If you’re an active-duty military member, there are a ton of investment options to take advantage of. Many of these options aren’t available to regular Americans but are hugely advantageous.
But, with so many investment options available, it can be challenging to find the best options. To help you maximize your earnings, these are the top 3 military investment options to consider.
- Military Pension
One of the best military investments to take advantage of is the military pension. The military pension is arguably one of the most important financial options provided to military members.
For all active duty service members, the military pension includes an annuity component if you serve 20 years. This is provided by the government and increases for each additional year of service with adjustments for the cost of living.
Besides the length of service, the rank of the service member also matters. The higher your rank and the more years you serve, the higher your pension will become.
- Roth IRA
Opening a Roth IRA is another financial investment to consider if you’re an active duty member. Roth IRA accounts for military members work the same way as they do for civilians, with one key difference.
Civilians are taxed on a Roth IRA when the money is initially contributed. However, because income already isn’t taxed for active-duty members, you can contribute to a Roth IRA completely tax-free.
This is a huge advantage for military members because you can invest in your retirement without being taxed. This can save you hundreds of thousands of dollars over the years.
Plus, you can continue to grow your Roth IRA after you leave the military. Though your income will be taxed once leaving the military, you can continue to grow your retirement investment for decades after your service.
- Military Savings Deposit Program
The Military Savings Deposit Program is one of the best military investment options for active military members. But, it’s only available for military members serving in a designated combat zone.
It offers a guaranteed 10% return for deposits up to $10,000. Although, you have to be in the designated location for at least 30 days before becoming eligible. But, it’s one of the only financial investments you will make that guaranteed a 10% return.
You can potentially earn more than 10%, but that is at least your baseline.
For more lucrative military investment options, you can learn more here.
Now You Know the Best Military Investment Options to Choose From
These are 3 of the best military investment options currently available. Because some of these investments are only available while you’re in the military, it’s critical to take advantage of them while you can.
So, why wait any longer? You could be missing out on huge earnings and savings!
And to learn about more military discounts and deals, be sure to check out the rest of our blog. We have a ton of other awesome articles that you’re sure to love!