1 00:00:00,080 --> 00:00:02,400 Speaker 1: Welcome to How the Money. I'm Joel and I and 2 00:00:02,520 --> 00:00:05,840 Speaker 1: Matt and today we're discussing achieving financial independence in the 3 00:00:05,840 --> 00:00:28,040 Speaker 1: military with Doug Nordman. Yeah, Jill our guest today, Doug Norman. 4 00:00:28,120 --> 00:00:31,240 Speaker 1: He starts every morning by checking the surf forecast because 5 00:00:31,480 --> 00:00:33,159 Speaker 1: he needs to see how he's going to spend the day. 6 00:00:33,360 --> 00:00:35,600 Speaker 1: That's because he and his wife live on the island 7 00:00:35,600 --> 00:00:38,680 Speaker 1: of Oahu, which is a surfers paradise. And I know 8 00:00:38,760 --> 00:00:40,479 Speaker 1: that because I've only seen the pictures. I've not been 9 00:00:40,479 --> 00:00:43,840 Speaker 1: there myself. Uh. Years before that, though, he was enlisted 10 00:00:43,880 --> 00:00:45,880 Speaker 1: in the military and had a career in the Navy 11 00:00:46,200 --> 00:00:49,200 Speaker 1: as a submariner. And now he writes about money over 12 00:00:49,320 --> 00:00:52,320 Speaker 1: at the Military guide dot com and that's the dash 13 00:00:52,400 --> 00:00:56,760 Speaker 1: Military dash Guide. Through standard practices like budgeting and investing 14 00:00:56,760 --> 00:01:00,480 Speaker 1: additional money from pay raises, sports retirement, Doug has been 15 00:01:00,520 --> 00:01:04,600 Speaker 1: able to become financially independent. We've never had a member 16 00:01:04,600 --> 00:01:06,440 Speaker 1: of the Armed forces on the show before, so we're 17 00:01:06,480 --> 00:01:09,479 Speaker 1: also excited to hear some of the unique money challenges 18 00:01:09,720 --> 00:01:13,880 Speaker 1: and the advantages that members of the military experience. So Doug, 19 00:01:13,920 --> 00:01:16,000 Speaker 1: thanks so much for your service, and thanks so much 20 00:01:16,040 --> 00:01:18,440 Speaker 1: for joining the show today. Thanks guys. I appreciate the 21 00:01:18,480 --> 00:01:21,000 Speaker 1: support and I've enjoyed listening to the podcast. I like 22 00:01:21,120 --> 00:01:25,400 Speaker 1: your episode on Fees Are the Worst. Yeah, thanks man. Thanks, Yeah, 23 00:01:25,400 --> 00:01:27,760 Speaker 1: that was a fun one and fees are the Worst. 24 00:01:28,880 --> 00:01:31,520 Speaker 1: And Doug, by the way, every every episode, Matt and 25 00:01:31,560 --> 00:01:33,960 Speaker 1: I we drink a craft beer because it's something that 26 00:01:34,040 --> 00:01:36,200 Speaker 1: we enjoy a whole lot. Today on the show, we're 27 00:01:36,240 --> 00:01:39,480 Speaker 1: drinking a beer called Bodhisafa by Georgetown Brewing Company. Thanks 28 00:01:39,520 --> 00:01:41,759 Speaker 1: to our listener Richard, he sent this one our way. 29 00:01:42,120 --> 00:01:44,520 Speaker 1: It's kind of this intentional thing, Doug, where Matt and 30 00:01:44,600 --> 00:01:46,520 Speaker 1: I are trying to kind of lead in the fact 31 00:01:46,600 --> 00:01:49,600 Speaker 1: that we prioritize something, which is craft beer. We and 32 00:01:49,680 --> 00:01:51,640 Speaker 1: we decide, you know, we're going to dedicate some of 33 00:01:51,640 --> 00:01:53,640 Speaker 1: our hard earned money towards the things that we love 34 00:01:53,640 --> 00:01:56,080 Speaker 1: and care about right here and now, while at the 35 00:01:56,120 --> 00:01:58,440 Speaker 1: same time trying to be thoughtful and save well and 36 00:01:58,440 --> 00:02:01,840 Speaker 1: invest well for the future. So what's your kind of splurge, 37 00:02:01,840 --> 00:02:04,280 Speaker 1: what's kind of your craft beer equivalent? Hey, you gotta 38 00:02:04,280 --> 00:02:07,240 Speaker 1: have priorities. And my my beverage of choices a ConA 39 00:02:07,280 --> 00:02:11,200 Speaker 1: coffee these days, but as you know, my my beverage 40 00:02:11,200 --> 00:02:15,600 Speaker 1: of choice is really surfing. Well, if you can bottle 41 00:02:15,680 --> 00:02:18,440 Speaker 1: up surfing, I guess like this, coffee and surfing go 42 00:02:18,520 --> 00:02:20,840 Speaker 1: well together. Do you like to like get up earlier 43 00:02:20,880 --> 00:02:22,680 Speaker 1: in the mornings or do you like to the surf 44 00:02:22,720 --> 00:02:25,360 Speaker 1: in the evening. I've always been an early riser. The 45 00:02:25,639 --> 00:02:28,200 Speaker 1: waves are cleaner and the wind is calmer right around 46 00:02:28,280 --> 00:02:30,679 Speaker 1: down And that's how the word dawn patrol got used 47 00:02:30,680 --> 00:02:34,079 Speaker 1: to describe surfers and the coffee after the surfing session. 48 00:02:34,160 --> 00:02:36,520 Speaker 1: That's the best part. Nice. That sounds good. So is 49 00:02:36,560 --> 00:02:39,280 Speaker 1: it better there in Hawaii than it is kind of 50 00:02:39,520 --> 00:02:41,400 Speaker 1: on the continental US? Is it sort of like when 51 00:02:41,440 --> 00:02:43,560 Speaker 1: you get guinness in Ireland, it's supposed to be better 52 00:02:43,880 --> 00:02:46,280 Speaker 1: what you're you're familiar with the difference between beer that's 53 00:02:46,360 --> 00:02:49,520 Speaker 1: regular alcoholic beer and beer that's non alcoholic beer. How 54 00:02:49,560 --> 00:02:52,280 Speaker 1: there's a taste difference. Yeah, of course. So we keep 55 00:02:52,320 --> 00:02:54,560 Speaker 1: all the h percent ConA here on the islands for us, 56 00:02:54,560 --> 00:02:56,880 Speaker 1: and we sell the ten percent ConA blend to you 57 00:02:56,880 --> 00:02:58,880 Speaker 1: guys on the mainland. Because you can't tell the difference, 58 00:03:00,080 --> 00:03:03,320 Speaker 1: we're idiots. Just just read the label closely. The next 59 00:03:03,320 --> 00:03:05,760 Speaker 1: time you're shopping, you'll see the price difference. Okay, Yeah, 60 00:03:05,760 --> 00:03:07,760 Speaker 1: I've been before, and yeah, the cone of Coffee is 61 00:03:07,800 --> 00:03:10,079 Speaker 1: definitely something to write home about. It's really good stuff. 62 00:03:10,320 --> 00:03:13,960 Speaker 1: Hey dougl speaking of surfing, I mean it sounds like 63 00:03:14,000 --> 00:03:16,520 Speaker 1: now that you're financially independent, you know, you write a 64 00:03:16,520 --> 00:03:18,720 Speaker 1: lot and then you surf a lot. How did you 65 00:03:18,800 --> 00:03:21,639 Speaker 1: kind of get into surfing in the first place. Well, 66 00:03:21,639 --> 00:03:24,280 Speaker 1: that was a total coincidence. When I was retiring from 67 00:03:24,280 --> 00:03:26,600 Speaker 1: the military back in two thousand two, I got a 68 00:03:26,600 --> 00:03:29,120 Speaker 1: lot of push back from friends and from my chain 69 00:03:29,200 --> 00:03:32,399 Speaker 1: of command. Everybody was sure that I'd be bored, I'd 70 00:03:32,440 --> 00:03:34,920 Speaker 1: be lonely. And the joke was, what are you gonna 71 00:03:34,960 --> 00:03:38,360 Speaker 1: do surf all day? And I was telling that joke 72 00:03:38,400 --> 00:03:40,680 Speaker 1: at home to my family and my daughter, and my 73 00:03:40,680 --> 00:03:42,280 Speaker 1: wife looked at me and said, well, I don't know. 74 00:03:42,640 --> 00:03:45,440 Speaker 1: And so we took surfing lessons on the very first 75 00:03:45,520 --> 00:03:47,840 Speaker 1: day I returned, and the first of June two thousand two, 76 00:03:48,040 --> 00:03:51,080 Speaker 1: a little over seventeen years ago, and we were hooked. 77 00:03:51,480 --> 00:03:53,440 Speaker 1: My wife can take it or leave it, but my daughter, 78 00:03:53,480 --> 00:03:55,400 Speaker 1: Carol and I we we love it. She turned into 79 00:03:55,440 --> 00:03:58,240 Speaker 1: a surf monster and that's been our lifestyle ever since. 80 00:03:58,760 --> 00:04:01,160 Speaker 1: The way. That's awesome. The first day of retirement. You 81 00:04:01,240 --> 00:04:03,520 Speaker 1: kind of found your your new hobby, your passion. I'm 82 00:04:03,560 --> 00:04:05,760 Speaker 1: surprised that that you were hooked though on day one, 83 00:04:05,800 --> 00:04:08,280 Speaker 1: because the first day that I ever tried surfing, it 84 00:04:08,320 --> 00:04:11,680 Speaker 1: was probably the most miserable attempt at anything that I 85 00:04:11,720 --> 00:04:15,040 Speaker 1: have ever done. So, um, yeah, I'm oppressed. Maybe it's 86 00:04:15,040 --> 00:04:16,720 Speaker 1: a little bit easier on some real ways down there 87 00:04:16,720 --> 00:04:19,000 Speaker 1: in Hawaii. Yeah, if you're if, if you're willing to 88 00:04:19,000 --> 00:04:21,320 Speaker 1: give it another try, Yeah, come on out and we'll 89 00:04:21,360 --> 00:04:23,400 Speaker 1: we'll go out there. The surf temperture will be pretty 90 00:04:23,480 --> 00:04:25,520 Speaker 1: nice and warm, and we'll have two to four feet 91 00:04:25,520 --> 00:04:27,640 Speaker 1: for you. And maybe it's the quality of the instruction 92 00:04:27,680 --> 00:04:30,000 Speaker 1: that makes the difference. That could be too. Yeah, we 93 00:04:30,040 --> 00:04:32,120 Speaker 1: need a pro like Doug helping us out. Yeah happen 94 00:04:32,160 --> 00:04:35,000 Speaker 1: there was nobody teaching me. I was just in Charleston 95 00:04:35,160 --> 00:04:38,839 Speaker 1: and somebody had a surfboard just want winging it. Yeah, 96 00:04:39,000 --> 00:04:40,000 Speaker 1: just like give it a shot. I was like, I 97 00:04:40,040 --> 00:04:42,960 Speaker 1: don't know what I'm doing, but I'll try. Well, Doug, 98 00:04:43,000 --> 00:04:45,640 Speaker 1: you signed up to serve in the Submarine Force right 99 00:04:45,640 --> 00:04:47,919 Speaker 1: out of college, so we're gonna we're gonna kind of 100 00:04:47,960 --> 00:04:50,200 Speaker 1: like go back into your early days here. Why is 101 00:04:50,240 --> 00:04:52,520 Speaker 1: it that you decided to go in that specific direction 102 00:04:52,600 --> 00:04:54,800 Speaker 1: to be in the Navy, but specifically to be on 103 00:04:54,839 --> 00:04:57,720 Speaker 1: a submarine. Well, the Navy was something that I looked 104 00:04:57,720 --> 00:05:00,480 Speaker 1: at in high school and I had a older brother 105 00:05:00,520 --> 00:05:02,560 Speaker 1: of my best friend who was a student at the 106 00:05:02,640 --> 00:05:05,839 Speaker 1: Naval Academy, and boy did he make that look good. Now, 107 00:05:06,360 --> 00:05:08,600 Speaker 1: after I got to the Naval Academy, I realized the 108 00:05:08,640 --> 00:05:10,440 Speaker 1: parts that looked the best where the parts where this 109 00:05:10,720 --> 00:05:13,320 Speaker 1: older brother was on leave. You know, he'd be at home, 110 00:05:13,440 --> 00:05:15,200 Speaker 1: he'd be drinking beer at night in the morning with 111 00:05:15,240 --> 00:05:17,600 Speaker 1: a four day growth. And that was part of the 112 00:05:17,680 --> 00:05:20,080 Speaker 1: Navy that I apparently got suckered into joining the rest 113 00:05:20,080 --> 00:05:23,120 Speaker 1: of the Navy with once I graduated from college. One 114 00:05:23,160 --> 00:05:25,920 Speaker 1: of the things you do at college is take tours 115 00:05:26,040 --> 00:05:28,080 Speaker 1: of the Navy and learn all about the different branches 116 00:05:28,080 --> 00:05:30,680 Speaker 1: of the military. And this happens that every college where 117 00:05:30,720 --> 00:05:33,800 Speaker 1: you get into a military program and you just want 118 00:05:33,800 --> 00:05:36,560 Speaker 1: to meet every one of the communities in that branch 119 00:05:36,600 --> 00:05:39,480 Speaker 1: of the military and learn what kind of things there 120 00:05:39,520 --> 00:05:42,000 Speaker 1: are for you to do after you graduate. I was 121 00:05:42,080 --> 00:05:44,919 Speaker 1: very strongly attracted to the Submarine Force. I really enjoyed it. 122 00:05:45,360 --> 00:05:47,800 Speaker 1: Part of that was because they set it all up 123 00:05:47,800 --> 00:05:50,880 Speaker 1: in front where we were on a submarine that started 124 00:05:50,880 --> 00:05:53,680 Speaker 1: out in New London, Connecticut, but went on down to 125 00:05:53,760 --> 00:05:56,960 Speaker 1: the Bahamas, and we were on a test range down 126 00:05:56,960 --> 00:05:59,880 Speaker 1: in the Bahamas where we were working with people that 127 00:06:00,000 --> 00:06:01,720 Speaker 1: we're going to be the commanding officers of their own 128 00:06:01,760 --> 00:06:05,000 Speaker 1: submarines in a few months. And so we did everything 129 00:06:05,120 --> 00:06:07,000 Speaker 1: that a submarine does, and we did it once for 130 00:06:07,000 --> 00:06:09,760 Speaker 1: each one of those guys twelve times. And so we 131 00:06:09,800 --> 00:06:11,800 Speaker 1: saw everything submarines can do, and we got to do 132 00:06:11,839 --> 00:06:14,159 Speaker 1: all of it ourselves. By the time I got back 133 00:06:14,200 --> 00:06:16,320 Speaker 1: to college, I was hooked on that and I just 134 00:06:16,400 --> 00:06:18,440 Speaker 1: made that my goal is to join the Submarine Force 135 00:06:18,480 --> 00:06:21,680 Speaker 1: after graduation. So what was the longest stretch you were 136 00:06:21,720 --> 00:06:25,360 Speaker 1: ever on the submarine without like being on dry land? 137 00:06:25,920 --> 00:06:29,120 Speaker 1: And and then what's it like living on a submarine 138 00:06:29,120 --> 00:06:32,320 Speaker 1: for that period of time. Well, it's the ultimate cubicle. 139 00:06:32,680 --> 00:06:35,600 Speaker 1: You're in a tiny, enclosed space with fluorescent lighting and 140 00:06:35,680 --> 00:06:40,080 Speaker 1: no windows. The longest I was ever underway underwater was 141 00:06:40,520 --> 00:06:43,400 Speaker 1: a n patrol that turned into a bonus ninety seven 142 00:06:43,480 --> 00:06:46,400 Speaker 1: days total. Submarine that was going to come on station 143 00:06:46,480 --> 00:06:48,240 Speaker 1: had some problems and couldn't make it to us, so 144 00:06:48,360 --> 00:06:50,360 Speaker 1: we had to do an extra week to cover their stuff. 