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Offline Jechtm

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Re: Enlisted Bonus Went Up
« Reply #125 on: Dec 10, 2009, 08:08 »
Seriously dude? What does it matter? I mean, you get it when you get it.  You will still be a nub squidling, with a lot of work ahead of you. Just go out and do your damned duty. Your first point of duty is to get through school. If you are enlisting just for the cash, dude... hate to tell you, but you are going about it in the WRONG way. You can earn more money on the outside working less hours. Sheesh.

oh, and
"The civilian world is full of ex-Navy nukes who refuse to touch anything nuclear once they get out."

Count me amonst those who refuse to do anything Nuclear... I am through with it. Finito... I much prefer what I am doing now, which is working in Aerospace. Of course, I wouldn't be where I am now if I hadn't been a Nuke.


I thought about this for a minute when my recruiter mentioned my enlistment bonus...I don't think I would be really worried about when I got my bonus, considering I won't have any use for it when I'm on a sub/carrier. Can't really do much with it other than bank it. But throwing it into some type of investment AND managing it, that would be a bit harder to do on a ship... So yeah, bonus is great but it wasn't the 'kick' that got me to join the Nuclear Navy.
"Truth is the Daughter of Inspiration;... It is like a finger pointing a way to the moon. Don't concentrate on the finger or you will miss all that heavenly glory."

~Bruce Lee

Offline playswithairplanes

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Re: Enlisted Bonus Went Up
« Reply #126 on: Dec 17, 2009, 07:22 »
I thought about this for a minute when my recruiter mentioned my enlistment bonus...I don't think I would be really worried about when I got my bonus, considering I won't have any use for it when I'm on a sub/carrier. Can't really do much with it other than bank it. But throwing it into some type of investment AND managing it, that would be a bit harder to do on a ship... So yeah, bonus is great but it wasn't the 'kick' that got me to join the Nuclear Navy.

Cool, as long as you are clear eyed about it. You are right about the not being able to manage your money while at sea. Best bet is a good no-load mutual fund, at least until you can have more routine access to the web to make trades. Another alternative is real estate, especially if it's something you plan on holding for a rather long period of time. I knew a few guys who did that. One of my buddies at Prototype used his bonuses to buy up properties in Pocatello and Idaho Falls. He then rented them out to squids. Of course, can't do that now this was back in the 80s. 
Airplanes and submarines... they are similar it's just the density of the fluid that separates them

Offline Dangerouss451

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Re: Enlisted Bonus Went Up
« Reply #127 on: Jan 03, 2010, 05:26 »
Hey everyone, (first post)

Sorry about reverting to the original subject of this thread, but I had just received a call from my RIC and my enlistment bonus has now gone up from 21,000 to 25,000 shipping in March.

I plan on using my enlistment bonus to either invest in the stock market or invest in real estate in the Philippines. What do you seasoned veterans think of this?

Offline HydroDave63

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Re: Enlisted Bonus Went Up
« Reply #128 on: Jan 03, 2010, 09:18 »
I plan on using my enlistment bonus to either invest in the stock market or invest in real estate in the Philippines. What do you seasoned veterans think of this?

In 1986, those both would have been great moves. Now, not so much. Real estate only makes sense if you will live in it, or it produces income. How would your PI real estate generate income? The fleet makes a lot fewer pit stops there now than in the past, if you are thinking of selling vice for profit.

Right now, investments making good money are high-dividend stocks, certain hard currencies and commodities. The real estate bubble still has more foam to shed, witness the Freddie/Fannie bailouts, Dubai Burj bankruptcy, etc. Over the past two years, canned chunk light tuna has held its value better than the US Dollar Index.

Disclosure: This is personal opinion only, and should not be construed as investment advice.

