5 Best Investments for Military Families

Some are only available to service members

Military service does not offer much free time, so it can be difficult to research and choose the best investment. The good news is that the many savings and investment opportunities will help you prepare for a comfortable future without adding too much time or stress to your busy schedule. Here are the top five investments the military can consider.

KEY TAKEAWAYS

  • Office members have access to a range of savings and investment opportunities, some of which are inaccessible to citizens.
  • The Federal Savings Plan (TSP) is similar to Plan 401 (k) and provides for automatic payroll deductions and contributions.
  • Traditional and Roth IRAs offer a wide range of investment options and can be a great way to supplement your TSP.
  • Other investments include the savings program, 529 college and real estate savings plans.

Federal Thrift Savings Plan

A Savings Plan (TSP) is a qualified retirement plan that gives federal and service workers an affordable and tax-free way to invest. You can choose from a combination of investments, from short-term US Treasury funds to indexed and lifecycle funds, the latter automatically rebalancing your assets when you retire.

You can choose between two tax treatments for your TSP contributions:

Traditional TSP – With this tax advance, you get a tax credit in the year you help and you pay taxes when you retire.
Roth TSP – You will not receive a tax credit for this plan before or after you pay taxes, but eligible payments are exempt from retirement.

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