Posted on Feb 12, 2021
Does the army match a certain percent with the TSP?
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Posted 5 y ago
Responses: 3
If you are enrolled in the Blended Retirement System, yes. If you're legacy retirement, no. But TSP is still a great retirement vehicle because it's almost free of maintenance fees and you can borrow from it without penalty
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Yes and I would recommend pitching in the percentage from your paycheck the military will match. It’s free money. If you are in the reserves/guard then I would also recommend throwing in up to what your employer will match for your retirement. I would also suggest taking extra and putting it into a Roth IRA because it’s tax free when you pull it out. I always increase my retirement contributions to my Roth when I get a step raise in the VA or in the military when I get a promotion.
Compounding interest is one of the most powerful things in the world.
Compounding interest is one of the most powerful things in the world.
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The fuller answer is yes, up to a point. You can Google this stuff for the basics. Like the Federal FERS for civilians, the MIL side chips in the first 1% and will then match what you do up to 5%. This should be the easiest no brainer. You make around 90% return instantly every payday and it grows from there. Beyond that it's up to you. There is a yearly changing cap as to how much you can put in which I think is around $19 grand. Now for what Google won't tell you. You will age. You will hit a point where you don't want to or can't work anymore. So the questions is, how do you want to be set up when you reach that point? Set for yourself the goal of getting a monthly pay raise when you quit at say 60. You can do it, but will need more than a single annuity and a single TSP to reach that goal. Looking at my path, two career annuities and a properly managed 401. Where did my TSP go? Currently at 59 1/2 years old, you can move all of your TSP out into commercial management. Plan on doing that because with the many thousands of mix/match things that go on, you'll get about 2% more earnings at the same risk. If Social Security still clicks along at around 8%, defer that and work your 401 down. Then turn on Social Security. Or maybe Social Security will be bankrupt when you need it. Who knows? Consider getting into other things that grow like real estate. If you rent, you're throwing money away. If you timeshare, you're throwing money away. If you buy a new car vs. a 2 year old car, you're throwing money away. Money that's thrown away can't make you money. Make money your friend. Good luck.
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Sadly I’m fairly certain social security won’t be there when it’s time for me to draw it.
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