Have you asked yourself why should you invest your hard earned money? Well, unless you hit the lottery or inherit millions of dollars you could be like the many service members who separate or retire from military service and have no nest egg for their final retirement.

Service members have the opportunity to invest using Bonds, Thrift Savings Plan, and the Saving Deposit Program.  These investment tools if used and taken advantage of, will give the service member the opportunity to be prepared for retirement and provide for their family.

The federal government-sponsored retirement savings and investment program is similar to a civilian 401K tax-deferred program. In Thrift Saving Plan (TSP), military personnel can contribute money from their basic pay and special, incentive, and bonus pay without paying federal or state taxes.  Taxes, if any, are not paid until the money is withdrawn.

TSP is a voluntary program, which requires service members to fill out enrollment forms to participate.  Service members can choose to contribute up to 7 percent of their basic pay to TSP.  A percentage of basic pay must be contributed in order for service members to be able to contribute special, incentive and bonus pay.

The bottom-line is, if you plan on separating or retiring from military service any time soon, take a moment and review your investment options and do not be afraid to plan ahead.