Active Military Driving $80K+ cars?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Well we have a DoD budget of over $700 Billion a year so that explains a lot of it. An O6 Captain(18 years service) in the Navy grosses $138k plus a housing allowance with great heath/dental benefits. And the 4 years at the Academy counts towards service. After 20 years of service they will get a pension and can get a job in the private sector.

In The DC metro area you see the expensive cars driven by officer families. Not the case with enlisted personnel. You do your 20 years in the officer cadre and then move to the private sector. You never accrued educational debt so it is easier to spend on quality cars. Plus with a generous pension, they do not have to save/invest as ordinary citizens. I'm the son of a retired Navy Captain.

Are there really that many people that become an O6 after just 14 years of service, after being in the academy for 4 years? That's a 36 year old Captain!
My Dh is a retired Marine officer, and most people we knew, after 14 years of actual service were a couple years into being an 04. My Dh retired 10 years ago, have things really changed that much?

An O4 w/20 would still get like 115k a year in pay, plus they will also get over 40k a year in Base Allocated Housing here.

So a person in their early 40s with a college degree that has worked for the same employer for 20 years is making $165/year in the DC area. Is that really considered high income?

It's not the same--the officer's pay is equivalent to way more than 165k in the private sector. That's because the Base Allocated Housing is nontaxable, plus most military do not pay state income tax b/c of where their home of record is. And there are additional tax breaks for military.

Plus there is the pension and ohter benefits.

And then you add in the fact many have spouses that work, and the spouse does not pay state income tax either because they can claim the same home of record.

Not my experience that "most do not pay state income tax." For most of my Dh's career we lived in our home state of record.
Still what exactly is "way more than $165k" and is it a high income for someone with a degree and 20 years of experience with the same employer?

Then you did it wrong. A stent in Alaska is really the key to maximizing state income tax benefits

+1

There are plenty of tax lawyers willing to advise that if you were ever stationed in FL or AK and then move around with “the intent” of eventually going back, you can continue to claim those as your home state.

Again, there are few (if any?) opportunities for a Marine to get stationed in AK. Florida is a bit more likely, but unfortunately never came up as a possibility when my Dh was due to PCS. We got choices like California, Gulfport Mississippi, and Okinawa-which I've been to and is not my cup of tea.

[Anonymous]

Anonymous wrote:This people around here are so biased against military. If you think it’s do great why don’t you serve?

I had better options.

[Anonymous]

My husband dealt with so many personal financial issues of the lower enlisted. Frequently these were 17% interest rate car purchases too.

[Anonymous]

Anonymous wrote:My husband dealt with so many personal financial issues of the lower enlisted. Frequently these were 17% interest rate car purchases too.

But, to answer you more seriously, I don't know it's definitely a thing. It's almost like it's a small thing that the military can control. They never get to stay in a home but their car comes with them everywhere. I'm just happy it isn't my husband's thing. Used Civic, perfect commuting car.

[Anonymous]

When couples in their early 30’s buy $4MM Cleveland Park houses but don’t heve high-paying jobs, everyone says family money is the explanation. Not sure why there are so many people creating other narratives to explain the fancy cars of military.

[Anonymous]

Anonymous wrote:When couples in their early 30’s buy $4MM Cleveland Park houses but don’t heve high-paying jobs, everyone says family money is the explanation. Not sure why there are so many people creating other narratives to explain the fancy cars of military.

Probably because people with family money don't tend to join the military unless there's a World War going on.

"Politicians hide themselves away
They only started the war
Why should they go out to fight?
They leave that role to the poor,"

[Anonymous]

A lot of ignorance and anti-military bias on this thread. But suffice to say, as others already have, that a dual officer couple or officer/private sector couple can do quite well. Hell, my spouse is (gasp) enlisted and I have a good job and we do well. We don’t have an $80k car because I think that’s silly, but I’m sure we could afford it if we wanted to.

You really can’t generalize because everyone’s situation is different.

[Anonymous]

Go to any military town and see privates driving $60k pickups or Wranglers. As previous posters said, they’ll likely default and be repossessed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Running joke in military circles actually. Many, many have cars above means.

