Active Military Driving $80K+ cars?

[Anonymous]

Anonymous wrote:I know very little about the military. I sold a house to a military family and they got a very low interest rate, zero down, and they didn’t even have to put any money down at all for closing for closing costs.

They got a VA loan. That's not always a good thing. We got a better rate with a downpayment vs. a VA loan by shopping around.

[Anonymous]

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.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Family money
Spouse has a high income

Also, many active military claim residence in FL and the like, and pay no property taxes

This but officers can make good money. They get a lot for a housing allowance on top of pay.

They also have far less expenses, too, in general. Besides housing, they typically will not spend as much on medical, state income tax, college savings (GI bill plus in-state in their state of residence), retirement, and a whole lot more.

This is, of course, even more true for dual-military families, especially dual-officer.

Also no educational debt.

And throw in lower costs for resources available on base — from seriously lower prices on groceries, shopping at exchanges, recreational opportunities…. It adds up nicely.

Crazy discounts—Epic ski passes for $150 or something ridiculous like that—and cheap Disney tickets too.

[Anonymous]

Interesting thread. Our HHI is about 800k (3 kids, mid 40s, no pensions) and I simply can't imagine buying a 100k vehicle.

Life is very expensive around here, and there isn't much left after college saving, retirement saving, and all the other day-to-day expenses.

[Anonymous]

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.

Health care sucks...

[Anonymous]

Anonymous wrote:Interesting thread. Our HHI is about 800k (3 kids, mid 40s, no pensions) and I simply can't imagine buying a 100k vehicle.

Life is very expensive around here, and there isn't much left after college saving, retirement saving, and all the other day-to-day expenses.

That's because you have an expensive house, travel and other things. We have 1/4 your income and drive a $50K car and we could easily buy another paying cash. Life is expensive when you make it expensive. For the rest of us, it's manageable. I could not imagine on $800k screaming poverty. You can easily afford an 80K car and pay cash.

[Anonymous]

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?

[Anonymous]

Anonymous wrote:Interesting thread. Our HHI is about 800k (3 kids, mid 40s, no pensions) and I simply can't imagine buying a 100k vehicle.

Life is very expensive around here, and there isn't much left after college saving, retirement saving, and all the other day-to-day expenses.

Except the officer family does not have to spend much if anything on college saving, retirement saving, etc. Especially if it's a case like the OP mentions where it's an officer and a fed--they're going to get two pensions, plus if the officer exits at 20, they might get a private sector plan too or a third pension.

And the officer might have the GI bill for their kid(s) plus in-state in the home of record, so college savings is not as big of a thing. Many military have their home of record in states that have VERY cheap in-state. For example, many do time in Georgia, North Carolina, Florida, or Texas and are eligible not only for instate tuition but programs like Georgia's HOPE scholarship.

[Anonymous]

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.

[Anonymous]

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?

[Anonymous]

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.

[Anonymous]

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 more the equivalent of 200s in the private sector due to differences in taxation. That housing allowance is untaxed.

[Anonymous]

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?

[Anonymous]

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

[Anonymous]

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 more the equivalent of 200s in the private sector due to differences in taxation. That housing allowance is untaxed.

Ok. So in the private sector, would you say that someone with a degree and 20 years of experience with the same employer is well paid at $200k in the DC area? I see so many posters here that are "barely scraping by" on $300k+