;MARINE CORPS RECRUIT DEPOT/EASTERN RECRUITING REGION, PARRIS ISLAND, S.C. -- -- Marines looking to make an extra buck are learning that money can multiply simply by putting it in the right spot.
Staff Sgt. Michael Buckles, Instructional Training Company testing SNOIC, is one of them.
"[I'm] preparing for the long haul," said Buckles. "I want to be financially independent."
To do so, Buckles is investing small amounts of his paycheck into mutual funds. A mutual fund, otherwise known as an investment company, is a corporation which pools together investor's money to purchase stocks and bonds. The value of the fund rises and falls with the value of the stocks and bonds in the fund. It's one of the many ways people can invest their money.
Anyone interested in making money has the potential of putting the money they already have to work. The general goal of any investment is to earn interest, or increase the value, on the initial amount you invest. For example, a $100 investment earning an annual interest rate of six percent will be worth $106 in a year. That's $6 earned without lifting a finger.
The first step in any investment plan is to establish how much money you have to play with.
"[Investors] should sit down and develop a budget and determine the amount the have for investing," said Becky Radford, Depot financial management counselor. "As pay increases come [through promotions], add that to the investment."
Establishing a goal, whether it's retirement, a new car, buying a home or a great vacation, is the second step. Without a goal, investors have no standard to reach for, but they shouldn't be afraid to change goals as their life circumstances also change.
"It's the type of thing you constantly reevaluate," said Radford. "You will have to do that when pay increases or decreases."
The next step is to create an investment plan and follow through with it. Take a look at the American Savings Education Council savings tools - financial planning calculators that help you figure out how much you'll need and how to get there at www.asec.org.
For retirement planning, take advantage of tax-deferred investment tools such as the Thrift Savings Plan or a 401(k), which allow you to contribute pre-tax dollars to an investment plan. The Thrift Savings Plan has a feature that will allow even those who don't plan on spending 20 years in service - once a service member leaves the service, he may roll over the funds put into the Thrift Savings Plan into an IRA, said Radford.
You can invest your money in a wide variety of savings instruments, from low-risk, low-interest savings accounts to high-risk, but potentially more profitable, investments such as individual stocks.
Information resources are widely available. Potential investors can contact a command financial specialist or a financial counselor at Community Services, or look at the Securities and Exchange Commission Investor Information at www.sec.gov.
The key to wise investing is time. The longer your investment accrues, or gains interest, the more money you'll earn toward your goal and the more flexible you can be with the amount you invest. The earlier you start, the faster your money will grow.
"I wish I would have done this when I was 18," said Buckles.
The amount you can regularly save and invest will depend on your income, expenses, and debts, said Radford, but you can make investing a habit by establishing an allotment or an automatic bank withdrawal.
If you're having trouble making ends meet or stretching your paycheck each month, try visiting Financial Counseling or the Navy-Marine Corps Relief Society. Both can help you develop a budget and can provide help to get you back on your feet.
While it's never too late or too little to start investing, be aware of potential pitfalls that may affect your long-term plans. Be wary of financial advice from investment sales representatives - they may not have your best interests in mind.
"Always be mindful for scams," said Radford. "There's always someone trying to get rich quick. Always read the fine print."
Before handing over a dime, ask about any management, administrative, or service fees associated with your chosen investment. These fees can eat up your money. Don't let a good sales pitch or a clever brochure disguise a bad investment. If you're not sure about a financial product, don't rush into it. The SEC's Investor Alerts describe common investment scams.
With a little research, a bit of preparation, and the discipline to stick to your investment program, you can do more than imagine - investors can safeguard their financial future.