145 00:06:51,400 --> 00:06:52,919 Speaker 1: That was the longest I've ever done, and that was 146 00:06:52,960 --> 00:06:55,760 Speaker 1: back in the mid nineteen eighties, the days of the 147 00:06:55,800 --> 00:06:59,200 Speaker 1: height of the Cold War, the Evil Empire, the Reagan years. 148 00:06:59,240 --> 00:07:02,720 Speaker 1: You might remember the politics and the mutual LUs your 149 00:07:02,800 --> 00:07:06,880 Speaker 1: destruction and the nuclear deterrence. Then after that, I went 150 00:07:06,880 --> 00:07:09,359 Speaker 1: to a second submarine from my second sea tour, and 151 00:07:09,360 --> 00:07:13,000 Speaker 1: that was a fast attack submarine, Los Angeles class. We'd 152 00:07:13,080 --> 00:07:15,840 Speaker 1: typically be underway for two to three weeks at a 153 00:07:15,880 --> 00:07:18,720 Speaker 1: time and the local waters, or if we deployed, we'd 154 00:07:18,720 --> 00:07:20,880 Speaker 1: go out to the western Pacific and we'd be underway 155 00:07:20,920 --> 00:07:22,800 Speaker 1: for thirty or forty days, and most of that time 156 00:07:22,840 --> 00:07:25,640 Speaker 1: would be underwater. You mentioned two to three weeks, but 157 00:07:25,760 --> 00:07:27,760 Speaker 1: like the longest one being ninety But how are you 158 00:07:27,760 --> 00:07:31,360 Speaker 1: saying that, Like you're like continuously gone from land. In 159 00:07:31,400 --> 00:07:32,920 Speaker 1: my mind, I'm wondering how, Like what did you all 160 00:07:32,960 --> 00:07:35,160 Speaker 1: do about food and just I mean everything that you 161 00:07:35,240 --> 00:07:37,640 Speaker 1: need on the submarine, Like is it do you start 162 00:07:37,680 --> 00:07:39,360 Speaker 1: with all that? Like what is that part of life? 163 00:07:39,440 --> 00:07:41,280 Speaker 1: Like you need to think a little bigger here. It's 164 00:07:41,320 --> 00:07:43,840 Speaker 1: not just the food and think about ninety seven days 165 00:07:43,920 --> 00:07:46,880 Speaker 1: underway underwater, and you can't just pop up and send 166 00:07:46,880 --> 00:07:49,200 Speaker 1: a small boat into the nearest convenience store for some 167 00:07:49,240 --> 00:07:52,680 Speaker 1: more toilet paper, all of that with you before you leave. 168 00:07:53,160 --> 00:07:55,840 Speaker 1: That's a good point. Yeah. So, so basically, living on 169 00:07:55,880 --> 00:07:59,720 Speaker 1: a submarine not easy, and it also translates to living 170 00:07:59,760 --> 00:08:02,400 Speaker 1: kind of an austere lifestyle, I would say, right, I mean, 171 00:08:02,440 --> 00:08:04,440 Speaker 1: it's it's something that most of us aren't used to. 172 00:08:04,880 --> 00:08:09,760 Speaker 1: I would say that, uh, submariners are the ultimate American minimalists. 173 00:08:09,760 --> 00:08:12,320 Speaker 1: And you know, you you've crossed the line from frugality 174 00:08:12,360 --> 00:08:15,240 Speaker 1: to deprivation right there. And even today, I mean years 175 00:08:15,280 --> 00:08:17,960 Speaker 1: after my last c duty, I can still reflect on 176 00:08:18,000 --> 00:08:20,080 Speaker 1: what my lifestyle is like back in the submarine force. 177 00:08:20,160 --> 00:08:23,000 Speaker 1: So whenever I'm feeling sorry for myself, whenever you know, 178 00:08:23,040 --> 00:08:24,880 Speaker 1: it's a little too hot or a little too cold, 179 00:08:25,080 --> 00:08:26,640 Speaker 1: or I don't have exactly the right kind of ice 180 00:08:26,680 --> 00:08:29,080 Speaker 1: cubes that I want in my in my beverage, I 181 00:08:29,400 --> 00:08:30,920 Speaker 1: can think back to what it used to be like 182 00:08:31,040 --> 00:08:33,880 Speaker 1: and and realize that life really is very good. Yeah, 183 00:08:34,160 --> 00:08:36,640 Speaker 1: minimalism so hot right now. But I don't think almost 184 00:08:36,679 --> 00:08:40,120 Speaker 1: anybody that's talking about minimalism is down with the submarine style. Minimalism, 185 00:08:40,200 --> 00:08:42,160 Speaker 1: like on a day to day basis, But like, how 186 00:08:42,200 --> 00:08:46,200 Speaker 1: did living that difficult lifestyle really in a submarine and 187 00:08:46,280 --> 00:08:48,880 Speaker 1: kind of doing that for extended periods of time, how 188 00:08:48,880 --> 00:08:51,000 Speaker 1: did you kind of bring that back in into your 189 00:08:51,080 --> 00:08:53,640 Speaker 1: daily life? Like did you were you able to kind 190 00:08:53,640 --> 00:08:58,000 Speaker 1: of take some of those principles into post military service life? Oh? Absolutely, 191 00:08:58,160 --> 00:09:01,400 Speaker 1: And and this happens for just about a military service member, 192 00:09:01,440 --> 00:09:03,760 Speaker 1: and it it actually kind of moves over into the 193 00:09:03,800 --> 00:09:07,359 Speaker 1: families too as well. But every military service member develops 194 00:09:07,679 --> 00:09:12,120 Speaker 1: a sense of discipline, commitment, and perseverance, and those are 195 00:09:12,160 --> 00:09:14,920 Speaker 1: the kind of skills that are not necessarily easily developed 196 00:09:14,920 --> 00:09:17,280 Speaker 1: in high school or after high school or in college. 197 00:09:17,600 --> 00:09:19,920 Speaker 1: And so you developed that in the military. What that 198 00:09:19,960 --> 00:09:21,800 Speaker 1: means is that you're able to come up with an 199 00:09:21,840 --> 00:09:24,760 Speaker 1: idea and make a plan and carry it all the 200 00:09:24,760 --> 00:09:29,280 Speaker 1: way through. I, being a nuclear submariner, had an engineering 201 00:09:29,320 --> 00:09:32,199 Speaker 1: reputation of being a kind of guy who would want 202 00:09:32,200 --> 00:09:34,680 Speaker 1: to go back there and nerd out over data and 203 00:09:34,800 --> 00:09:39,120 Speaker 1: logs and trends and analysis. And that translates pretty well 204 00:09:39,160 --> 00:09:42,560 Speaker 1: to financial management and saving for financial independence. And so 205 00:09:42,600 --> 00:09:45,959 Speaker 1: I got really used to looking at situations and watching 206 00:09:45,960 --> 00:09:49,520 Speaker 1: the data and taking data and analyzing it and using 207 00:09:49,520 --> 00:09:51,679 Speaker 1: that to make a plan. Yeah, so it sounded like 208 00:09:51,720 --> 00:09:54,319 Speaker 1: I mean that specifically helped you on your path the 209 00:09:54,360 --> 00:09:56,439 Speaker 1: financial independence, not only being able to kind of crunch 210 00:09:56,480 --> 00:09:59,719 Speaker 1: those numbers, but I'm guessing as well just likely like 211 00:09:59,760 --> 00:10:02,360 Speaker 1: you said that living minimally, was that a challenge for you, 212 00:10:02,440 --> 00:10:05,720 Speaker 1: kind of coming back onto the mainland where you know, 213 00:10:05,720 --> 00:10:08,360 Speaker 1: where you're presented with the options of, oh, there's a 214 00:10:08,400 --> 00:10:10,800 Speaker 1: lot more in my life that I can expand and 215 00:10:10,920 --> 00:10:12,520 Speaker 1: to fill. You know, it makes me think of the 216 00:10:12,559 --> 00:10:14,719 Speaker 1: goldfish kind of filling the bowl. How much of the 217 00:10:14,800 --> 00:10:17,240 Speaker 1: lifestyle were you able to maintain where you were able 218 00:10:17,280 --> 00:10:20,280 Speaker 1: to keep that minimalism or was it an actual challenge 219 00:10:20,280 --> 00:10:22,880 Speaker 1: for you? Now it wasn't. It wasn't a challenge for me, 220 00:10:22,960 --> 00:10:25,720 Speaker 1: but for every personality that's in the military that lives 221 00:10:25,720 --> 00:10:28,480 Speaker 1: that kind of a lifestyle. There's a stereotype where you 222 00:10:28,559 --> 00:10:31,319 Speaker 1: come back from the submarine deployment, or you come back 223 00:10:31,360 --> 00:10:34,240 Speaker 1: from the desert, you come back from being overseas for 224 00:10:34,280 --> 00:10:37,040 Speaker 1: a couple of years, and you say, man, that was hard, 225 00:10:37,080 --> 00:10:40,160 Speaker 1: and I really deserve to do something better for myself, 226 00:10:40,160 --> 00:10:41,400 Speaker 1: and I'm going to go out and buy a pickup 227 00:10:41,440 --> 00:10:44,440 Speaker 1: truck in a big house and a boat. Of course, 228 00:10:44,520 --> 00:10:48,920 Speaker 1: that's a lifestyle expansion that is probably unsustainable. But when 229 00:10:48,920 --> 00:10:51,120 Speaker 1: you live like that in the military, you can reflect 230 00:10:51,160 --> 00:10:53,440 Speaker 1: back on what your life used to be and you 231 00:10:53,480 --> 00:10:56,560 Speaker 1: can decide what your priorities are. And you get a 232 00:10:56,559 --> 00:10:59,120 Speaker 1: lot of chiant chances to think about your priorities when 233 00:10:59,160 --> 00:11:02,160 Speaker 1: you're underwating a sub raine for a period of weeks 234 00:11:02,160 --> 00:11:05,760 Speaker 1: two months and you're sitting there on watch, and there's 235 00:11:05,800 --> 00:11:07,600 Speaker 1: there's exciting things to do in a submarine, but it 236 00:11:07,640 --> 00:11:09,920 Speaker 1: turns out that most of the daily routine is just 237 00:11:10,000 --> 00:11:13,280 Speaker 1: that routine, maybe a little boring, maybe not anything that 238 00:11:13,480 --> 00:11:15,600 Speaker 1: different than what you would do in a normal career. 239 00:11:16,040 --> 00:11:17,400 Speaker 1: And you have a chance to talk it over with 240 00:11:17,480 --> 00:11:19,680 Speaker 1: your friends and your shipmates and decide what you're gonna 241 00:11:19,720 --> 00:11:21,760 Speaker 1: do when you get off the boat and get back 242 00:11:21,800 --> 00:11:24,800 Speaker 1: on shore duty or get on some liberty. But again, 243 00:11:24,800 --> 00:11:27,480 Speaker 1: it helps you focus on your priorities and you know 244 00:11:27,559 --> 00:11:30,880 Speaker 1: what's important to you. After living those weeks, those months 245 00:11:30,920 --> 00:11:34,360 Speaker 1: of deprivation on a submarine, you know what's important to you. 246 00:11:34,480 --> 00:11:36,920 Speaker 1: And yeah, you could go out there and give yourself 247 00:11:36,960 --> 00:11:39,760 Speaker 1: a big party because you worked hard and you deserve it. 248 00:11:40,160 --> 00:11:42,480 Speaker 1: But on the other hand, you know exactly what's important 249 00:11:42,520 --> 00:11:44,600 Speaker 1: to you, and you figure out how to spend your 250 00:11:44,600 --> 00:11:46,800 Speaker 1: money on the things that are valuable in your life 251 00:11:47,160 --> 00:11:50,640 Speaker 1: without going overboard and without wasting your money. Yeah, and 252 00:11:50,679 --> 00:11:54,839 Speaker 1: when it comes to like saving for that future financial independence, Doug, 253 00:11:54,880 --> 00:11:57,079 Speaker 1: you've written about kind of some of the mistakes you 254 00:11:57,120 --> 00:11:59,920 Speaker 1: made along the way too. In particular, you talked about 255 00:12:00,360 --> 00:12:03,160 Speaker 1: this investment fund that you were in that had just 256 00:12:03,320 --> 00:12:06,320 Speaker 1: incredibly high fees like two percent, And Matt and I 257 00:12:06,360 --> 00:12:08,079 Speaker 1: we've talked about fees on the show before, and I 258 00:12:08,160 --> 00:12:11,280 Speaker 1: feel like two percent can cut your retirement amount of 259 00:12:11,280 --> 00:12:13,160 Speaker 1: the amount of money that you're gonna have once you 260 00:12:13,240 --> 00:12:16,160 Speaker 1: hit retirement almost in half, like, which is crazy to 261 00:12:16,200 --> 00:12:19,560 Speaker 1: think about. But what's what's the lesson here that you 262 00:12:19,600 --> 00:12:23,439 Speaker 1: were still able to achieve financial independence even with those mistakes, 263 00:12:23,440 --> 00:12:24,920 Speaker 1: Like what other mistakes have you made? And then what 264 00:12:25,000 --> 00:12:27,920 Speaker 1: lessons have you learned from those mistakes? Well, the first 265 00:12:28,040 --> 00:12:30,560 Speaker 1: lesson we learned is that a high savings rate will 266 00:12:30,600 --> 00:12:34,120 Speaker 1: overcome just about every other mistake once once you track 267 00:12:34,200 --> 00:12:36,920 Speaker 1: your expenses, once you figure out where the money is going, 268 00:12:37,480 --> 00:12:40,960 Speaker 1: then you can just simply cut out the waste. Many 269 00:12:41,000 --> 00:12:45,760 Speaker 1: people confuse financial independence or the financial independence acronym fire. 270 00:12:46,080 --> 00:12:49,840 Speaker 1: You know, financial independence retire early. Many people mistake that 271 00:12:49,880 --> 00:12:53,040 Speaker 1: with deprivation. You know, you're you're sacrificing, you're cutting your 272 00:12:53,040 --> 00:12:55,720 Speaker 1: lifestyle down to the minimum. You're recycling your own toilet 273 00:12:55,720 --> 00:12:59,480 Speaker 1: paper and living that sub marine lifestyle. Right, we don't 274 00:12:59,520 --> 00:13:01,559 Speaker 1: want to get into that. But now that's that's actually 275 00:13:01,640 --> 00:13:04,439 Speaker 1: not what's going on when you're saving for financial independence. 276 00:13:04,480 --> 00:13:07,360 Speaker 1: What you're doing is you're making sure you understand where 277 00:13:07,400 --> 00:13:09,440 Speaker 1: your money is going, and then you're just cutting back 278 00:13:09,440 --> 00:13:12,120 Speaker 1: on a waste. And when you cut out the waist, 279 00:13:12,240 --> 00:13:15,360 Speaker 1: your savings rate rises. Now, if you think something is 280 00:13:15,440 --> 00:13:18,040 Speaker 1: valuable to you and it's not waste, well, if it's 281 00:13:18,120 --> 00:13:20,000 Speaker 1: valuable to you, that means you're willing to work those 282 00:13:20,080 --> 00:13:22,360 Speaker 1: extra months or maybe even those extra years to afford 283 00:13:22,360 --> 00:13:24,680 Speaker 1: that big pickup truck or that boat or whatever that 284 00:13:24,720 --> 00:13:28,440 Speaker 1: material object is in your life. But when you're focusing 285 00:13:28,440 --> 00:13:30,559 Speaker 1: on your expenses and cutting out the waist, your savings 286 00:13:30,679 --> 00:13:33,920 Speaker 1: rate start shooting up. And we started our investments in 287 00:13:33,960 --> 00:13:36,880 Speaker 1: the nine eighties and nineteen nineties, and back then it 288 00:13:36,960 --> 00:13:41,520 Speaker 1: was normal to pay two percent or three percent sales charges. 