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NEWS | Aug. 22, 2016

M&FRC encourages members to invest in their future

JBSA-Lackland Public Affairs

Military and civilian members here received a crash course on assorted ways to invest during the quarterly workshop, “Investing for your Future,” July 12, 2016, at the JBSA-Lackland Military & Family Readiness Center.

During the course, William “Tres” Davis III, Air Force Credit Union financial advisor who served as the class’ instructor, stressed the importance of time, cost of investing money and the benefits of entrusting money in different accounts.

Many young adults have limited knowledge on how to properly invest money for their future, and Davis seeks to inform as many people as he can on how to do so, Davis said.

“Money comes in and it goes out,” he explained. “Many cannot articulate much beyond having a general checking account.”

To improve one’s financial position, Davis recommends individuals seek out a financial advisor who can guide them on long-term investments. Also, individuals should ensure they live within their means and quickly eliminate debts to improve their long-term finances.

It is never too early for individuals to invest in their future, Davis added.

“The benefits to putting money away early is financial freedom,” he said. “You make sure your financial situation is secure by getting rid of debt and other expenses. In regards to investing, time in the market always beats timing the market.”

Senior Airman Guadalupe Flores, 59th Dental Group dental lab technician, already has his eyes on the future.

He is saving his money for his 30th birthday when he plans to take a trip to a location yet to be determined, he said.

After taking “Investing for your Future,” he has a greater understanding on how to improve his finances for future goals.

“I can make an informed decision and decide between the old and new system of investing my pay and decide which options are better for me,” said Flores, speaking about the options available to service members to invest their earnings using MyPay. “Every day I can look at my finances, and sit and write down my investment options.”

Two options readily available to military members include the Traditional Thrift Savings Plans and Roth TSP, which are a retirement savings and investment plans for federal employees. The difference between the two is that, for Traditional TSP, taxes are paid – including interest – when the funds are withdrawn from the account. With the Roth TSP, taxes are paid when the funds enter the account and thus the interest is not taxed.

Davis encourages members to look at their current situation and the future potential earnings when choosing either option.

For non-federal employees there is individual retirement account, which also has Traditional and Roth options.

Even though individuals may have earnings invested into one of those accounts, Davis advises them to have money stored in various accounts for expenses and emergency situations.

“Life is going to happen,” he said. “You might have to depend on that TSP and retirement money to pay a high unexpected cost and deplete your savings. It’s important to take care of your situation now, then focus on your future. If you have an emergency fund, budget your money and have a system where you’re saving money at the end of the month, then you’re going to be in a good position.”

For additional information on future seminars and other workshops offered at the M&FRC, call 210-671-3722 or 210-292-3543.