Nords in Military Officer mag

[friar1610]

For those who are MOAA members, check p. 30 of the July Military Officer magazine. There is a short article by Doug Nordman on retirement myths.

 

[kcowan]

Here is the original from 2010.

 

[Free To Canoe]

Just reread it. The usual Nords. Well written and insightful.

 

[Offgrid Organic Farmer]

I do not see how very much of that article honestly applies.

I served 20 years and I was forced out due to High-Year-Tenure policy. There is no 'staying in' beyond your HYT date.

I invested hard during my Active Duty career, our finances were ready for me to make that leap, and we had planned for that leap for years.

My retirement has allowed me to re-invent myself.

 

[Nords]

For those who are MOAA members, check p. 30 of the July Military Officer magazine. There is a short article by Doug Nordman on retirement myths.

Just reread it. The usual Nords. Well written and insightful.

Thanks, Friar & FreeToCanoe!

MOAA contacted me last October about the relaunch of the magazine and asked me to write some 225-word retirement columns for a nominal fee. (The fee is being donated to Fisher House Foundation-- the real value of the exercise is being able to express thoughts in only 225 words.) Since I lack the financial gravitas of a CFP or a CPA, I focused the columns on lifestyle.

This week I submitted my fourth column and then resigned to get back to work on other projects. The 225-word limit is an interesting challenge but it turns out that I'm even more allergic to deadlines than ever.

As far as I can tell, MOAA is constantly seeking freelancers. If you fit the profile of their readers (and can write in 225 words) then they may be interested in showcasing your work. Let me know if you're interested and I'll introduce you to the editor.

Here is the original from 2010.

Busted. Some recycling of previous content may have been condensed for brevity. A few of you (thanks, SamClem!) may remember contributing and editing that one all those years ago.

I do not see how very much of that article honestly applies.

I served 20 years and I was forced out due to High-Year-Tenure policy. There is no 'staying in' beyond your HYT date.

I invested hard during my Active Duty career, our finances were ready for me to make that leap, and we had planned for that leap for years.

My retirement has allowed me to re-invent myself.

That article applies to most servicemembers & families, and I have the e-mails & blog comments to document that.

I was pretty much in the same HYT situation, but it's rare to be able to predict your retirement that far in advance. (I also know of three servicemembers over the last 35 years who were allowed to extend up to a year beyond their HYT dates, with waivers at the admiral/general level, and not always for a happy reason.) Most servicemembers make the decision over the course of a few months, and a few are told what their decision will be in a few months. And as we know all too well from the thousands of threads here, not very many military families invest hard during their careers.

 

[MarieIG]

Thank you for your service.

I bought your book for my son in the military. (I will have to send him another copy so we each have one, the first is still at our house.) There was good info on whether or not to buy a house which was pertinent for him.

He started as enlisted and is now a relatively new officer, with a wife and new baby. He really is trying to be fiscally responsible. He was just transferred and was being told that he should buy a house at his new location since the allowance would not pay for a decent sized rental. Mom was concerned that he was spreading himself too thin.

Luckily, he requested, and got, base housing, so that was a big relief for all.

 

[Nords]

Thank you for your service.

I bought your book for my son in the military. (I will have to send him another copy so we each have one, the first is still at our house.) There was good info on whether or not to buy a house which was pertinent for him.

He started as enlisted and is now a relatively new officer, with a wife and new baby. He really is trying to be fiscally responsible. He was just transferred and was being told that he should buy a house at his new location since the allowance would not pay for a decent sized rental. Mom was concerned that he was spreading himself too thin.

Luckily, he requested, and got, base housing, so that was a big relief for all.

Thank you for your support, and thanks for buying the book!

I'm glad his family dodged the problem, and that sales tactic is just one of the many ways that military families get talked into buying a house for all the wrong reasons.