289 00:13:41,720 --> 00:13:44,360 Speaker 1: That was an upfront fee, and then we have expense 290 00:13:44,480 --> 00:13:47,400 Speaker 1: ratios of one to two percent every year that was 291 00:13:47,559 --> 00:13:52,320 Speaker 1: also considered normal. And we were buying the the index 292 00:13:52,360 --> 00:13:54,800 Speaker 1: funds that had reputation for having lower expenses, and so 293 00:13:54,840 --> 00:13:57,600 Speaker 1: we were avoiding the five percent fees up front, and 294 00:13:57,640 --> 00:14:00,240 Speaker 1: we were avoiding the two and three percent expense right shows, 295 00:14:00,240 --> 00:14:01,760 Speaker 1: because that just seemed nuts to us back in the 296 00:14:01,840 --> 00:14:06,480 Speaker 1: nineteen eighties, and of course today that's ludicrous, but we 297 00:14:06,559 --> 00:14:09,880 Speaker 1: still from that just from tracking our expenses and cutting 298 00:14:09,880 --> 00:14:12,000 Speaker 1: out the waist, we still managed to get a savings 299 00:14:12,080 --> 00:14:15,560 Speaker 1: right those high enough to reach financial independence and it 300 00:14:15,600 --> 00:14:18,720 Speaker 1: took less than twenty years. Now, if I hadn't paid 301 00:14:18,720 --> 00:14:21,080 Speaker 1: all those upfront fees and expenses, maybe I would have 302 00:14:21,120 --> 00:14:23,560 Speaker 1: made f I with my spouse in as little as 303 00:14:23,560 --> 00:14:26,120 Speaker 1: thirteen or fourteen years. So that really does cut down 304 00:14:26,120 --> 00:14:28,320 Speaker 1: on a time it takes you to reach financial independence 305 00:14:28,320 --> 00:14:30,720 Speaker 1: when you don't have to pay those extra fees. Yeah, 306 00:14:30,760 --> 00:14:33,760 Speaker 1: that makes me think just how fortunate we are that 307 00:14:34,160 --> 00:14:39,080 Speaker 1: that Jack Bogel like came into existence to create Vanguard. Yeah, 308 00:14:39,080 --> 00:14:42,240 Speaker 1: and just the domino effect that that created and what 309 00:14:42,320 --> 00:14:45,680 Speaker 1: we're we're seeing that currently right right, now the everybody 310 00:14:46,120 --> 00:14:49,120 Speaker 1: you know, reducing all of the commissions to trade et 311 00:14:49,320 --> 00:14:51,640 Speaker 1: f s and stocks and just it's it's become this 312 00:14:51,720 --> 00:14:55,240 Speaker 1: bounty for consumers for free and cheap investing. And that 313 00:14:55,360 --> 00:14:57,200 Speaker 1: was something Doug that when you started, Yeah, it was 314 00:14:57,880 --> 00:15:01,640 Speaker 1: unheard of. Basically didn't cyst and you were you were 315 00:15:01,720 --> 00:15:03,280 Speaker 1: kind of at a disadvantage at that point in time. 316 00:15:03,280 --> 00:15:05,200 Speaker 1: But like now, not only do they exist, but almost 317 00:15:05,240 --> 00:15:07,720 Speaker 1: everybody knows about it. It's headlines, it's all over the place, 318 00:15:07,760 --> 00:15:10,440 Speaker 1: and and so that's that's kind of cool. That's investing 319 00:15:10,440 --> 00:15:13,320 Speaker 1: has become democratizing that way, which is beautiful. I love it. 320 00:15:13,320 --> 00:15:15,080 Speaker 1: It's a race at the bottom. But on the other hand, 321 00:15:15,120 --> 00:15:18,360 Speaker 1: it's forcing the fund companies to really deliver value. And 322 00:15:18,920 --> 00:15:21,080 Speaker 1: information is out there for everybody. If you want to 323 00:15:21,120 --> 00:15:24,080 Speaker 1: pursue financial independence, if you get tired of living paycheck 324 00:15:24,120 --> 00:15:26,600 Speaker 1: to paycheck, or if you're stressed up by a large 325 00:15:26,640 --> 00:15:29,160 Speaker 1: load of debt, well the tools are out there, and 326 00:15:29,200 --> 00:15:33,400 Speaker 1: the techniques have been tested and they're real, they work. Yeah, 327 00:15:33,400 --> 00:15:36,160 Speaker 1: that's the thing where there's no shortage of information that's 328 00:15:36,160 --> 00:15:37,800 Speaker 1: out there for us. It's just whether or not we 329 00:15:37,840 --> 00:15:41,040 Speaker 1: can put that information to use. Well, Dougs. You know 330 00:15:41,040 --> 00:15:43,360 Speaker 1: we mentioned your website at the Military Guide. Why is 331 00:15:43,400 --> 00:15:45,320 Speaker 1: it that you you started that website? Like, what was 332 00:15:45,400 --> 00:15:49,400 Speaker 1: the motivation behind that? When when I retired back in 333 00:15:49,520 --> 00:15:52,160 Speaker 1: two thousand two, I was enjoying life and I started 334 00:15:52,480 --> 00:15:54,840 Speaker 1: doing what I was doing back then was spending time 335 00:15:54,840 --> 00:15:58,960 Speaker 1: on internet forums talking about financial independence and and other 336 00:15:59,040 --> 00:16:02,000 Speaker 1: aspects of were tired life. And I was on one 337 00:16:02,000 --> 00:16:05,720 Speaker 1: form it's called early Retirement dot org and I asked him, 338 00:16:05,760 --> 00:16:07,840 Speaker 1: I said, hey, this life seems pretty good. Am I 339 00:16:07,880 --> 00:16:10,320 Speaker 1: missing anything? And the rest of the people in the 340 00:16:10,360 --> 00:16:12,800 Speaker 1: form said, oh, no, no, when you reach financial independence, 341 00:16:13,000 --> 00:16:15,840 Speaker 1: this is good. And we went on and talked more 342 00:16:15,840 --> 00:16:18,480 Speaker 1: about the details of that. But after a while we 343 00:16:18,520 --> 00:16:21,600 Speaker 1: became aware of this this strength of a high savings 344 00:16:21,720 --> 00:16:24,360 Speaker 1: or eight cutting your expenses and and other things to 345 00:16:24,400 --> 00:16:28,520 Speaker 1: reach financial independence. And if you join the military, you're 346 00:16:28,560 --> 00:16:32,360 Speaker 1: compensated almost as well as the equivalent of your civilian career. 347 00:16:32,440 --> 00:16:35,000 Speaker 1: Whatever your specialty is in the military, it's got some 348 00:16:35,360 --> 00:16:39,120 Speaker 1: civilian job code equivalent. And to keep the retention of 349 00:16:39,680 --> 00:16:42,080 Speaker 1: the military has to pay about the same amount of 350 00:16:42,120 --> 00:16:44,200 Speaker 1: wages as you would earn out in the civilian world. 351 00:16:44,960 --> 00:16:47,800 Speaker 1: And the advantage of being in the military. Uh, not 352 00:16:47,920 --> 00:16:50,800 Speaker 1: just serving your country and being part of something bigger 353 00:16:50,840 --> 00:16:53,920 Speaker 1: than you. But the financial advantage is that your military 354 00:16:53,960 --> 00:16:57,560 Speaker 1: pay is lightly taxed. You get a base salary that's taxable, 355 00:16:57,600 --> 00:17:00,320 Speaker 1: but then you also collect a sizeable amount of allowances 356 00:17:00,360 --> 00:17:04,080 Speaker 1: that are untaxed, and you also have well, when you're 357 00:17:04,080 --> 00:17:06,520 Speaker 1: on active duty, you have free healthcare because you know 358 00:17:06,520 --> 00:17:08,639 Speaker 1: the military wants to keep you fit to fight. But 359 00:17:09,400 --> 00:17:13,520 Speaker 1: even families are paying very low fees for healthcare, and 360 00:17:13,520 --> 00:17:15,760 Speaker 1: and if you continue your military career, your healthcare is 361 00:17:15,880 --> 00:17:20,560 Speaker 1: very inexpensive. So those advantages would you think lead to 362 00:17:20,640 --> 00:17:24,280 Speaker 1: many more people being uh financially independent after their time 363 00:17:24,320 --> 00:17:26,560 Speaker 1: in the military, But it doesn't seem to work out 364 00:17:26,600 --> 00:17:29,320 Speaker 1: that way. And I think most veterans don't realize they 365 00:17:29,359 --> 00:17:32,560 Speaker 1: can reach financial independence. Most service members are too busy 366 00:17:32,640 --> 00:17:35,640 Speaker 1: with their their careers to really be able to take 367 00:17:35,640 --> 00:17:38,439 Speaker 1: the time to plan for their financial independence. And so 368 00:17:38,520 --> 00:17:41,000 Speaker 1: we started talking about that question on earlier retirement dot 369 00:17:41,080 --> 00:17:43,720 Speaker 1: org and after a while we had a whole bunch 370 00:17:43,760 --> 00:17:47,040 Speaker 1: of ideas and another guy on the forum was writing 371 00:17:47,080 --> 00:17:49,320 Speaker 1: a book for civilians and I said, Gee, somebody should 372 00:17:49,320 --> 00:17:52,760 Speaker 1: write a book for military and the group turned around 373 00:17:52,800 --> 00:17:54,439 Speaker 1: and looked at me and said, okay, well let us 374 00:17:54,440 --> 00:17:58,040 Speaker 1: know how you do. And challenge accepted. So you know, 375 00:17:58,200 --> 00:18:00,000 Speaker 1: I spent a long time writing the book. I actual 376 00:18:00,359 --> 00:18:03,960 Speaker 1: crowdsourced it with the military members of that forum, and 377 00:18:04,160 --> 00:18:06,320 Speaker 1: we would write a chapter and talk about it and 378 00:18:06,359 --> 00:18:08,680 Speaker 1: I'd make it a little better. And we kept doing 379 00:18:08,720 --> 00:18:10,920 Speaker 1: that for the time it took to create the whole text, 380 00:18:11,560 --> 00:18:13,560 Speaker 1: and I sold that to the publisher in two thousand ten, 381 00:18:13,840 --> 00:18:16,919 Speaker 1: and then I realized I should start a blog in 382 00:18:17,040 --> 00:18:19,920 Speaker 1: order to market the book. That's cool, man, Yeah, and 383 00:18:19,920 --> 00:18:21,879 Speaker 1: I love I love how it was crowdsourced to what 384 00:18:21,920 --> 00:18:23,679 Speaker 1: a cool way for it to come about. And you 385 00:18:23,720 --> 00:18:25,880 Speaker 1: started to get into kind of some of the perks 386 00:18:25,880 --> 00:18:28,520 Speaker 1: of military life, and we definitely want to get into that. 387 00:18:28,560 --> 00:18:30,720 Speaker 1: We want to cover that, but right after the break, 388 00:18:30,760 --> 00:18:32,359 Speaker 1: we actually want to talk about some of the unique 389 00:18:32,480 --> 00:18:35,760 Speaker 1: problems that military service members face, and we'll get into 390 00:18:35,800 --> 00:18:47,760 Speaker 1: that with Doug right after the break. All right, So 391 00:18:47,920 --> 00:18:49,639 Speaker 1: we are back from the break and we're talking with 392 00:18:49,680 --> 00:18:52,480 Speaker 1: Doug Nordman from the Military Guide, and uh, like we 393 00:18:52,520 --> 00:18:54,560 Speaker 1: talked about before the break, we're gonna dive into now 394 00:18:54,640 --> 00:18:57,480 Speaker 1: some of the unique problems that that members of the 395 00:18:57,480 --> 00:19:01,440 Speaker 1: military face due to honestly the typical situations just from 396 00:19:01,480 --> 00:19:04,840 Speaker 1: being in the service. So, Doug, I've heard so many stories, 397 00:19:05,240 --> 00:19:06,760 Speaker 1: you know, almost like you mentioned as far as buying 398 00:19:06,760 --> 00:19:08,920 Speaker 1: the truck, buying the boat, buying the house. But a lot, 399 00:19:09,000 --> 00:19:11,040 Speaker 1: a lot of new soldiers sometimes will blow a lot 400 00:19:11,080 --> 00:19:15,560 Speaker 1: of money on things like cars. Um obviously, like you 401 00:19:15,600 --> 00:19:17,160 Speaker 1: know that's the hot one, Like that's the one that's 402 00:19:17,200 --> 00:19:20,040 Speaker 1: well documented, right, yeah, exactly, although now it's there's probably 403 00:19:20,119 --> 00:19:22,159 Speaker 1: less cars. It's more kind of like electronics, like that 404 00:19:22,240 --> 00:19:25,720 Speaker 1: could be iPhones, right, yeah, that's that's the baseline. Everybody's 405 00:19:25,720 --> 00:19:27,760 Speaker 1: got the iPhone and the latest schemer box. Now you 406 00:19:27,800 --> 00:19:29,520 Speaker 1: have to go out there and figure out what kind 407 00:19:29,560 --> 00:19:32,720 Speaker 1: of testla you're gonna buy. Exactly. Oh my gosh. Well, 408 00:19:33,200 --> 00:19:36,480 Speaker 1: the thing is, though, kids blowing money like new found money, 409 00:19:36,800 --> 00:19:39,040 Speaker 1: that's not a new phenomenon. Let's not really novel or 410 00:19:39,119 --> 00:19:42,480 Speaker 1: unique to the military. So what other major money hurdles 411 00:19:42,520 --> 00:19:46,000 Speaker 1: have you seen new endlestees facing. Well, most of it 412 00:19:46,119 --> 00:19:48,760 Speaker 1: is getting out of debt. I'm afraid how many people 413 00:19:48,800 --> 00:19:51,320 Speaker 1: come to the military after college, so they're carrying student 414 00:19:51,359 --> 00:19:54,919 Speaker 1: loan debt, or maybe they've graduated from high school or 415 00:19:54,920 --> 00:19:56,960 Speaker 1: college and they're out there, we're going a civilian job, 416 00:19:57,000 --> 00:19:59,720 Speaker 1: and for whatever reason, they're just not getting ahead. And 417 00:20:00,400 --> 00:20:02,719 Speaker 1: sometimes it can seem like the military is a solution 418 00:20:02,760 --> 00:20:05,320 Speaker 1: to all those issues. And you're attracted by the idea 419 00:20:05,359 --> 00:20:09,280 Speaker 1: of working with a team and traveling interesting places and 420 00:20:09,359 --> 00:20:11,439 Speaker 1: being a part of something bigger than yourself, and and 421 00:20:11,480 --> 00:20:15,119 Speaker 1: even that old fashioned patriotism of serving your country and 422 00:20:15,440 --> 00:20:17,680 Speaker 1: you get paid for it. And so along the way 423 00:20:17,720 --> 00:20:20,080 Speaker 1: you realize that the health care and pay and the 424 00:20:20,119 --> 00:20:23,359 Speaker 1: benefits will give you a big leg up. And it does. 425 00:20:23,600 --> 00:20:25,760 Speaker 1: It is true, those those things we do do a 426 00:20:25,800 --> 00:20:28,680 Speaker 1: great thing for your financial position. But I I tell 427 00:20:28,720 --> 00:20:31,280 Speaker 1: people not to join the military to get rich, just 428 00:20:31,359 --> 00:20:33,960 Speaker 1: to join it for all those other reasons they are 429 00:20:34,000 --> 00:20:37,320 Speaker 1: non financial, and to stay only as long as you're 430 00:20:37,320 --> 00:20:40,760 Speaker 1: feeling challenged and fulfilled. Take it, take it one obligation 431 00:20:40,800 --> 00:20:43,240 Speaker 1: at a time. Don't feel like you have to gut 432 00:20:43,240 --> 00:20:45,720 Speaker 1: it out for that pension at twenty years. Just stay 433 00:20:45,720 --> 00:20:48,119 Speaker 1: in the military as long as it's challenged and fulfilled, 434 00:20:48,640 --> 00:20:50,440 Speaker 1: and that way you will make sure that you're still 435 00:20:50,480 --> 00:20:52,960 Speaker 1: having a good time and learning and not burning out. 436 00:20:53,440 --> 00:20:56,280 Speaker 1: And then for new enlistees, Doug you have any recommendation, 437 00:20:56,359 --> 00:20:59,040 Speaker 1: like let's say there's an enlistment bonus or something like that, 438 00:20:59,359 --> 00:21:01,920 Speaker 1: how should have a new enlisting handle kind of coming 439 00:21:01,960 --> 00:21:05,960 Speaker 1: into potentially a situation of pay or bonus where that 440 00:21:06,080 --> 00:21:09,040 Speaker 1: they're completely unused to handling money like that. Speaking from 441 00:21:09,080 --> 00:21:13,240 Speaker 1: personal experience, yeah, I'll tell you what I told my daughter. 