TSP BRS BAH IRA WTF Your Wealth TSP

TSP BRS BAH IRA: WTF? Your: Wealth, TSP, & Fiduciary Duties

Are You Smarter Than a SR?

A Dentist With Money…. .

Military Pay • Taxed: – Basic Pay – Special Pay – Bonuses • NOT Taxed – BAS – BAH – OHA – COLA – FSA Download your LES!

Japan COLA $18 a day TSP Max $50 a day COLA $23 a day

Do. D: Open Book Policy • • Incentive Pay: $20, 000 Base Pay: $4, 046. 70 * 12 = $48, 560. 40 BAS: $253. 63 * 12 = $3, 043. 56 BAH: $1, 788 * 12 = $21, 456 Actual Pay: $93, 059. 96 W-2 Pay: $68, 560. 40 Max Trad TSP: $50, 560. 40

Savings & Loans = Time Machine Send $23, 500 to yourself in the future

Budget Income - expenses = $$ or $$

LIFESTYLE

Stay in your lane!

Spending Money vs Using

Use Your Money “Remember that money is of the prolific, generating nature. Money can beget money, and its offspring can beget more, and so on. Five shillings turned is six, turned again it is seven and threepence, and so on till it become an hundred pounds. The more there is of it, the more it produces every turning, so that the profits rise quicker and quicker, he that kills a breeding sow, destroy all her offspring to the thousandth generation. He that murders a crown, destroys all that it might have produced, even scores of pounds. ” - Ben Franklin

Rule of 72

Fill The Buckets in Order TSP • Max $18 k Roth IRA • Max $5, 500 Anything Else

Bucket 1 TSP: Easy Savings Plan

Military Retirement System Old vs New • Old: Cliff Vested 20+ or none • New: 5% Match: Take from future self

BRS: $8, 777. 52 Free Money Years in Monthly O-3 Base Pay My Pay Monthly Allocation 5% Match for year Total Matches 2016 1 $3, 963. 60 $198. 18 $0. 00 2017 2 $3, 963. 60 $198. 18 $0. 00 2018 3 $4, 492. 80 $224. 64 $2, 695. 68 2019 4 $4, 849. 20 $242. 46 $2, 909. 52 $5, 605. 20 2020 5 $5, 287. 20 $264. 36 $3, 172. 32 $8, 777. 52

TSP vs Broker 10 funds Cost of investing $10, 000 is $3. 80 per year (0. 038% expense ratio) 3. 8 Basis Points 124 funds Cost of investing $10, 000 is $5 to $96 per year (0. 05% to 0. 96% expense ratio) 5 to 96 basis points

Bucket 2: Roth IRA William V. Roth, Jr. United States Senator from Delaware

ROTH vs Traditional IRA • Contributions you make to a traditional IRA may be fully or partially deductible, depending on your circumstances (Taxed later) • Roth IRA (Pay taxes now) • You must decide what will benefit you when you are 59. 5 yo (Wed, May 28, 2042)

Planning on Roth • Taxes will not be accessed on earnings in the future • Great if you plan on still working • Can’t deduct from earnings now • Check to see if you will be in higher tax bracket • Income limits for ROTH IRA

Roth Contribution Limits • 2015 Contribution limits – Roth TSP $18, 000 (TSP. gov) – Roth IRA $5, 500 (vanguard. com) • Income Limits (no contributions) – $194, 000+ Married –$132, 000+ Single –Contribute in April of Next Year!

Bucket 3: Everything Else • • Stocks (C & S Fund) Bonds (F Fund) Government Securities (G Fund) International (I Fund) Options Commodities Leveraged ETFs

Stocks

Stocks

Stocks Sweet Dividends

Bonds

Bonds

Government Securities

International Stocks & Bonds

Mutual Funds & ETFs

Commodities

Options

Short Selling

What To Choose

Rick Barry . 900 free throw percentage ranked first in NBA history

Sexy Stock Picks? “Experts” Name Returns Kiplinger 1. 47% Jim Cramer 0. 43% Forbes 8. 58% TIME 6. 53% Crossing Wall Street 2%

Indexing: Cheating The Market ETF Ticker Index 2016 returns (excluding dividends) SPY S&P 500 14. 01% QQQ NASDAQ 100 10. 55% DIA Dow 30 18. 50%

Marriage, Long Distance Running, & Single Stocks

Riding Out The Drawdowns

Keeping It Cheap

2%/20%: Do Fees Justify Returns?

Time In Market not Timing Markets

Servicemembers Civil Relief Act (SCRA) Six percent cap on interest rates. You can reduce or cap interest rates on any credit card, mortgage, or other loan (including student) obtained before you entered active duty to 6 % APR Judicial Relief. Protection against evictions. Cancellation of automobile leases. Relief from foreclosures and forced sales. Termination and reinstatement of insurance. State Tax Relief.

Am. Ex is Very Accommodating on their SCRA Interpretation!

Credit Cards Treat Like Debit Card!!!!!

Am. Ex No Annual Fee per SCRA 6% Commissary Be Cheap at Airports (lounges) $200 a year for travel $200 Uber Eats http: //refer. amex. us/CHENGTi. X 6? xl=cp 01 -137