PSA - things I should have done....

[drgndrvr]

Now that I'm a few years out in the civ world I've realized a couple of things I should have taken care of while in the service. Wanted to share them and see if anyone else can chip in on others so the youngsters can learn from us.

1. Life insurance - get it as soon as you can. If I could go back I would have purchased a 30 year term life policy during my first sea tour or shore tour. Understand that SGLI goes away, VGLI may not cover your needs, and those health problems you just laughed away in your invincible sea tour days can pop up. And all those complaints you listed on your separation physical? They're fair game for a life insurance underwriter to look into.
2. GI Bill - transfer it to your family. It gives you options. By the time I realized separation was actually happening it was too late. I used two years on myself but now have 12 months remaining that I can't transfer.
3. Investments - spend a few hours educating yourself on your options and look beyond the standard companies that JOs use. TSP is great. The Boglehead community that supports the late Jack Bogle of Vanguard could save you thousands of dollars.
4. Lifestyle - minimize the creep as much as possible. One of my mentors and the best officers I ever served with was a prior E. He and his wife agreed to live on his E-5 salary until he retired. He retired as an O-4 with a nice nest egg. I, on the other hand, had each pay raise already budgeted away and not always on the smartest things. Minimizing lifestyle creep has two huge benefits: 1) accumulating savings and 2) minimizing the financial impact of separating. If you separate pre-retirement (can't speak to retirement) there is a very decent chance you'll take a pay cut for at least your first year.

Happy to explain more of this. Or, to get roasted if you all think this is stupid.

 

[Jim123]

I'm a big fan of the living within your means. With all the uncertainty in the economy, living in a modest house that I paid off, while still on active duty, gives me a fantastic feeling. There are other things that I could have done with the money that are more fun, a nicer house would be... nicer. That gives me a tinge of regret, but I gotta say it's worth the trade-off these days.

 

[exNavyOffRec]

Now that I'm a few years out in the civ world I've realized a couple of things I should have taken care of while in the service. Wanted to share them and see if anyone else can chip in on others so the youngsters can learn from us.

1. Life insurance - get it as soon as you can. If I could go back I would have purchased a 30 year term life policy during my first sea tour or shore tour. Understand that SGLI goes away, VGLI may not cover your needs, and those health problems you just laughed away in your invincible sea tour days can pop up. And all those complaints you listed on your separation physical? They're fair game for a life insurance underwriter to look into.
2. GI Bill - transfer it to your family. It gives you options. By the time I realized separation was actually happening it was too late. I used two years on myself but now have 12 months remaining that I can't transfer.
3. Investments - spend a few hours educating yourself on your options and look beyond the standard companies that JOs use. TSP is great. The Boglehead community that supports the late Jack Bogle of Vanguard could save you thousands of dollars.
4. Lifestyle - minimize the creep as much as possible. One of my mentors and the best officers I ever served with was a prior E. He and his wife agreed to live on his E-5 salary until he retired. He retired as an O-4 with a nice nest egg. I, on the other hand, had each pay raise already budgeted away and not always on the smartest things. Minimizing lifestyle creep has two huge benefits: 1) accumulating savings and 2) minimizing the financial impact of separating. If you separate pre-retirement (can't speak to retirement) there is a very decent chance you'll take a pay cut for at least your first year.

Happy to explain more of this. Or, to get roasted if you all think this is stupid.

Lots of good info and I wish I did much of the same. I would go with "whole or unlimited" vice "term", once you get to that 30 year term that is it, time is up, die 1 month after the 30 years family gets nothing, if you have "whole or unlimited" it builds up and after the 30 years you can cash it out or keep it going.

 

[JTS11]

Lots of good info and I wish I did much of the same. I would go with "whole or unlimited" vice "term", once you get to that 30 year term that is it, time is up, die 1 month after the 30 years family gets nothing, if you have "whole or unlimited" it builds up and after the 30 years you can cash it out or keep it going.

IMO, it depends on your individual circumstances for what type of insurance makes sense, for the most part. Term makes sense for a lot of folks' needs.

In keeping with the spirit of the OP's post...

WRT life insurance. Hopefully this has been eradicated, but when I was an A-Pool stud in P'Cola, there was a retired O-5 selling Variable Life policies to single O-1's (totally inappropriate/unethical). He 'somehow' was able to get access to rosters. Bottom line...don't buy 'mutual funds' that require you to get a physical.

Also, refrain from the temptation of becoming a currency speculator after toppling a Middle Eastern government. Put your money in a Vanguard index fund (or take a flyer on Apple, or something like that). Not Iraqi Dinar...

 

[zab1001]

Either way drgndrvr’s post is good. Plan early folks.

 

[exNavyOffRec]

IMO, it depends on your individual circumstances for what type of insurance makes sense, for the most part. Term makes sense for a lot of folks' needs.

In keeping with the spirit of the OP's post...

WRT life insurance. Hopefully this has been eradicated, but when I was an A-Pool stud in P'Cola, there was a retired O-5 selling Variable Life policies to single O-1's (totally inappropriate/unethical). He 'somehow' was able to get access to rosters. Bottom line...don't buy 'mutual funds' that require you to get a physical.

Also, refrain from the temptation of becoming a currency speculator after toppling a Middle Eastern government. Put your money in a Vanguard index fund (or take a flyer on Apple, or something like that). Not Iraqi Dinar...

I would agree it does depend on the individual circumstance, I have both, my life insurance agent was very thorough talking about all possibilities which is how I ended up with both types, early planning and good money management is key to enjoying life when you are older.

