U.S.

June 27, 2013

Generate earnings: It pays to invest

Airman 1st Class Grace Lee
56th Fighter Wing Public Affairs

LUKE AIR FORCE BASE, Ariz. – Though it’s impossible for money to grow on trees, by investing and with time it can multiply.

An investment is the commitment of money or capital used to purchase financial instruments or other assets to gain profits in the form of interest, income or appreciation, said James Knuckles, 56th Force Support Squadron Airman and Family Readiness Center community readiness consultant.

“Due to compounding, investing transforms your working money into a state-of-the-art, highly powerful income-generating tool,” said Cory Carmichael, 56th FSS A&FRC community readiness consultant. “Compounding is the process of generating earnings on an asset’s reinvested earnings.”

Compounding requires two things to work, time and the reinvestment of earnings. The more time given, the more the amount of income will be able to accelerate and grow.

What about reinvestment of earnings?

Investments come in many forms, Carmichael said. They vary from conservative safe bonds, mutual funds and stocks to riskier alternative investments. A person’s investment should mirror their willingness to risk their money and financial goals.

A few other types of investments include real estate, gold and futures, which are contracts that attempt to predict the value of securities on merchandise, currencies and the stock market, Knuckles said.

You can also invest in a Thrift Savings Plan, Individual Retirement Account or a 401(k), Carmichael said. Many service members favor the TSP due to the choice of index funds, low costs and the asset allocated lifecycle fund.

Carmichael advises to invest at least 10 percent of your income.

“I like to say, ‘save until it hurts,’ but at the least, invest 10 percent of your income,” he said. “Remember that you are investing in your future. However, if you are living with any consumer debt or lack an emergency fund of at least three months of living expenses, then that should be a priority.”

It’s recommended to diversify investments to mitigate the risk of financial loss.

“Diversifying your investments is similar to the practice of ‘not putting all your eggs in one basket,’” Carmichael said. “If you spread your investments across various types of assets and markets, you’ll reduce the risk of catastrophic financial losses, since different securities perform differently at any one point in time.”

To be financially successful Carmichael recommends investing early in life and regularly, and staying invested.

“For every five years you delay investing, you will have to double your monthly investment amount to achieve the same goals,” he said. “Remember, you and no one else are responsible for your own financial success.”




All of this week's top headlines to your email every Friday.


 
 

 
(U.S. Air Force photo by Airman 1st Class Betty R. Chevalier)

PASM and AMARG set new record

The Pima Air and Space Museum and the 309th Aerospace Maintenance and Regeneration Group set a new record for tours administered in the month of July. The non-profit museum and D-M’s “Boneyard” brought in 2,060 visitors, ...
 
 

Help make it possible

D-M is preparing to kickoff its annual Combined Federal Campaign Sept. 1. The CFC’s mission is to give federal employees the opportunity to promote philanthropy by supporting their favorite charities. There are more than 3000 national and international charities for federal employees to choose from. “Now, D-M members can give to any charity in the...
 
 

MAC celebrates 85th anniversary

The Tucson Metro Chamber Military Affairs Committee celebrated its 85th anniversary earlier this month. The MAC became a standing committee of the Tucson Metro Chamber in 1929. At that time, the Chamber’s Aviation Committee was responsible for the Pilot’s Register at Davis-Monthan Aviation Field, the first municipal aviation field in the United States. “I think...
 

 
(U.S. Air Force photo)

Air Force earns majority of federal energy awards

TYNDALL AIR FORCE BASE, Fla. (AFNS) — It’s a banner year for the Air Force with the Department of Energy recently announcing that service won a lion’s share of 2014 Federal Energy Management Program awards. The Air Fo...
 
 

Nominees sought for Joan Orr spouse, Verne Orr ward

JOINT BASE SAN ANTONIO-RANDOLPH, Texas (AFNS) — Air Force Personnel Center officials are now accepting nominations for the 2015 Air Force Association Joan Orr Air Force Spouse of the Year Award and the 2015 AFA Verne Orr Award. The Joan Orr award honors significant contributions made by non-military spouses of Air Force military members. The...
 
 

Airmen encouraged to vote, obey AFI on political activities

LUKE AIR FORCE BASE, Ariz. — As the political season approaches, we should all be encouraged to do our civic duty and go out and vote. However, as an Air Force member, there are a few things to keep in mind. Here is a short noninclusive list to help you determine what is or is...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


Directory powered by Business Directory Plugin