From military to millionaire: Investment terms made easy - We Are The Mighty

From military to millionaire: Investment terms made easy

On this episode of From Military to Millionaire, David Pere breaks down the basic investing terms and concepts everyone should know.

To avoid confusion and missteps, get to know the basic terminology and concepts when you get started investing. Bonds are government or corporate-backed securities with guaranteed though not always with great returns. An index fund pulls a conglomerate of different stocks into a pool instead of having to choose individual stocks. Mutual funds are similar to index funds, though they are handpicked, and the fees tend to be higher. Cryptotokens are a new part of the stock market. They are extremely volatile, making them risky investments. Traditional and Roth IRAs and 401Ks are different kinds of retirement savings funds.

The time value of money refers to how much your money will be worth in the future if you invest it. Opportunity cost refers to what you’re missing out on by not investing when you’re young. The velocity of money refers to how fast your money compounds and comes back to you after investing. Compound interest refers to your money’s exponential growth when you keep it invested long-term.

KISS Investing stands for “Keep it simple, stupid.” Your investments will likely do best when you keep your strategies simple. It includes dollar-cost averaging, where you invest the same amount every month no matter the share price. It also includes investing long-term over short-term and choosing index funds over mutual funds.

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David Pere is an active-duty Marine who is on a mission to educate the military community about financial readiness. Most people hear that term and roll their eyes, but Pere wants everyone to know that readiness can be achieved – without a lot of effort. He teaches personal finance and real estate investing to service members to help increase savings and increase their chances of achieving financial freedom.

Want to learn more about Pere? Check out the Military to Millionaire website, and connect with him on Instagram or Facebook. Subscribe to his YouTube channel here! Take a look at David’s book – The No B.S. Guide to Military Life here.

Looking for more ways you can be financially strong? Check out what’s new on our Mighty Money page.

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