Non-retirement investment options
Call Toll Free USAA. We've detected that your internet connection might be slow. To quickly access your account, pay bills, transfer funds and more, we suggest using mobile. At one time, every investor was a newbie. If that's you, we've got you covered. Use this simple guide to get ready, get set and get going. Before you invest, educate yourself and take an honest look at your finances. You can't invest if you haven't taken care of these essentials.
There are three basic investment accounts, but many different types of investments.
Find which ones work best for you. A mutual fund is not a specific investment. Think of it as a company that pools investors' money and puts it into stocks, bonds or other types of investments. Consider the investment objectives, risks, charges and expenses of the USAA mutual funds carefully before investing. Download a prospectus containing this and other information about the funds from USAA Investment Management Company, Distributor. Read it carefully before investing.
You could lose money by investing in the Fund. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of certain market conditions or other factors. An investment in the Fund is not a deposit in USAA Federal Savings Bank, or any other bank, and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
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Military Life Joining the Military Deployment PCS Leaving the Military Blended Retirement System. Advice Libraries Articles Infographics. What can we help you find today? Log On Online ID Password Log On. A Rookie's Guide to Investing. Print At one time, every investor was a newbie. READY Create Your Cushion — Keep three to six months' living expenses in a money market or savings account for emergencies. Pay Down Debt — Pay more on credit cards than the monthly amount due, and tackle ones with the highest interest rates first.
Take Free Money — Invest enough in your employer's retirement plan to get any matching dollars offered. Max It Out — Put the most amount allowed by law into an Individual Retirement Account. Know Your Spending Habits — Track your spending and cut out the extras so you can free up cash for financial goals. Pick up a book or magazine about money or read a prospectus to learn as much as you can about money and investing. Certificates of deposit CDs and money market funds may be best because they tend to have lower risk than other types of investments.
Of course, an investment in a mutual fund, unlike a CD, may fluctuate in value and you could lose money investing in the fund. Want to retire by age 60? That would likely call for something more aggressive, such as stock or bond mutual funds. These typically have higher returns but incur greater risk.
SET There are three basic investment accounts, but many different types of investments. Investment Accounts WHAT'S A MUTUAL FUND? Employer-Sponsored Retirement Plans — These allow you to save and invest without much effort. They're funded by deducting a certain amount of money from your paycheck before taxes are calculated.
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The investment grows tax-deferred, which means you don't pay taxes on the funds until you withdraw them. The k , b , , and Thrift Savings Plan for federal employees and the military are all examples of this type of plan.
Some companies offer a match up to a certain amount. Never leave that "free money" on the table. Individual Retirement Accounts — The two most common types of IRAs are traditional and Roth. A traditional IRA may offer certain investors annual tax breaks for contributions. A Roth IRA offers no upfront tax break for money you contribute. With a Roth IRA, withdrawal of contributions are always income tax free.
Both accounts grow tax-deferred until you take out the money. Non-Retirement Accounts — These are simply brokerage, bank, or mutual fund accounts held in your own name. They receive no special tax treatment and provide no tax breaks but are always available.
These types of accounts could be used for a down payment on a house or potentially to build up a pool of funds. Investment Types Money Market Fund — A type of mutual fund required by law to invest in low-risk, short-term debt instruments.
A money market fund seeks to preserve principal and pays dividends that generally reflect short-term interest rates. Bonds — A type of debt. When you buy a bond, you're lending money to a government, city, town, or corporation. In return, you receive specified interest payments and the value of the bond, known as the principal, when it matures or comes due.
Stocks — A share of ownership in a company. Companies raise funds by selling shares of stock. How well the stock does depends on how well the company performs, overall market conditions, and other factors.
Generally, newcomers should avoid buying individual stocks. Picking a winning stock can be risky even for experienced investors. GO When you're ready to take action, follow these steps: Treat Investing As A Bill — Set up a system so that money is automatically moved from a checking or savings account into the investment of your choice. Of course, systematic investing plans do not assure a profit or protect against loss in a declining market.
Know How Everything Fits Together — The less time you have to invest, the less risk you may want to take. If your goal is less than three years away, a certificate of deposit or money market fund may be worth considering. For longer-range goals, such as retirement or saving for a child's college education, consider stock mutual funds. Visit Web sites such as morningstar.
Investing for Non-Retirement Savings Goals — Oblivious Investor
Ask friends for referrals or consult professional organizations such as the Financial Planning Association at fpanet. Related Calculator Portfolio Planner Let us recommend an investment portfolio for you Calculate Now.
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