Offline Dangerouss451

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Re: Enlisted Bonus Went Up
« Reply #129 on: Jan 03, 2010, 07:38 »
I think you guys are missing something here in regards to the enlistment bonus.  They say you'll get 25k - awesome, a good chunk of change.  However, did they mention that it'll be broken down into 3 payments (could be 2, it's been a while), each of those being taxed.  What this means is you'll most likely NOT get a single payment above 10k.  What real estate is there to invest in with that?  During the first 2 years of your career, you'll be drawing E3/4 pay, which sucks.  Especially if you're not married (no BAH), your funds will be tight.  It's great to have all these plans of what to do with that huge bonus, but consider that they're smaller bonuses, think about your needs (a car, laptop, maybe furniture for that apartment while at NPTU), and you'll probably be left with very little.  Definitely not enough to invest in real estate.  And in the Philippines?  Have you seen what floods and tsunamis have done to that place recently?  If you want to take a chance, hop into an "emerging markets" mutual fund - they've done amazingly well the last ten years, but took it as bad as any during the recent financial crisis.  

As far as managing your money goes while attached to a ship or on deployment...  Obviously if you're on a sub at sea, it's zero.  But if you're on a carrier, you'll be able to manage that money as often as you feel the need to (read: as important as you make it).  I had regular access to a computer and checked google finance daily, so therefore was able to stay on top of the markets.  My advice to you - sign up for the TSP right away and start contributing 10-20% of base pay.  I just got out after 6 years and have 20k in that alone.  That is only half the money I saved while in - I never reenlisted and spent all of that original enlistment bonus while still in Charleston (like most do).  

Hello everyone,

I understand that the sign on bonus will be taxed and I may only come out with 15k, if that. As for a car, laptop, furniture, I come from a fairly well to-do family and I was able to buy a car and laptop when I worked at my local Costco Wholesale (still love that place) =]

One question I do have for living arrangements during NPTU schooling; Are we allowed to have roommates to cut down on rent/utilities, or must I live by myself.

And about the Philippines flooding and all... you can't believe that the whole island floods at any particular time like half of Americans do. Up in the mountains and highlands, 15,000 dollars can buy you around 100 acres of prime forest if not more. We had recently (5-7 years ago) built a house in Pangasinan province (300 miles north of Manila) for $5000, a modest 1,400 sq. ft. home. I don't think times have changed very much over there.

I have signed up for submarine duty and I'm aware that I will not be able to manage my funds myself, but my father is some kind of investing genius. (Idk how he does it) I might just let him handle it for a while until I get my DD or HD  ;)

Offline Gamecock

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Re: Enlisted Bonus Went Up
« Reply #130 on: Jan 03, 2010, 08:30 »
My advice to you - sign up for the TSP right away and start contributing 10-20% of base pay.  

Do not do this unless you don't have any other place to put it.  Money in TSP is not money that you can get to easily.
“If the thought police come... we will meet them at the door, respectfully, unflinchingly, willing to die... holding a copy of the sacred Scriptures in one hand and the US Constitution in the other."

Offline HydroDave63

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Re: Enlisted Bonus Went Up
« Reply #131 on: Jan 04, 2010, 02:04 »

GC, my comments were directed towards the guys getting into the navy, assuming they probably have no investing history or retirement setup....

1.  No one should ever take the advice of someone from a forum as their only means of information.

2.  The difficulty in retrieving funds from TSP is a good thing for most 18-20 year olds.  Is there a penalty and is it painful?  Of course.  But it's for retirement, not running out to by that newly discounted Pontiac.  

3.  The TSP allows you to quickly and somewhat easily (if you know your login and password...) move funds without incurring fees.  Doing this with more conventional retirement accounts is hardly free, or at the very minimum, there are fees built into the cost of their funds, which are magnitudes higher than the TSP's.  

4.  There are few options with TSP, however, to a young man just getting into the business of planning for his retirement, this may be a good thing, reducing the opportunities to put all of that money into a bad decision.  
  