Also, veterans get preferences for fed jobs. So what they typically do is get a fed job after leaving the military. Once their clearance is processed and they start their new job, they will talk to other vets who are collecting 40k/yr in disability. And they will inevitably apply for disability due to their "PTSD" despite never having seen a second of actual combat.

+1. And then once they start collecting their disability, they buy an expensive car. If you live in VA, ‘disabled’ veterans don’t pay personal property taxes on their cars or on property taxes on their primary residences. So they collect their retirement, their GS 13-15 pay, and their ‘disability’. Look around. There’s an influx of Virginia plates with red ‘DV’ letters on them the past few years. There is an entire Reddit complete with guides and links on how to get to 100% disabled status. Veteran’s Benefits are ballooning out of control, but it’s a political sacred cow to touch. It’s not sustainable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Running joke in military circles actually. Many, many have cars above means.

Also, veterans get preferences for fed jobs. So what they typically do is get a fed job after leaving the military. Once their clearance is processed and they start their new job, they will talk to other vets who are collecting 40k/yr in disability. And they will inevitably apply for disability due to their "PTSD" despite never having seen a second of actual combat.

+1. And then once they start collecting their disability, they buy an expensive car. If you live in VA, ‘disabled’ veterans don’t pay personal property taxes on their cars or on property taxes on their primary residences. So they collect their retirement, their GS 13-15 pay, and their ‘disability’. Look around. There’s an influx of Virginia plates with red ‘DV’ letters on them the past few years. There is an entire Reddit complete with guides and links on how to get to 100% disabled status. Veteran’s Benefits are ballooning out of control, but it’s a political sacred cow to touch. It’s not sustainable.

Maybe an officer but my enlisted husband's retirement doesn't even total $40K a year so not sure what you are talking about. By the time he was 38, he had 20 years of service. I don't get the complaining. While you were in college having fun, he was serving his county as he didn't have the opportunity for college like you. So, at 38, with less than $1K a month in retirement, what should he have done, not worked and us live in poverty?

[Anonymous]

Anonymous wrote:A lot of ignorance and anti-military bias on this thread. But suffice to say, as others already have, that a dual officer couple or officer/private sector couple can do quite well. Hell, my spouse is (gasp) enlisted and I have a good job and we do well. We don’t have an $80k car because I think that’s silly, but I’m sure we could afford it if we wanted to.

You really can’t generalize because everyone’s situation is different.

As a retiree family, we are the people they are referring to. My enlisted husband did ok when he got out and we could afford cash for a $50K+ car, so why not. We live modestly in every other area and this was our splurge.

[Anonymous]

So much misunderstanding and apparent envy on this thread. Anyone can choose to buy a fancy car. What difference does it make if that person is in the military?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Well we have a DoD budget of over $700 Billion a year so that explains a lot of it. An O6 Captain(18 years service) in the Navy grosses $138k plus a housing allowance with great heath/dental benefits. And the 4 years at the Academy counts towards service. After 20 years of service they will get a pension and can get a job in the private sector.

In The DC metro area you see the expensive cars driven by officer families. Not the case with enlisted personnel. You do your 20 years in the officer cadre and then move to the private sector. You never accrued educational debt so it is easier to spend on quality cars. Plus with a generous pension, they do not have to save/invest as ordinary citizens. I'm the son of a retired Navy Captain.

Are there really that many people that become an O6 after just 14 years of service, after being in the academy for 4 years? That's a 36 year old Captain!
My Dh is a retired Marine officer, and most people we knew, after 14 years of actual service were a couple years into being an 04. My Dh retired 10 years ago, have things really changed that much?

An O4 w/20 would still get like 115k a year in pay, plus they will also get over 40k a year in Base Allocated Housing here.

So a person in their early 40s with a college degree that has worked for the same employer for 20 years is making $165/year in the DC area. Is that really considered high income?

It's not the same--the officer's pay is equivalent to way more than 165k in the private sector. That's because the Base Allocated Housing is nontaxable, plus most military do not pay state income tax b/c of where their home of record is. And there are additional tax breaks for military.

Plus there is the pension and ohter benefits.

And then you add in the fact many have spouses that work, and the spouse does not pay state income tax either because they can claim the same home of record.