442 00:21:13,280 --> 00:21:16,639 Speaker 1: She also got a college scholarship through our OTC and 443 00:21:16,680 --> 00:21:18,679 Speaker 1: then ended up getting a bonus when she went on 444 00:21:18,720 --> 00:21:22,440 Speaker 1: active duty after graduation, and we talked about that, and 445 00:21:22,520 --> 00:21:25,440 Speaker 1: the first thing we mentioned was to focus on why 446 00:21:25,640 --> 00:21:28,240 Speaker 1: the boss is being so nice to you, Why why 447 00:21:28,240 --> 00:21:30,400 Speaker 1: are they giving you so much money? What is that? 448 00:21:31,440 --> 00:21:34,280 Speaker 1: Now you begin to realize that that's intended to help 449 00:21:34,359 --> 00:21:37,359 Speaker 1: with retention. Those bonuses are targeted at people who have 450 00:21:37,560 --> 00:21:40,320 Speaker 1: valuable skills, who have a lot of human capital, who 451 00:21:40,359 --> 00:21:43,400 Speaker 1: could earn a very good salary outside of the military 452 00:21:43,400 --> 00:21:47,199 Speaker 1: and a civilian career. And so if you're enjoying what 453 00:21:47,320 --> 00:21:49,560 Speaker 1: you do, if you're feeling that challenge of fulfillment on 454 00:21:49,640 --> 00:21:52,960 Speaker 1: your career, then then take the bonus. But the other 455 00:21:53,040 --> 00:21:56,879 Speaker 1: side of that is if you track your expenses and 456 00:21:56,960 --> 00:21:59,200 Speaker 1: cut out the waist and have a high savings rate, 457 00:21:59,520 --> 00:22:02,720 Speaker 1: you're gonna each financial independence into military even without that 458 00:22:02,760 --> 00:22:05,199 Speaker 1: bonus money. And so if you've been doing that, if 459 00:22:05,200 --> 00:22:08,760 Speaker 1: you've been pushing financial independence, then by the time those 460 00:22:08,800 --> 00:22:11,119 Speaker 1: bonuses start getting dangled in front of you, you're not 461 00:22:11,160 --> 00:22:12,960 Speaker 1: going to feel like you're a hostage. You're not going 462 00:22:13,040 --> 00:22:15,399 Speaker 1: to have a big car payment, you're not gonna have 463 00:22:15,520 --> 00:22:18,480 Speaker 1: forty dollars of student loans, You're not gonna feel coerced 464 00:22:18,520 --> 00:22:22,400 Speaker 1: into staying in the military just to get that bonus money. 465 00:22:22,480 --> 00:22:25,720 Speaker 1: And I was I was suckered into that several times myself. 466 00:22:26,000 --> 00:22:28,600 Speaker 1: Once that that five figure amount gets dangled in front 467 00:22:28,600 --> 00:22:30,360 Speaker 1: of you at the end of the year and they 468 00:22:30,400 --> 00:22:32,639 Speaker 1: offer you that to stick around for another year or two. 469 00:22:33,000 --> 00:22:37,080 Speaker 1: It sure is tempting, but it's also being given to 470 00:22:37,119 --> 00:22:39,360 Speaker 1: you because you've got skills. You can go out there 471 00:22:39,400 --> 00:22:42,680 Speaker 1: and earn quite a living elsewhere doing anything else. Let's 472 00:22:42,680 --> 00:22:45,080 Speaker 1: stick with some of the different problems that that military 473 00:22:45,119 --> 00:22:47,679 Speaker 1: member's face, Like what about moving. I think that can 474 00:22:47,720 --> 00:22:50,120 Speaker 1: be a constant stressor for a lot of military families. 475 00:22:50,520 --> 00:22:54,240 Speaker 1: Like what are your thoughts specifically on military members buying 476 00:22:54,400 --> 00:22:57,080 Speaker 1: homes when they're stationed somewhere well, you know, you know, 477 00:22:57,119 --> 00:22:59,560 Speaker 1: they're saying, join the Navy, see the world, and that's 478 00:22:59,560 --> 00:23:01,680 Speaker 1: how we end up here in Hawaii. We probably would 479 00:23:01,680 --> 00:23:03,520 Speaker 1: not have had the idea of coming out here on 480 00:23:03,520 --> 00:23:05,720 Speaker 1: our own if we've been working for a civilian corporation. 481 00:23:06,320 --> 00:23:08,879 Speaker 1: But on the other hand, it's quite common during a 482 00:23:09,400 --> 00:23:12,640 Speaker 1: six or an eight year military service obligation to make 483 00:23:12,760 --> 00:23:15,679 Speaker 1: three or four moves, and and beyond that, there's the 484 00:23:15,880 --> 00:23:18,440 Speaker 1: training pipeline. When you first get into your new community 485 00:23:18,440 --> 00:23:20,400 Speaker 1: and you're learning your new job, you might make five 486 00:23:20,480 --> 00:23:22,880 Speaker 1: or six tiny moves within a two year period for 487 00:23:23,000 --> 00:23:25,760 Speaker 1: you know, four to six months, so you get used 488 00:23:25,880 --> 00:23:29,280 Speaker 1: to picking up and moving your possessions at an alarming rate. 489 00:23:29,560 --> 00:23:32,240 Speaker 1: For many families, the typical time between moves is as 490 00:23:32,240 --> 00:23:36,679 Speaker 1: little as two years, so that is a big issue 491 00:23:36,800 --> 00:23:40,639 Speaker 1: with the family and schools and disruptive lifestyle right off 492 00:23:40,640 --> 00:23:43,960 Speaker 1: the bat. It also if you're and uh, if you're married, 493 00:23:44,240 --> 00:23:46,800 Speaker 1: it makes it difficult for your spouse, the spouse who 494 00:23:46,880 --> 00:23:49,640 Speaker 1: might not be on active duty to have the same 495 00:23:49,640 --> 00:23:52,520 Speaker 1: carew you have. That's always been a challenge for military 496 00:23:52,520 --> 00:23:54,720 Speaker 1: spouse is going all the way back to the Revolutionary War, 497 00:23:54,760 --> 00:23:58,000 Speaker 1: of course, but these days it's a little less difficult. 498 00:23:58,080 --> 00:24:00,119 Speaker 1: I'm not gonna say it's easy. I'm just gonna say 499 00:24:00,119 --> 00:24:03,480 Speaker 1: it's not as hard. And and what has happened is 500 00:24:03,560 --> 00:24:06,919 Speaker 1: the rise of the Worldwide Web and opportunities for telework, 501 00:24:07,080 --> 00:24:10,879 Speaker 1: remote work, flexible hours has come a long way, and 502 00:24:10,920 --> 00:24:12,840 Speaker 1: so there are a lot of opportunities now for military 503 00:24:12,840 --> 00:24:15,480 Speaker 1: spouse is to be able to do some kind of employment, 504 00:24:15,760 --> 00:24:18,840 Speaker 1: maybe not full time, maybe not stable in the same location, 505 00:24:18,880 --> 00:24:21,600 Speaker 1: but still remote work gives you many more opportunities these 506 00:24:21,640 --> 00:24:24,120 Speaker 1: days than it used to. Yeah, that's a good point, 507 00:24:24,600 --> 00:24:26,199 Speaker 1: because that was a question we had and you just 508 00:24:26,359 --> 00:24:28,800 Speaker 1: answered it really well right there. That it is. It 509 00:24:28,840 --> 00:24:32,040 Speaker 1: has become somewhat easier, although not easy for a spout 510 00:24:32,480 --> 00:24:34,920 Speaker 1: working spouts to have a career deg I want to 511 00:24:34,920 --> 00:24:38,440 Speaker 1: ask you civially, so as civilians, right, Matt and Night, 512 00:24:38,560 --> 00:24:41,760 Speaker 1: it can be difficult enough for us to manage our 513 00:24:41,800 --> 00:24:44,840 Speaker 1: finances sitting in front of a computer almost every day. Right, 514 00:24:44,880 --> 00:24:47,159 Speaker 1: But let's say you're in the military. Let's say you're 515 00:24:47,200 --> 00:24:49,120 Speaker 1: on a submarine for ninety seven days in a row. 516 00:24:49,440 --> 00:24:52,000 Speaker 1: What's it like handling your finances on the day to day, 517 00:24:52,080 --> 00:24:55,399 Speaker 1: making sure that your bank account has enough money in 518 00:24:55,440 --> 00:24:57,879 Speaker 1: it to pay the credit card off on time. What 519 00:24:57,960 --> 00:25:00,560 Speaker 1: sort of things do do military members need think about, 520 00:25:00,760 --> 00:25:03,440 Speaker 1: you know, before they deploy or or while they're kind 521 00:25:03,440 --> 00:25:07,720 Speaker 1: of while they're serving. When you're single, you're gonna essentially 522 00:25:07,760 --> 00:25:10,520 Speaker 1: put everything in your life an autopilot, including all your 523 00:25:10,560 --> 00:25:13,080 Speaker 1: bills and all your savings and all your investments. And 524 00:25:13,320 --> 00:25:15,840 Speaker 1: that's probably one good thing about a military career, as 525 00:25:15,880 --> 00:25:18,320 Speaker 1: it turns you into a passive index investor, just because 526 00:25:18,359 --> 00:25:20,280 Speaker 1: you might not have the bandwidth or the time to 527 00:25:20,320 --> 00:25:23,159 Speaker 1: get in there and mess around. The other advantage of 528 00:25:23,200 --> 00:25:25,240 Speaker 1: being in the military is that you do have to 529 00:25:25,280 --> 00:25:28,120 Speaker 1: plan out in advance as far as you can. Now 530 00:25:28,320 --> 00:25:31,240 Speaker 1: with a spouse at home, there might be still problems 531 00:25:31,280 --> 00:25:33,879 Speaker 1: with pay or allowances or whatever is going on with 532 00:25:33,880 --> 00:25:37,320 Speaker 1: the family finances. Again, when that deployment comes up, or 533 00:25:37,359 --> 00:25:39,359 Speaker 1: when that move comes up, you do have to have 534 00:25:39,520 --> 00:25:42,399 Speaker 1: an emergency fund. Not not so much an emergency fund 535 00:25:42,440 --> 00:25:46,240 Speaker 1: like you would worry about for civilian unemployment. In the military, 536 00:25:46,400 --> 00:25:49,840 Speaker 1: emergency fund is for when you suddenly get orders to 537 00:25:49,920 --> 00:25:51,720 Speaker 1: new duty station and you're gonna need a couple extra 538 00:25:51,760 --> 00:25:54,359 Speaker 1: thousand dollars to cover the cost to move up front 539 00:25:54,480 --> 00:25:57,080 Speaker 1: before you get reimbursed for it. At the next duty station, 540 00:25:58,000 --> 00:26:00,719 Speaker 1: or you might have a crisis with somebody in your 541 00:26:00,760 --> 00:26:03,800 Speaker 1: family back home, somebody a relative for example, or your parents, 542 00:26:03,840 --> 00:26:05,920 Speaker 1: and you might need plane tickets to get home. That's 543 00:26:05,920 --> 00:26:09,400 Speaker 1: that's an example of a military emergency fund. It is challenging, 544 00:26:09,960 --> 00:26:14,280 Speaker 1: and fortunately, as you get into the military and you've 545 00:26:14,320 --> 00:26:16,520 Speaker 1: been in more than a few months, you'll start to 546 00:26:16,560 --> 00:26:19,200 Speaker 1: connect with the command and other families, and of course 547 00:26:19,200 --> 00:26:21,600 Speaker 1: there's a whole lot of pure tutoring and mentoring going 548 00:26:21,600 --> 00:26:24,240 Speaker 1: on on things you should do. Uh. The military also 549 00:26:24,280 --> 00:26:27,280 Speaker 1: works pretty hard to make sure that there's financial responsibility 550 00:26:27,280 --> 00:26:31,000 Speaker 1: for the service members and ways to learn more financial 551 00:26:31,000 --> 00:26:33,520 Speaker 1: literacy for the families. You know, it's stuff that's given 552 00:26:33,520 --> 00:26:37,119 Speaker 1: out free on the military basis. It sounds like automation 553 00:26:37,240 --> 00:26:40,199 Speaker 1: is key and helpful for for people that are that 554 00:26:40,240 --> 00:26:42,640 Speaker 1: are for people who are serving in the military, it's 555 00:26:42,640 --> 00:26:45,840 Speaker 1: absolutely essential to do that. And the nice thing about 556 00:26:45,880 --> 00:26:49,920 Speaker 1: automation and autopilot is that when you do that now 557 00:26:49,960 --> 00:26:51,200 Speaker 1: you don't have to go back and look at it 558 00:26:51,240 --> 00:26:54,240 Speaker 1: and confuse yourself. You know, there's no decision fatigue, there's 559 00:26:54,280 --> 00:26:57,760 Speaker 1: no temptation to go picking stocks on your own. You 560 00:26:57,840 --> 00:27:00,800 Speaker 1: might read about cryptocurrency and feel like you're missing out. 561 00:27:01,040 --> 00:27:03,520 Speaker 1: But after a few months you'll start reading about the 562 00:27:03,560 --> 00:27:06,320 Speaker 1: other side of cryptocurrency and realize maybe you didn't miss anything. 