Recently joined the navy with a significant significant sign-on bonus and 20k in savings. My current living situation allows me to easily save over 50% or more of my paycheck for retirement. I’ve read “Simple Path to Wealth” by JL Collins and “Military Money Manual” by Spencer Reese. I’m convinced I want to go the FIRE route and begin saving now for financial independence. How can I make the most of my savings/ bonus, in addition to my paycheck, to set myself up for success in the future. Obviously I will max out my TSP-C contributions and Roth contributions but what after that? All help would be appreciated, no debt or family that is currently draining funds.
Assets Allocation to maximize Nest Egg
byu/SteamGenerator03 inMilitaryFinance
Posted by SteamGenerator03
1 Comment
The part that (I feel) people always miss with this is goals. Between now and retirement there’s a lot of stuff. Buy a house? Buy a fast car? Save for a kids college etc.
For now, barring any details, I would suggest you set some intermediate and realistic goals. You mentioned that you’re maxing your Roth contributions (which I assume is your IRA?). If you have 3-5 months in savings, open a taxable brokerage account with the same place that has your IRA. I keep my savings in their money market account (just like an intermediate hold account that is still earning >5% interest) and the rest I put in index funds.
If I need the money within 5 years then it goes into money market, if more than 5 years then it gets invested. That’s why the goals help
Other than that, take the navy for all it’s worth. Get the deployments, use TA for additional degrees. Volunteer for some of the trainings that look great on a resume
You’re in an incredible spot!