help with how to invest/ save some loan money

[*Meg*]

Df is getting career starter loan sometime in the next few months.
We want to put it away into some kind of investment or cd or something so that it can make some money and cover some of the interest.

I just do not know where to start. I have a few CDs and a high interest savings account. Is there anywhere else we could put the money?
TIA

[gunsgirl]

you could put it in a money market or a mutual fund- just depends on what you want to earn on it!

[itsalwaysme]

Is this the career status bonus they get at a certain number of years? Or an enlistment bonus?

[Rich Lunsford]

I’m delighted to hear that you are planning ahead for your financial future. Investing the starter loan is an excellent idea assuming you have the majority of your debts covered. If you want to look into short term investments to provide a financial safety net for life’s little emergencies, look toward Money Market Mutual Funds. They provide safety against loss and also a highly competitive interest rate. You can also access the funds in a time of need. After that, I recommend placing funds aside for planned large purchases in the future – things like down payments on a future home come to mind. Then take a moment to dream into the future when you will be retiring.

If you can qualify for a Roth IRA (which I’m fairly certain you can), consider an investment in your retirement. Check out some options if you wish at usaa.com under the investments tab and take advantage of the free advice from financial advisors on the phone. Do some planning to make certain you can pay back the loan when it comes due, but with his pay increases and sticking to the budget, this should not be a problem. Keep up the good financial management and congratulations on starting a terrific career!

Rich Lunsford is a CERTIFIED FINANCIAL PLANNERTM practitioner with USAA Financial Planning Services, one of the USAA family of companies. Rich holds the Series 7 and 66 securities licenses. Rich also holds the designations of Chartered Financial Consultant (ChFC®), Chartered Life Underwriter (CLU®), and CHARTERED RETIREMENT PLANNING COUNSELOR (CRPC®).

Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the United States, which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

[*Meg*]

Originally Posted by itsalwaysme Is this the career status bonus they get at a certain number of years? Or an enlistment bonus?

It is a career starter loan that all Midshipmen can get in their junior year at USNA.
Thank you Rich, I will definitely be calling the financial advisers.