Is a Command Financial Specialist a substitute for an accountant?

[Spekkio]

The FFSC is more versed in knowing what benefits servicemembers can get to help with finances (Civil Service Relief Act and VA loans, for example), but they are not CPAs and will stare at you blankly if you ask them a seemingly complex question like how to minimize the tax impact of rolling a traditional 401(k) into Roth TSP and what mix of stocks/bonds to purchase to maximize return and minimize risk. They're just there to help with 'everyday man' problems like how the hell do I consolidate my credit card debt to pay it off before I turn 90?

This is one of the best statements in the whole thread:

As far as a financial advisor - about an hours worth of basic internet research will make you much smarter then 99% of financial hucksters.

Seriously, anything you need to know about investing or taxes as a wage earner is a google search away.

FWIW, a single, renting Ensign with no stocks or other assets doesn't really need an accountant to fill out a 1040-EZ once a year.

PS: Use a W-2 calculator. Just do it. Most people pay way too much in taxes out of their paycheck. My sister making $10/hour in vitamin shop was paying more federal taxes than me per month because she 'just claimed 0' on the W-2 (she ought to have claimed 2). The money is worth more to you on a paycheck basis than as a lump sum at the end of the year. For every $1000 of tax returns, you lost $10-30 to inflation plus any opportunity cost in interest for not paying off debt or investing in an IRA.

PPS: No, you can't just pay a lump sum income tax at the end of the year; they charge you an under-payment penalty for that.

 

[Renegade One]

Wish all this info had been so readily available to me back when dinosaurs still roamed the open lands around NAS Miramar…it's all good.

 

[PropAddict]

I've spent $59,600 in rent since getting married 3 years ago and have nothing to show for it but more rent (I've never lived in a place above BAH.either). If I bought a house 3 years ago, It would have to depreciate and have closing costs worth 60k to break even. Interest on a mortgage is tax deductable; rent isn't.

Yeah, this is how I look at home ownership. I think some others in this thread are taking the "Should I put money in mutual funds or buy a house?" tack, when for most of us the question is "Do I buy mutual funds and rent a home for a few years or buy mutual funds and buy a house knowing I will likely sell in a few years?"

My buddy bought a $350K condo in Waikiki 3 years ago and sold it this year for $360K. He was pretty bummed at his lack of profit. When I explained that over the same period I had pissed away $104K in rent that I would never get back, it kind of put things in perspective regarding how much he had actually made. And that doesn't even factor in the tax benefit of the mortgage he had.