Military and investing

Asked September 3, 2013, 8:30 PM EDT

A service member wants to start investing. What steps should she take to get started?

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1 Response

First, she should decide what her goal is – for example, saving for retirement or saving for a down payment on a home. Second, she should look at her monthly budget and decide what amount of money she can invest each month. Third, she should consider what her investment philosophy is. An investment philosophy is essentially her risk tolerance. Risk tolerance is an investor’s willingness to weather changes in the value of investments. Her tolerance will help her decide how she should invest her money to achieve her financial goals.To help this service member assess her risk tolerance, try this “Investment Risk Tolerance Quiz” at njaes.rutgers.edu/money/riskquiz/.