Military Investment Options
Through different investment options, savings plans, and military mutual funds, veterans gain access to federal financial investment methods that accumulate interest over time for them and their families.
1. Debt Payment
The most important step before exploring investment options is to pay off your debts. Clearing your debt improves your credit score while eliminating the potential for debt collectors to take money from any of your accumulated savings. Explore repayment plans from debtors, and have a clear picture of how to budget to get on top of your debt.
2. Educational Investments
Military members have benefits from the United States Department of Veterans Affairs (VA) that help secure tuition assistance. These benefits are helpful and aren’t the only ones available for use by the military. Veterans can also access a college education through the Defense Activity for Non-Traditional Education Support (DANTES) organization, which includes tests that help you earn credits toward a free associates degree.
3. Real Estate
The VA offers veterans home loans that don’t require a down payment. Taking advantage of this benefit to invest in real estate is a good idea for you and your family, helping you get a home while growing real estate equity and building your personal wealth.
4. A 529 Plan
A 529 plan is an investment savings plan that allows people both in and out of the military to contribute tax-deferred amounts into an account. The plan will accrue compound interest that you will not be taxed on if you use the money to pay for certain types of approved educational expenses.
5. Federal Thrift Savings Plan (TSP)
Due to your working conditions differing from traditional corporate jobs, you don’t get a standard 401(k) plan. You do, however, get a TSP, which is for federal employees and puts 5% of your military income toward your savings. A TSP can be used with an Individual Retirement Account (IRA) that accumulates tax-free contributions toward your retirement.
Plan Your Military Finances Wisely
The options available to you as a member of the military make it possible for you to have access to financial security while deployed. Your family will benefit from smart financial planning, so it helps to have financial advice that sets you up for success. Contact us to work with our financial advisors.