You’re young, and life — with all its possibilities — lies ahead. But student loans are still lurking. You’re trying to adjust to living on your own without pulling out your credit card every five minutes. You’ve thought about buying your first place, but you don’t know if it makes sense. And you know you’re supposed to be funding your 401(k), but with retirement decades away, you’re not really sure why.
If this sounds familiar, you’re probably just Getting Started with your financial life. Sorting it all out can be daunting, but a First Command Financial Advisor can help.
Often that help begins with the products and services offered by First Command Bank. Like a low-interest loan to consolidate your debts, reducing the interest you pay and simplifying your debt management. A competitive, no-fee credit card with free rewards. And the convenience of online banking and bill pay to make your everyday cash management simple.
Making the commitment to save and invest while you’re still paying off debts and getting your career off the ground isn't easy. But it's worth the effort. A simple but powerful principle called compound interest reveals time to be an important part of the investing equation. For example, assuming a 7 percent annual rate of return, every dollar you invest at age 25 will grow to more than $16 by the time you're 65. But if you wait just 10 years to begin investing, that same dollar, at the same rate, will grow to only a little over $8.
But what should you invest in? For most people, the retirement plan offered by their employer is a smart choice, thanks to tax advantages and matching dollars. Money deducted directly from your paycheck and invested in a 401(k) or other retirement plan isn’t subject to federal income tax until you begin withdrawing it — typically years later — and earnings grow tax-deferred. And many employers will match a percentage of your contribution up to a specified maximum.
Still, the investment options offered by your employer and the rules associated with retirement plans can be confusing. Your First Command Financial Advisor can provide the guidance you need while integrating your employer-sponsored retirement program into a comprehensive financial plan tailored to your goals and dreams. And you can track your progress toward your goals with First Command’s interactive tools, like My Financial Journey™, a great way to stay informed and motivated.
Insurance is typically sold to us by someone who has little knowledge of the details of our financial lives. And typically, “one size fits all” decisions are made for us.
But your insurance needs are as unique as your financial situation, risk temperament and long-term goals. Your Financial Advisor can help you develop a personalized insurance strategy — supported by the auto, homeowner’s/renter’s, liability, life, disability income and other coverage you need — to protect the things and provide for the people most important to you. This strategy is a vital part of a financial plan, and by developing it with your Financial Advisor, you can enjoy the convenience of consolidating your financial planning under one roof.
Summing it up
You can choose from either of two paths when Starting Out in your financial life: Buy financial products piecemeal from separate providers who understand little about your goals, or work with a knowledgeable Financial Advisor who’ll help you develop and implement a comprehensive plan to pursue those goals. At First Command, that’s our mission. To learn more, contact a trusted First Command Financial Advisor today.