CSP/IRP. him being in 22yrs also wasn't mentioned, which would also impact your financial review based on CSP/IRP. Cost of any final PCSs and definitely cost of transition out of the military should be included in the plan. His retirement will come sooner than you think, and you'll have a major income and allowance drop you need to plan for even if he gets another job during transition out.
You have an excellent sense of communication on finances, expectations, and game plans going forward 👏
Wasn't there a comment on the mortgage to say whether the rent was included?
Curious why you mentioned the income cap for ROTH contributions, when it’s perfectly legal and super easy to do a back door Roth contribution? Hitting the income cap really doesn’t really mean anything and I hope people understand that they can still contribute to a ROTH regardless of much they make.
19:25 Horrible advice to reduce investing especially since they're not investing enough relative to their income and unnecessary miscellaneous spending. Appears no traditional IRA so no *pro rata tax* levied if they back door Roth IRA.
@@alrocky Anyone can open a traditional IRA at any time. Once you open the traditional IRA you can transfer $6,500, then it takes a few days to settle / become available in the account. Once settled you then transfer it into your ROTH IRA. The benefit in doing so isn't going to lower taxable income, it's so that you can invest and grow money and take it out without having to pay taxes later.
@@allisonmedina4884 Yes *_indirect_* back door Roth process should have been mentioned for those who income's too high for *_direct_* contribution to Roth IRA. Additionally caveat *_pro rata tax_* for those with existing traditional IRAs from years prior. Curious if she didn't talk about any of this because perhaps she doesn't know.
@@allisonmedina4884 huh? You may want to use correct terms as well as clarify what you mean here. There isn't a transfer option, you are converting TIRA to RIRA. If you convert incorrectly with an incorrect distribution to transfer into a RIRA, then you would incur a 10% early withdrawal penalty. Also saying just because you hit an income cap you can do a back door Roth doesn't take into account other factors, namely whether doing so makes financial sense. If you have high non deductible TIRA balance, chances are backdoor conversion isn't going to be financially beneficial. I think it the context of income cap, is because they aren't investing and retirement saving sufficiently already in other areas where backdoor roth would be a priority. Also, because she isn't familiar or the peson didn't provide sufficient clarify, not all of her husband's military compensation is considered in MAGI for Roth eligibility. Even though they clump everything as income here, we know that the husband is in the military and they get BAH. BAH isn't taxable, isn't included as income, and isn't included in MAGI for Roth eligibility. Same goes for any other military allowance he may be receiving.
@@alrocky what the heck is an indirect back door roth process? it's redundant.
That you do a budget review for the tube, you seem to not have key information, which makes no sense to present.
Too many questions on your end looks like you didn't hold a proper preparation interview. How are you really helping anyone?
That’s usually how I feel about Caleb Hammer. 😬
@@nosirrahmi strongly dislike him. at first i liked him but he’s so judgemental and not helpful
Places emphasis on wrong items and mistakenly suggests cutting funding for Roth IRAs when $6,500 for husband's Roth IRA $6,500 for wife's Roth IRA should be paramount and no mention at all about increasing contributions to their retirement PERA 403(b) and Thrift Savings Plan.
@@nosirrahm he has his in subject in front of him to interview and ask. He's not guessing or Wondering
@@noraorzack3979 ummm, he's taking off with multiple videos a week. You should be judged if you are wasting money with debt AND actually think you should be forgiven for college loans...that's literally the bulk of his clients!