Well, my goal is when I retire @ 20 years to get 75% of my High-3, not 50%. So the simplest method I figured out was to shed 10% of your monthly income into, at least, 5% CDs.

Is it a good plan or there is some better ways to save?

You will find that mutual funds that produce growth and income will increase your net worth faster than inflation. Reinvest the dividends. If you invest via an IRA or other tax advantaged account, then you do not pay taxes as you earn the money - but as you use it. The problem is that you can not touch the money when you retire from the military.

You will still have a lot of life and career ahead of you at 20 years, so you will probably look for another job. That will give you 20 more years to save.

You may also wish to contact "Deleted"
Even if he does not take you on, as a client, he may be able to direct you, in the right direction!


Edited for content-USMCvet

This message has been edited. Last edited by: usmcvet,

I hate CDs. But if you want to put your money in CDs, try to use CD laddering. You want to max your interest rate by using 5-year CD. But you don't want to put too much into one deposit. because if you break the agreement, there's usually (if not always) a penalty. My bank imposed half the interest as the penalty.

This is how it works. Let's say you have $1,000 to deposit into a CD. Instead of putting all of them into one CD, you want to break them into $200. Then deposit:
$200 for 1-year CD (matures in 2008)
$200 for 2-year CD (2009)
$200 for 3-year CD (2010)
$200 for 4-year CD (2011)
$200 for 5-year CD (2012)

And then when the first mature in 2008, you put that into a 5-year CD (mature in 2013). And then you want to repeat the same thing with the next and on.

This way you don't put ALL of your money into one deposit.

I hope this helps since it's already October.

Check out tax lien certificates. I have invested in tlc in AZ for over 6 years. I average 16% annually, and have never lost money no matter what happens in the stock market.

A couple good ideas in this thread liek the Cd and Tax Liens also if you are younger and have time you can do the mutual funds or the stock market. which take time but over the long hual is well worth it if you want a good website for the stock market where you can invest small let me know