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Modernization would increase flexibility and options to make TSP a better tool after government service is ended.
http://www.govexec.com/pay-benefits/2015/07/tsps-future-flexible-withdrawals-and-mutual-fund-options/118622/
What are your thoughts on the changes?
http://www.govexec.com/pay-benefits/2015/07/tsps-future-flexible-withdrawals-and-mutual-fund-options/118622/
What are your thoughts on the changes?
TSP
Money
Retirement
Investing
Posted >1 y ago
Responses: 9
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Unless you are maxing out your Roth IRA contributions, the TSP is not worth it. You will be taxed when you withdraw it. When I withdraw from my Roth, all the growth is tax exempt. TSP would be better if the government matched contributions for service members like they do for DA civilians.
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LCDR (Join to see)
We definitely need better options. I've currently got a little over $25K sitting in my TSP not doing a damn thing!
We definitely need better options. I've currently got a little over $25K sitting in my TSP not doing a damn thing!
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Suspended Profile
But is that a factor of the investor or the investment choices? I am not eligible for a TSP, so I don't know what limitations there are, but obviously if you leave it in a savings account it's going to gather dust...
SFC Michael Jackson, MBA
LCDR Rabbi Jaron Matlow - you're right, it'll gather dust. However, it's not a bad thing to have some funds as a safety net. It's soften the blow in a crisis. As you understand, you're protecting the funds, it's just of your portfolio, and it's not intended/expected to be wealth-building account. It works.
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Suspended Profile
Got, thanks...
PO1 John Miller
SFC Michael Jackson, MBA
I'm retired from the military so all I can really do with my own TSP is roll it over to a 401(K) or IRA type account. If I ever get a civil service job I believe there's an option for me to "roll over" my TSP funds into the government civilian TSP program.
When I was on active duty I invested strictly in G funds.
I'm retired from the military so all I can really do with my own TSP is roll it over to a 401(K) or IRA type account. If I ever get a civil service job I believe there's an option for me to "roll over" my TSP funds into the government civilian TSP program.
When I was on active duty I invested strictly in G funds.
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Any time they provide you more options, it better. But to echo another, education on how to use these options is necessary for each individual. Don't wait for someone else to teach you, research on your own and learn.
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LCDR (Join to see)
MSgt (Join to see) Agreed! In addition to researching on our own, I think we need to actually provide some standardized training on how TSP works which seems to be a mandated part of the potential new retirement system. Perhaps that training should be a standalone requirement aside from the retirement changes.
I personally have advised many Sailors and Marines on what TSP can do and how it can help, but even several senior officers I have spoken with didn't really understand how it works.
I personally have advised many Sailors and Marines on what TSP can do and how it can help, but even several senior officers I have spoken with didn't really understand how it works.
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