How have you made your savings decisions?

COL Lee Flemming — Wed, 01 Feb 2017 06:21:07 -0500

Would love to hear about how you have made decisions on how to save for your retirement or just a rainy day. Mattress, 401k, Roth IRA, Savings account, etc.

Response by TSgt Joe C. made Feb 1 at 2017 6:26 AM

TSgt Joe C. — Wed, 01 Feb 2017 06:26:32 -0500

Not going out to eat or going to a movie every weekend...adds up COL Lee Flemming

Response by SFC Michael Jackson, MBA made Feb 1 at 2017 6:34 AM

SFC Michael Jackson, MBA — Wed, 01 Feb 2017 06:34:48 -0500

Money Market Savings Acct - for emergency savings
TSP-retirement 10%
Roth IRA 10%

Response by LTC Private RallyPoint Member made Feb 1 at 2017 6:54 AM

LTC Private RallyPoint Member — Wed, 01 Feb 2017 06:54:28 -0500

COL Lee Flemming I had a SGM once tell me to store up on three medals evenly: gold, silver, and brass. The brass is ammunition to protect your gold and silver or to take others when the apocalypse comes.

I personally do a lot of different baskets to avoid crashing if one performs badly.

Response by LTC David Brown made Feb 1 at 2017 6:59 AM

LTC David Brown — Wed, 01 Feb 2017 06:59:53 -0500

I listen to Clark Howard a fair amount. I also like Dave Ramsey. That being said I learned that when I left a job I wanted to take more than a notch in a resume and experiance. So I maxed out my 401 K matching funds. There is a saying, " expenses rise to the level of income". If you make more your income less you also trim spending accordingly.

Response by MSgt Doug P. made Feb 1 at 2017 9:00 AM

MSgt Doug P. — Wed, 01 Feb 2017 09:00:59 -0500

I grew up learning the value of saving money (parents didn't have a whole lot to start with). As a kid, I'd save up my money for "big ticket" items I wanted. I prefer to wait a little bit to save up and purchase items that, while a little more expensive, make a really good long-term investment. In my experience, slightly higher up front costs for high quality durable goods generally mean lower costs over the long term. Otherwise, good value/low cost for consumables with minimal splurging.

I like a diversified mix of investments and savings vehicles:
--Budget: A must have; think about your income and expenses at least 2-3 years in advance; make sure you spend within your means AFTER you've put savings aside
--Checking accounts: monthly bills and med-low cost emergency spending; set up a 2nd account with automatic deposits to act as an escrow account for annual property taxes, homeowner's insurance, etc.
--Mutual funds: general purpose investing and post-retirement income generation; also in case of high cost emergency expenses
--Roth IRA: can't beat tax free income post-retirement
--401(k): no point to leave free money on the table (employer matching funds) and lower your taxable income from the IRS
--Real estate: a mortgage-free house and some land are solid investments
--Emergency cash on hand: just in case (government shutdown/IOUs, bank failures, credit card hacking/fraud, etc.)

Response by 1LT Private RallyPoint Member made Feb 1 at 2017 9:40 AM

1LT Private RallyPoint Member — Wed, 01 Feb 2017 09:40:02 -0500

Pay yourself first

Response by CPT Jim Schwebach made Feb 1 at 2017 11:17 AM

CPT Jim Schwebach — Wed, 01 Feb 2017 11:17:54 -0500

My approach to retirement preparation was greatly influenced by a friend who just happened to be a Captain in the Royal Marines. We were deployed to a remote location where there was plenty of time to observe(our task at hand) and to discuss major life issues as seen from opposite sides of the Atlantic. Among those topics was retirement. He was amazed that the US approach was to amass a "nest egg" in order to retire. He allowed as how one of the most popular Brit approaches was to engineer an ongoing cash flow that was adequate to satisfy the life style chosen for retirement including housing, sustenance, health care and recreation(he wasn't about giving up his annual vacation to the Med). When a combination of revenue producing assets and government programs(Great Britain has one or two of these) reached that threshold one had reached retirement age. I took that approach to heart and moved on down that path. As a Regular Army officer in SF and without a degree, my promotion prospects were not great so I looked around for better prospects. An up and coming tech related company with a dynamic leadership team provided the opportunity for income growth and, as it turned out, a little adventure as well. Stock purchase plans, options, spider funds, a pension plan that included health care and, when they come available, 401K's, were used to fuel cash flow requirements. Twenty two years later, at 56, I pulled the plug. A few years later I finally got tired of limping around and went to the VA where I received a disability rating that added to cash flow and took care of health care expenses. A real expensive divorce offset that advantage. So almost twenty years into retirement I can still play with cars, live out here in the country, take my new bride to new places and spoil the grand urchins. So the plan worked out pretty well.

Response by Sgt Private RallyPoint Member made Feb 1 at 2017 12:25 PM

Sgt Private RallyPoint Member — Wed, 01 Feb 2017 12:25:18 -0500

COL Lee Flemming Sir, I save and invest as much as I can by learning about investing. Max out 401K, Roth IRA, and any save other money. If you want a big purchase item, hold off a couple of months before you buy to see if you still want it as bad. Always live beneath your means. Be frugal: check books out from library, restaurants - use coupons, restaurant specials, eat at lunch when cheaper, drink water instead of a beverage, no deserts (you can buy a whole cake mix for a fraction of the cost), etc. Use Discounts (senior citizen, military, veteran, etc) Track your expenditures against income until you know where your money is going. Do a net worth every year to see how much progress you are making. Discipline wins the day.

Response by SPC Erich Guenther made Feb 2 at 2017 6:01 PM

SPC Erich Guenther — Thu, 02 Feb 2017 18:01:28 -0500

MAX out 401(k) and ROTH. Create an emergency fund to support myself for 8-10 months in case I lose my job or have a medical emergency beyond what employers insurance pays. Use the Emergency fund to speculate on Stock Market with controlled limits so I never lose more than 20% of it. $5-10k Credit line via Credit Union for overdraft. Has worked well so far for me.