5.  The vast majority of guys that I worked with, whom tracked their TSP accounts, also had other forms of investments or retirement accounts.  The guys who didn't track their TSP, well they had no clue how much money they had in there, but for the most part they didn't have another form of retirement investment either.  And finally, I ran into very few (read: can't remember a single junior guy), who had a retirement account that hadn't used the TSP as well.  

From my experience, if a guy (junior enlisted) isn't using TSP, he's probably not investing in his retirement, or at least the chances are very low.  I'm sure there are better arguments for or against, I just hope you understand my logic.  :)    Of course there are exceptions to every rule...

I'd concur with Mell, and add point 5.5: Saving large amounts of pre-tax income in TSP reduces your taxable income by your marginal rate. Example...if you are in the 28% bracket and stuff 20% of your pre-tax wage in TSP, that is (.20)(.28) for 5.6% of your income not taxed away. You are giving yourself a pay raise every month!

Offline Gamecock

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Re: Enlisted Bonus Went Up
« Reply #132 on: Jan 04, 2010, 07:52 »
I'd concur with Mell, and add point 5.5: Saving large amounts of pre-tax income in TSP reduces your taxable income by your marginal rate. Example...if you are in the 28% bracket and stuff 20% of your pre-tax wage in TSP, that is (.20)(.28) for 5.6% of your income not taxed away. You are giving yourself a pay raise every month!

I do not disagree on the merits of TSP.  However, I still contend that while putting 10-20% of your income in something that for the most part you can't touch until you retire is a bad idea.  Guy does 6 and out...needs some money to help supplement his GI Bill so he can go to a private college...he's not getting his TSP.

Guy gets married and needs some money for a house..he can get his TSP if he jumps through hoops and pays it back with penalties, thus eliminating the tax advantage he got to begin with.

If Mell had said put 5% of you base pay in there I would have agreed, but 10-20% is to much.   I just think there are so many intangible items that a young person will need money for in the future that precludes not having ready access to his hard earned money.

Just my .02.

Cheers,
GC
« Last Edit: Jan 04, 2010, 07:54 by Gamecock »
“If the thought police come... we will meet them at the door, respectfully, unflinchingly, willing to die... holding a copy of the sacred Scriptures in one hand and the US Constitution in the other."

Offline HydroDave63

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Re: Enlisted Bonus Went Up
« Reply #133 on: Jan 04, 2010, 08:47 »
Link to the Uniformed Services side of TSP

http://www.tsp.gov/uniserv/features/chapter11.html

The loan conditions are the same as civilians, 1 residence loan and 1 general purpose loan out at a time maximum.

Also, interest paid on the loan goes back to your TSP account. I know some civil service guys that regularly use TSP loans as a cash flow mechanism to pay off higher-interest credit cards etc.

Having said that, it requires the personal discipline to not piss the money away, AND if the loan isn't repaid by EAOS you have to repay in full or you will be in default and get hit with the taxable distribution tax and penalty on the whole shooting match.

Therefore, since the vast majority of Americans (including us squids)  have a negative savings rate and no financial discipline, Gamecock's advice is the safer course of action.
« Last Edit: Jan 04, 2010, 08:49 by HydroDave63 »

shocker

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Re: Enlisted Bonus Went Up
« Reply #134 on: Jan 18, 2010, 08:06 »
Just to update a little back on topic I just recieved a signing bonus of 21,000 for Oct-2010.  My recruiter was real close to the mark, the laison at MEPS however got me real excited with a 45,000 quote - Don't get your hopes up too soon! I had alread started spending my 45 lol.

Offline Dangerouss451

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Re: Enlisted Bonus Went Up
« Reply #135 on: Jan 21, 2010, 03:13 »
Just to update a little back on topic I just recieved a signing bonus of 21,000 for Oct-2010.  My recruiter was real close to the mark, the laison at MEPS however got me real excited with a 45,000 quote - Don't get your hopes up too soon! I had alread started spending my 45 lol.