563 00:27:07,560 --> 00:27:09,920 Speaker 1: Good point, very true. Well, so, I mean, Joel is 564 00:27:09,960 --> 00:27:12,080 Speaker 1: kind of asking about like, if you're deployed overseas, but 565 00:27:12,160 --> 00:27:15,480 Speaker 1: specific to let's say you're deployed in like a combat zone. 566 00:27:15,840 --> 00:27:18,399 Speaker 1: There are obviously that's it's it's tricky to to kind 567 00:27:18,400 --> 00:27:21,080 Speaker 1: of maintain any sort of life outside of what's directly 568 00:27:21,119 --> 00:27:23,800 Speaker 1: in front of you. But there are some benefits that 569 00:27:23,800 --> 00:27:25,960 Speaker 1: that come along with being in a combat zone. So 570 00:27:26,040 --> 00:27:27,720 Speaker 1: can you kind of cover some of the different benefits 571 00:27:27,800 --> 00:27:31,840 Speaker 1: that are associated with being deployed specifically in a combat zone. Well, 572 00:27:31,880 --> 00:27:35,040 Speaker 1: I'll start by saying that you're in a combat zone. 573 00:27:35,320 --> 00:27:38,440 Speaker 1: It's not the same environment as when you're at home 574 00:27:38,480 --> 00:27:40,480 Speaker 1: on your base, and I would not deploy to a 575 00:27:40,520 --> 00:27:43,159 Speaker 1: combat zone for any of these benefits. You're deployed to 576 00:27:43,160 --> 00:27:45,720 Speaker 1: a combat zone because that's your job, not because you're 577 00:27:45,760 --> 00:27:48,040 Speaker 1: there to enjoy all the benefits of being deployed to 578 00:27:48,040 --> 00:27:50,960 Speaker 1: a combat zone. However, when you're out there, uh, in 579 00:27:51,000 --> 00:27:54,040 Speaker 1: a combat zone, Yeah, your food is free? Uh what 580 00:27:54,040 --> 00:27:56,600 Speaker 1: whatever food that might be maybe you're in the dining facility, 581 00:27:56,680 --> 00:27:59,280 Speaker 1: or maybe you're eating one of those legendary meals ready 582 00:27:59,320 --> 00:28:01,720 Speaker 1: to eat and areas out there in the field while 583 00:28:01,760 --> 00:28:04,680 Speaker 1: you're sleeping in the mud. Uh, your lodging is free. 584 00:28:04,720 --> 00:28:07,480 Speaker 1: Now again, that lodging might be an actual room in 585 00:28:07,480 --> 00:28:10,240 Speaker 1: a building, or it might be a container literally a 586 00:28:10,280 --> 00:28:14,399 Speaker 1: shipping container that's been turned into essentially living quarters. Or 587 00:28:14,720 --> 00:28:16,520 Speaker 1: you're sleeping in the mud wrapped up in a poncho. 588 00:28:17,200 --> 00:28:20,040 Speaker 1: If you're on a submarine, you're living in a space 589 00:28:20,080 --> 00:28:23,800 Speaker 1: that has less cubic volume per person than the United 590 00:28:23,800 --> 00:28:28,200 Speaker 1: States federal prisons, but you're getting paid for it. So 591 00:28:28,400 --> 00:28:32,480 Speaker 1: there are advantages to being at home that are much 592 00:28:32,520 --> 00:28:34,439 Speaker 1: better than being deployed to combat zone. But if you're 593 00:28:34,440 --> 00:28:36,040 Speaker 1: going to be in a combat zone, you've got all 594 00:28:36,040 --> 00:28:39,680 Speaker 1: that free stuff coming your way, and you've also while 595 00:28:39,680 --> 00:28:42,600 Speaker 1: you're working on your your job and working about your 596 00:28:42,600 --> 00:28:45,240 Speaker 1: mission and taking all the planning and all the contingencies 597 00:28:45,280 --> 00:28:48,520 Speaker 1: that go into combat zone, you don't have many opportunities 598 00:28:48,520 --> 00:28:51,959 Speaker 1: to spend your money. You could maybe buy some candy 599 00:28:52,160 --> 00:28:54,960 Speaker 1: or or go spend some money at the at the 600 00:28:55,120 --> 00:28:58,800 Speaker 1: entertainment facilities. Maybe you're a gamer, maybe you're gonna buy 601 00:28:58,840 --> 00:29:02,480 Speaker 1: some some creature your comforts, but it's it's tough to 602 00:29:02,520 --> 00:29:04,520 Speaker 1: go out there and pick a new pickup truck. And 603 00:29:04,600 --> 00:29:08,040 Speaker 1: if your family at home is also conserving money and 604 00:29:08,040 --> 00:29:11,200 Speaker 1: and making sure they don't overspend, why you're deployed, maybe 605 00:29:11,200 --> 00:29:12,760 Speaker 1: you're not spending a lot of money and you're starting 606 00:29:12,760 --> 00:29:15,280 Speaker 1: to develop that high savings rate, so that that can 607 00:29:15,360 --> 00:29:18,080 Speaker 1: help you a lot during the deployment. There are specific 608 00:29:18,160 --> 00:29:22,000 Speaker 1: benefits that deploy financial benefits to the deployment that allow 609 00:29:22,040 --> 00:29:25,840 Speaker 1: you to have a high interest savings account. The military 610 00:29:25,920 --> 00:29:30,440 Speaker 1: has a program it's called the Savings Deposit Program, where 611 00:29:30,520 --> 00:29:34,000 Speaker 1: you can build up a CD essentially of about ten 612 00:29:34,040 --> 00:29:37,800 Speaker 1: thousand dollars and get paid ten interest. Why you have 613 00:29:37,920 --> 00:29:41,479 Speaker 1: that money on deposit, you also get to make after 614 00:29:42,120 --> 00:29:47,280 Speaker 1: tax and also tax deferred contributions to your four oh 615 00:29:47,360 --> 00:29:51,160 Speaker 1: one K, your thrift savings plan that are beyond the 616 00:29:51,320 --> 00:29:55,120 Speaker 1: normal the annual elective deferral limit. Instead of being able 617 00:29:55,160 --> 00:29:58,640 Speaker 1: to contribute dars a year or two four one k, 618 00:29:59,200 --> 00:30:04,560 Speaker 1: you get to go as high as Yeah, again, you've 619 00:30:04,560 --> 00:30:06,760 Speaker 1: probably got the money sitting around because you're not spending it. 620 00:30:06,880 --> 00:30:09,680 Speaker 1: So if you see this deployment coming, and you plan ahead. 621 00:30:10,080 --> 00:30:12,800 Speaker 1: I get this question frequently. Then you can put together 622 00:30:12,840 --> 00:30:16,440 Speaker 1: a spreadsheet, start boosting your contributions, and you can start 623 00:30:16,520 --> 00:30:19,920 Speaker 1: reaching those new higher contribution limits. And I'll point out 624 00:30:19,920 --> 00:30:22,560 Speaker 1: that not everywhere in the world that's called a combat 625 00:30:22,680 --> 00:30:26,200 Speaker 1: zone by the Department of Offense is necessarily involving actual 626 00:30:26,240 --> 00:30:29,880 Speaker 1: direct combat. There are places where you're supporting combat or 627 00:30:29,920 --> 00:30:32,120 Speaker 1: where you're living nearby and you're stationed there for a 628 00:30:32,160 --> 00:30:34,760 Speaker 1: couple of years, and maybe you're flying into a combat 629 00:30:34,840 --> 00:30:37,680 Speaker 1: zone from that area, or maybe you're deploying into it frequently, 630 00:30:38,160 --> 00:30:40,520 Speaker 1: and so you might be stationed somewhere for a two 631 00:30:40,600 --> 00:30:43,440 Speaker 1: year tour and still get all those benefits and still 632 00:30:43,440 --> 00:30:45,720 Speaker 1: be able to save all that extra money. Let's say 633 00:30:45,800 --> 00:30:48,280 Speaker 1: you you own a home, and let's also say you've 634 00:30:48,280 --> 00:30:50,960 Speaker 1: got some credit cards, dug and you are deployed to 635 00:30:50,960 --> 00:30:54,360 Speaker 1: a combat zone. Aren't there special benefits to for soldiers? 636 00:30:54,520 --> 00:30:56,760 Speaker 1: And don't think need to call called that those companies 637 00:30:56,800 --> 00:30:58,320 Speaker 1: at a time and let them know what's going on, 638 00:30:58,360 --> 00:31:01,040 Speaker 1: because they're there are certain benefits as for them with 639 00:31:01,040 --> 00:31:03,320 Speaker 1: with those products. Yep, that's a great lead end. You're 640 00:31:03,360 --> 00:31:05,720 Speaker 1: you're talking about diving into the weeds with some benefits 641 00:31:05,760 --> 00:31:08,040 Speaker 1: that don't usually get talked about outside of the military, 642 00:31:08,160 --> 00:31:11,760 Speaker 1: but those are called the Service Members Civil Relief Act 643 00:31:11,880 --> 00:31:14,440 Speaker 1: or the s c r A, And what that means 644 00:31:14,560 --> 00:31:16,880 Speaker 1: is that while you're away from your home, you have 645 00:31:17,000 --> 00:31:20,400 Speaker 1: a lower interest rate on your debts. And also some 646 00:31:20,440 --> 00:31:22,800 Speaker 1: of the credit card companies are going way above and 647 00:31:22,800 --> 00:31:25,840 Speaker 1: beyond the s c r A and make sure that 648 00:31:25,880 --> 00:31:28,400 Speaker 1: they take care of people their clients who are in 649 00:31:28,400 --> 00:31:32,440 Speaker 1: a combat zone. So the law, the federal law, says 650 00:31:32,480 --> 00:31:35,280 Speaker 1: that if you have a debt before you entered on 651 00:31:35,320 --> 00:31:38,320 Speaker 1: active duty, then once you start your active duty period 652 00:31:38,440 --> 00:31:42,080 Speaker 1: that that deployment, then you can contact that lender and 653 00:31:42,160 --> 00:31:44,840 Speaker 1: invoke your s c r A benefits and have them 654 00:31:44,880 --> 00:31:48,920 Speaker 1: reduce the interest rate on that loan to six Now, 655 00:31:48,960 --> 00:31:51,200 Speaker 1: if you have a four percent mortgage, that doesn't help much. 656 00:31:52,080 --> 00:31:53,840 Speaker 1: If you have student loans at two percent, well you 657 00:31:53,960 --> 00:31:56,240 Speaker 1: probably don't worry about that anyway. But if you're carrying 658 00:31:56,400 --> 00:31:58,520 Speaker 1: credit card debt, then you can get that credit card 659 00:31:58,520 --> 00:32:02,440 Speaker 1: debt reduced to six sent. In addition, some of the 660 00:32:02,440 --> 00:32:05,480 Speaker 1: credit card companies really want to do a better job 661 00:32:05,520 --> 00:32:07,440 Speaker 1: of taking care of military and so many of the 662 00:32:07,440 --> 00:32:10,600 Speaker 1: credit card companies are going way above and beyond the 663 00:32:10,720 --> 00:32:13,120 Speaker 1: s cr A. But their tall like talking about it 664 00:32:13,160 --> 00:32:16,520 Speaker 1: is though it's scr A benefits and it's really part 665 00:32:16,520 --> 00:32:19,080 Speaker 1: of a different type of legislation called the Military Lending 666 00:32:19,120 --> 00:32:21,680 Speaker 1: Act or the m l A. That's what they're really doing. 667 00:32:22,200 --> 00:32:26,040 Speaker 1: But it's frequent for a credit card company to not 668 00:32:26,160 --> 00:32:29,440 Speaker 1: just reduce the interest rate, but to refund the interest 669 00:32:29,520 --> 00:32:32,920 Speaker 1: you've paid before. It's common for a credit card company 670 00:32:32,960 --> 00:32:35,560 Speaker 1: to not just reduce the interest rate, but to stop 671 00:32:35,640 --> 00:32:39,280 Speaker 1: charging interests during the deployment. Uh In many cases, when 672 00:32:39,280 --> 00:32:41,280 Speaker 1: you go out and get a credit card as a 673 00:32:41,400 --> 00:32:44,520 Speaker 1: service member active duty service member, it's common for the 674 00:32:44,520 --> 00:32:47,080 Speaker 1: credit card company to waive the annual fees on it, 675 00:32:47,320 --> 00:32:49,560 Speaker 1: and they might even do it for the spouses as well. 676 00:32:50,080 --> 00:32:52,200 Speaker 1: And the reason I'm speaking in general terms about this 677 00:32:52,240 --> 00:32:54,560 Speaker 1: is because not every card company has to do this. 678 00:32:54,720 --> 00:32:57,440 Speaker 1: The ones that do it are really well known among 679 00:32:57,440 --> 00:33:01,440 Speaker 1: military families and they're popular, but not every credit card 680 00:33:01,480 --> 00:33:03,520 Speaker 1: company is required to do that. They just do that, 681 00:33:03,800 --> 00:33:05,760 Speaker 1: I think, get more clients and to make sure that 682 00:33:05,760 --> 00:33:08,800 Speaker 1: they get a reputation for being military friendly. Because once 683 00:33:08,840 --> 00:33:11,120 Speaker 1: you get your annual fee waved or once you save 684 00:33:11,160 --> 00:33:14,560 Speaker 1: thousands of dollars on your interest rates and your payments. Uh, 685 00:33:14,600 --> 00:33:16,680 Speaker 1: you're probably going to be a customer of that company 686 00:33:16,680 --> 00:33:19,520 Speaker 1: for a very long time. Yeah, it feels good. Yeah, seriously, No, 687 00:33:19,720 --> 00:33:23,120 Speaker 1: that's that's really really good for anybody who's listening who 688 00:33:23,280 --> 00:33:26,160 Speaker 1: is currently in the military, is thinking about joining the military. 689 00:33:26,480 --> 00:33:28,880 Speaker 1: Is that something to Doug that that people need to 690 00:33:29,040 --> 00:33:31,080 Speaker 1: know to ask for and that if they don't ask, 691 00:33:31,080 --> 00:33:33,440 Speaker 1: they don't get. Oh. Absolutely, it's something that if you 692 00:33:33,480 --> 00:33:36,040 Speaker 1: never think to ask, nobody necessarily will volunteer it. So 693 00:33:36,200 --> 00:33:39,400 Speaker 1: when you're getting ready to join the military, the thing 694 00:33:39,440 --> 00:33:41,720 Speaker 1: to know is to look up the acronym s c 695 00:33:42,040 --> 00:33:44,640 Speaker 1: R A or the acronym M L A and and 696 00:33:44,640 --> 00:33:47,320 Speaker 1: get your your benefits for that, or go to a 697 00:33:47,520 --> 00:33:49,840 Speaker 1: form or a website where there's plenty of military service 698 00:33:49,920 --> 00:33:52,400 Speaker 1: members and families around and ask there. We have many 699 00:33:52,400 --> 00:33:56,680 Speaker 1: Facebook groups for that. That's excellent. Well what it sounds like. Obviously, 700 00:33:56,680 --> 00:33:58,719 Speaker 1: there's plenty of challenges when it comes to being deployed, 701 00:33:58,720 --> 00:34:00,600 Speaker 1: but I'm glad to see at least finance atally speaking, 702 00:34:00,640 --> 00:34:03,880 Speaker 1: that the governments and other financial institutions like this are 703 00:34:03,920 --> 00:34:07,600 Speaker 1: attempting to take care of soldiers. We're gonna dive more 704 00:34:07,640 --> 00:34:09,600 Speaker 1: into some of the other benefits, some of the other 705 00:34:09,640 --> 00:34:12,680 Speaker 1: financial benefits that members of the military can experience that 706 00:34:12,719 --> 00:34:24,120 Speaker 1: we're gonna get to those right after the break. All right, Matt, 707 00:34:24,120 --> 00:34:26,640 Speaker 1: we're back. We're talking with Doug Nordman, and he's an 708 00:34:26,680 --> 00:34:29,880 Speaker 1: expert when it comes to helping service members achieve financial independence. 