I didn't take investing and savings
seriously when I first came into the
military so I would like to, you know,
bring awareness to that. The reason to
invest especially at a young age is so
you set your future up for success. You have
to not only think about yourself but
your family and your children. It's
really important to start investing
early and as often as you can so you can
help grow your nest egg over time, put
the money to work for you.
The first part of your investment
strategy should be to pay off
high-interest debt. If you have multiple
credit cards, pay off the one with
the highest interest rate first. One of
the problems with a high-interest rate is
that you're going to be paying more than
you could ever expect to get in your
investments. The reason you want to make
paying off high-interest debt a priority
is because you want to be able to prevent
yourself from digging such a hole that
you cannot get out of later on.
One of the most important pieces of
advice I would offer members of the
military is to set up their TSP as soon
as possible. The TSP is the Thrift
Savings Plan. It's a part of your
military retirement plan. The TSP offers
diversified investments, low fees, and tax
advantages. In the new blended retirement
system, the military will match some of
your contributions so if you contribute
anywhere between one and five percent
the military will match that. If you're not
contributing up to five percent you're
leaving free money on the table. Your TSP
does not go away. If you get out of the
military your TSP stays, continues to be
in a diversified account with low fees,
and it keeps growing.
Unfortunately members of the military or
retired military personnel are targets
of fraud and at risk of investment fraud.
In fact, I recently received an email
recommending that I invest in certain
things and it seemed like it might be an
opportunity that was too good to be true.
I went to Investor.gov. I found out the
individual was not registered and I made
a decision that was just not the right
opportunity for me to invest in. If it
sounds too good to be true, it probably
is. One thing I would caution members of
the military is if you were offered an
investment opportunity where you have
guaranteed high returns, make sure you
slow down, do your homework, ask questions.
Even if your friends are investing, you
still need to do your own independent
research and make sure that you're
comfortable with this investment. For
military personnel, the first place they
should look for investment resources is
Investor.gov which has a dedicated page
for military personnel. Go to
Investor.gov for information on how to
invest wisely and avoid fraud.
