GI Jane Finances

February 8, 2010

My 7 year plan

Filed under: Uncategorized — Tags: , , — gijanefinances @ 12:49 pm

Last week, I received my promotion recommendation form for the Lt Col board that meets next month.  The competition is pretty cut throat. Half of the people who will meet the board will receive a “definitely promote.”  The overall selection rate is 74% which sounds good, but not if you fall in the bottom 26%.  I know met plenty of “sharp” people who “have been passed” over for promotion.  The board looks at your overall record: when you completed Air Command and Staff College, stratifications, awards, school in-residence, etc… I think I am competitive.  It would be a dream come true if I get picked up.  I started my military career as enlisted in the Army National Guard–so it has been a long journey to this point.  Nevertheless, since I have been in since 1991, I would like to have a plan for the next 7 years.  I have 13 years active duty, earned an extra year from the guard–but would like to ignore that and focus on transitioning from the Air Force in 2017.  I will know at what rank in June when the results come out (eek)! 

The Plan: 

  My plan entails paying off my rental mortgage within 5 years.  I began paying double in Dec 2009.  The balance is now $112,000.  The original loan was $130,000 in 2003.  I haven’t included the equity in my networth.  The dream is to have $1200 a month pocketed in my little pockets as passive income to supplement my pension.  My property manager is a retired Chief Master Sergeant with lots of paid off property.  He paid off his first house in 7 years and continued with this method which has made him a millionaire.  I want to be like him….but for now with only one paid off house.

 

Max out the Roth IRA and TSP plan.  The TSP has been pitiful over the past 10 years.  According to the TSP.gov, all three funds:  C (-.94%) ,S (1.69%) and I (1.10%), have not really earned anything.  The only saving grace is that I enjoy a nice tax deferment (not a fan of paying taxes).  I will have to pay taxes when it comes time to withdraw, like people with a 401K, but can worry about that later.  

The Roth is the bomb!  And I do not have to worry about paying taxes on the withdrawals. 

Other savings: 

House downpayment.  Not sure where I will settle down in 7 years.  I hopefully will be hitched within 7 years .  However, I am planning for GI Jane’s solo desires until such a dude manifests himself in a real way.  I have found that I do not want a guy with more problems of my own: i.e. child support, alimony, gambling and reckless finances.  It pretty much eliminates most men in my age bracket. 

New car. I love my 99 cabrio that I left for my parents in the states to use.  It has low mileage.  Still need to plan for the replacement car in 2017. 

Vacation.  I would like to reward the end of my military service with a voyage around the world on the Queen Mary cruise ship.  I have never been on a cruise.  Love the idea of being in the lap of luxury and visiting places for a day or two.  I am a big fan of packaged tours.  I also want to learn Italian/Spanish or French.  I found study abroad courses that seem like a really cool adventure. 

I plan on tweaking and evaluating every year.  The goal is to keep my expenses low, not to succumb to any debt and aggressively save while enjoying life.  

GI Jane

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