709 00:34:30,080 --> 00:34:32,120 Speaker 1: It's like he's been there. It's it's like he's done 710 00:34:32,120 --> 00:34:35,319 Speaker 1: in himself something like that. Right, Yeah, And Doug, you 711 00:34:35,400 --> 00:34:39,200 Speaker 1: have specifically said on your site that compared to civilians, 712 00:34:39,239 --> 00:34:41,040 Speaker 1: and you you've kind of said earlier in this in 713 00:34:41,080 --> 00:34:44,760 Speaker 1: this interview, military members have a better shot at achieving 714 00:34:44,760 --> 00:34:48,359 Speaker 1: financial independence than regular civilians. Why do you think that 715 00:34:48,800 --> 00:34:52,560 Speaker 1: and what makes it so advantageous to to serve in 716 00:34:52,600 --> 00:34:56,360 Speaker 1: the military. If you want to achieve financial independence early, well, again, 717 00:34:56,600 --> 00:34:59,919 Speaker 1: don't join the military to get rich. But once you're there, 718 00:35:00,400 --> 00:35:02,279 Speaker 1: you've learned a lot of skills in the military that 719 00:35:02,320 --> 00:35:04,000 Speaker 1: will serve you well in whatever you do in the 720 00:35:04,040 --> 00:35:06,720 Speaker 1: rest of your life. You've learned how to make a plan, 721 00:35:06,920 --> 00:35:09,799 Speaker 1: You've learned motivation, you've learned persistence, and you've learned how 722 00:35:09,760 --> 00:35:13,279 Speaker 1: to overcome obstacles and improvised and adapt and overcome and 723 00:35:13,320 --> 00:35:17,000 Speaker 1: all those good mission words, and that serves for your 724 00:35:17,200 --> 00:35:20,919 Speaker 1: financial independence as well. Because you're accustomed to cutting out 725 00:35:20,920 --> 00:35:24,160 Speaker 1: the waste in your life, you're accustomed to saving and investing, 726 00:35:24,640 --> 00:35:28,640 Speaker 1: and you keep that lifestyle up the persistence part compounding 727 00:35:28,680 --> 00:35:31,400 Speaker 1: takes over, and higher your savings are eight, the faster 728 00:35:31,480 --> 00:35:35,000 Speaker 1: you'll reach financial independence. I'm not suggesting that anybody would 729 00:35:35,000 --> 00:35:37,200 Speaker 1: cut their lifestyle back to that of a monk. You're 730 00:35:37,239 --> 00:35:39,799 Speaker 1: not going to live that stoic life of minimalism and 731 00:35:39,840 --> 00:35:42,239 Speaker 1: not spend any money. What I'm saying is that by 732 00:35:42,480 --> 00:35:45,080 Speaker 1: cutting out the waste, by living a life that's important 733 00:35:45,120 --> 00:35:47,759 Speaker 1: to you, with your standards and your values, you know 734 00:35:47,920 --> 00:35:49,560 Speaker 1: that kind of life you're willing to keep working to 735 00:35:49,680 --> 00:35:53,000 Speaker 1: pay for, you'll reach financial independence much faster from your 736 00:35:53,040 --> 00:35:56,040 Speaker 1: military skills. And that goes to military families as well, 737 00:35:56,080 --> 00:35:59,120 Speaker 1: because although the military service member is the one who 738 00:35:59,200 --> 00:36:02,440 Speaker 1: maybe suffers the most deprivation and lack of creature comforts, 739 00:36:02,719 --> 00:36:04,960 Speaker 1: there's a plenty of stress and plenty of adversity on 740 00:36:05,000 --> 00:36:07,920 Speaker 1: the military family as well, and that will turn your 741 00:36:07,920 --> 00:36:12,600 Speaker 1: people into military family into resilient family members who can 742 00:36:12,760 --> 00:36:14,560 Speaker 1: meet you on that goal for financial and the pen 743 00:36:14,640 --> 00:36:17,680 Speaker 1: instent company you on a journey. Yeah, that's well, Doug. 744 00:36:17,680 --> 00:36:19,279 Speaker 1: I can kind of speak to that from experience. My 745 00:36:19,320 --> 00:36:22,040 Speaker 1: father was actually in the army and uh yeah, being 746 00:36:22,320 --> 00:36:25,480 Speaker 1: deployed for multiple years. There's something that you learn as 747 00:36:25,520 --> 00:36:27,720 Speaker 1: a as a family and kind of you know, pitching 748 00:36:27,719 --> 00:36:29,759 Speaker 1: in even even as a kid, kind of pitching into 749 00:36:29,800 --> 00:36:32,040 Speaker 1: that family mission and what it is that you're you're 750 00:36:32,040 --> 00:36:34,120 Speaker 1: setting out to accomplish. So I hear you there. I 751 00:36:34,120 --> 00:36:36,239 Speaker 1: want to talk about the g I Bill though it's 752 00:36:36,239 --> 00:36:39,600 Speaker 1: been around since is it ninety four? But you know, 753 00:36:39,640 --> 00:36:42,400 Speaker 1: for our listeners out there, can you explain specifically what 754 00:36:42,480 --> 00:36:45,000 Speaker 1: it is and why this is such a major benefit, 755 00:36:45,080 --> 00:36:48,399 Speaker 1: such a great program for members of the military and 756 00:36:48,520 --> 00:36:51,279 Speaker 1: as well as some of the eligible veterans out there now. 757 00:36:51,320 --> 00:36:53,640 Speaker 1: The g I Bill came out in the forties as 758 00:36:53,719 --> 00:36:56,279 Speaker 1: everybody from World War Two was coming back home, and 759 00:36:56,360 --> 00:36:58,920 Speaker 1: the whole idea was, oh, my gosh, all these service 760 00:36:58,920 --> 00:37:00,640 Speaker 1: members are going to come back, and we want to 761 00:37:00,640 --> 00:37:03,160 Speaker 1: give them skills and we want to help them find 762 00:37:03,239 --> 00:37:06,040 Speaker 1: jobs so it can rebuild the American economy and and 763 00:37:06,120 --> 00:37:08,080 Speaker 1: start selling stuff to rebuild the rest of the world 764 00:37:08,080 --> 00:37:11,400 Speaker 1: that was destroyed by the war. So that's continued throughout 765 00:37:11,400 --> 00:37:13,840 Speaker 1: the years. There has been various implementations of the g 766 00:37:14,000 --> 00:37:16,960 Speaker 1: I Bill over the last seventy five years. The latest one, 767 00:37:17,040 --> 00:37:20,520 Speaker 1: the one was passed into life after nine eleven, is 768 00:37:20,560 --> 00:37:24,040 Speaker 1: probably the best g I Bill benefits ever. Not only 769 00:37:24,120 --> 00:37:27,240 Speaker 1: are you given an affordable rate at almost just anybody 770 00:37:27,280 --> 00:37:31,200 Speaker 1: just about any university or college or certification program that 771 00:37:31,239 --> 00:37:33,920 Speaker 1: you might be interested in, but you're also able in 772 00:37:34,000 --> 00:37:36,839 Speaker 1: most cases to be eligible for a housing allowance, which 773 00:37:36,880 --> 00:37:40,040 Speaker 1: helps make it much more affordable to attend those classes. Yeah, 774 00:37:40,080 --> 00:37:42,080 Speaker 1: the housing allowance is a is a really good deal. 775 00:37:42,080 --> 00:37:45,040 Speaker 1: In fact, I think there's there's probably a few veterans 776 00:37:45,080 --> 00:37:46,880 Speaker 1: who are more attracted to the housing allowance than to 777 00:37:46,920 --> 00:37:50,560 Speaker 1: the actual degree or the job skill because you've earned 778 00:37:50,600 --> 00:37:53,160 Speaker 1: the right to use your g I Bill benefits and 779 00:37:53,239 --> 00:37:55,640 Speaker 1: to go to school and learn something new and and 780 00:37:55,680 --> 00:37:58,000 Speaker 1: maybe it'll help you out in your your next goal 781 00:37:58,040 --> 00:38:01,000 Speaker 1: in life. Even if you're listed and you didn't get 782 00:38:01,040 --> 00:38:02,840 Speaker 1: your college degree finished. I mean, that's who the g 783 00:38:02,960 --> 00:38:05,200 Speaker 1: I Bill has aimed at, even if you already have 784 00:38:05,200 --> 00:38:06,960 Speaker 1: a degree. While this is your chance to go out 785 00:38:07,000 --> 00:38:09,400 Speaker 1: for an advanced degree or a career change or an 786 00:38:09,480 --> 00:38:11,479 Speaker 1: m b A or whatever goal you have in mind. 787 00:38:12,120 --> 00:38:15,480 Speaker 1: And one of the advantages of the post nine eleven 788 00:38:15,480 --> 00:38:19,920 Speaker 1: g I Bill is that it is now transferable. You 789 00:38:19,960 --> 00:38:23,240 Speaker 1: can take the benefit you've earned and you can assign 790 00:38:23,280 --> 00:38:26,080 Speaker 1: it to your spouse or to your kids and they 791 00:38:26,080 --> 00:38:27,960 Speaker 1: can go out. Yeah, they can get their own degrees. Now, 792 00:38:28,280 --> 00:38:31,359 Speaker 1: this is a military Department of Defense benefit actually comes 793 00:38:31,400 --> 00:38:34,279 Speaker 1: from the Veterans Administration, but it's a federal benefit, and 794 00:38:34,640 --> 00:38:37,400 Speaker 1: there's also many state benefits as well. One of the 795 00:38:37,440 --> 00:38:40,839 Speaker 1: examples is if you separate from the military and you're 796 00:38:40,880 --> 00:38:44,399 Speaker 1: a California resident, there's a program called cal Vets which 797 00:38:44,480 --> 00:38:48,200 Speaker 1: will enable you to send your children to a California 798 00:38:48,239 --> 00:38:52,160 Speaker 1: State university on a scholarship, and that is worth you know, 799 00:38:52,280 --> 00:38:54,279 Speaker 1: hundreds of thousands of dollars depending on the size of 800 00:38:54,320 --> 00:38:56,759 Speaker 1: your family. So there's not just the g I bill 801 00:38:56,960 --> 00:39:00,799 Speaker 1: educational benefits, but there's also the state benefits, and and 802 00:39:00,880 --> 00:39:03,640 Speaker 1: using those benefits intelligently allows you to transfer among your 803 00:39:03,640 --> 00:39:06,200 Speaker 1: family members to make sure you can give them either 804 00:39:06,560 --> 00:39:08,279 Speaker 1: a portion of your g I bill or all your 805 00:39:08,320 --> 00:39:11,359 Speaker 1: g I bill. You can be flexible and balancing that out. 806 00:39:11,480 --> 00:39:14,000 Speaker 1: You've got a certain fixed amount of benefits, and then 807 00:39:14,040 --> 00:39:15,600 Speaker 1: you get to make the decisions on how they're a 808 00:39:15,680 --> 00:39:18,680 Speaker 1: portioned among your family members. Well, I'm so thankful that 809 00:39:18,719 --> 00:39:22,120 Speaker 1: exists because that is a necessary benefit, right, that's the 810 00:39:22,120 --> 00:39:24,560 Speaker 1: way we should take care of our military service members. 811 00:39:24,920 --> 00:39:26,359 Speaker 1: And I love to that you brought out the state 812 00:39:26,360 --> 00:39:28,640 Speaker 1: benefits because that's something that often doesn't get discussed and 813 00:39:28,800 --> 00:39:32,320 Speaker 1: something that we don't point people towards. So, yeah, everybody 814 00:39:32,360 --> 00:39:34,319 Speaker 1: listening who is in the military who doesn't know that 815 00:39:34,320 --> 00:39:36,480 Speaker 1: there are also state benefits, they should be looking for 816 00:39:36,520 --> 00:39:38,560 Speaker 1: those to see what they can take advantage of as well. 817 00:39:39,080 --> 00:39:42,200 Speaker 1: And and Doug, let's talk about the retirement plan that's 818 00:39:42,239 --> 00:39:45,640 Speaker 1: offered to military members as well. Military members have access 819 00:39:45,680 --> 00:39:47,799 Speaker 1: to one of the greatest retirement systems I think on 820 00:39:47,840 --> 00:39:50,560 Speaker 1: the face of the earth, the TSP, the Thrift Savings Plan. 821 00:39:51,040 --> 00:39:55,640 Speaker 1: So it just it's such a wonderful retirement savings system. 822 00:39:55,680 --> 00:39:59,400 Speaker 1: Can you recommend how military members should think about the 823 00:39:59,400 --> 00:40:01,800 Speaker 1: t SP and how they should be investing for the 824 00:40:01,840 --> 00:40:05,400 Speaker 1: future inside of it. Absolutely, And that's the military equivalent 825 00:40:05,400 --> 00:40:08,000 Speaker 1: of your four oh one K. Through Savings Plan is 826 00:40:08,040 --> 00:40:10,920 Speaker 1: a federal program for federal civil servants as well as 827 00:40:11,160 --> 00:40:13,840 Speaker 1: service members. Military service members are part of the federal 828 00:40:13,960 --> 00:40:16,560 Speaker 1: system and it's just like any other four oh one k. 829 00:40:17,200 --> 00:40:21,520 Speaker 1: It is one of the world's largest collections of passive 830 00:40:21,920 --> 00:40:24,440 Speaker 1: index funds, and it used to have some of the 831 00:40:24,440 --> 00:40:28,320 Speaker 1: world's lowest fees. There's still very competitive fees around zero 832 00:40:28,440 --> 00:40:33,040 Speaker 1: point zero three percent zero point zero four percent, better 833 00:40:33,040 --> 00:40:35,520 Speaker 1: than what you were paying back in the eighties, right, Doug. Yeah, 834 00:40:36,719 --> 00:40:39,279 Speaker 1: and that's only been around since two thousand two. I 835 00:40:39,320 --> 00:40:41,360 Speaker 1: had I had a whole five months that through savings 836 00:40:41,360 --> 00:40:43,720 Speaker 1: plan before I retired from ACTI duty. So as somebody 837 00:40:43,719 --> 00:40:46,000 Speaker 1: who missed out on a t SP and still managed 838 00:40:46,040 --> 00:40:48,840 Speaker 1: to make financial independence, I would say that it's a 839 00:40:49,040 --> 00:40:52,880 Speaker 1: rocket sled to achieving your own financial independence today. And 840 00:40:52,880 --> 00:40:56,960 Speaker 1: and there are cheaper index fund fees with Fidelity or Vanguard, 841 00:40:56,960 --> 00:40:59,120 Speaker 1: of course, you can you can cut that number down 842 00:40:59,239 --> 00:41:02,959 Speaker 1: even to zero row. But the thrift Savings Plan gives 843 00:41:02,960 --> 