Basic Training Tips to Help Service Members Invest Wisely

Basic Training Tips to Help Service Members Invest Wisely

By Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy

You train every day to serve our country, and you owe it to yourself to train for your financial future.  That’s why the SEC is providing you with some basic training tips on how to invest wisely. 

You wouldn’t head off on a mission without a plan, right?  Well, the same is true for investing. Start right now and set goals for yourself and your family and then make a plan to achieve those goals.  You can use the SEC’s Savings Goal Calculator to see how much you need to save each month to meet your goals.

The Thrift Savings Plan is a great place to start your investing journey because it comes with two unique advantages over other possible investments: you get a tax break when you make contributions and the DoD matches your contributions under the Blended Retirement System up to 5%. That’s free money! Talk to the personal financial counselors at your installation’s Family Readiness Office for more information on the TSP and how to improve your finances.

If you have high interest debt – like credit card bills – consider paying those off first.  The interest rate on credit cards is often far higher than what you can expect from the returns on your investments.   

You protect us day in and day out from threats. When investing, you need to keep your eye out for a different kind of threat. Be aware that there are fraud scams that target service members and their families. Be wary of investments that sound too good to be true like claims that an investment “can’t miss” or offer “guaranteed” returns.  Take your time and don’t rush into any investment decision.

Always check out financial professionals before investing.  It’s easy to do a background check, just go to the SEC’s Investor.gov website. 

And, ask about fees associated with investing.  These costs can have a significant impact on earnings over time.

Remember, all investments involve some degree of risk.  By picking a mix of investments you may be able to limit your losses and reduce the ups and downs of your returns without sacrificing much in potential gains.

Start training today to be a wise investor.  Your best defense is self-defense—through education, research and common sense.  Learn more at www.Investor.gov/military.

Thank you for your service.

Note: Director’s Take articles are written in a short, non-legalese format intended to provide you with tips and information on timely investment topics that are important to you. You can subscribe to receive Director’s Take articles or find our latest article on the Director’s Take spotlight page.

This article is provided in the author’s official capacity as the Commission’s Director of the Office of Investor Education and Advocacy but does not necessarily reflect the views of the Commission, the Commissioners, or other members of the staff.

 

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