Author: Joel Schofer, MD, MBA, CPE
Finance Friday
Here are some useful articles and resources for your Finance Friday:
A World of Possibilities (a discussion about why you should invest internationally)
Can the Stock Market Predict The Next Recession?
Not many troops are opting into the new retirement system
The Marginal Value of the Backdoor Roth. Is it Worth the Trouble?
The Differences Between Mutual Funds, ETFs, and Closed-End Funds
How to Evaluate the Promotion Potential of a Billet/Position
Recently I advertised the USUHS Commandant position. A reader asked:
Any thoughts on whether you think this is a position that would make an O5 competitive for O6?
This is a common issue. A position is advertised, but you want to know if it will help get your promoted to O5 or O6 if you take it. Here is how I’d evaluate that situation.
First, you need to contact the incumbent in that position now, if possible. You’re going to need information that they have.
Now that you’ve contacted that person, you need to ask them some questions:
- Did they or anyone before them promote to O5/O6 while they were in the position or shortly thereafter? In other words, has taking the position led to promotion for those who’ve already done it? If the answer is yes, that is telling and indicative that the position advances people’s careers. If the answer is no, you should probably look elsewhere for a career advancing position.
- How large is their competitive group on their fitreps? You want a position with a large competitive group so that you can perform well and break out to the right with MP and EP fitreps. Competitive EP fitreps are probably the #1 most important ingredient for successful promotion, so if the position has a small competitive group or leads to a 1/1 fitrep, it would be a mark against that position’s potential to get you promoted.
- Were they able to get EP fitreps? They might not tell you this, but if they are willing to give you this info it can help you gauge the potential for you to get EP fitreps while doing the job.
- What do your mentors think about you taking the position? We all need mentors, and I always ask mine what they think when a potential position is in my crosshairs. If they don’t think it is a good idea, I usually pass on it.
That’s it. Those are the things I’d look at when trying to evaluate whether or not a position will help you get promoted. Most of the information needs to come from the incumbent or people who have previously done the job.
My Miked Up Blog Guest Post – Shortly Thereafter, Things Started to Explode
If you’re interested in reading my guest post on the Miked Up Blog about four of the best and worst moments of my life, you can check it out here:
Finance Friday – Track Your Net Worth
Here are some good articles to check out this week, with my article below the links:
Track Your Net Worth
If you want to know how you are doing financially, you need to track your net worth. Luckily, there are websites and apps that make this automatic and do it for you.
What is Net Worth?
Simply, it is the value of everything you own minus everything you owe:
Net worth = what you own – what you owe
Things you own might include bank accounts, investments, real estate, businesses, and anything else with a tangible value. Typically, people do not include material items that are decreasing in value (depreciating) like furniture, clothing, cars, computers, etc.
Things you owe might include loans, credit card balances, mortgages, and anything else that causes you to owe someone or something money.
How Can You Easily Track Your Net Worth?
While this can certainly be done manually on paper or utilizing a spreadsheet, technology makes this easy. I’d highly recommend two websites/apps I have personally used, Mint and Personal Capital. Once you sign up and load all of your account information, both will automatically track and update your net worth.
While I have used both, I like Personal Capital better because it has more robust investment analysis tools than Mint. In my opinion, Mint is more focused on those who want to examine their spending and budget.
There are a few downsides to using these sites/apps. First, you have to load your usernames and passwords for all your accounts, placing all of this valuable information on yet another site that could get hacked. Both sites use modern encryption technology, so this is not something that keeps me up at night, but it is something worth noting.
Second, both sites are not in business to help you for free. They are trying to make money, and the way they do it may bother you. In the case of Mint, there were lots of “targeted offers” when I logged on for credit cards and bank accounts that they were recommending to me. These were easily ignored.
In the case of Personal Capital, they periodically contact me via email and phone to try and get me to use their financial planners. For a do-it-yourself investor like me, I have no interest in this and, again, it is easily ignored, but it might annoy some. I find their website/app so useful, though, that it is worth it for me.
Why Are You Tracking Your Net Worth?
Because you manage what you measure. Measure and track your net worth, keep it in mind when you make financial decisions, and your net worth will increase, which is the ultimate goal!
For example, by tracking your net worth you’ll see that when you purchase things your net worth goes down by the price of whatever you purchased. The only time spending money does not hurt your net worth is when you are investing, not buying depreciating items.
What Should My Net Worth Be?
Everyone’s situation is different, but one formula from a book that everyone should read, The Millionaire Next Door: The Surprising Secrets of America’s Wealthy
(Your age) x (your annual income) ÷ 10 = your target net worth
For example, if you are 25 years old and make $100,000/year, your net worth should be approximately $250,000:
25 years x $100,000/year ÷ 10 = $250,000
Keep in mind that this is just an estimate, but it can be helpful to give you an idea of whether you are ahead of the game or behind the power curve.
New Instruction Governing the Appointment of Regular and Reserve Officers in the Medical Corps
If you know anyone trying to figure out all the rules and regulations associated with joining the Active and Reserve Medical Corps, they should read the new instruction:
OPNAVINST 1120.4C – Appointment of Regular and Reserve Officers in the Medical Corps of the Navy
FY19 CO/XO Slate
The FY19 CO/XO slate came out a few days ago, but it is CAC-protected everywhere and therefore I can’t post it. It can be found in the upper left corner on this site but make sure you pick the e-mail certificate or it won’t open:
https://es.med.navy.mil/bumed/m00/m00c/M00C1/SitePages/Home.aspx
Brief Update on FY19 Special Pays
Here’s a brief update on FY19 special pays from BUMED:
Ladies and Gentleman, appreciate if you could please get the word out to your Corps. The Assistant Secretary of Defense for Health Affairs [ASD(HA)] pay plan was signed on 26 Sep 2018, but the Navy Pay Guidance has not been signed. Any special pays requests effective 1 Oct 2018 or later cannot be submitted until the Navy’s Special Pays NAVADMIN has been released, which is not expected until possibly sometime in December 2018.
Thank you!
SEMPER FI!
William L. “Bill” Marin
Program Manager, Navy Medical Special Pays Program
New BUMED Instruction for Reservist Subspecialty Codes and AQDs
Those transitioning to the Reserves or already in the Reserves may want to read this new instruction on subspecialty codes and additional qualification designators (AQDs):
BUMEDINST 1001.2C – RESERVE OFFICER CLASSIFICATION, SUBSPECIALTY, AND QUALIFICATION DESIGNATOR CODES
Finance Friday Articles
I’ve been sharing personal finance articles on Friday, most of which came from the other blog I wrote on called Military Millions. Last week we decided to shut it down. As a result, I’ll start sharing some of my own writing as well as other articles I find that are particularly relevant to the readers of MCCareer.org. Enjoy!
Financial CME #4: Test Your Knowledge
How Often Can You Buy the Dip in Housing?
Income is the Wrong Goal for Your Clients
President Trump Signs Defense Spending Bill That Includes 2.6 Percent Military Pay Raise
Will The Cost Of Financial Advising Drop Like Other Fees In The Financial Services Industry?
USUHS Commandant Position - O5/O6 -Summer 2019
USUHS is seeking a Commandant for their School of Medicine. O5/O6 Medical Corps officers eligible to PCS no later than June 2019 will be considered. Further info is here:
USU School of Medicine Commandant Nomination
Interested candidates should submit packages per the attached call for nominations to CDR Melissa Austin at BUMED (e-mail address in the global) no later than 1 NOV 2018 to allow for routing through BUMED channels.
Joel Schofer's Career Planning Blog 