Many veterans and service members receive VA benefits. Whether received in monthly payments or as a lump sum, these benefits can be a great help in meeting financial demands. They can also present challenges for someone who is not prepared.

Here are some tips from the U.S. Department of Veterans Affairs on saving and investing to help you for your current and future financial needs:

• Pay off high-interest debt: If you have high-interest credit card debt, consider paying that off first, since few investments will pay you the 15, 20, or 25 percent interest that credit and retailer cards can charge monthly.
• Set goals and make a plan: The best way to attain financial security is by saving and investing over a long period of time. Your VA benefits may help you achieve long-term financial security. You can use a savings goal calculator to see how much you need to save each month to meet your goals.
• Start saving and investing early: Starting on a path of saving and investing as early as possible can have tremendous long-term benefits. For example, if your goal was to save $500,000 for retirement at age 65, by starting at age 25 and investing in a mutual fund averaging 7 percent per year, you’d only have to save a little more than $200 per month. If, however, you didn’t begin saving until age 50, you’d have to save more than $1,600 per month to have $500,000 by age 65.
• Take advantage of employer-sponsored plans: If offered by your employer, take advantage of your employer-sponsored retirement plan, such as a 401(k) or 403(b). Your contributions are automatically deducted from your pay and often your employer also contributes a match. Furthermore, these plans provide tax advantages.
• Check out an investment professional: If you plan to use an investment professional, be sure to do a background check to make sure the person is licensed and registered. Be careful of scammers who may appear legitimate and try to convince you that they are trustworthy because they go to your church, live in your community, or are a veteran of your service.
• Be wary of investments that sound too good to be true: Claims that an investment is a “can’t miss” opportunity or promises “guaranteed” returns are classic warning signs of fraud. Also be alert to any promise of high returns with little or no risk. Never invest before you have a chance to review the opportunity and remember that no legitimate investment requires a rash decision.

U.S. Department of Veterans Affairs

U.S. Securities and Exchange Commission; Investor.gov