Just joined the Navy.... What to buy with my $20,000 sign on bonus?
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RevolvingCylinder
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Pay off debt and most importantly, invest in education.
They're gonna give it to you in one lump sum!? Not 1/4 per 2 yrs?
They're gonna give it to you in one lump sum!? Not 1/4 per 2 yrs?
davera
Member
Conventional wisdom is spend 10% on what ever you want so you get a little enjoyment of the windfall. The rest, invest wisely and conservatively and let it work for you.
I invested something around 30-something thousand with Vanguard after changing jobs back in 1994. It's in relatively conservative mutual funds and since then has grown into a nice nest egg.
The essense of capitalism is your money works for you instead of you working for your money.
I invested something around 30-something thousand with Vanguard after changing jobs back in 1994. It's in relatively conservative mutual funds and since then has grown into a nice nest egg.
The essense of capitalism is your money works for you instead of you working for your money.
Detachment Charlie
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Navy Investments
Take some advice from an old "China Sailor" and use it wisely as I did --- hookers and booze in Hong Kong, Bangkok, Singapore, Olongapo (Oops, no more liberty there) and Sydney.
You'll have memories and stoies to share with your grandchildren. You should have seen my grandson's eyes when I told him about the "Chinese Basket..." Oh, never mind.
Take some advice from an old "China Sailor" and use it wisely as I did --- hookers and booze in Hong Kong, Bangkok, Singapore, Olongapo (Oops, no more liberty there) and Sydney.
You'll have memories and stoies to share with your grandchildren. You should have seen my grandson's eyes when I told him about the "Chinese Basket..." Oh, never mind.
GlenJ
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A house
The Amigo
Member
SEASICKNESS PILLS LOTS OF THEM 
Save your money life in the military is not peachy. Specially when u have to move every 3 years. Navy federal credit union has been good to me.
Save your money life in the military is not peachy. Specially when u have to move every 3 years. Navy federal credit union has been good to me.
lee n. field
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A decent AK, a dozen magazines, and a couple thousand rounds. Or, if it "floats your boat" so to speak, the equivalent from the AR world. Stash it with a trusted family member.
Invest the rest. (I consider the rifle an investment too).
Invest the rest. (I consider the rifle an investment too).
theken206
Member
not a serviceman here but ill tell you what.......
SAVE IT AND INVEST IT!!!!
My friend Jason got a 14K bonus whn he joined the Army NG that he put away right off that bat, add that to the pay he made from his tour in Iraq and the few month of extra duty in Kuwait he had like 30 something thousand in the bank.
He spent pretty much every dime of that over the summer after he got back
Bought a few motorcycles, an ungodly ammount of booze, and spent enough on ammo over the course of all our group shooting expeditions to supply a small gurilla army.
granted that was one hell of a summer but he pretty much just "wasted" it.
Though looking back he has said that he figures that he will prolly never have that kind of money to spend in such a way agin.
I say hang on to it and invest it. Take some right off the top and have some fun with out a doubt though!!!
SAVE IT AND INVEST IT!!!!
My friend Jason got a 14K bonus whn he joined the Army NG that he put away right off that bat, add that to the pay he made from his tour in Iraq and the few month of extra duty in Kuwait he had like 30 something thousand in the bank.
He spent pretty much every dime of that over the summer after he got back
Bought a few motorcycles, an ungodly ammount of booze, and spent enough on ammo over the course of all our group shooting expeditions to supply a small gurilla army.granted that was one hell of a summer
but he pretty much just "wasted" it.Though looking back he has said that he figures that he will prolly never have that kind of money to spend in such a way agin.
I say hang on to it and invest it. Take some right off the top and have some fun with out a doubt though!!!
browningguy
Member
Having some experience as a sailor you basically have two choices.
1. Invest all but a grand of it(have a little play money)
2. Spend it on wine, women and loud happy songs
I tended to follow the same path as DetachmentCharlie (# 2), now I'm scrimping to fill up 401K's since the kids are finally out of college. I do have some very fond memories of days, and nights, in Sicily, Italy, France, Spain and Israel. And of course some not so nice memories of a bunch of other crap places.
My suggestion is #1, spend a little to play, invest the rest and don't touch it for the next 30-40 years.
1. Invest all but a grand of it(have a little play money)
2. Spend it on wine, women and loud happy songs
I tended to follow the same path as DetachmentCharlie (# 2), now I'm scrimping to fill up 401K's since the kids are finally out of college. I do have some very fond memories of days, and nights, in Sicily, Italy, France, Spain and Israel. And of course some not so nice memories of a bunch of other crap places.
My suggestion is #1, spend a little to play, invest the rest and don't touch it for the next 30-40 years.