 

[AllYourBass]

Hopefully this has been eradicated, but when I was an A-Pool stud in P'Cola, there was a retired O-5 selling Variable Life policies to single O-1's (totally inappropriate/unethical). He 'somehow' was able to get access to rosters. Bottom line...don't buy 'mutual funds' that require you to get a physical.

Sounds like First Command, which is an organization I wish all the worst sorts of things upon.

 

[JTS11]

Sounds like First Command, which is an organization I wish all the worst sorts of things upon.

I don't think he was, but it was similar shady shit.

 

[HAL Pilot]

would go with "whole or unlimited" vice "term", once you get to that 30 year term

Depends on what you think you’ll have in the bank when you die.

I’ve always planned on having plenty in my retirement. So when I was about 25, I cashed in the whole life policy my parents bought when I was 16.

When I got married, my wife was a Navy officer so other than SGLI, neither of us worried about insurance.

When my daughter was born, I got a term policy since it was about 1/3 the price whole life for same amount. My wife was still active duty so my daughter was the beneficiary with my brother in charge of it. She got the money at 23 or when my brother decided she need some. Worked out good because I was divorced when she was 1 year old.

I increased the amount of the term with same conditions when the ex-wife got booted from the Navy for not making LCDR. Still about 1/3 the cost of whole life for same amount.

When I got hired at Hawaiian, I got a company paid term so I changed my term to the ALPA offered term. Got about half the coverage I had before because of company policy and my investments/net worth would leave my daughter sitting pretty if I died.

When my daughter turned 23, I decreased the term again. Basically have enough insurance to cover her through the remainder of dental school and residency (NY requires)/first couple of years. In 2 more years, I will cancel the ALPA term policy as she will be out of dental school debt free and my investments will give her years of a middle class income without having to work.

My brother has had whole life this entire time. I have spent about 1/3 of what he has for more coverage. True he can cash it in and term gives you $0 unless you die, but if he cashed it in today, I will have still spent about 40% of what he has.

But whole life makes more sense for him because he does not have the investments/net worth that I do. Plus both his Navy and state government retirements lessen significantly for his wife when he dies. He will keep the whole life policy until he dies. He’ll be 63 when it is paid off in another 4 years and hopefully live another 30 years or so. He’ll still have the insurance with no expense.

It’s all about your circumstances.

 

[a_dub]

my .02
If you get hurt, get it written down, dont suffer through the pain to avoid the potential for a down chit. When you're nearing the exit game, get to a VA rep early and get things rolling. This includes getting copies of medical records when you're TAD or otherwise somewhere there is a chance things wont make it back into your home record.
In addition to number 2 in OP, use and abuse TA and other free courses.
Plan your exit years out (think sales, ABC, always be closing in the back of your mind), have some idea what you want to do when you 'grow up' and get things lined up through skillbridge, certifications, coursework, or start a side hustle to gain the experience you need. But be realistic, sorry but (mostly) nobody wants to hire you 12 months out (we do job fairs now and then and folks always want to tell me they'll separate or retire in 10-14 months, not helpful). Network, network, network, then, plant the seed, and follow up as you get closer. Especially helpful to plan your last duty station where you want to end up.
Stay away from pyramid schemes, and tell your wife or SO.

 

[DanMa1156]

Lots of good info and I wish I did much of the same. I would go with "whole or unlimited" vice "term", once you get to that 30 year term that is it, time is up, die 1 month after the 30 years family gets nothing, if you have "whole or unlimited" it builds up and after the 30 years you can cash it out or keep it going.

In general, I wouldn't recommend whole or universal. Not that I agree with Dave Ramsey on everything, but he doesn't either.

 

[DanMa1156]

Sounds like First Command, which is an organization I wish all the worst sorts of things upon.

During my time at the HTs, First Command was routinely trying to get students via reservist instructors. Totally unethical. They are a terrible company and their products are horrendous.

 

[Birdbrain]

1. Lifestyle - minimize the creep as much as possible. One of my mentors and the best officers I ever served with was a prior E. He and his wife agreed to live on his E-5 salary until he retired. He retired as an O-4 with a nice nest egg. I, on the other hand, had each pay raise already budgeted away and not always on the smartest things. Minimizing lifestyle creep has two huge benefits: 1) accumulating savings and 2) minimizing the financial impact of separating. If you separate pre-retirement (can't speak to retirement) there is a very decent chance you'll take a pay cut for at least your first year.

Happy to explain more of this. Or, to get roasted if you all think this is stupid.

Thanks for the post, Sir. It sounds like the part about lifestyle and avoiding creep deals with things like not buying brand new cars just because you can afford to. How else would you avoid other common "lifestyle creep"?

 

[picklesuit]

Don’t buy horses.

 

[Birdbrain]

During my time at the HTs, First Command was routinely trying to get students via reservist instructors. Totally unethical. They are a terrible company and their products are horrendous.

FC almost got me. A man approached me during a cookout in HT-land that I walked over to see one day out of curiosity. He offered to show me what FC was about and took down my number and I agreed to visit one afternoon. The entire time I felt the hairs on the back of my neck stand up because it seemed like I was being sold a bill of goods that I barely understood wrapped in over two hours of military small talk to make it seem friendly. It seemed like I was a big juicy steak on a golden O-1 platter. I declined.

Only afterwards did superiors talk about "the company that shall not be named" and its shady business practices which seemed odd that the command couldn't openly out a company that preys on young JOs.