In this episode, I discuss options for managing your TSP after leaving the military: keeping it in the TSP, rolling it over to an IRA or an employer-sponsored plan, or taking a distribution or purchasing an annuity. Keeping it in the TSP is easy and low-cost but offers limited investment options and multiple account management. Rolling it into an IRA provides more investment choices and easier management but can complicate backdoor Roth IRA contributions. Rolling into a new employer’s 401(k) consolidates accounts and preserves Roth IRA opportunities, though fees and options vary. Taking a distribution or buying an annuity offers different benefits and risks, including potential penalties and lower returns. The best choice depends on your personal circumstances and financial goals. Tune in to get a better idea of these options.

Key Takeaways:

• Keeping your TSP where it is can be a simple way to keep costs low and your financial life simple.

• Rolling your TSP into an IRA or 401(k) is a great way to broaden investment opportunities or consolidate accounts.

• Be cautious about taking a distribution from your TSP too soon, before 59 and a half, there can be penalties (though exceptions apply).

• Annuities are a transfer of risk to an insurance company, and can be considered, but the benefits really depend on your goals.

• To keep your TSP open, leave $200 in the account.

• The best decision depends on your situation and goals.

Key Timestamps:

(00:00) - Introduction: What to Do with Your TSP After Leaving the Military

(00:46) - Option 1: Keeping Your TSP in Place

(02:26) - Option 2: Rolling Your TSP to an IRA or Employer Plan

(04:51) - Option 3: Taking a Distribution or Purchasing an Annuity

(06:50) - Conclusion: Making the Best Decision for Your TSP

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, TSP, Roth IRA, 401(k), employer sponsored retirement plans, retirement savings, low cost savings

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/50

I welcome Evan Kaufman from WeVetHomeLoans, a fellow Air Force Academy graduate and economics major, to discuss VA loan refinancing amidst the fluctuating mortgage market. Evan explains the current state of interest rates, specifically for VA loans, and how recent trends have made refinancing particularly advantageous. We cover the unique benefits of the VA Interest Rate Reduction Refinance Loan (IRRRL), also known as 'Uncle Earl,' including no appraisal or income documentation requirements, low costs, and the ability to significantly lower monthly payments. Evan also introduces a newly developed tool from WeVet that helps veterans and active duty members determine their eligibility and potential savings instantly. We emphasize the importance of resetting mortgage rates periodically to maximize financial benefits and offer detailed insights into financial planning strategies for those with VA loans.

Key Takeaways:

• What are the benefits of VA IRRRL (Interest Rate Reduction Refinance Loan)?

• When will I know it’s time to refinance my mortgage?

• How will this affect my long term savings plans?

• Evan covers the tools he offers to notify you when you’re eligible and how you could benefit.

Key Timestamps:

(00:00) - Introduction to Evan Kaufman

(02:53) - Understanding VA Loan Refinancing

(04:16) - Benefits of VA IRRRL (Uncle Earl)

(07:32) - Refinancing Process and Costs

(11:27) - Strategic Considerations for Refinancing

(20:01) - VA Funding Fees and Savings

(20:23) - The Benefits of Refinancing

(21:07) - Calculating Long-Term Savings

(22:21) - Exploring Different Refinance Scenarios

(25:19) - Introducing the VA Loan Rapid Refi Tool

(29:34) - Evan's 20-Year Vision for Clients

(32:42) - Final Thoughts and Contact Information

(35:41) - Conclusion and Resources

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, refinancing VA loans, IRRRL, Evan Kaufman

Mentions:

https://wevett.com/

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/49

I address common questions and concerns that arise before and after getting married, such as whether to change your name and how to update various accounts. I emphasize the importance of having open financial discussions before marriage to decide on joint or separate finances. I provide a detailed checklist, starting with the name change process at the Social Security Office, followed by updating banking information, credit cards, real estate titles, investment accounts, vehicles, insurance policies, and estate documents. I stress the importance of listing both spouses on insurance policies and updating beneficiaries. Although this process can be lengthy and complex, it's essential to make these changes to avoid future complications. Lastly, I highlight the importance of healthy financial conversations and ensuring both spouses are aligned, emphasizing the significance of joint decision-making for a harmonious financial life together.

