The Military Money Manual Podcast LADS Principle: Low-Cost, Automatic, Diversified, and Simple #158
Low-cost, Automatic, Diversified, Simple (LADS). Consistent, automatic savings poured into my simple and diversified index funds at low costs have been the cornerstone of my successful investment portfolio.
Low-cost: Select low-cost index funds with low-cost expense ratios. All of the funds in the TSP meet these criteria and many Vanguard funds do as well.
Automatic: Set up automatic contributions from your military paycheck to your TSP. Then, set up automatic withdrawals from your checking account to your IRA. Invest monthly or after every paycheck. If you receive a lump sum payment, like a bonus, invest it as soon as possible.
Diversified: Don’t buy one company’s stock. Buy stocks from many companies through index funds.
Simple: Never invest in anything you don’t understand. If you can’t explain it to a five-year-old, it’s too complicated. Buy income-producing assets like stocks, bonds, and real estate.
Links:
- Military Money Manual book (promo code "podcast" for discount)
- Our favorite financial independence books blog post
- SPIVA Scorecard from S&P Global
- Chart to show how much to invest to max your TSP this year
- Projection Lab (military discount)
- Jack Bogle's post on stock market vs funds vs investor returns
- Military Financial Advisors Assocation (MFAA)
- Nectarine (military discount)
For a limited time, Spencer is offering one-on-one Military Money Mentor sessions! Get your personal military money and investing questions answered in a confidential coaching call.
Our new TSP course is live! Check out the Confident TSP Investing course at militarymoneymanual.com/tsp to learn all about the Thrift Savings Plan and strategies for growing your wealth while in the military. Use promo code "podcast24" for $50 off. Plus, for every course sold, we'll donate one course to an E-4 or below- for FREE!
If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual or email podcast@militarymoneymanual.com.
If you want to maximize your military paycheck, check out Spencer's 5 star rated book The Military Money Manual: A Practical Guide to Financial Freedom on Amazon or at shop.militarymoneymanual.com.
I also offer a 100% free course on military travel hacking and getting annual fee waived credit cards, like The Platinum Card® from American Express, the American Express® Gold Card, and the Chase Sapphire Reserve® Card in my Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3.
Learn how to get your annual fees waived on premium credit cards from American Express in the Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3.
The Platinum Card® from American Express and the American Express® Gold Card waive the annual fee for active duty military servicemembers, including Guard and Reserve on active orders over 30 days. The annual fees on all personal Amex cards are also waived for military spouses married to active duty troops.