It is better to invest your money than to have it as cash or stashed away in a savings account. However, investment decisions require careful thought to make the most of it. Make your considerations based on the fees you will incur, your input, potential benefits, and the risks involved. Here are five promising investments to check out.
1. Education
You can never go wrong with education, and the military knows it. This service provides various education benefits, whether on active duty or upon retirement. You can study through the Tuition Assistance program that offers up to $4,500 per year paid directly to your school of choice.
You may also take advantage of the GI Bill to advance your studies in any field and level. For instance, you can undergo vocational training, college studies, or distance learning. You can take your course during service, as there is ample time to do so considering the military routine's nature. For those who are married, your spouse can also receive education courtesy the military service.
2. Crowdfunding
It involves investing in a company's or person's venture like lending or real estate. Types of crowdfunding include investment-based, equity-based, loan-based, donation-based, or reward-based. You earn passive income at an agreed time or shares in a company. Other returns on your investment are rewards, set interest rates, or becoming part owners of firms.
Decide on the type of crowdfunding you are interested in, and then visit crowdfunding websites like SeedInvest, RealtyShares, WeFunder, Lending Club, Fundrise, and Kickfurther. Note that you cannot pull out your money whenever you want. Ensure you have all the details of when the company will start making payments to you.
3. US Savings bonds
This wise investment is relatively safe and low risk. When you buy the bonds, you earn a fixed interest rate each month, compounded semiannually. You may not access your money before a year elapses if you invest in the Series EE/E bonds. It works well for you as a military officer, as it requires minimal input, particularly if you go for long-term bonds.
4. Index fund market
This is a brilliant way of investing your hard-earned cash because of the low expense ratios of 0.2%-1.0%. Index funds mirror mutual funds except that they use algorithms and software instead of active people who must be paid. Determine the best index fund to invest in from these: I fund finances in international companies, F invests in bonds, S targets small-cap stocks, and C focuses on large-cap stocks. These funds try to match other open-market index funds.
5. Real estate
Apart from paper assets, explore real estate for the many advantages it offers. It is a continuous form of passive income, which guards against inflation and has essential tax benefits. Identify a real estate option that works best for you. Here are some options:
- Direct investment in real estate: you can either buy a residence (and transform it into a rental asset) or purchase a rental property
- Real Estate Investment Trusts (REITs): you either may go for publicly-traded REITs or privately-owned ones. These trusts invest in different types of real estate such as residential, commercial, industrial, or unused land
- Indirect investments: they include private notes and private equity funds
Final thoughts
Making great investment choices will have the right impact on you and your family many years down the line. You will have a guarantee of a comfortable retirement life and a softer transition into civilian life. Start investing now using the above five ideas to start earning a regular passive income. For more information on how to do this, contact us.