Here's more details than the book in a blog post on that topic:
http://the-military-guide.com/dont-buy-home-active-duty/

If they ever did decide that it was necessary to buy a home, the most important part of that decision would be taking the time to research the neighborhoods and find the bargains. Buy a home that would make a good investment property, because as long as they're on active duty then they're at risk of becoming long-distance landlords.

That type of property purchase can't be done in during the week or two of a transfer to a new duty station.

 

[friar1610]

Thank you for your support, and thanks for buying the book!

I'm glad his family dodged the problem, and that sales tactic is just one of the many ways that military families get talked into buying a house for all the wrong reasons.

Here's more details than the book in a blog post on that topic:
http://the-military-guide.com/dont-buy-home-active-duty/

If they ever did decide that it was necessary to buy a home, the most important part of that decision would be taking the time to research the neighborhoods and find the bargains. Buy a home that would make a good investment property, because as long as they're on active duty then they're at risk of becoming long-distance landlords.

That type of property purchase can't be done in during the week or two of a transfer to a new duty station.

It's funny how things have changed over the years. When I started out in the late 60's the conventional wisdom was that if you were going to be somewhere for 3 years you should buy because "you can never go wrong with real estate". i bought a few houses over the years and made modest profits when selling. Some guys I knew made a killing. A few held on to each house and rented them and by the end of their careers were sitting on 3-5 nicely appreciated houses. But if I were on active duty these days I think I would only buy in a place where there was a reasonably high probability of getting repeat tours (e.g. Norfolk, San Diego, DC, etc. for Navy) or if it were in a place I was sure I'd want to retire (something that's hard to predict at the 10 year point).

I have done the long-distance landlord thing and while I made out OK, it was nerve wracking. I would not do it again because the law of averages would catch up with me and it would likely be a disaster.

 

[Gunny]

Nords, I love the Military Guide and have sited it several times when asked for advice from other military/retirees. Thanks for web site.

 

[Offgrid Organic Farmer]

During my 20-year career, I knew a lot of sailors who tried renting out a single-family home while stationed overseas. Most of them lost their shirts in the process.

I only bought Multi-Family-Residences [Tri-plexes, Fours and Five-plexes] each one that I owned showed consistant profits.

 

[Nords]

It's funny how things have changed over the years. When I started out in the late 60's the conventional wisdom was that if you were going to be somewhere for 3 years you should buy because "you can never go wrong with real estate". i bought a few houses over the years and made modest profits when selling. Some guys I knew made a killing. A few held on to each house and rented them and by the end of their careers were sitting on 3-5 nicely appreciated houses. But if I were on active duty these days I think I would only buy in a place where there was a reasonably high probability of getting repeat tours (e.g. Norfolk, San Diego, DC, etc. for Navy) or if it were in a place I was sure I'd want to retire (something that's hard to predict at the 10 year point).

I have done the long-distance landlord thing and while I made out OK, it was nerve wracking. I would not do it again because the law of averages would catch up with me and it would likely be a disaster.

I remember the conventional wisdom of the 1970s and 80s, too, because stocks were going to zero while land, gold, & diamonds were the only things which could ever beat inflation.

Nords, I love the Military Guide and have sited it several times when asked for advice from other military/retirees. Thanks for web site.

Thanks, I'm glad it's helping!

 

[MarieIG]

Thank you for your support, and thanks for buying the book!

I'm glad his family dodged the problem, and that sales tactic is just one of the many ways that military families get talked into buying a house for all the wrong reasons.

Here's more details than the book in a blog post on that topic:
http://the-military-guide.com/dont-buy-home-active-duty/

If they ever did decide that it was necessary to buy a home, the most important part of that decision would be taking the time to research the neighborhoods and find the bargains. Buy a home that would make a good investment property, because as long as they're on active duty then they're at risk of becoming long-distance landlords.

That type of property purchase can't be done in during the week or two of a transfer to a new duty station.

Thank YOU Nords, your article is excellent! I will forward it to him.

(Funny, I remember when he first went in, his transfers involved moving his sea bag.)