USAA (United Services Automobile Association) has provided its members with insurance and other financial services for more than 100 years. A group of U.S. Army officers formed the company in 1922 because they couldn't get auto insurance due to the belief that military members were a higher-risk group. It has been serving military members and their families ever since.
The company has expanded beyond auto insurance to provide other financial services to its members, including banking services and investments, such as mutual funds, retirement plans, and savings plans, like 529 plans. However, its commitment to providing quality financial products and services to members of the military (retired and active duty) and their families hasn't changed over the years. Its membership focus stems from USAA being a member-owned company.
Today, USAA serves more than 14 million members. You might be one of them and wonder how to invest in the company. Here's a look at everything you need to know about investing in USAA.
529 Plan
How to buy stocks similar to USAA
People who want to invest in one of these publicly traded insurance companies can purchase shares in any brokerage account. Here's a step-by-step guide on how to invest in stocks.
- Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Shareholder
Once you complete the order page, click to submit your trade and become a shareholder in one of USAA's competitors. If it ever goes public, investors will follow a similar process when buying an IPO stock like USAA. If shares become available, fill in your brokerage account's order page with the insurance company's selected stock ticker and submit your trade.
The bottom line on USAA
USAA has provided its members with insurance and other financial products and services for more than 100 years. The member-owned company has a member focus. While not everyone is eligible to become a USAA member, anyone can invest in the insurance industry through a publicly traded insurance company or insurance-focused ETF.
Even though the sector has faced some stiff headwinds since the COVID-19 pandemic, which has affected its profitability, like USAA, many insurance companies are returning to profitability. The sector could make investors more money in the future through growing dividends and stock price appreciation.
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