Posted on May 27, 2016
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Is Thrift Savings Plan a good tool to use?
Posted in these groups: 7a1e50f4 TSPFinance Finance
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CAPT Kevin B.
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First TSP and any other 401 is PART of a retirement plan. You'll need 3-4 streams to quit and not have a drop in pay. I did 10% for for 23 years in Civil Service. That number turned out to be big. TSP should be a no brainer because the first 5% of your contribution gets a 100% return every payday you put it in. If you want to "no brainer" it, the horizon funds are an easy way to go. Just remember it's a long term game. You can fire and forget and have much more at the end that your would otherwise. People should look at rolling the TSP into commercial management at 59 1/2. I'm seeing 3-4% better performance at the same risk as TSP. So what types of streams do you need? An annuity or two like military and something else. Social Security weighs in there too, but you'll want to defer that until 70 if the rules stay the same. And most MILs are entitled to some VA disability after getting knocked around 20-30 years. You'll hit a point where you don't want to or can't work anymore. You can go to most any WalMart and see elderly people working because they have to. So your choice is what do you want to be doing at age 60? Age 70?
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first I gotta live that long lol
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SFC Personnel  Sergeant
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Yes, if you are in the plan for the long haul it will give a retiree a nice nest egg. I was in the Army under that retirement system but have had dealings with civilian IRA. The problem I have noted is that many need cash for one reason or another "using the established rules for withdrawal" that cost you. I believe the minimum contribution is 3% of soldier's pay, which in 10 years will be a good start on that on funds for retirement
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Lt Col Jim Coe
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Yes. The earlier you start saving for retirement the better. Also, any plan where your employer puts money in along with you is a good idea. TSP offers several funds so your investments can be diversified. For advice on which funds to invest your TSP in try http://www.smart401k.com.
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