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I maxed out the TSP while deployed two years ago. I believe max was $44k. I also invested in the Savings Deposit Program ($10k @ 10%) - I'm not sure if that's still available - it if is, I'd jump on that for an easy $1000 (taxable) for 12 months. Great thing also is that unless you're making over what an E-9 makes, your income is tax free, right?
What's best? You need an entire financial assessment...I heard a stat that only 1% of the military is debt free. So odds are you are not...Do you have vehicle loan, person loan, student loan, mortgages or any credit card balances? What are their interest rates? In this roller coaster stock market paying interest-accruing will help someone financial than dumping all your money somewhere.
Savings Deposit Program is good until the late nineties...People her the 10% and get excited...If you look at the program, you'll see it's: "interest at 10% per annum, compounded quarterly" EG, you get 2.5% every three months...
When you're ready you need to look into high yield savings account. There are a few now that are 3% compounded monthly.
What's best? You need an entire financial assessment...I heard a stat that only 1% of the military is debt free. So odds are you are not...Do you have vehicle loan, person loan, student loan, mortgages or any credit card balances? What are their interest rates? In this roller coaster stock market paying interest-accruing will help someone financial than dumping all your money somewhere.
Savings Deposit Program is good until the late nineties...People her the 10% and get excited...If you look at the program, you'll see it's: "interest at 10% per annum, compounded quarterly" EG, you get 2.5% every three months...
When you're ready you need to look into high yield savings account. There are a few now that are 3% compounded monthly.
Mmm...I can't figure out how to edit! I left out one work..."paying your interest-accruing DEBTs" would be most people's best option...
I believe all branches have family center where you can get a detailed analysis to your finances...I'd strongly recommend that...
What's best? You need an entire financial assessment...I heard a stat that only 1% of the military is debt free. So odds are you are not...Do you have vehicle loan, person loan, student loan, mortgages or any credit card balances? What are their interest rates? In this roller coaster stock market paying interest-accruing will help someone financial than dumping all your money somewhere.
Savings Deposit Program is good until the late nineties...People her the 10% and get excited...If you look at the program, you'll see it's: "interest at 10% per annum, compounded quarterly" EG, you get 2.5% every three months...
When you're ready you need to look into high yield savings account. There are a few now that are 3% compounded monthly.
The SDP is a special program for deployed military where they put in $10k and receive 10%. It wasn't around until OIF and OEF. It's a no-brainer to put the money there if one has $10k and wants to make $1000.
I'd go with the SDP, that is what a lot of my friends have done. I'd also make sure any other debts are paid off first, you don't want to be putting money in 1 pot if you have 3 others that are already hemorrhaging.
While going to the sandbox; I do not know what is the best for you.
I would say to get some budget counseling and maybe tax-planning advise.
I spent a bit of time deployed. It seemed like a lot. 7 months a year underwater for a bunch of years and then 6 years overseas. Being deployed 75% of your career is common though.
I invested mostly in apartment buildings. Like a 5 unit building, or 8 unit kind of thing. At the time when I bought each, they were at my home port, so my family had a home to live in. My Dw could manage them, collect the rent, and what not. and assuming that I would not return from one of the deployments, she would have a home for herself and an income. So we looked at them as life insurance. East coast, West Coast, Scotland, each place where I was stationed [except for Italy and Kosovo].
Each property's rental income paid the regular mortgage payments, repairs and maintenance. So they did not cost us much.
So a lot of my money when into principle payments on those mortgages, buying down our debt.
It worked out good for us, when I finished 20 years and got my pension.
We sold most of the properties and used the cash to buy a farm. So now our farm has no debt.
The SDP is a special program for deployed military where they put in $10k and receive 10%. It wasn't around until OIF and OEF. It's a no-brainer to put the money there if one has $10k and wants to make $1000.
This is wrong info...Reread the bottom two lines you quoted me on. If you feel I'm completely talking out of my butt, please do some research online.
It's 10% ANNUM...Which is an inflated way of say it's 2.5% every three months. That's 2.5% four times a year, therefore they add it up and call it 10%...Very misleading...
If you start with zero balance and added a $1000/mo here's how it works...
By no means am I saying SDP is bad, however there are much better deals out there...If one holds a credit card balance that's 20% interest or even a 8% car loan, typically paying that off would be better than any savings vehicle...
Unless anyone had some formal finance training I think all military members should utilize the free financial planning service at their bases family center...Just because a friend did something doesn't mean it's a no brainer and/or the best for your personal situation
Dropping $10k at the beginning at 10% will earn him 1,000. I know, because that's what I did.
I think he'll have hard time finding any investment today that can earn him 10%.
His original question revolved around saving/investing. Of course, if he had any debt, unless at a low interest rate, that should be paid off first.
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If you can afford it, I'd take advantage of maximizing your TSP unless you'll need the money before you're 55 1/2 yrs of age. Most likely you'll need to pay bills, etc, that yo can't afford to maximize. Also you can put money into your ROTH, if you have one. But be careful, ROTH requires you to have taxable income over a certain amount in order to be eligible to invest in ROTH. If your income is taxfree due to being in a warzone, you'll have to check with someone to make sure you can put money into ROTH.
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