Bartholomew Roberts
Member
A $20k signing bonus? The Navy is paying a lot better than it was when I went in.
First things first, you don't get any money until you pass training... so don't start spending the money until then. Second thing, the Navy doesn't pay much of anything... so definitely follow the advice to invest as much of the bonus as you can stand to part with. Not only that but set aside some of your regular paycheck as well instead of blowing it all on traditional sailor pursuits.
Opt for GI Bill, it is one of the best returns on investment you will ever see. I paid in $1,200 over a year. In return I have already received $21,000 in cash and will receive another $9,000 before it is done. I already had a Bachelor's when I enlisted but the Navy is paying a substantial chunk of my graduate degree.
First things first, you don't get any money until you pass training... so don't start spending the money until then. Second thing, the Navy doesn't pay much of anything... so definitely follow the advice to invest as much of the bonus as you can stand to part with. Not only that but set aside some of your regular paycheck as well instead of blowing it all on traditional sailor pursuits.
Opt for GI Bill, it is one of the best returns on investment you will ever see. I paid in $1,200 over a year. In return I have already received $21,000 in cash and will receive another $9,000 before it is done. I already had a Bachelor's when I enlisted but the Navy is paying a substantial chunk of my graduate degree.
gdvan01
Member
Agreed. Be smart with this.
GhostlyKarliion
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Three words, Balanced. Mutual. Fund.
Seriously mate, a C.D. will NOT cut it, I don't know how old you are, but if you have 30 years to let it sit, even at 7% interest (very low for a balanced fund, more like 10%) it will net you well more than enough to live comfortably when you retire. Just remember, plan to live to 120, plan for at least 5% inflation, plan for at least 120% your current monthly income (inflation adjusted, of course).
Oh, and if you decide to go with a professional to handle it for you, try to get a good class A balanced mutual fund. yes you have to pay a fee up front, but in the long term it is more profitable for you.
Oh, and don't forget to have your dividends and capital gains reinvested, it doesn't work nearly as well unless you do.
Good luck, and cheers on such a nice signing bonus!
Seriously mate, a C.D. will NOT cut it, I don't know how old you are, but if you have 30 years to let it sit, even at 7% interest (very low for a balanced fund, more like 10%) it will net you well more than enough to live comfortably when you retire. Just remember, plan to live to 120, plan for at least 5% inflation, plan for at least 120% your current monthly income (inflation adjusted, of course).
Oh, and if you decide to go with a professional to handle it for you, try to get a good class A balanced mutual fund. yes you have to pay a fee up front, but in the long term it is more profitable for you.
Oh, and don't forget to have your dividends and capital gains reinvested, it doesn't work nearly as well unless you do.
Good luck, and cheers on such a nice signing bonus!
acdodd
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A man after my own heart.
If I had all the money I spent on a good time I would be set for life.
As it is I will now sit in the corner and smile a lot.
The exchange rate when I was in the PI was 7 to 1 now it's 46 to 1.
Suppose a San Miguel is still 1P?
Put your money some place that will be very difficult for you to get to it.
Otherwise you will be too tempted to cash out and blow it on fun things.
You must be going in as a Nuke or Electronics.
Good luck and thanks for serving.
AC
TheDisturbed1
Member
I would buy a rifle of good range, like DPMS .308 or possibly a PSL...
over 2k is tad insane to spend for this habit, 1k in the rifle and 1k in ammo.. you'd be set
over 2k is tad insane to spend for this habit, 1k in the rifle and 1k in ammo.. you'd be set
Shares in a market index fund. Check out Vanguard's S&P500 index fund. Sock it away for old age, for your kids education, or for when you get out of the military. That is a serious chunk of change the likes of which is not easy to come by. Don't blow it on junk. Invest in your future.
If you have any debts pay them off and if you have any left over then buy a 10/22 to build up or a CZ452 and 10,000 rounds and put the rest in a roth IRA and some in at least an ING direct account. I don't know if you will even get much time to shoot in the Navy? No point buying a bunch of guns and have them sitting around for 6 years while you could have been earning interest instead.
Reserves!!!
Guys, before you jump all over me. I'm prior service AD Marine Corps 1371 from 98-02, then two years WIARNG as a 21B. I work building maintenance for the city of Milwaukee, so I already have a fat, fat pension in line. And yes, when I got back from Iraq I started a Fidelity freedom 2030..... So I have my bases pretty well covered. As to my rate, BU.... Seabees all the way! No basic, no A school. Just MEPS for the physical and raise my right hand. BTW, PO3 not a seaman here
Guys, before you jump all over me. I'm prior service AD Marine Corps 1371 from 98-02, then two years WIARNG as a 21B. I work building maintenance for the city of Milwaukee, so I already have a fat, fat pension in line. And yes, when I got back from Iraq I started a Fidelity freedom 2030..... So I have my bases pretty well covered. As to my rate, BU.... Seabees all the way! No basic, no A school. Just MEPS for the physical and raise my right hand.