Key Takeaways:

• Have transparent conversations about your financial situations and decide together on whether to merge or keep separate finances - or a mix of both..

• Begin the name change process at the Social Security Administration, then update your driver's license, passport, and other legal documents.

• Update names on credit cards and consider adding spouses as additional cardholders to streamline financial management.

• Discuss and decide on joint or separate ownership of real estate and investment accounts, updating titles and beneficiary information as needed.

• Ensure both spouses are listed on insurance policies, update beneficiaries, and revise estate planning documents like wills and power of attorney to reflect your new marital status.

Key Timestamps:

(00:00) - Introduction: Financial Checklist for Getting Married

(00:47) - Pre-Marriage Financial Conversations

(02:12) - Name Change Process

(02:54) - Banking Decisions

(03:30) - Credit Cards and Real Estate

(04:31) - Investments and Vehicles

(05:34) - Insurance and Beneficiaries

(06:23) - Estate Documents

(07:09) - Conclusion: Final Thoughts and Advice

(08:22) - Download the Ultimate Military Finance Checklist

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, marriage, marital finances, name changing, estate planning, marriage planning, beneficiaries

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/48

I get into the hidden costs of car payments and their long-term financial impact. Using a hypothetical scenario, I illustrate how a large car payment can significantly diminish potential investment returns over a 40-year period. For example, purchasing a $30,000 car with a $15,000 down payment results in monthly payments of $296, which over five years totals $21,148, and leads to a lost opportunity cost of $225,793 in investments. I break down various car purchase prices, from $30,000 to $80,000, showing the substantial financial consequences of each choice. The analysis includes interest rates, monthly payments, and the impact on retirement accounts and other investments. To wrap up, I emphasize the importance of making informed decisions about car purchases, considering their long-term financial implications. Tune in to understand why big car payments, especially early in life, can be a million-dollar mistake.

Key Takeaways:

• High car payments significantly reduce potential investment returns, with a $30,000 car purchase potentially costing more than $225,000 in lost investment growth over 40 years.

• Prioritizing investments in retirement accounts and diversified portfolios over car payments can lead to significantly better financial outcomes in the long run.

• Making informed car purchase decisions by considering interest rates, total loan payments, and long-term financial repercussions can help avoid costly financial mistakes.

• Considering other transportation options can set you up for success later in life, ensuring you make the most of your 401(k) and Roth IRA accounts.

Key Timestamps:

(00:00) Introduction: What Your Car Payment is Really Costing You

(00:39) Breaking Down the Numbers

(01:29) The Long-Term Financial Impact

(01:48) Real Life Examples

(03:24) The Million Dollar Mistake

(04:20) Making Informed Decisions

(05:18) Final Thoughts

(05:33) Outro and Additional Resources

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, car loans, auto loans, car payments, debt, opportunity cost

Mentions:

https://www.nerdwallet.com/

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/47

In this episode, I delve into the concept of reverse budgeting as a stress-free approach to managing your finances. The idea is to automate savings and debt payments first, ensuring that your essential financial goals are met before any spending occurs. After prioritizing taxes, savings, and fixed expenses, establish a target checking account balance for your monthly spending, giving you the freedom to spend confidently knowing that your financial responsibilities are already covered. By automating these financial activities, you eliminate the need to track every expense, making it easier to maintain financial discipline. Regularly monitor your checking account balance to ensure your spending aligns with your goals and adjust for variable expenses like vacations or property taxes. Through examples, I demonstrate how reverse budgeting can simplify your financial management, allowing you to focus on what matters most without getting bogged down by detailed budgeting.

Key Takeaways:

• Reverse budgeting simplifies financial management by prioritizing automated savings and debt payments before any spending occurs, ensuring essential financial goals are met upfront.

• To implement reverse budgeting, start by calculating your take-home income and set up automatic transfers to various savings and investment accounts, such as 401(k)s, IRAs, or high-yield savings accounts.

• Establish a target checking account balance for your monthly spending, allowing you to confidently spend the remaining funds knowing that your savings and fixed expenses are already covered.

• Regularly monitor your checking account balance to ensure spending aligns with your financial goals and adjust for variable expenses like vacations or property taxes.

• Reverse budgeting eliminates the need to track every expense category in detail, making it easier to maintain financial discipline and focus on broader financial health.

