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.


 
 

 

Commissary surcharge helps patrons improve benefit

FORT LEE, Va.– There’s a lot to learn about the commissary surcharge just by considering four new commissaries opened last year on Army, Navy and Air Force installations. Thanks to the surcharge – the 5 percent added to every commissary customer’s receipt – the military communities at Naval Support Activity Annapolis, Md.; Fort Polk, La.;...
 
 

D-M Airmen freefall into the blue

BUCKEYE, Ariz. — You’re standing in an open door of an aircraft soaring 12,000 feet above the ground. You have put your full trust into the person strapped to your back, who you’ve known for less than two hours, to bring you back down to Earth safe and sound. The count begins. “Out…in…out.” The floor of the...
 
 

12th Air Force bomb wings move to Air Force Global Strike Command

WASHINGTON (AFNS) — The Secretary and Chief of Staff of the Air Force have directed the realignment of the Air Force’s B-1 bomber fleets and Long Range Strike-Bomber program from Air Combat Command to Air Force Global Strike Command, effective Oct. 1. The move will realign the Air Force’s core mission of global strike and all of...
 

 

AF celebrates Earth Day by focusing on mission today, tomorrow

WASHINGTON (AFNS) — Air Force leaders reminded Airmen to keep the mission in mind as the Air Force observed the 45th annual Earth Day April 22. The service has encouraged Airmen around the globe to focus on recycling efforts this year, in line with its 2015 theme, “Conserve Today – Secure Tomorrow.” “Air Force bases...
 
 

Case lot sale returns to D-M April 17-19

FORT LEE, Va. – Mention case lot sales and commissary patrons start lining up for the opportunity to save up to 50 percent or more on club-pack and full-case items. Known as the Commissary Customer Appreciation Case Lot Sale, the springtime version of this twice-yearly event will unfold at stateside stores, each hosting their individual...
 
 

ThanksUSA offers scholarships to children, spouses of U.S. Troops

WASHINGTON – ThanksUSA, a national nonprofit organization dedicated to thanking America’s troops through the gift of education, is inviting children and spouses of America’s armed forces to apply for its post-secondary education scholarships, according to a ThanksUSA news release issued today. Those interested can apply via the organization’s website, and the application period extends ...
 




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