BTW, PO3 not a seaman here
RevolvingCylinder
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You can get it all at once!? I think I've been cheated.
CypherNinja
Member
I vote MG. Its good for occasional fun AND it's a good investment (unfortunately ).
).theken206
Member
"Quote:
My friend Jason got a 14K bonus whn he joined the Army NG that he put away right off that bat
You can get it all at once!? I think I've been cheated."
no I dont know about that, I can ask him the next time I talk to him though if you like.
I just meant that he didnt spend any of it. it went right into the bank and stayed there.
My friend Jason got a 14K bonus whn he joined the Army NG that he put away right off that bat
You can get it all at once!? I think I've been cheated."
no I dont know about that, I can ask him the next time I talk to him though if you like.
I just meant that he didnt spend any of it. it went right into the bank and stayed there.
vis-à-vis
Member
Get a gun or two, and invest the rest.
Stocks over the long term (10+ years) are safer than and do better than bonds because they stay ahead of inflation. On the short term stocks will fluctuate heavily, but over the long run the value of them will rise. Invest in a good mutual fund (see www.scottrade.com) with investments in 70% high risk growth stocks and 30% bonds. If you're young you can afford the risk of pitfalls due to the the amount of time you'll probably be alive and so you can make up for any loss. Besides in a good mutual fund with a good 10 year track record and one that is well diversified, you should find little risk of going completely bust.
Also don't forget to check out foreign markets. They are goin' decent right now. Our government tends to run out of money and then print more of it and say "look, money!" But the value goes down. So check them out.
But remember: The younger you start the better off you will be! Compound Interest is hardcore once embraced!
Books for you to get:
Stocks for the Long Run
A random walk down wall street
As for the guns get the two I want: Sig p229 .357 Sig and an XD.
Stocks over the long term (10+ years) are safer than and do better than bonds because they stay ahead of inflation. On the short term stocks will fluctuate heavily, but over the long run the value of them will rise. Invest in a good mutual fund (see www.scottrade.com) with investments in 70% high risk growth stocks and 30% bonds. If you're young you can afford the risk of pitfalls due to the the amount of time you'll probably be alive and so you can make up for any loss. Besides in a good mutual fund with a good 10 year track record and one that is well diversified, you should find little risk of going completely bust.
Also don't forget to check out foreign markets. They are goin' decent right now. Our government tends to run out of money and then print more of it and say "look, money!" But the value goes down. So check them out.
But remember: The younger you start the better off you will be! Compound Interest is hardcore once embraced!
Books for you to get:
Stocks for the Long Run
A random walk down wall street
As for the guns get the two I want: Sig p229 .357 Sig and an XD.
Titan6
member
Mutual Funds?
In this day and age there is no reason to pay someone else to do what you can easily do for yourself. If you want to invest the $15K go to an online brokerage set up an account that is a bundled IRA and buy 15 stocks at $1000 ea. But the stock market is not always a great investment.
The last few years ammunition and metals of all types have gotten out of control. If you enjoy shooting (and don't go crazy with it) you could buy yourself a near lifetime supply of ammo. If the rise in ammo prices continues at even half the current rate your investment will more than double in two years tax free... Storing it is another matter though..
Gold and silver are very high right now but there are few indicators that the price will drop either. That could double your investment at half the time of the market, especially if the dollar continues to be devalued. Also tax free.
Another good option would be land. Real estate is in a big slump and interest rates are low. Buy yourself some land to shoot, hunt and camp on. As long as you don't sell it, also tax free.
In this day and age there is no reason to pay someone else to do what you can easily do for yourself. If you want to invest the $15K go to an online brokerage set up an account that is a bundled IRA and buy 15 stocks at $1000 ea. But the stock market is not always a great investment.
The last few years ammunition and metals of all types have gotten out of control. If you enjoy shooting (and don't go crazy with it) you could buy yourself a near lifetime supply of ammo. If the rise in ammo prices continues at even half the current rate your investment will more than double in two years tax free... Storing it is another matter though..
Gold and silver are very high right now but there are few indicators that the price will drop either. That could double your investment at half the time of the market, especially if the dollar continues to be devalued. Also tax free.
Another good option would be land. Real estate is in a big slump and interest rates are low. Buy yourself some land to shoot, hunt and camp on. As long as you don't sell it, also tax free.
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