• Be aware that spending can vary month-to-month due to seasonal or unexpected expenses, and adjust your budget accordingly to maintain a healthy financial balance throughout the year.

Key Timestamps:

(00:00) Introduction: Why I Like Reverse Budgeting

(00:43) What is Reverse Budgeting?

(01:03) Automating Your Savings

(01:46) Monitoring Your Spending

(03:01) Example of Reverse Budgeting in Practice

(06:21) Caveats and Considerations

(08:05) Outro and Additional Resources

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, reverse budgeting, taxes, savings, income, cash flow, debt

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com
www.baskinfp.com/post/46

In this episode, I discuss the concept of having a "cowboy or cowgirl account" as a way to enjoy some speculative investing without jeopardizing your financial future. The idea is to allocate a small portion, ideally less than 5%, of your investable assets into high-risk, high-reward investments such as cryptocurrencies, NFTs, or individual stocks, while keeping the bulk of your assets in long-term, diversified portfolios. I emphasize the importance of maintaining financial discipline by ensuring that these speculative investments do not exceed a manageable percentage of your portfolio, allowing you to indulge in adventurous investing without significant risk to your overall financial stability. Of course, it’s important to remember, you do NOT need to have a cowboy or cowgirl account. Through examples of good and bad usage, I illustrate how you can responsibly balance fun investments with serious, long-term financial planning.

Key Takeaways:

• A "cowboy or cowgirl account" allows for some fun and speculative investing, using a small portion of your investable assets for high-risk, high-reward opportunities like cryptocurrencies, NFTs, or individual stocks.

• It's crucial to keep these speculative investments to ideally less than 5% of your investable assets to avoid jeopardizing your financial future.

• The majority of your assets should remain in long-term, diversified portfolios, ensuring stability and financial security.

• Responsible use of a cowboy account means accepting the possibility of significant losses and not letting it impact your overall financial well-being.

• If your speculative investments grow substantially, consider rebalancing to maintain a responsible allocation within your portfolio.

• While not everyone needs a cowboy account, those who enjoy speculative investing can do so safely by adhering to these guidelines.

Key Timestamps:

(00:00) Introduction: Cowboy and Cowgirl Accounts

(01:02) What is a Cowboy or Cowgirl Account?

(01:38) Setting Boundaries for Your Fun Account

(04:25) Examples of Good and Bad Cowboy Accounts

(06:56) Conclusion and Final Thoughts

(07:47) Outro and Additional Resources

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, cowboy and cowgirl accounts, NFTs, individual stocks, stock picking, speculative investing, the 5% Rule

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com
www.baskinfp.com/post/45

I hope you enjoy my conversation with Jamie and Spencer from the Military Money Manual.

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

In this episode, I delve into the important decision of choosing the right savings account for your child's future, a critical step for new parents aiming to ensure financial security for their children. I cover essential account options such as 529 plans, UTMA accounts, taxable brokerage accounts, and Roth IRAs. Using a comprehensive analysis, I demonstrate how to evaluate these options, offering practical examples and considerations. I also explore the tax benefits, flexibility, and impact on financial aid eligibility of each account type. Finally, I highlight how a family's specific financial goals and situation can guide the choice of the most suitable account, stressing the need for tailored advice based on individual circumstances.

Key Takeaways:

• What are the major benefits of a 529 account? What do I do with the account if my child chooses not to go to college?

• What is the Uniform Transfers to Minors Act (UTMA) and how can it be used to set my child up for financial success?

• Should I use a taxable brokerage account? What flexibilities would this offer my child?

• How soon can I set up a Roth IRA for my child?

• With all of these accounts, how can I layer them to make the most of my preparation?

Key Timestamps:

(00:00) Introduction: Best Accounts to Use for a New Child

(00:37) Exploring Account Options: 529, UTMA, and More

(01:57) 529 Accounts: Benefits and Considerations

(03:41) Taxable Brokerage Accounts: Flexibility and Benefits

(05:53) Roth IRA: Long-Term Savings for Your Child

(06:41) Conclusion: Building a Financial Framework for Your Child

(07:21) Outro and Additional Resources

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, family financial planning, college funds, 529 accounts, UTMA, Roth IRA

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/44