A reader writes: I've read many of your posts and links about military retirement in Hawaii. It's not something we had considered previously, but it sounds pretty good. Apart from the high cost of real estate, what are the pitfalls? We are a pretty frugal couple, so I don't think the excise tax would be too bad for us. My spouse is retiring from … [Read more...] about Good reasons NOT to live in Hawaii
Archives for August 2012
Military veteran & CFP Jeff Rose has started another movement over at Good Financial Cents! The Roth IRA movement raised a huge awareness in the financial independence corner of the blogosphere. Now he's trying to do the same for life insurance. Today, 22 August, hundreds of personal-finance bloggers are posting their takes on … [Read more...] about Military insurance: SGLI, VGLI, SBP, and other benefits
A reader e-mailed a new question on an old debate: I have a younger relative about to reach 15 years in the Army. Currently he is an E-7 and was presented with the pension choice of taking $30,000 and a 10% haircut on the pension along with 1% less COLA down the road. Off the top of my head I told him it was a horrible choice. I'm … [Read more...] about Over a decade later, REDUX still sucks
A reader writes: Sir, your post on "IRS Denies Military Retirement Net Disability Exclusion" could not have been more timely. I am a retired warrant officer working for the military, and recently there was an ad in the base newspaper stating "You may be entitled to a refund from the IRS". It had the typical pitch as you had … [Read more...] about This is why we blog: another “net disability exclusion” story
Another content-heavy, link-filled post to get you through the weekend! I recently read a Reddit question that also describes how servicemembers turn into landlords: I'm in the military, eligible for a housing allowance based on my rank and typical rent levels for this ZIP code. I see the following three options for housing: 1) … [Read more...] about So you want to be a landlord.
Did you ever read a book that makes you feel as if your head's going to explode from all the new concepts? I don't mean the U.S. Navy's S5W Reactor Plant Manual, but Joe Dominguez' "Your Money or Your Life" certainly qualifies. I'd like to thank my friend John again for sending me a copy of Abundance. He's an … [Read more...] about Book review: “Abundance”
One of the book's contributors alerted me to this problem. Some military retirees (or their tax preparers) are incorrectly applying the net disability exclusion to their pensions. This error has floated around the Internet since at least 1999 and it's already introduced a number of veterans to their friendly IRS tax auditors. Here's a typical … [Read more...] about IRS Denies Military Retirement “Net Disability Exclusion”
This guest post is brought to you by Eddie Wills. My dad just turned 70 ½. It's a major milestone in the eyes of the IRS, as it marks the calendar year he must begin taking Required Minimum Distributions (RMD's) every year from his Individual Retirement Account (IRA). To celebrate this major milestone, we threw a big … [Read more...] about Ask your Dad if you should contribute to the Roth TSP.