Ask Me Help Desk - Financial stability while away on deployment.

Now this is less of an issue and more of a discussion hence the discussion boards.

As some of you know, I am deploying to Afghanistan this fall. I will currently make about three times as much as I do now. I also have a baby on the way.

Now, I want to make sure my wife is well off when I leave but I would also like to come to some saved money. I will be the first one to admit that I know nothing about saving money, so my discussion is this...

What can I do? CD's, savings, etc... (I don't have a clue)

I don't just want to give it all to my wife (not that I don't trust her) I just would like to set X amount aside and acrue interest while I am gone. So I can come home to a good sum of money.

Ideas?

Talk to the payroll people and ask what services they offer. That way if your checks can have an automatic deduction and be direct deposited with the rest of it then you can set up a plan you both can live with. CD's aren't like a savings account. They usually have many more restrictions. For what your looking to do a general savings account would be best then after you have a nestegg then choose a longer term higher interest investment.

I'm sure I will get a class on everything before I leave but as far as power of attorney and such, should I give all power to my wife to make decisions for me or should I delegate that resopnsibility amongst a few people? I realize doing this among a few people could cause issues as far as what each person thinks is best for me but I am unsure oh how to leave things when I leave...

Quote:

Originally Posted by ITstudent2006

I'm sure I will get a class on everything before I leave but as far as power of attorney and such, should I give all power to my wife to make decisions for me or should I delegate that resopnsibility amongst a few people? I realize doing this among a few people could cause issues as far as what each person thinks is best for me but I am unsure oh how to leave things when I leave...

If you trust your wife, give the responsibility to her. She is your legal next of kin. If you delegate it between several people you will not only have some hurt feelings, but there can be some serious issues should they have to enact the POA.

Thanks J_9. That's what I thought but I figured I would get more stances on this issue. I am just racking my brain over everything I need to do before I leave and I want to make sure EVERYTHING is in place in case something does happen.

A general power of attorney can get you in serious trouble if there is ANY chance she has considered walking away. I've known guys who's wives have literally cleaned them out and left with everything in that exact situation. Saw that during my stint overseas.

But with that said... they all don't do that.. SHe really Does have to have power of Attorney to do certain things.

As far as your money... since you mention "deployed" I assume this is actually as a member of the armed forces. In which case you can specify your allotments and how and where it all goes. You can send her a certain amount, have a certain amount go to and savings institution you wish... adn a certain amount going to you for incidental needs.

If you are going to be making triple... put at least a 1/3 to as much as 1/2 into savings. Your expenses won't be much... with you gone the household expenses decrease... and when you return you will have a nice nest egg. I wouldn't recommend direct investments unless you can talk with a dfinancial advisor... that you pay for and who isn't an agent that's going to try to sell you securities they hawk. You have to be careful because anyone offering advice, technically isn't legally obligated to be acting on your behalf first.

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Originally Posted by smoothy

A general power of attorney can get you in serious trouble if there is ANY chance she has considered walking away. I've known guys who's wives have litterally cleaned them out and left with everything in that exact situation. Saw that during my stint overseas. This happned to my brother during the first Irag War. My mother has lectured already about being careful and doing what is best for me to avoid this situation. However, I trust my wife!
But with that said....they all don't do that.. SHe really Does have to have power of Attorney to do certain things.

As far as your money.....since you mention "deployed" I assume this is actually as a member of the armed forces. In which case you can specify your allotments and how and where it all goes. You can send her a certain ammount, have a certain ammount go to and savings institution you wish...adn a certain ammount going to you for incidental needs.
If I did allot X% to go to our Bank for bills, spending, etc.. and X% to go to a savings, being she is power of attorney she could still access that too right? Is there a way to put stipulations on it? Say the only way she can get to it is if I am declared KIA?If you are going to be making triple.....put at least a 1/3 to as much as 1/2 into savings. Your expenses won't be much.....with you gone the household expenses decrease...and when you return you will have a nice nest egg. I wouldn't recomend direct investments unless you can talk with a dfinancial advisor....that you pay for and who isn't an agent thats going to try to sell you securities they hawk. You have to be careful because anyone offering advice, technically isn't legally obligated to be acting on your behalf first.
What do you mean by direct investments? (i'm sorry I am not financially savvy)

I guess I just need clarification on a few things.

Are there different types of POA?

Rather than a general power of attorney... you can give specific power of attorney to certain things she might need it for.

A General power of attorney is like using a Nuke when all you need was pruning shears.

WHat I mean is don't simply have the money going into Savings bonds... or things like that. I'm not an investing expert either... but I have learned a lot of things NOT to do and why. I rely on a Financial Advisor for advice to make choices.

And as far as allotments yeah... thats a problen with general power of attourneys. And you will be gone long enough that statements needed for tax preparations will cross her path. You won't be keeping them secret in your case. I have a way to do it but you won't. ( I have a legal alternate European ID that's valid for all sorts of things in Europe).

Yes there are different types of power of Attorney.

Here is a link with good explanations of what they are.

Power of Attorney

Personally, I would consult with a lawyer to get specific advice on this prior to deployment. You may have this available to you on base.

Are you discussing all of the options with your wife?

One thing to keep in mind is that while you won't be a direct drain on the household resources, the new baby and its needs are going to be a major increase.

Have you discussed her living arrangements while you are gone? Is she planning on going back to work after the baby is born (barring complications or other unforeseen circumstances)? Is she going to get help from friends and family or will she need to hire babysitters or a nanny or other childcare?

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Originally Posted by Cat1864

Are you discussing all of the options with your wife?
Yes I am.

One thing to keep in mind is that while you won't be a direct drain on the household resources, the new baby and its needs are going to be a major increase.
I realize thisbut will the baby need 2/3 more income?

Have you discussed her living arrangements while you are gone? Is she planning on going back to work after the baby is born (barring complications or other unforeseen circumstances)? Is she going to get help from friends and family or will she need to hire babysitters or a nanny or other childcare?
Yes, she will be moving home closer to her family and my family.

The biggest thingI am hung up on is say I allot X amount to her and X amount to savings. I need her to be able to get more if needed but also make sure some is put away... the more I write the more I realize this is a conversation I have to have with my wife :). Thanks Cat.