What investment options are there for the military if any?

SGT Private RallyPoint Member — Thu, 13 Oct 2022 20:25:08 -0400

When I was in Afghanistan back in 2019 I was told there was an investment option for soldiers to put their money towards some investment option until the end of the deployment. I am leaving for Japan for 3 years starting in January and have $20,000 right now I want to put towards some investment until I get back. Are there any options out there?

Response by SGT Private RallyPoint Member made Oct 13 at 2022 8:26 PM

SGT Private RallyPoint Member — Thu, 13 Oct 2022 20:26:58 -0400

I already invest 10% in Roth TSP and not looking to put more into that. Looking to seek other options...

Response by CSM Charles Hayden made Oct 13 at 2022 8:47 PM

CSM Charles Hayden — Thu, 13 Oct 2022 20:47:16 -0400

SGT Private RallyPoint Member DaveRamsey.com is a great site for financial advice.

Response by COL Randall C. made Oct 13 at 2022 9:22 PM

COL Randall C. — Thu, 13 Oct 2022 21:22:00 -0400

I think what they were referring to was the DoD Savings Deposit Program. The SDP allows you (normally) to save up to $10,000 through payroll deductions if you're in a combat zone. You'll earn 10% interest on it quarterly.

https://www.dfas.mil/MilitaryMembers/sdp/

DoD Savings Deposit Program

The official website of the Defense Finance Accounting Service (DFAS)

Response by CPT Private RallyPoint Member made Oct 13 at 2022 10:46 PM

CPT Private RallyPoint Member — Thu, 13 Oct 2022 22:46:16 -0400

Without reading long the triad I wrote dump all the money you can into your TSP. The deposit limits are going to be higher and chances are the fee structures are going to be better for the funds you can invest in.

You're going to be leaving a lot of money on the table down the line if you are not maximizing your TSP program.

Response by SGM Mikel Dawson made Oct 13 at 2022 11:17 PM

SGM Mikel Dawson — Thu, 13 Oct 2022 23:17:12 -0400

I invested in back in the 80's , LAND. Just bare land. Something you don't have to watch. It is a long term investment which has paid off for me. I got in money problems once, sold one piece of land for tow and a half times what I paid for it. I have 20 acres in Montana which I have been offered 5 times what I paid for it. I also invested in golf and silver - something that is solid, proven since man has traded and invested. Always holds value.
I stayed away from the stock market as it was something I felt I needed to watch all the time. Today it is a little easier, lots of people do invest. If you do, pick a good place to invest. You have seen the market flux up and down.
I have had thoughts of electronic coin. It is also like stock market, can flux up and down. It is also something you have to get in early. If I was to invest in it, I would pick ones with good backers, Sweden has just come out with a national back coin. EU is going to.
I am happy with the investments I made. Like CSM Charles Hayden wrote, Dave Ramsey is good with money, hit his site and get some advice there as well.

Response by 1LT Private RallyPoint Member made Oct 13 at 2022 11:57 PM

1LT Private RallyPoint Member — Thu, 13 Oct 2022 23:57:11 -0400

When you deploy to a combat zone you can make an extra $1000, tax free. Like a sweet deployment bonus! This is of course, the Savings Deposit Program (SDP)

https://militarypay.defense.gov/Benefits/Savings-Deposit-Program/

I managed to make a little over $700 when I went downrange (as an E-4 w/ no dependents) and donated it all when I got home. It's been a while, verify whether the deposit comes out of your pay, or if you can deposit from your bank account. So if you deploy, take that $20K in liquid funds you have and ensure your finances are set so you can put as much of your money into your SDP as quickly as possible. It is damn near impossible to beat a guaranteed 10% return on your investment, tax free.

But since your just heading overseas and not deploying, look into CDs. The rates are getting high, highest they have been in nearly 15 years. And, on top of what has already been said, make sure you max out your annual contribution to TSP. Do some reading up on this. Your TSP is your single biggest and best way to invest, through the magical power of compound interest. Professional finance consultants (like the one I studied under in college) will tell you that your TSP/401K is the first and best investment. Everything else is secondary.

Savings Deposit Program

Military Pay and Benefits Website sponsored by the Office of the Under Secretary of Defense for Personnel and Readiness

Response by SFC Kelly Fuerhoff made Oct 17 at 2022 12:52 PM

SFC Kelly Fuerhoff — Mon, 17 Oct 2022 12:52:48 -0400

TSP. Or go talk to your finance section on base. They can help you determine what investment options fit you.

Definitely do TSP. I'm kicking myself I didn't do it.