Hm, I was at 21,000 for sept. 2010, but my contract changed to 25,000 for shipping on may 18th (phew, 3 days after my last day of the semester)

How can you start spending it if the bonus comes in 3 7-10k payments after you finish your training??

mikemike06

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Re: Enlisted Bonus Went Up
« Reply #136 on: Jan 22, 2010, 01:32 »
Hm, I was at 21,000 for sept. 2010, but my contract changed to 25,000 for shipping on may 18th (phew, 3 days after my last day of the semester)

How can you start spending it if the bonus comes in 3 7-10k payments after you finish your training??

I signed up back in August for 21,000 and am set to leave in June. Does the bonus only go up if your contract changes and you leave earlier or does that change for everybody?
 
Oh yeah and I've read the other posts about not worrying about money and all that, but I've also been told by military service members to get all you can, while you can...

crewjobs

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Re: Enlisted Bonus Went Up
« Reply #137 on: Feb 16, 2010, 07:31 »
Congratulations to everyone who got the big money while it lasted (the past three years).

As of 08 Feburary 2010 the enlistment bonus for NF has been reduced from $25,000 down to $15,000 year round.

It seems that the Navy College Fund bonus has also been discontinued.

11. EFFECTIVE 08 FEB 2010, ACTIVE DUTY RECRUITS ENTERING THE DEP AND SCHEDULED TO SHIP IN FY10 ARE ELIGIBLE FOR EBSR IN THESE FY10 SHIP MONTHS: (NO PROGRAMS-RATINGS ARE ELIGIBLE FOR NCF)
RATING SHIP MONTHS EBSR
IT-SG JANUARY-JUNE $10,000
12. THE FOLLOWING USN PROGRAM IS ELIGIBLE FOR EBSR IN THESE SHIP MONTHS:
RATING SHIP MONTHS EBSR
NF OCTOBER - SEPTEMBER: $15,000



http://www.cnrc.navy.mil/EIncentives/N5311%20EB/EB/Released%20EB%20Messages/FY10/EB_GENADMIN_EFF08FEB2010.pdf


Offline Fast Neutron

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Re: Enlisted Bonus Went Up
« Reply #138 on: Feb 17, 2010, 12:24 »
Unimpressive in my view.  I suppose it's just supply and demand.  NF sailors have to serve six years, its not like those "two years of training" are necessarily fun.  The justification for the enlistment bonus in said document seems to be that this is an incentive not just to get people with the right skills and aptitudes but to better compensate for the extended contract.  Presumably, the EBs did this.  That said, the Navy might be better served with people to whom the money mattered less at the controls.

Offline Smooth Operator

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Re: Enlisted Bonus Went Up
« Reply #139 on: Feb 17, 2010, 12:19 »
Any monies you may not get as compared to someone else who joined earlier or later is immaterial as compared to what you will make over an enlisted career.

And if you parlay your nuke training into a commericial job, a few double days will take care of those small disparities in navy bonus monies.

Offline greenbean

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Re: Enlisted Bonus Went Up
« Reply #140 on: Feb 21, 2010, 03:18 »
Roth IRA - best tool ever for a young person starting out. And if you do it right you can get into a fund group that has ridiculously low expenses and does NOT charge for switching between funds.

neutrons... Neutrons... NEUTRONS!

shocker

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Re: Enlisted Bonus Went Up
« Reply #141 on: Feb 22, 2010, 03:46 »
To reply to how I could spend the money before I got it - I was planning it's use in my head... Going through credit card debt, student loans, and a few year old new car before thinking what I'd get with the rest :-P

That being said a guy I went to MEPS with was going to go NF as well, but after they made him go back three times (side note: the requirement for of-age recruits to go to alcohol abuse counselling and obtain a waiver if they consume more than 3-5 drinks a month is a bit extreme imo) ended up going Advanced Electronics and is shipping in April.  The 6 month difference in ship dates and the fact that I was eligible for E-3 going in regardless of my field made me reconsider how lucrative the paltry 14,000 after-tax really was...

 


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