It is vital for member of the armed forces today to achieve financial security at a young age. You're able to experience and afford the things you want now while you set yourself up for an early retirement.
If your under thirty year old retirement may seem like a long way off; however this is a critical time to start your financial plan in order to retire young. And the sooner young members in the military invest the easier it will be for them to retire young. The simple lessons below will have you on the road financial security and, equally important, will allow you to fully enjoy life now. You can become financially secure in the military while you're young with some simple steps. The tips below will put you on the path to an early military retirement.
1) Invest - Get that military paycheck working for you immediately. The sooner you begin to invest the sooner you can plan to retire young. By investing young you are able to harness the power of compounding interest which is a great ally in achieving your objective of an early retirement.
'Compounding interest’ is earning money from the profits of your investments. So you're making money off money you did not have to work for. This offers young military members a tremendous advantage. In fact, investing as little as $100 per month starting at age 18 could make you a young millionaire well before you reach retirement age. Plus it will give you the ability to do the things you like to do while keeping on track to retire young.
2) Consistent investment plan - Investing on a consistent basis will allow you to generate long-term gains over time. For most in the military this consist investing over time may allow you to retire young. Start to follow a consistent investment plan now; then as your investment knowledge grows you can add other forms of high-return investments.
An ideal investment for young military personnel ready to retire young is low-cost broad market index investments. Warren Buffet states, “A very low-cost index is going to beat a majority of the amateur-managed money or professionally-managed money. " This is one of the easiest investments you can make. An added bonus is that it takes only minimal knowledge and about 60 minutes to start getting your money working for you.
3) Diversification - Diversification lowers risk. If you have all your money invested in the stock market, and the market crashes, you could potentially lose a lot of money. Now if you had a portion of your money invested in stocks, some in real estate, some in businesses and some in other alternative investments - if any one of the markets corrects itself, you wouldn't get hit as hard since you're diversified.
4) Tax benefit vehicles - By using investment vehicles that give you tax benefits you'll be on the road to retire young. A Roth IRA or other form of retirement account can be a key investment vehicle that will allow you to reduce taxes. Many people don't realize about 40% of your income goes to pay taxes. So by choosing an investment vehicle like an IRA may help to keep more money in your pocket.
To secure your early retirement, immediately begin a consistent investment strategy. Being diversified and using investment vehicles that provide tax benefits will help to supercharge your returns. Get started now because you'll be able to afford the things you want now and in the future.
Maximize the benefits the military offers and find out more ways to have extra money at the end of the month by visiting http://www.FreeBy30.com. Vince Shorb, author of ‘Financially Free by 30', gives you simple steps to eliminate debt and afford the things you want.