You're in the money: what should i do with my military bonus?

Nicklaus Quigley asked a question: You're in the money: what should i do with my military bonus?
Asked By: Nicklaus Quigley
Date created: Sun, May 2, 2021 7:03 AM

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FAQ

Those who are looking for an answer to the question «You're in the money: what should i do with my military bonus?» often ask the following questions:

❔ What should you do with bonus money?

The list of things that you could do with a bonus is pretty much endless, from a $50 to a $10,000 bonus. Depending on your financial situation here are a few of the obvious choices for spending our bonuses: Pay down debt – A cash windfall is a great way to get ahead of the game Get caught up on bills – This one should come first

❔ What should i do with my bonus money?

The list of things that you could do with a bonus is pretty much endless, from a $50 to a $10,000 bonus. Depending on your financial situation here are a few of the obvious choices for spending our bonuses: Pay down debt – A cash windfall is a great way to get ahead of the game Get caught up on bills – This one should come first

❔ What do you do with your military bonus?

  • Pay off Credit Card Debt…
  • Max out Your Thrift Savings Plan or Retirement Contribution…
  • Invest in an Asset or Activity That Makes You Happy…
  • Set Up an Emergency Fund for Your Post Military Years…
  • Create Both a Short- and Long-Term Portfolio.

10 other answers

Each year, the military pays out huge amounts of money to individuals who enlist and re-enlist. These bonuses can be as much is $90,000, depending on your specialty and the length of your commitment. For many people, a military bonus is one of the few times in their lives when they have a check in their hands which is equal to a year or more of salary.

In fact, if you enlist in military you may be eligible for up to $40,000 in cash bonuses. Your actual bonus will depend on the service branch, specific job specialty -- also known as a rating ...

If you are able to receive your bonus while you are located in a Combat Zone Tax Exempt area, then you won’t owe federal income taxes on that money. Schwing! Bonuses Saved for Retirement. Bonuses can be put into retirement savings accounts such as the Thrift Savings Plan (TSP) or an Individual Retirement Arrangement (IRA).

Word of advice: Don’t just do it for the money. A bonus is nice, but make sure 1) you want to serve; you aren’t just joining the military for a fat bonus, and 2) you want to serve in the job that is offering the bonus. Nothing will make the next few years drag more than a job you hate. Secure happiness first, then worry about the money.

Military bonuses are paid to troops for a variety of reasons: enlisting or reenlisting into a short-staffed career field, “quick ship” military enlistment bonuses, etc. There are even military bonus options for those returning to duty in the Guard or Reserve after prior military service.

The 3% increase in military pay is taking effect, as well as an increase in Basic Allowance for Subsistence (BAS), and, depending on where you live, a Basic Allowance for Housing (BAH) increase.

The quick ship bonus is available for qualified recruits in select Military Occupational Specialties — military jobs. They must enlist for at least two years and agree to report for basic training within 30 days. Bonus levels have been seasonal or graduated since September 2007: $20,000, $15,000 or $6,000, depending on the selected MOS.

You will also have taxes automatically withheld from your bonus, generally at the 25% or 28% rate. This is automatically done by the government, and not something you can change. If the withholding is too high for your tax bracket, then you will likely receive a larger than normal refund the following year.

If you don’t have an emergency fund, squirrel away the remainder of your bonus (if there is one) or whatever you’re able to manage each month going forward.

A 5-year payment plan on a car is pretty wild to start with and even though 3.65% interest isn't that bad, it's still going to feel good to get rid of and there's a big benefit to holding the title of your car in your hand as suddenly that asset becomes a lot more liquid if you ever needed it. 2. level 2. LukeRTG.

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Should i take my military bonus in a lump sum?

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What should i do with my bonus?

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  • Save for your next vacation.

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Is military bonus pay taxable?

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Should i pay tax on bonus money?

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What military branch gives signing bonus to employees?

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What should i do with a large bonus?

The list of things that you could do with a bonus is pretty much endless, from a $50 to a $10,000 bonus. Depending on your financial situation here are a few of the obvious choices for spending our bonuses: Pay down debt – A cash windfall is a great way to get ahead of the game Get caught up on bills – This one should come first

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What should i do with my annual bonus?

  1. Pay off debt…
  2. Max out your retirement accounts…
  3. Invest in an index fund…
  4. Check in on your emergency fund…
  5. Contribute to a 529 plan…
  6. Invest in yourself…
  7. Move that bonus into a high-yield account quickly…
  8. Save for your next vacation.

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