00:41:05,120 Speaker 1: you a way to do that in a way that 844 00:41:05,480 --> 00:41:08,480 Speaker 1: saves shelters your money in the thrift Savings plan from 845 00:41:08,520 --> 00:41:11,759 Speaker 1: taxes or gives you a chance to invest in an 846 00:41:11,760 --> 00:41:15,560 Speaker 1: after tax retirement account the Roth Thrift Savings Plan, which 847 00:41:15,640 --> 00:41:18,960 Speaker 1: is simply free from taxes once you do that, So 848 00:41:19,080 --> 00:41:21,560 Speaker 1: there's the same flexibility thrift savings plan. It's a bare 849 00:41:21,640 --> 00:41:24,200 Speaker 1: bones plan that cuts out all the confusion and gives 850 00:41:24,200 --> 00:41:26,720 Speaker 1: you a limited number of choices. Then they're they're almost 851 00:41:26,800 --> 00:41:31,040 Speaker 1: all good choices with good uses. So what I tell 852 00:41:31,080 --> 00:41:34,120 Speaker 1: people is, when you've cut out the waist and you're 853 00:41:34,160 --> 00:41:36,560 Speaker 1: spending and your savings rate goes up, start investing in 854 00:41:36,560 --> 00:41:40,160 Speaker 1: the thrift savings plan right off the bat. Now, today's military, 855 00:41:40,320 --> 00:41:44,120 Speaker 1: there's a different type of pension system, and when you're 856 00:41:44,160 --> 00:41:47,680 Speaker 1: in the blended retirement system, that's the new system. If 857 00:41:47,760 --> 00:41:50,279 Speaker 1: you put at least five percent of your base pay 858 00:41:50,320 --> 00:41:53,240 Speaker 1: every month into the thrift Savings plan, you get the 859 00:41:53,280 --> 00:41:56,680 Speaker 1: agency contribution with the Department of Defense, and you get 860 00:41:56,719 --> 00:41:59,239 Speaker 1: the match from the Department of Defense. So you're five 861 00:41:59,239 --> 00:42:01,239 Speaker 1: percent of base pay going to the thrift savings plan 862 00:42:01,400 --> 00:42:04,560 Speaker 1: is matched right away by the government after a minimum 863 00:42:04,560 --> 00:42:08,880 Speaker 1: service time, and at five again, that's free money, and 864 00:42:08,960 --> 00:42:11,440 Speaker 1: had added to your thrift savings plan will also put 865 00:42:11,480 --> 00:42:14,319 Speaker 1: you well on the road to financial independence. I'll say. 866 00:42:14,360 --> 00:42:17,640 Speaker 1: The reason we do this is because nobody really looks 867 00:42:17,640 --> 00:42:20,640 Speaker 1: at this statistic until after you're in the military. But 868 00:42:20,840 --> 00:42:23,120 Speaker 1: of all the people that join the military, only one 869 00:42:23,160 --> 00:42:25,400 Speaker 1: out of six makes it to that twenty year pension. 870 00:42:27,239 --> 00:42:29,759 Speaker 1: Of the people who join the military serve less than 871 00:42:29,800 --> 00:42:33,719 Speaker 1: that twenty years. Almost everybody that joins the military and 872 00:42:33,840 --> 00:42:36,839 Speaker 1: uniform will serve one or two obligations and then get 873 00:42:36,840 --> 00:42:41,520 Speaker 1: out somewhere after four to ten years. So because of 874 00:42:41,560 --> 00:42:43,720 Speaker 1: the people that join the military never get a pension, 875 00:42:44,239 --> 00:42:46,960 Speaker 1: the matching of the blended retirement system has really made 876 00:42:46,960 --> 00:42:48,680 Speaker 1: it a lot better for those people that weren't going 877 00:42:48,719 --> 00:42:51,719 Speaker 1: to stick around for twenty years anyway. Now, if you 878 00:42:51,719 --> 00:42:54,120 Speaker 1: stay for twenty years and continue to invest in the 879 00:42:54,160 --> 00:42:56,280 Speaker 1: thrift savings plan and make sure you get that match, 880 00:42:56,680 --> 00:42:59,040 Speaker 1: you'll end up with at least as much money as 881 00:42:59,040 --> 00:43:01,000 Speaker 1: you would have under an older pension system before the 882 00:43:01,040 --> 00:43:04,680 Speaker 1: blended retirement system. But there's a potential because you're putting 883 00:43:04,680 --> 00:43:07,120 Speaker 1: that money into the thrift savings plan that that money 884 00:43:07,160 --> 00:43:09,279 Speaker 1: will compound faster than the pension you might have gotten 885 00:43:09,360 --> 00:43:11,759 Speaker 1: under the old system. So I see it as a 886 00:43:11,800 --> 00:43:13,920 Speaker 1: big win for the eight percent of the people would 887 00:43:13,920 --> 00:43:16,479 Speaker 1: never get a pension, and even for the fifteen percent 888 00:43:16,520 --> 00:43:19,240 Speaker 1: of people do stick it around for that pension because 889 00:43:19,400 --> 00:43:23,439 Speaker 1: they're challenging fulfilled. If they make that pension, then they're 890 00:43:23,440 --> 00:43:25,799 Speaker 1: probably gonna have more money with the blended retirement system 891 00:43:25,840 --> 00:43:28,279 Speaker 1: than they would have had under the old pension system. 892 00:43:28,560 --> 00:43:30,120 Speaker 1: It seems like there's just that gap right there in 893 00:43:30,160 --> 00:43:31,880 Speaker 1: the middle, like you said, where folks are kind of 894 00:43:31,960 --> 00:43:35,680 Speaker 1: dropping out, and before that blended plan came along, I'm 895 00:43:35,680 --> 00:43:37,400 Speaker 1: sure a lot of them were either sticking it out 896 00:43:37,440 --> 00:43:39,480 Speaker 1: when they didn't want to, and in which case it 897 00:43:39,520 --> 00:43:42,279 Speaker 1: wouldn't you know, that wouldn't be fulfilling work paying off 898 00:43:42,320 --> 00:43:46,239 Speaker 1: those student debts in those car loans. Yeah, exactly, Well, Doug, 899 00:43:46,280 --> 00:43:49,120 Speaker 1: are the benefits the same for for folks who don't 900 00:43:49,120 --> 00:43:51,560 Speaker 1: sign up for full time service and instead opt to 901 00:43:51,600 --> 00:43:53,839 Speaker 1: serve in the reserves? Like, how does you know? How 902 00:43:53,840 --> 00:43:56,320 Speaker 1: does that blended retirement plan? How does the the TSP? 903 00:43:56,400 --> 00:43:58,719 Speaker 1: How does all that work when you're when you're in 904 00:43:58,719 --> 00:44:01,480 Speaker 1: the reserves. Let's that's been a hot topic of conversation 905 00:44:01,520 --> 00:44:04,040 Speaker 1: around our house because our daughter just a few months 906 00:44:04,080 --> 00:44:07,279 Speaker 1: ago finished her five year active duty obligation after her 907 00:44:07,280 --> 00:44:11,080 Speaker 1: college scholarship, and about ten minutes after she finished that 908 00:44:11,120 --> 00:44:13,880 Speaker 1: five years, she left active duty for the Navy Reserve. 909 00:44:15,000 --> 00:44:16,799 Speaker 1: One of one of the phrases you read a lot 910 00:44:16,800 --> 00:44:19,480 Speaker 1: about it in the reserves is the slogan one week 911 00:44:19,520 --> 00:44:21,600 Speaker 1: in a month and two weeks a year, and what 912 00:44:21,680 --> 00:44:23,920 Speaker 1: that means is that you do a drill weekend every month, 913 00:44:24,640 --> 00:44:27,239 Speaker 1: brush up on your skills and stay current. And you 914 00:44:27,280 --> 00:44:29,719 Speaker 1: also do that two weeks of active duty every year 915 00:44:29,760 --> 00:44:32,840 Speaker 1: to go to some active duty command and work alongside 916 00:44:32,920 --> 00:44:35,799 Speaker 1: your active duty counterparts to make sure you understand what 917 00:44:35,840 --> 00:44:37,880 Speaker 1: they need and make sure that you're doing the right 918 00:44:37,920 --> 00:44:41,560 Speaker 1: stuff to support that command. That's using your time. But 919 00:44:41,680 --> 00:44:45,400 Speaker 1: the reality is also across all the services, across all 920 00:44:45,440 --> 00:44:49,920 Speaker 1: the reserves and the National Guard units as well, every 921 00:44:49,960 --> 00:44:52,799 Speaker 1: three to five years you may be facing a mobilization 922 00:44:52,840 --> 00:44:55,359 Speaker 1: for a deployment, and it varies a lot by your 923 00:44:55,360 --> 00:44:58,080 Speaker 1: skill set and by the type of the service you're in, 924 00:44:58,120 --> 00:45:01,200 Speaker 1: whether you're National Guard or reservist, or whether you're in 925 00:45:01,200 --> 00:45:04,239 Speaker 1: the Air Force or or the Army. But I would 926 00:45:04,280 --> 00:45:06,200 Speaker 1: say every three to five years you're going to get 927 00:45:06,360 --> 00:45:09,920 Speaker 1: an opportunity at deploy and it's the kind of opportunity 928 00:45:10,040 --> 00:45:11,920 Speaker 1: that you're either going to be volunte old to do, 929 00:45:12,320 --> 00:45:14,080 Speaker 1: or the kind of opportunity that if you want to 930 00:45:14,080 --> 00:45:16,440 Speaker 1: continue to promote and be allowed to stay for twenty 931 00:45:16,560 --> 00:45:19,279 Speaker 1: that you should do. And so that is a little 932 00:45:19,280 --> 00:45:22,279 Speaker 1: bit of a downside I tell people that the reserves 933 00:45:22,480 --> 00:45:25,400 Speaker 1: is just about everything in the military that you enjoyed, 934 00:45:25,520 --> 00:45:29,000 Speaker 1: all the good stuff with less of the sucky stuff 935 00:45:29,040 --> 00:45:30,239 Speaker 1: that you had to put up with when you're on 936 00:45:30,320 --> 00:45:33,640 Speaker 1: active duty. And if you're in active duty and you're 937 00:45:33,680 --> 00:45:36,920 Speaker 1: thinking about getting out because it's not challenging and fulfilling anymore, 938 00:45:37,360 --> 00:45:41,000 Speaker 1: then I'd suggest considering not only joining the reserves or 939 00:45:41,000 --> 00:45:44,520 Speaker 1: the National Guard, but consider all the services. If you're 940 00:45:44,600 --> 00:45:47,880 Speaker 1: unhappy and active duty Navy and close to where you 941 00:45:47,880 --> 00:45:50,400 Speaker 1: want to live, there's an Air Force reserve unit or 942 00:45:50,400 --> 00:45:52,600 Speaker 1: a National Guard unit, well maybe it makes sense to 943 00:45:52,600 --> 00:45:54,960 Speaker 1: think about changing your uniform. Why you change the amount 944 00:45:54,960 --> 00:45:57,440 Speaker 1: of mind time you spend in the military, and so 945 00:45:57,520 --> 00:46:00,360 Speaker 1: that gives you a chance to share the common honorary 946 00:46:00,400 --> 00:46:02,680 Speaker 1: with a group of people that also have your your code, 947 00:46:02,719 --> 00:46:05,680 Speaker 1: your values. Gives you a brand new audience to tell 948 00:46:05,719 --> 00:46:08,520 Speaker 1: all your c stories too, and it also gives you 949 00:46:08,560 --> 00:46:11,040 Speaker 1: a chance to keep some of that military stuff going 950 00:46:11,080 --> 00:46:13,879 Speaker 1: and have a side income. You never really know when 951 00:46:13,880 --> 00:46:16,240 Speaker 1: you start your civilian career and you try to balance 952 00:46:16,280 --> 00:46:19,360 Speaker 1: that work life balance with a reserve or a National 953 00:46:19,400 --> 00:46:21,680 Speaker 1: Guard unit, you never really know which one is gonna 954 00:46:21,760 --> 00:46:24,000 Speaker 1: pay off. For you. There's a lot of skill trainsfer 955 00:46:24,040 --> 00:46:26,960 Speaker 1: back and forth between your civilian career and reserves, and 956 00:46:27,040 --> 00:46:29,000 Speaker 1: if you get an opportunity to deploy with the military 957 00:46:29,080 --> 00:46:31,400 Speaker 1: one the reserves means that you should be able to 958 00:46:31,400 --> 00:46:34,239 Speaker 1: deploy and that civilian employer should hold your job for you. 959 00:46:34,880 --> 00:46:37,880 Speaker 1: Or if you are doing very well in your civilian career, 960 00:46:38,000 --> 00:46:40,040 Speaker 1: well maybe there's an opportunity to put your reserve care 961 00:46:40,120 --> 00:46:43,040 Speaker 1: on hold a little bit. And those two play off 962 00:46:43,080 --> 00:46:46,520 Speaker 1: each other and give I think, a reliable third source 963 00:46:46,560 --> 00:46:49,000 Speaker 1: of income. It's sort of a side hustle that gives 964 00:46:49,040 --> 00:46:52,040 Speaker 1: you life skills as as well as some money and 965 00:46:52,200 --> 00:46:56,239 Speaker 1: helps you maintain that path of financial independence. Again, for 966 00:46:56,280 --> 00:46:59,359 Speaker 1: our listeners who are military members, DOUG, when they reach 967 00:46:59,440 --> 00:47:02,400 Speaker 1: that point when they when when they're collecting their pension 968 00:47:02,800 --> 00:47:05,040 Speaker 1: and once they've done such a good job saving and 969 00:47:05,040 --> 00:47:07,600 Speaker 1: reaching financial indefinite thing, come serve with you all day, right, 970 00:47:08,000 --> 00:47:10,239 Speaker 1: oh absolutely, And if there's any question about what you're 971 00:47:10,239 --> 00:47:11,680 Speaker 1: gonna do all day, we'll come on out here and 972 00:47:11,719 --> 00:47:14,000 Speaker 1: sample the lifestyle and we'll help you sort through those 973 00:47:14,040 --> 00:47:17,120 Speaker 1: options perfect. Well. You've given us so much good information. 