Question:
I've been investing for the past 5 years now and have been able to put away some money for life after the military.

What do you invest in and why?

What are the good and bad about your investments?

Choices:
Thrift Savings Plan (TSP)
Stocks/Bonds
Silver/Gold Coins
I don't want to invest
I don't know where to start

 

I inves money in TSP, IRAs and mutual funds. not enough time to worry about watching stocks, so I leave them alone.

USAA has a very good set of people to help you get some basic investments started. for people that may have a little more to worry about you cansecure your own Financial Consultant for as low as 195 for 6 months of consultation. It is a good place to start if you want to learn where you are going wrong with your money. Everyone can afford to put some money away.

I learned when the TSP thing started that you could put the max in (at that time about 6%) and suck up the missing money in your check for a litle while until you get used to now seeing / having it. Each year as the percentage increased by 1%, you just increased your contribution by that 1%. You did not notice that new 1% missing from your paycheck. Eventually it got up to like 11% max and you could see the 11% coming out of your pay, but over the past years you got so used ot not having it that it did not seem like you were even saving the 11%.

Now there is no max per month, but I think there is a cap of 15,000 total for the year. you can continue to increase your percentage by 1 or 2% a year and just get used ot not having that 1 or 2% and eventually have some good money there.

On top of that, you can start up some IRAs ad some other stuff.

Maybe even consider using your VA loan to buy a home, then rent it out when you PCS. You will get your housing money at your new duty station to pay for your housing and someone else that is renting your purchased home will be paying off your mortgage.

Lots of things you can do.

I started using the TSP for a while, but decided to shy away from that. I now have a couple of mutual funds with USAA and also own 5,000 shares of a relatively new company that specializes in developing software for online gambling.

Right now in Education lol

I would like to lear about the stock market, so I can feel comfortable investing

TSP and CD's

I save a minimum of $500 dollars a month. Once it reaches a certain amount I take the amount and invest it. Right now I do own stocks, CDs, have IRA, and invest in mutual funds.

I'm into TSP (I even started a Lyfecycle fund), mutual funds (3), IRA, Roth IRA, a CD (3 month) and a few savings bonds (stopped those after 2 years - intrest rates not as good).
My oldest mutual fund is 10 years old. I need money in case of children. And if not, I have retirement for a couple years or so.

I am invested in a mutual fund and have turned a 23% gain in the two years that I have had it. Mutual funds need to be added to the poll.

A USAA ROTH IRA - spread out over 3-4 differant mutual funds.

(that wasn't on your poll list tho)

Since the TSP does NOT match. It is the ezact same as a "Traditional IRA".

And in 9 out of 10 scenarios a ROTH IRA is BETTER than the TSP we have. So if your giving to your TSP, but you dont have a ROTH...then you could be doing better with your investing.

I do have a little bit in my TSP, but I do not start contributing to it, untill I have maxed my yearly contribution to my USAA ROTH IRA.

Roth IRA vs. Traditional IRA
https://www.usaa.com/inet/ent_utils/McStaticPages?key=ira_traditional_vs_roth

I don't think the Army does a good job educating our enlisted Soldiers on investing and the importance of it.

The general rule to is t at least 10% of your pay away for investments. Additionally, for those reallly wanting to put some extra savings away (or to play catch up), for every raise you get, put 50% of the raise away ... let's say we get a 3% pay raise in January; put an additional 1.5% away in your investments/savings.

good link.

TSP = Tradional IRA

(however, you can contribute more per yr, as the TSP "cap" is based on % of income, not a yearly cap number. But all rules are the same...ie TSP and Traditional IRA are "tax deffered", but not "tax free")