I dive into the Southwest Companion Pass, a travel hack I’m currently using that offers huge savings for frequent travelers. The pass allows you to bring a companion along on any Southwest flight for just the cost of taxes, making it an incredible deal if you often fly with someone. To earn the pass, you need 135,000 qualifying points, which can be done efficiently through Southwest credit cards and carefully timing your spending to hit signup bonuses early in the year. I stress the importance of tracking expenses diligently to maximize the two-year eligibility period, ensuring you get the most value out of the pass. For me, the potential savings—$4,000 to $6,000 in travel value over two years—makes this a no-brainer, especially if you’re a responsible credit card user or a business owner. I also share tips for maintaining the pass long-term, like alternating eligibility with a spouse. If you fly Southwest frequently, this is an easy way to make your travel budget go much further.

Key Takeaways:

• The Companion Pass allows you to bring a companion on any Southwest flight for just the cost of taxes.

• Earning the pass early in the calendar year maximizes its value because it’s valid for the rest of that year and the entire following year. Aim to hit qualifying thresholds in January.

• The strategy only works if you pay off balances in full each month to avoid interest. Carrying debt undermines the benefits of the Companion Pass.

• You can requalify for the pass after 24 months by canceling your Southwest cards and reapplying. Many couples alternate who earns the pass to extend the benefit indefinitely.

• This hack is especially valuable for frequent travelers, those who live near Southwest hubs, and business owners or side giggers who can easily meet spending requirements.

Key Timestamps:

(00:00) - Introduction and Personal Hack

(00:25) - Understanding the Southwest Companion Pass

(01:29) - Steps to Earn the Companion Pass

(07:03) - Maximizing the Companion Pass Benefits

(10:28) - Conclusion and Final Thoughts

(11:28) - Additional Resources and Farewell

Key Topics Discussed:

BLUF Veteran Finance Podcast, Military Finance, Veteran Financial Planning, Military Money Management, VA Benefits, Military Retirement Planning, Financial Literacy for Soldiers, Military Budgeting Tips, Debt Management for Service Members, VA Loans, Military Investment Strategies, Saving for Deployment, Thrift Savings Plan (TSP), Transitioning to Civilian Life, Military Tax Benefits, Financial Independence for Veterans, Military Money Manual, The Military Money Show

Mentions:

Companion Pass information: https://www.southwest.com/rapid-rewards/tiers/companion-pass/

Chase Southwest Rapid Rewards Performance Business Card: https://www.referyourchasecard.com/226o/JUSTZTPE0R

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/56

Today, I welcome Broc Buckles, co-founder of BC Brokerage, an insurance partner for fee-only financial planners specializing in diverse insurance types, including life, disability, and long-term care. We discuss BC Brokerage’s unique approach, emphasizing honesty and transparency, especially for military veterans and active-duty members who may face insurance hurdles due to health screenings. We highlight the importance of adequate life insurance, especially for transitioning military personnel, and explore how company-provided insurance might lack portability and sufficient coverage, urging listeners to secure personal policies early. Disability insurance is crucial, as statistics show that one in four 20-year-olds will experience a disabling event before retirement, often due to illness rather than injury. These events don't necessarily mean total incapacitation; they may simply impact regular work capacity. Desk workers, for instance, could experience back pain or chronic migraines, limiting work hours. We also discuss life insurance and underscore the value of working with fee-only planners, who prioritize clients' best interests over aggressive sales tactics typical of some large firms.

Key Takeaways:

• Broc’s approach to life and disability insurance.

• Why you must take advantage of plans offered by your employer.

• Which plans set you up best for when you leave the military.

• Why you need disability insurance - even if you’re in “perfect health”.

• How to compare costs of different brokers.

• How insurance prevents strain on your retirement funds.

Key Timestamps:

(00:38) - Understanding the Insurance Industry

(01:17) - BC Brokerage: A Unique Approach

(03:46) - Life Insurance for Military Members

(11:40) - Disability Insurance Insights

(17:40) - Insurance for Business Owners

(22:11) - Why Work with Fee-Only Planners?

(24:05) - Contact Information and Conclusion

Key Topics Discussed:

BLUF Veteran Finance Podcast, Military Finance, Veteran Financial Planning, Military Money Management, VA Benefits, Military Retirement Planning, Financial Literacy for Soldiers, Military Budgeting Tips, Debt Management for Service Members, VA Loans, Military Investment Strategies, Saving for Deployment, Thrift Savings Plan (TSP), Transitioning to Civilian Life, Military Tax Benefits, Financial Independence for Veterans, Military Money Manual, The Military Money Show, Disability Insurance, Life Insurance

Mentions:

Website: https://www.bc-brokerage.com/

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/55

I outline the top three year-end tax planning strategies that can benefit you this fall. I emphasize the importance of assessing your tax situation as the year draws to a close, highlighting that by this time, you typically have a clearer picture of your income and taxes due to bonuses and other financial events. The first strategy I discuss is Roth conversions, which can be advantageous in years of lower income, allowing you to pay taxes on the converted amounts now rather than later. The second strategy focuses on charitable contribution planning, particularly through donor-advised funds (DAFs) and using required minimum distributions (RMDs) to donate directly to charity, maximizing tax benefits while avoiding capital gains taxes. Finally, I touch on retirement account contributions, stressing how contributions to traditional accounts can lower your taxable income, especially if you’re a business owner. Overall, I provide practical advice for you to optimize your tax situation as the year ends.

Key Takeaways:

• Converting traditional pre-tax money to Roth accounts can be beneficial in low-income years, allowing you to pay taxes now rather than later.

• Having a mix of traditional and Roth accounts is important for tax management in retirement, providing flexibility in withdrawals.

• Donor-advised funds (DAFs) are a powerful tool for charitable giving, allowing for immediate tax deductions and avoiding capital gains taxes on appreciated stock.

• Individuals subject to required minimum distributions (RMDs) can donate their RMDs directly to charity to avoid increasing their taxable income.

• High-income earners can use backdoor Roth contributions to get money into Roth IRAs despite income limits.

• Implementing these strategies can result in significant tax savings, sometimes amounting to thousands of dollars in reduced taxable income.

Key Timestamps:

(00:00) - 3 Fall Tax Planning Moves for Veteran Business Owners

(01:25) - Understanding Roth Conversions

(02:52) - Benefits of Roth Conversions in Retirement

(04:05) - Charitable Contribution Planning

(04:45) - Utilizing Donor Advised Funds

(05:40) - Tax Benefits of Donor-Advised Funds

(06:48) - Required Minimum Distributions to Charity

(07:48) - Maximizing Retirement Account Contributions

(09:45) - Roth Conversions and Charitable Deduction Planning

(10:56) - End-of-Year Tax Strategies Recap

(11:31) - Closing Remarks and Resources

Key Topics Discussed:

BLUF Veteran Finance Podcast, Military Finance, Veteran Financial Planning, Military Money Management, VA Benefits, Military Retirement Planning, Financial Literacy for Soldiers, Military Budgeting Tips, Debt Management for Service Members, VA Loans, Military Investment Strategies, Saving for Deployment, Thrift Savings Plan (TSP), Transitioning to Civilian Life, Military Tax Benefits, Financial Independence for Veterans, Military Money Manual, The Military Money Show, DAFs, RMDs

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/54