Posted on Oct 27, 2018
Is it worth it to contribute to Roth TSP if you dont plan to retire with the Army? And reserve...what's your recommended percentage?
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Posted 6 y ago
Responses: 4
Yes, because you can always transfer it. But you should learn about it first. The first thing you should is get plan. I am a fan of the Dave Ramsey Baby steps. once you are at a point to save for retirement then you should save upward to 15% of your pay for your retirement.
https://www.daveramsey.com/baby-steps
https://www.daveramsey.com/baby-steps
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Whether you choose BRS, TSP or an out side method beginning to save for retirement early is better than nothing. You should first be making sure you have your emergency fund established which should generally be 3-6 Months worth of Net income and then start preparing for retirement as soon as possible. It is generally recommended to be saving 5-10 percent of income for retirement.
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Absolutely. The Army will match if you're on the blended retirement. If you don't plan on retiring and you're not on the BRS then you're throwing free money away.
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SFC (Join to see)
SPC (Join to see) everyone gets TSP, it's just a big mutual fund that you can invest in. BRS gets matching from the Army the longer you're in, so that's free money.
The BRS isn't better at all. It's designed for everyone to walk away with something. High 3 is designed so that retirees get a healthy retirement and everyone else gets nothing. In the Army only 1 in 8 people will stay till retirement, so approximately 87% of Army will separate with nothing to show towards retirement.
BRS does matching plus there is a continuation pay incentive at 12 years worth about $10k and when you separate you can take a lump sum payout to start a new business.
Which is best for you is a highly personal question depending on your long range plans. There is a BRS comparison calculator on the DFAS website. If you don't plan to stay 20 years to retire, then you should be in the BRS.
Yes you definitely get less with the BRS, which is why it's optional for you to switch. Everyone who entered service 2018 gets BRS.
The BRS isn't better at all. It's designed for everyone to walk away with something. High 3 is designed so that retirees get a healthy retirement and everyone else gets nothing. In the Army only 1 in 8 people will stay till retirement, so approximately 87% of Army will separate with nothing to show towards retirement.
BRS does matching plus there is a continuation pay incentive at 12 years worth about $10k and when you separate you can take a lump sum payout to start a new business.
Which is best for you is a highly personal question depending on your long range plans. There is a BRS comparison calculator on the DFAS website. If you don't plan to stay 20 years to retire, then you should be in the BRS.
Yes you definitely get less with the BRS, which is why it's optional for you to switch. Everyone who entered service 2018 gets BRS.
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SPC (Join to see)
Yep I get BRS automatically since I only recently entered service, but my soon to be husband entered service before 2018 however he is reserve, not planning on switching, from what I understand it’d be based on promotion points instead of the 20 years requirement, then idk if it’s worth it for him to stay in high 3, considering if he gets out less than the promotion points needed as reserve, BRS would be better...least he would walk away with what he contributes AND what they match...
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SFC (Join to see)
SPC (Join to see) it's based on retirement points, not promotion points. You get a certain number of retirement points for a "good year" and can add additional points as well. At 20 "good years" he can request retirement but he won't draw it till retirement age. If he attends drill and AT every year, he meets the requirements for a good year. The amount is based on his retirement points. I suggest you try the comparison calculator on DFAS.
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SPC (Join to see)
Sorry I meant retirement points! I will definitely tell him to use that to see where he’s at and which plan he should go with, thank you for your help!
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