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Win the Money War
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  1. Win the Money War E-book: Amazon or Barnes & Noble Face Book: Win the Money War Email: jgredwine@sbcglobal.net James D. Redwine

  2. Purpose • Economic threats • Financial tools • Investing plan • Considerations: • Social Security • Survivors’ Benefit Plan (SBP) • Home buying

  3. Agenda • Situation • Mission • Execution • Service Support • Command & Signal

  4. I. Situation

  5. America Must Cut Costs • National debt = $16 trillion • Soc Sec & Medicare = $48 trillion • Perpetual U.S. dollar devaluation • Print money; Cut benefits; Raise taxes • Riskiest COA = rely on fixed income

  6. II. Mission

  7. Mission • Who: Your family and you • What: Invest to win, not to avoid losses • Where: Discount brokerage & Gov tools • When: Before Gov changes the deal • Why: Econ. threats are forcing changes

  8. III. Execution

  9. Tools • Tax advantaged accounts • TSP (Roth for most; Traditional if high taxes) • Roth IRA • Passively managed funds • Index funds • Index ETF funds • Complementary holdings

  10. Investing Guidelines • Avoid bond funds • Minimize cash holdings • LSI ASAP • Buy & hold

  11. Asset Allocation • U.S. equities (Roth TSP) • Foreign equities (Roth TSP & Roth IRA) • Real estate (Roth IRA) • Precious Metals (Roth IRA)

  12. Historic Returns • 10% U.S. Large Caps • 12% U.S. Small Caps • 10% EAFE • 14% Emerging Markets • 10% Real Estate (REITs) • 3% Gold (Precious Metals)

  13. IV. Service Support

  14. Social Security • Soldiers pay FICA taxes, thus we get SS • Soldier’s benefits (70% - 124%) • Survivor’s benefits (71.5% - 100%) • Spouse’s benefits (32.5% - 50%) • Tactic: “62 / 70 Split”

  15. 62 / 70 Split

  16. SBP • 6.5% premium for 55% benefit • Tax deferred premium • Benefits get COLAs • Life long contract vs. 7-figure disaster • Health? Genetics? Investments?

  17. Buying a House • Live on post: good cash flow + easy exit • VA Loan Prgm: fast, but charges a fee • If buy: 15 year term; 20% down • Brief ownership + minor gains = losses

  18. Monthly Cash Flow * Includes VA funding fee (2.15%).

  19. Mortgage Terms & Interest

  20. Brief Ownership is Costly

  21. V. Command & Signal

  22. Summary • Economy & Gov threaten you • Defenses: Roth TSP + Roth IRA • Invest to Win, not to avoid losses • Hold equities: U.S., foreign, REIT, gold • Social Security: soldier, survivor, spouse • SBP: anticipate survivor’s cash flow • Live on post; or 15 yr term & 20% down

  23. Win the Money War James D. Redwine E-book: Amazon or Barnes & Noble Face Book: Win the Money War Email: jgredwine@sbcglobal.net