I am turning 50 in a month and have no savings or investments, due to injuries I suffered on my last tour in Iraq and the ensuing fight between the military and my civilian job to pay me while recovering. As a result I went without pay for several years and burned through our savings and investments, before ultimately filing for bankruptcy to save our house and keep up with our bills. I was finally medically retired from my civilian job and took an early retirement from the military. I am 70% disabled through the VA and I am finally working again. So I want to figure out how I can invest and save to have money for my kids weddings, school and inheritance once we are gone. My term life insurance policy expires in 10 years as well. So I am trying to figure out what kind of life insurance I should go with, what kind of investments will allow me to build wealth quickly to leave something for my kids when we are gone and what will grow quickly, but also allow me to draw off it for weddings or school or whatever.
I appreciate your question and you are not alone as many have gone through similar circumstances. First of all, let me say THANK YOU for your service. Not everyone realizes how much military service can affect a person financially. Let me provide two recommendations. Firstly, given the complexity of your situation, I recommend seeking financial advice with a financial advisor who can do an in-depth review of your entire situation. My second recommendation is that with their help, you need prioritize your cash flow. After being out of work for a few years, having no savings, and filing for bankruptcy, you have essentially lost your financial foundation and by following the order listed below, you can help reestablish it. Create and follow a budget/savings plan that accomplishes the following:
By following the order we just discussed, it will help reestablish your financial foundation and eventually enable you to accomplish the wedding, school, and legacy goals that you mentioned. The financial advisor will also be able to help customize an investment plan that matches your goals, time horizon, and risk tolerance.