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Macho Money Definitions - What Is An IRA?
Image: – – Macho Spouse
When talking investments, IRA is the abbreviation for “Individual Retirement Account,” not “Irish Republican Army.” According to About.com, IRAs are basically savings plans with lots of restrictions. The main advantage of an IRA is that you defer paying taxes on the earnings and growth of your savings until you actually withdraw the money. The main disadvantage is the tax law imposes stiff penalties if you withdraw the funds before you turn age 59.5 years old. There are different types of IRAs, each with their own tax implications and eligibility requirements. And here is a little fun fact, IRA's stem from the early 1970s when NBC broadcasted a television special called “The Broken Promise,” which showed Americans the consequences of poorly funded pension plans. In this short video, USAA Certified Financial Planner Scott Halliwell explains IRAs in further detail.
As a male military spouse, I know how important it is to stretch every dollar as far as I can for my military family. I'm always looking for tips on how to save money and I really appreciate money saving tips for the Military Family.
Here are some questions to think about:
Do you have an emergency fund? Are you saving enough money for retirement? Do you have a budget? How close are you to financial freedom?
February 26 - March 3, 2018
Military Saves Week is an annual opportunity for installations and organizations to promote good savings behavior and a chance for servicemembers and their families to assess their own saving status. Typically hundreds of organizations participate in the Week, reaching millions of people.
You know, I started Macho Spouse because I couldn't find a job in my career field during our last PCS. Most of us military spouses have probably gone through similar depressing job-searches. But after two years of unemployment, here I am, back in the job market and gainfully employed. This time, however, I have a whole new appreciation for what it takes to land that next job. The following is a short list of what I learned during my latest employment drought.
The first thing every military spouse needs when planning his or her career is patience. Patience, patience, patience. We must understand that our career trajectories won't be as quick, or logical as our civilian counterparts. And that's OK. As long as we understand where we want to be at the end of our working life, taking a step backwards now and then isn't a big deal as long as it moves us further forward down the line. Remember, our life situations can change rapidly, so we don't have to find that “perfect” job today since we probably won't be able to keep it anyway. Focus on building your resume so that when your spouse does decide to retire, you will have a great resume and lot's of experience to land that “perfect”job.