Not my experience that "most do not pay state income tax." For most of my Dh's career we lived in our home state of record.
Still what exactly is "way more than $165k" and is it a high income for someone with a degree and 20 years of experience with the same employer?

Then you did it wrong. A stent in Alaska is really the key to maximizing state income tax benefits

+1

There are plenty of tax lawyers willing to advise that if you were ever stationed in FL or AK and then move around with “the intent” of eventually going back, you can continue to claim those as your home state.

Again, there are few (if any?) opportunities for a Marine to get stationed in AK. Florida is a bit more likely, but unfortunately never came up as a possibility when my Dh was due to PCS. We got choices like California, Gulfport Mississippi, and Okinawa-which I've been to and is not my cup of tea.

It doesn’t matter your choice to where you can be stationed, it is your INTENT where you want to live that is your home state. You can literally choose any state.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Well we have a DoD budget of over $700 Billion a year so that explains a lot of it. An O6 Captain(18 years service) in the Navy grosses $138k plus a housing allowance with great heath/dental benefits. And the 4 years at the Academy counts towards service. After 20 years of service they will get a pension and can get a job in the private sector.

In The DC metro area you see the expensive cars driven by officer families. Not the case with enlisted personnel. You do your 20 years in the officer cadre and then move to the private sector. You never accrued educational debt so it is easier to spend on quality cars. Plus with a generous pension, they do not have to save/invest as ordinary citizens. I'm the son of a retired Navy Captain.

Are there really that many people that become an O6 after just 14 years of service, after being in the academy for 4 years? That's a 36 year old Captain!
My Dh is a retired Marine officer, and most people we knew, after 14 years of actual service were a couple years into being an 04. My Dh retired 10 years ago, have things really changed that much?

An O4 w/20 would still get like 115k a year in pay, plus they will also get over 40k a year in Base Allocated Housing here.

So a person in their early 40s with a college degree that has worked for the same employer for 20 years is making $165/year in the DC area. Is that really considered high income?

It's not the same--the officer's pay is equivalent to way more than 165k in the private sector. That's because the Base Allocated Housing is nontaxable, plus most military do not pay state income tax b/c of where their home of record is. And there are additional tax breaks for military.

Plus there is the pension and ohter benefits.

And then you add in the fact many have spouses that work, and the spouse does not pay state income tax either because they can claim the same home of record.

Not my experience that "most do not pay state income tax." For most of my Dh's career we lived in our home state of record.
Still what exactly is "way more than $165k" and is it a high income for someone with a degree and 20 years of experience with the same employer?

Then you did it wrong. A stent in Alaska is really the key to maximizing state income tax benefits

+1

There are plenty of tax lawyers willing to advise that if you were ever stationed in FL or AK and then move around with “the intent” of eventually going back, you can continue to claim those as your home state.

Again, there are few (if any?) opportunities for a Marine to get stationed in AK. Florida is a bit more likely, but unfortunately never came up as a possibility when my Dh was due to PCS. We got choices like California, Gulfport Mississippi, and Okinawa-which I've been to and is not my cup of tea.

It doesn’t matter your choice to where you can be stationed, it is your INTENT where you want to live that is your home state. You can literally choose any state.

No, you have to establish physical presence there at some point in addition to the intent of living there as your home. You can't just say you intend to live in Alaska someday.

[Anonymous]

Anonymous wrote:So much misunderstanding and apparent envy on this thread. Anyone can choose to buy a fancy car. What difference does it make if that person is in the military?

This. A nice car is a lower hanging fruit than let's say a nicer house. People choose how to allocate funds based on what is plausible and gives them most enjoyment for the buck. You aren't going to afford a 3m+ mcMansion and private schools because you don't buy a 70K car, it's a different ballgame. You can live in a shack or a rental apartment/townhouse and drive a nice car - way cheaper than a huge mortgage and especially if you also have 2 homes (like many here apparently do). Luxury items like clothes, jewelry, cars are much more attainable than things like real assets (RE, sizeable investment accounts, funded college accounts, equity in a successful business, etc). These things are much harder to "afford" than leasing a luxury car.