974 00:47:17,680 --> 00:47:19,560 Speaker 1: We really really appreciate you joining us on the show, 975 00:47:19,680 --> 00:47:21,800 Speaker 1: and for folks that want to find out more about 976 00:47:21,800 --> 00:47:23,880 Speaker 1: you and want to read some of the stuff that 977 00:47:23,880 --> 00:47:26,399 Speaker 1: you've written, can you tell us all where to find that. Yeah, 978 00:47:26,400 --> 00:47:29,440 Speaker 1: it's all on the Military Guide website, or you can 979 00:47:29,440 --> 00:47:32,239 Speaker 1: just search for the phrase the Military Guide. We've been 980 00:47:32,239 --> 00:47:34,400 Speaker 1: doing this for nine years, so we're pretty high up 981 00:47:34,400 --> 00:47:37,080 Speaker 1: on the search engine results. I've got a book for 982 00:47:37,280 --> 00:47:41,200 Speaker 1: military families on Amazon, that's the e book, but it's 983 00:47:41,239 --> 00:47:44,600 Speaker 1: also in many libraries, and it's on many military bases, 984 00:47:45,280 --> 00:47:47,880 Speaker 1: and there's many cheap or freeways to get all of 985 00:47:47,920 --> 00:47:49,839 Speaker 1: that book, So don't spend money on it until after 986 00:47:49,880 --> 00:47:51,680 Speaker 1: you've looked at the other options and read it from 987 00:47:51,680 --> 00:47:55,480 Speaker 1: the library from somebody else. That's right, perfect. Well man, 988 00:47:55,520 --> 00:47:57,759 Speaker 1: this has been fantastic. What a wealth of information you've 989 00:47:57,800 --> 00:47:59,439 Speaker 1: been able to share with folks. I think folks maybe 990 00:47:59,440 --> 00:48:01,880 Speaker 1: who might be considering joining the service, but also as 991 00:48:01,920 --> 00:48:03,759 Speaker 1: well for folks who who are in the middle of 992 00:48:03,760 --> 00:48:05,680 Speaker 1: it and aren't even aware of some of these some 993 00:48:05,719 --> 00:48:08,920 Speaker 1: of these benefits that are available to them. But we 994 00:48:08,920 --> 00:48:10,680 Speaker 1: really appreciate your time. Thanks so much for coming on 995 00:48:10,719 --> 00:48:12,360 Speaker 1: the show, and uh yeah, we hope to talk to 996 00:48:12,400 --> 00:48:15,439 Speaker 1: you again soon. Thanks guys, enjoyed this, and I'm gonna 997 00:48:15,520 --> 00:48:18,640 Speaker 1: enjoy listening to the other episodes. Thanks Doug, we appreciate 998 00:48:18,680 --> 00:48:21,480 Speaker 1: it all right, Matt, I love these interview episodes. Another 999 00:48:21,560 --> 00:48:24,560 Speaker 1: great conversation this time with with Doug, and I feel 1000 00:48:24,600 --> 00:48:27,399 Speaker 1: like we covered a lot of useful information to help 1001 00:48:27,680 --> 00:48:30,920 Speaker 1: military members and their families out a lot of these 1002 00:48:31,040 --> 00:48:33,719 Speaker 1: really nitty gritty things that are just super helpful to know, 1003 00:48:33,920 --> 00:48:36,160 Speaker 1: right if you're in the service. So I want to 1004 00:48:36,160 --> 00:48:37,920 Speaker 1: know from you, what was your big takeaway from our 1005 00:48:37,960 --> 00:48:40,279 Speaker 1: conversation with Doug. Yeah, man, Well, what struck me, what 1006 00:48:40,320 --> 00:48:42,080 Speaker 1: I found interesting was that we kind of came into 1007 00:48:42,160 --> 00:48:45,880 Speaker 1: this episode wanting to learn about some of the financial 1008 00:48:45,920 --> 00:48:48,799 Speaker 1: benefits of joining the military, right like we we know, 1009 00:48:48,880 --> 00:48:52,520 Speaker 1: we specifically wanted to know about the pension, about the TSP, 1010 00:48:52,719 --> 00:48:57,160 Speaker 1: some of these specific vehicles and financial advantages that members 1011 00:48:57,200 --> 00:48:59,920 Speaker 1: of the military that they're presented with, and more. The 1012 00:49:00,080 --> 00:49:02,239 Speaker 1: once one of the things that struck me was that 1013 00:49:02,360 --> 00:49:04,920 Speaker 1: so much of the benefit that these soldiers and these 1014 00:49:04,960 --> 00:49:07,719 Speaker 1: sailors are you know, receiving and learning have to do 1015 00:49:07,800 --> 00:49:11,080 Speaker 1: with their training within the service that isn't financially related, 1016 00:49:11,239 --> 00:49:13,520 Speaker 1: right like he was. He mentioned how being in the service. Uh, 1017 00:49:13,560 --> 00:49:17,560 Speaker 1: there's a degree of character, there's planning, there's persistence, resiliency 1018 00:49:17,640 --> 00:49:19,720 Speaker 1: like all these like he said, all these team words 1019 00:49:19,760 --> 00:49:22,640 Speaker 1: that you learn about and it gets drilled into you. 1020 00:49:23,000 --> 00:49:25,560 Speaker 1: And because of that, that typically makes you a very 1021 00:49:25,560 --> 00:49:29,120 Speaker 1: marketable when it comes to possibly seeking a career outside 1022 00:49:29,120 --> 00:49:33,520 Speaker 1: of the military. But it also makes personal finance potentially right, 1023 00:49:33,600 --> 00:49:36,960 Speaker 1: like not guaranteed, but potentially something that isn't nearly as 1024 00:49:37,000 --> 00:49:40,080 Speaker 1: daunting as if you're just a civilian kind of in 1025 00:49:40,120 --> 00:49:42,960 Speaker 1: a kind of standard work environment. Certainly there's gonna be challenges, 1026 00:49:43,280 --> 00:49:45,800 Speaker 1: but you don't often hear about, you know, planning and 1027 00:49:45,880 --> 00:49:48,320 Speaker 1: persistence and just the grit that's involved with being in 1028 00:49:48,360 --> 00:49:50,959 Speaker 1: the military. And so for me, that kind of caught 1029 00:49:50,960 --> 00:49:52,359 Speaker 1: me off guard a little bit because you and I 1030 00:49:52,360 --> 00:49:54,799 Speaker 1: were nerding out about the numbers kind of different, the 1031 00:49:54,800 --> 00:49:56,920 Speaker 1: different retirement plan is that just some of the different 1032 00:49:57,040 --> 00:49:59,799 Speaker 1: financial advantages, and we talked about those things, But what 1033 00:49:59,880 --> 00:50:02,719 Speaker 1: I left the conversation with was just how much, you know, 1034 00:50:02,760 --> 00:50:05,399 Speaker 1: more a member of the military can better themselves, how 1035 00:50:05,400 --> 00:50:07,319 Speaker 1: many different life skills that they can learn that are 1036 00:50:07,320 --> 00:50:10,439 Speaker 1: going to be applicable to many areas of their life. 1037 00:50:10,480 --> 00:50:12,520 Speaker 1: Well after the military yeah, that's a good point. Yeah, 1038 00:50:12,640 --> 00:50:15,359 Speaker 1: like the austere lifestyle he mentioned, right, like just yeah, 1039 00:50:15,400 --> 00:50:17,320 Speaker 1: even at the beginning, that getting used to that and 1040 00:50:17,560 --> 00:50:20,640 Speaker 1: that being kind of everyday life for a long period 1041 00:50:20,640 --> 00:50:23,719 Speaker 1: of time, Well, you don't get soft like maybe you 1042 00:50:23,760 --> 00:50:26,160 Speaker 1: and I do sometimes, you know, living in in normal 1043 00:50:26,200 --> 00:50:28,279 Speaker 1: everyday life. The things that we get used to are 1044 00:50:28,320 --> 00:50:30,680 Speaker 1: not things that you're experiencing every day. And so yeah, 1045 00:50:30,719 --> 00:50:32,680 Speaker 1: I think that can be a benefit right in civilian 1046 00:50:32,719 --> 00:50:34,799 Speaker 1: life as well. Yeah, totally man, how about you? Yeah, 1047 00:50:34,800 --> 00:50:37,560 Speaker 1: I think my biggest takeaway was kind of the nerdy side. 1048 00:50:37,840 --> 00:50:41,000 Speaker 1: I love what Duck said, like that if you're serving 1049 00:50:41,000 --> 00:50:44,480 Speaker 1: in the military, your ability to achieve financial independence is 1050 00:50:44,560 --> 00:50:48,400 Speaker 1: greater than working at a regular civilian day job. And 1051 00:50:48,440 --> 00:50:50,480 Speaker 1: I thought that was really fascinating, and I think he's right. 1052 00:50:50,680 --> 00:50:53,120 Speaker 1: I think when you look at the additional benefits, if 1053 00:50:53,239 --> 00:50:56,560 Speaker 1: service members are diligent to take advantage of them, things 1054 00:50:56,600 --> 00:50:59,640 Speaker 1: like the TSP, the way that the new pension works, 1055 00:51:00,000 --> 00:51:01,520 Speaker 1: the match you get, and then if you're in for 1056 00:51:01,560 --> 00:51:04,160 Speaker 1: twenty years, like if you commit to a twenty year 1057 00:51:04,200 --> 00:51:07,040 Speaker 1: military career, and he said, most service members don't, but 1058 00:51:07,080 --> 00:51:09,440 Speaker 1: if you do and you take advantage of all of 1059 00:51:09,480 --> 00:51:12,680 Speaker 1: those extra benefits when you're deployed, if you take advantage 1060 00:51:12,719 --> 00:51:16,400 Speaker 1: of that suite ten percent savings account, right, that thing's 1061 00:51:16,400 --> 00:51:19,800 Speaker 1: not awesome. That's incredible, right, guaranteed ten percent. Man, You 1062 00:51:19,880 --> 00:51:21,440 Speaker 1: can't you can't beat that. Yeah, And if you can 1063 00:51:21,480 --> 00:51:23,319 Speaker 1: just shovel more and more of your money in these 1064 00:51:23,360 --> 00:51:26,520 Speaker 1: tax advantaged accounts that you're offered through service in the military, 1065 00:51:26,920 --> 00:51:30,200 Speaker 1: it can be incredible how much quicker you can achieve 1066 00:51:30,239 --> 00:51:32,839 Speaker 1: financial independence. So yeah, I think that was really cool, 1067 00:51:33,120 --> 00:51:35,400 Speaker 1: And just as a civilian man, it makes me thankful 1068 00:51:35,480 --> 00:51:38,479 Speaker 1: to right that that our service members have these sort 1069 00:51:38,520 --> 00:51:41,279 Speaker 1: of advantages because they are putting their life on the 1070 00:51:41,320 --> 00:51:45,000 Speaker 1: line oftentimes for us, and even if they're not directly 1071 00:51:45,080 --> 00:51:46,960 Speaker 1: in harm's way, they're ready to go do that in 1072 00:51:47,000 --> 00:51:49,320 Speaker 1: a moment's notice. And so I'm really thankful that we 1073 00:51:49,440 --> 00:51:52,600 Speaker 1: have benefits like this set up for folks in the military. 1074 00:51:52,680 --> 00:51:54,440 Speaker 1: And it's just really cool to to hear him and 1075 00:51:54,480 --> 00:51:56,440 Speaker 1: to get to see them listed out, So true man, 1076 00:51:56,560 --> 00:51:59,200 Speaker 1: most definitely. All right, let's switch it over to our beer. 1077 00:51:59,280 --> 00:52:02,319 Speaker 1: For this episode. We had Bodhi's Afa, which is an 1078 00:52:02,360 --> 00:52:05,479 Speaker 1: I p A by George Town Brewing Company. Thanks again 1079 00:52:05,520 --> 00:52:07,960 Speaker 1: to Richard. He sent this one in for us to enjoy. Joel, 1080 00:52:08,000 --> 00:52:10,080 Speaker 1: what were your thoughts on this I p A. Well, 1081 00:52:10,120 --> 00:52:13,320 Speaker 1: First off, weird name, Bodhisa. It sounds like a hobbit 1082 00:52:13,440 --> 00:52:15,040 Speaker 1: or something on the Lord of the Rings. I don't know, 1083 00:52:15,360 --> 00:52:17,359 Speaker 1: but actually if we looked it up, it might mean something. 1084 00:52:17,440 --> 00:52:19,560 Speaker 1: But that is not something that we did. True. Yeah, 1085 00:52:19,640 --> 00:52:21,680 Speaker 1: we didn't. I thought when I held my nose up 1086 00:52:21,680 --> 00:52:23,240 Speaker 1: to it and got a good got a good sniff 1087 00:52:23,280 --> 00:52:25,200 Speaker 1: in there, because craft your nerves, that's what you do, 1088 00:52:25,520 --> 00:52:27,880 Speaker 1: give it a sniff. But I thought I had just 1089 00:52:28,000 --> 00:52:31,680 Speaker 1: like this really heavy citrus nose, and I really like 1090 00:52:31,760 --> 00:52:33,360 Speaker 1: that in I p A. I like kind of getting 1091 00:52:33,400 --> 00:52:36,520 Speaker 1: that citrus through my nostrils gets me excited to take 1092 00:52:36,560 --> 00:52:39,120 Speaker 1: that first sip. And then the first ship didn't disappointment. 1093 00:52:39,200 --> 00:52:40,719 Speaker 1: This was a really really good I p A. I 1094 00:52:40,800 --> 00:52:43,600 Speaker 1: really enjoyed it. We don't really have many beers from 1095 00:52:43,640 --> 00:52:45,719 Speaker 1: the Pacific Northwest like that from the Seattle area. This 1096 00:52:45,840 --> 00:52:48,239 Speaker 1: might be our first from Washington State and it was 1097 00:52:48,360 --> 00:52:50,000 Speaker 1: really really good. Man. I'm glad we got to try 1098 00:52:50,080 --> 00:52:52,080 Speaker 1: this one from Georgetown Brewing Company. Like to give it 1099 00:52:52,120 --> 00:52:54,320 Speaker 1: that sniff and get that citrus burned. In your nostrils 1100 00:52:55,480 --> 00:52:57,440 Speaker 1: gets me ready for what's to come. Well, I'm with you, dude. 1101 00:52:57,480 --> 00:52:59,320 Speaker 1: It had a lot of great fruity, kind of citrus 1102 00:52:59,360 --> 00:53:01,160 Speaker 1: notes in my mind, and it was really bright, so 1103 00:53:01,200 --> 00:53:03,200 Speaker 1: it almost kind of had like this lemon peel, like 1104 00:53:03,280 --> 00:53:06,120 Speaker 1: a lemon pith to it. Just this real brightness, this 1105 00:53:06,200 --> 00:53:08,320 Speaker 1: real shiny nous to the beer. And I think I 1106 00:53:08,400 --> 00:53:10,279 Speaker 1: actually read that this may have one gold at the 1107 00:53:10,520 --> 00:53:13,400 Speaker 1: Great American Beer Fist not too long ago. So this 1108 00:53:13,560 --> 00:53:16,399 Speaker 1: is just just a classic example of a West Coast 1109 00:53:16,440 --> 00:53:19,760 Speaker 1: I p a piney resinie citrus kind of great fruity. 1110 00:53:19,960 --> 00:53:21,279 Speaker 1: It was really enjoyable and I'm glad you and I 1111 00:53:21,320 --> 00:53:23,280 Speaker 1: got to share this one together. But thanks to listener 1112 00:53:23,400 --> 00:53:25,600 Speaker 1: Richard for sending this one our way and Matt, that's 1113 00:53:25,600 --> 00:53:27,719 Speaker 1: gonna do it for this episode. For folks that want 1114 00:53:27,800 --> 00:53:30,480 Speaker 1: more information about Doug Well, you can go to the 1115 00:53:30,560 --> 00:53:33,360 Speaker 1: Military Guides website and for links to his book and 1116 00:53:33,480 --> 00:53:35,680 Speaker 1: more information about what we'll we're up two on the show, 1117 00:53:35,719 --> 00:53:38,080 Speaker 1: you can go to our website how to Money dot com. Yeah, 1118 00:53:38,080 --> 00:53:40,520 Speaker 1: and real quick, if you haven't reviewed or subscribed to 1119 00:53:40,600 --> 00:53:42,160 Speaker 1: our show, we would love if you were to do that, 1120 00:53:42,320 --> 00:53:44,520 Speaker 1: So just subscribe wherever it is that you listen to 1121 00:53:44,560 --> 00:53:46,960 Speaker 1: your podcast, So Joel, that's gonna be it for this episode. Man. 1122 00:53:47,080 --> 00:54:00,080 Speaker 1: Until next time, Best Friends Out, Best Friends Out, m 1123 00:54:00,280 --> 00:54:00,320 Speaker 1: M