‘I could honestly afford to put like 2k of that VA money into an account and it wouldn’t hurt me’: I received a 100% PT rating from the VA and need advice on investing wisely. How should I maximize this opportunity?

Hey Money Minder,

So, I just got a 100% PT rating from the VA and now I’m wondering how to make the most out of this money. My wife and I used to bring in good money from our full-time jobs. I’m nearly maxing out my current job’s deferred comp plan (457b), just a bit off from the limit per paycheck. I’m also building towards a pension with my job. On top of that, I don’t have to pay property taxes anymore thanks to the rating, so my mortgage dropped by $600 monthly. No major debts, just a paid-off car and a couple hundred on the credit card right now. I usually keep most of my savings in a high-yield savings account that gives me around 5% interest. I dabbled in stocks before but realized I didn’t have a clue, so I sold most and put everything into VOO. Should I continue with my savings account or invest more in VOO or another ETF? I could easily put about 2k of that VA money into an account without breaking a sweat. What do you think?

Thanks for the guidance!

Response from THE MONEY MINDER:

Hello There,

Congratulations on receiving a 100% PT rating from the VA, that is a significant achievement. It’s great to hear that you and your wife are financially stable with both of you working full-time and having good income. With the extra funds from the VA, it’s wise to think carefully about how best to utilize it. Given that you are already contributing to your deferred comp plan and working towards a pension, you seem to have a solid foundation for retirement.

With your mortgage payment reducing due to your exemption from property taxes, that is an extra boost to your finances. It’s fantastic that you have little debt and are already setting aside savings in a HYSA. Considering your experience with stocks, putting your money in a solid ETF like VOO is a smart move. It’s diversified and generally has lower fees compared to other investments. Since you are comfortable investing around 2k from the VA funds into an account, you could consider adding more to VOO or another ETF to continue growing your money.

In terms of your HYSA, it’s good to have some emergency savings there, especially given the uncertainties of life. However, with interest rates fluctuating, you may want to explore other investment options for long-term growth potential. Diversifying your investments across different asset classes can help spread risk and optimize returns. Remember to also consider your risk tolerance and investment goals when making decisions. Overall, it seems like you have a solid financial plan in place, and with the right considerations, you can make the most of your VA funds. Best of luck with your financial journey from THE MONEY MINDER.