Financial Wisdom from the Almanack of Naval Ravikant #153

12/09/24 • 39 min

Biggest financial lessons from The Alamanc of Naval Ravikant

3 biggest decisions: where you live, who you’re with, and what you do
Does money make you happy?
How to get rich
Outsourcing
3 way to retire
Cultivating wisdom
Things money can't buy

Links:

For a limited time, Spencer is offering one-on-one Military Money Mentor sessions! Get your personal military money and investing questions answered in a confidential coaching call.

Our new TSP course is live! Check out the Confident TSP Investing course at militarymoneymanual.com/tsp to learn all about the Thrift Savings Plan and strategies for growing your wealth while in the military. Use promo code "podcast24" for $50 off. Plus, for every course sold, we'll donate one course to an E-4 or below- for FREE!

If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual or email [email protected].

If you want to maximize your military paycheck, check out Spencer's 5 star rated book The Military Money Manual: A Practical Guide to Financial Freedom on Amazon or at shop.militarymoneymanual.com.

I also offer a 100% free course on military travel hacking and getting annual fee waived credit cards, like The Platinum Card® from American Express, the American Express® Gold Card, and the Chase Sapphire Reserve® Card in my Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3.

Learn how to get your annual fees waived on premium credit cards from American Express in the Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3.

The Platinum Card® from American Express and the American Express® Gold Card waive the annual fee for active duty military servicemembers, including Guard and Reserve on active orders over 30 days. The annual fees on all personal Amex cards are also waived for military spouses married to active duty troops.

Biggest financial lessons from The Alamanc of Naval Ravikant

3 biggest decisions: where you live, who you’re with, and what you do
Does money make you happy?
How to get rich
Outsourcing
3 way to retire
Cultivating wisdom
Things money can't buy

Links:

For a limited time, Spencer is offering one-on-one Military Money Mentor sessions! Get your personal military money and investing questions answered in a confidential coaching call.

If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual or email [email protected].

If you want to maximize your military paycheck, check out Spencer's 5 star rated book The Military Money Manual: A Practical Guide to Financial Freedom on Amazon or at shop.militarymoneymanual.com.

Learn how to get your annual fees waived on premium credit cards from American Express in the Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3.

Previous Episode

Tax Intro: What Military Families Need to Know About US Tax Code to Max Your Paycheck #152

Tax advantages, confusing tax brackets, marginal vs effective tax rates, and more!

Spencer and Jamie discuss how military service members benefit from unique tax advantages, including untaxed allowances and combat zone tax exclusions.

They also break down real examples of effective tax rates for different ranks and locations, explain tax brackets, and discuss investment implications, particularly for Roth vs traditional retirement accounts.

Main Topics & Questions Covered:

How did Jamie pay an effective tax rate of only 10% in 2023?

What military pay components are not taxed?

BAH (Basic Allowance for Housing)
BAS (Basic Allowance for Sustenance)
OHA (Overseas Housing Allowance)
Overseas COLA
Combat Zone Tax Exclusion Pay (CZTE)
Hostile fire/imminent danger pay

How do combat zone tax exclusions work?

Areas designated by presidential executive order
No limit for enlisted members
Officers capped at highest enlisted monthly pay

Real examples of effective tax rates for:

E5 at Holloman AFB (single)
E7 at Fort Sill (married with children)
O3 at Wheeler Army Airfield (married with child)
O5 in Hawaii (with children)

How do tax brackets actually work?

Progressive system explanation
Standard deduction impacts
Marriage tax advantages
Common misconceptions about brackets

Investment implications:

Roth vs Traditional retirement accounts
Why Roth often makes sense for military members
Tax considerations when transitioning to civilian life

Key takeaways:

Military members often have very low effective tax rates
Understanding true taxable income vs. total compensation
Importance of tracking tax information on LES
Resources for military tax assistance (Military Tax Experts Alliance)

The hosts emphasized two main recommendations:

Consider Roth retirement contributions while serving
Be cautious about buying houses while on active duty

Links:

For a limited time, Spencer is offering one-on-one Military Money Mentor sessions! Get your personal military money and investing questions answered in a confidential coaching call.

If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual or email [email protected].

If you want to maximize your military paycheck, check out Spencer's 5 star rated book The Military Money Manual: A Practical Guide to Financial Freedom on Amazon or at shop.militarymoneymanual.com.

I also offer a 100% free course on military travel hacking and getting annual fee waived credit cards, like The Platinum Card® from American Express, the American Express® Gold Card, and the

Next Episode

2025 Max Out Your TSP & Earn Full 5% BRS Match #154

Spencer and Jamie explain how to maximize TSP contributions under the Blended Retirement System (BRS), including calculating monthly contribution percentages and avoiding common mistakes that could result in missing matching funds. They break down the 2025 contribution limits and discuss strategies for both BRS and legacy retirement system participants.

Here's the TSP BRS maximizing chart.

Questions discussed:

What are the TSP contribution limits for 2025?
How do Roth TSP and Roth IRA limits differ?
How should you calculate monthly TSP contributions under BRS?
What happens if you front-load TSP contributions under BRS?
How do you handle mid-year pay increases?
What should you do if you over-contribute?
How do you adjust contributions if starting later in the year?

Resources mentioned:

MilitaryMoneyManual.com/tsp
TSP.gov
MyPay
r/MilitaryFinance subreddit
Military Money Manual Instagram (@militarymoneymanual)
TSP contribution calculator/chart on MilitaryMoneyManual.com
NDAA 2025 proposed pay increases
Blended Retirement System (BRS) overview

For a limited time, Spencer is offering one-on-one Military Money Mentor sessions! Get your personal military money and investing questions answered in a confidential coaching call.

If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual or email [email protected].

If you want to maximize your military paycheck, check out Spencer's 5 star rated book The Military Money Manual: A Practical Guide to Financial Freedom on Amazon or at shop.militarymoneymanual.com.

Learn how to get your annual fees waived on premium credit cards from American Express in the Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3.