Just My Life In General

Well it seems that the military has decided to post pone my 3rd term signup bonus for some weird reason again.  I got half of my 6 year re-enlistment  bonus in August 08 when I was suppose to get a lump sum of $15,000.  I talked to my Recruiter (SFC Shields) and he told me that I should have gotten it in September, but when September passed without another payment.  I was told that I should have gotten it in November for sure, but again no payment has been made as of yet.  I am begining to think my recruiter does not know what he is doing or maybe his is also getting the run around.

It seems that my bonus account is totally messed up. Is the military running out of funds or do some accounts just fall off of someone’s desk into the trash can in this digital age?

To make matters worse,  I had to pay taxes on the $7,500 so I actually got around $4,800.  I managed to put $4,000 into my TSP (Thrift Savings Account) account.   I did manage to pay around $800 off on one credit card.

I remember my first 6 year bonus that I ever got, was suppose to be 10,000 payed in 2 lump sums, but after taxes the first half was $3,500.  Then it took me 7 years to get the other half of $3,500 after taxes.  Actually everyone just forgot about paying me.  They probally thought if I was not complaining about it, then they would not have to pay me.

My second 6 year bonus I was suppose to get 12,000, but 3 months after I signed the contract I was told to either finish my contract or I had the option to get out of the military because my contract was null in void because I missed my bonus window of 3-6 days or atleast that was the excuse that I got.

I was thinking that the 3rd time was the charm but my 3rd term signup bonus for 6 years, is shaping up to be another let down. 

Has anyone else had this kind of problem before ?  I like to think I am not in this boat alone.

What would you do if you got $15,000 just handed to you?  What would you spend it on?  Or would you even spend it at all ?

These are some of the decisions that I am currently facing.  I recently was promised a bonus of $15,000 from the Army to stay in for another 6 years. This gets me to thinking. What in the world will I do with it to better myself?

I thought about saving it for retirement.  My wife wants to pay off some of the bills with it, but I  am wanting to do something with this that would actually make me money in the long run.  It’s so tempting to just start buying things that I don’t need.  Or maybe I will start saving for a house!

Currently we are living in a trailer.  It’s not bad. However, I have always dreamed of owning my own house!  Both of my parents were disabled and lived in a trailer just about all their lives.  I, for one, want to break out of this and own my own home.  I realize that I need to start doing something now before I get to old!

Here is my plan

1. Take $5,000 and place it in a retirement plan. Luckily I have already started saving for retirement.  Since I am in the National Guard, I can participate in a benefit called TSP (Thrift Savings Plan).  It allows me to save for my retirement, but I can’t touch the money until I reach a certain age.
2. Place $10,000 in a plan called SDP (Savings Deposit Program) - It’s another benefit for military soldiers that are deployed. I can place the maximum of $10,000 into an account that will earn 10% for as long as you are deployed.  When I get back from deployment, I will have to draw it out and pay any taxes that I earned on interest (I think).
3. When my SDP expires, place the money back into a savings account! E-Trade has a plan that will earn you 3.3% on their savings accounts.  Maybe I will place my money with E-Trade.

The trouble with this plan is that I got to follow through with it. I guess I have to treat this money like I never got it and try to invest and forget it.

I still have questions such as “Should I save for a down payment?“, “Should I save for the entire house?“  “If my income is not steady, How much should I save first ?”

Do you have any better ideas?  What would you spend it on?  I would love to hear your experiences on this topic.