Podcast Summary: Active Military, Am I on Track?
Podcast Information:
- Title: Jill on Money with Jill Schlesinger
- Host/Author: Audacy
- Episode: Active Military, Am I on Track?
- Release Date: July 7, 2025
Introduction
In this episode of Jill on Money with Jill Schlesinger, host Jill Schlesinger engages with Chris, an active-duty military member from Arizona, to discuss his family's financial health and future planning. The conversation delves into savings strategies, retirement planning, investment opportunities, and the unique financial challenges faced by military families.
Caller Background
Chris introduces himself as a 37-year-old active-duty military personnel with a spouse and two young children, aged three and five. The family relocates every two to three years, having lived in various places including Italy, England, New York, Arizona, and Kansas. Currently, they have recently moved to Arizona from Alaska after three years abroad.
Key Points:
- Geographical Mobility: Frequent moves impact financial planning and investment decisions.
- Family Structure: Single-income household with dependents requiring future financial security.
Financial Overview
Jill begins by exploring Chris's current financial status, focusing on income, savings, and investments. Chris shares that he earns approximately $110,000 annually and anticipates a military retirement pension of around $70,000 per year in five years. Despite being years away from traditional retirement age, Chris and his spouse are proactive in their financial planning.
Notable Quote:
"We're 37 years old, active duty, military... we've been maxing out for both me and my wife Roth IRAs."
— Chris (04:07)
Savings and Investments:
- Emergency Fund: $16,000 in a high-yield account.
- Regular Savings: $7,500.
- Retirement Accounts:
- Roth IRAs: $173,000 (Chris) and $102,000 (wife).
- Roth TSP: $30,000.
- Brokerage Account: $10,000 focusing on retirement.
- Children’s Education:
- 529 accounts with $11,000 and $6,000 for each child, contributing $50 monthly.
Debt Management:
- Car Payments: $1,000 monthly for two vehicles.
- Overall Expenses: Approximately $3,000 per month, including a high grocery bill due to limited dining out.
Savings and Investment Strategies
Jill commends Chris and his family's disciplined saving habits, highlighting the impressive growth of their retirement accounts. She emphasizes the power of compounding and the importance of starting early, noting that their savings trajectory is "knocking it out of the park" (12:09).
Notable Quote:
"You're doing an incredible job of saving. You have a lot of money that you have accumulated in those Roth IRAs."
— Jill Schlesinger (12:34)
Investment Considerations:
- Real Estate: Chris expresses curiosity about rental properties but remains cautious due to the responsibilities and minimal returns reported by peers.
- Advice from Jill: She advises against jumping into real estate solely for income, especially given their mobile lifestyle and current financial stability.
Additional Insights:
- Mark’s Input: Mark, co-host or another participant, reinforces the strength of their savings plan, projecting that their current savings could grow to between $2.5 million and $3 million in 30 years, supplemented by the pension.
Notable Quote:
"You're saving 14 and a half percent to retirement every year. If you keep doing that, in 30 years, that $300,000, it'll be between two and a half to $3 million."
— Mark (12:09)
Future Financial Planning
The discussion shifts to future plans and potential life changes post-military service. Chris and his spouse are undecided about their long-term location, preferring to maintain flexibility. They consider regions like the Northeast or Southeast but have not committed to any specific area, partly to avoid the responsibilities associated with property ownership while frequently relocating.
Estate Planning and Insurance:
- Estate Planning: Chris mentions having a will, as encouraged by the military, but admits to minimal additional estate planning.
- Life Insurance: They maintain a $100,000 policy with USAA, with a total coverage of approximately $500,000. Jill recommends increasing this coverage to better protect their young children.
Notable Quote:
"With those two little kids and who knows what's going to happen? So maybe 750, if you could add a little extra coverage, that would be good."
— Jill Schlesinger (13:54)
Lifestyle and Career Aspirations
Chris shares his personal interests outside the military, expressing a passion for boats and a desire to become a marine diesel mechanic in the future. This reflects a pursuit of a low-stress career aligned with his hobbies.
Personal Anecdote: Mark reveals his near-joining of the Air Force, adding a personal touch to the conversation and highlighting the long-term commitment considerations individuals face when deciding to serve.
Notable Quote:
"I was on my way...\ and then I decided at the last second, no, I'm not doing this."
— Mark (15:01)
Conclusion
Jill wraps up the episode by commending Chris and his family for their strong financial foundation and disciplined saving habits. She encourages other active-duty military members and listeners to reach out for personalized financial guidance through the Jill on Money platform. The episode underscores the importance of proactive financial planning, especially for individuals with unique careers and lifestyles like military service.
Closing Remarks:
"We're hoping that your next posting will be somewhere fabulous. He's going to be like in somewhere around the world and give us a holl like, hey, I'm in Antarctica."
— Jill Schlesinger (16:15)
Key Takeaways:
- Disciplined Saving: Consistently contributing to retirement and emergency funds is crucial.
- Lifestyle Considerations: Frequent relocations require flexible financial strategies.
- Investment Decisions: Evaluate the benefits and responsibilities before diving into real estate.
- Estate Planning: Ensure adequate life insurance and estate documents are in place, especially with dependents.
Listeners are encouraged to assess their own financial plans and seek professional advice to ensure they are on track to meet their long-term goals.