What percentage of your pay are you contributing to TSP?

2016-06-17T04:17:58-04:00

Roth? Traditional? What funds?

*I am contributing 44% of all pay into Roth TSP. I have contributions split 50/50 in S and C.

Response by TSgt David L. made Jun 17 at 2016 4:20 AM

2016-06-17T04:20:38-04:00

I put 5% of my regular pay and 35% of my special pay (Demo Pay) when I was active duty. I also bought 100 savings bonds from the 3rd year of service until I retired.

Response by SN Greg Wright made Jun 17 at 2016 4:30 AM

2016-06-17T04:30:15-04:00

Cmon, now. Answer your own question for those looking!

Response by Capt Tom Brown made Jun 17 at 2016 8:24 AM

2016-06-17T08:24:57-04:00

I always contributed or saved as much as I reasonably could. Since there was no formal savings plan in those days, that I was aware of, it was a monthly savings deposit which could go up and down depending on my situation at the time. With a dedicated amount a SM is stuck for a period of time, might be good to start off a little lower and make supplemental deposits if means permit. Hope you & others are able to continue yr savings throughout yr military career be it long or short.

Response by Sgt Tom Cunnally made Jun 17 at 2016 8:30 AM

2016-06-17T08:30:46-04:00

15% but I didn't start until I was 46 years old.. So I took to Day Trading when I was forced into early retirement by Loral in 1992 about 10 years later to try and make up for the lack of retirement funds.

Response by MSgt John McGowan made Jun 17 at 2016 9:52 AM

2016-06-17T09:52:23-04:00

If the TSP has a matching fund you put at least the amount to get the matching fund. Later you can adjust up as the promotions and more money starts coming in. But any matching funds is free money. I had a 401K where I worked and i always got at least that. As time moved on I increased the precent going to the 401K. You would be surprised at how many will not even sign up.

Response by Cpl Justin Goolsby made Jun 17 at 2016 9:55 AM

2016-06-17T09:55:49-04:00

When I was in, I set it up for 25%. I joined when I was older, so I played a little catch up. But I always lived within my means, so it was no big loss to invest in the future.

Response by MCPO Roger Collins made Jun 17 at 2016 10:08 AM

2016-06-17T10:08:40-04:00

There was no such thing when I joined the Navy and even then, while my initial pay was $77.10, I had a $50 bond taken out monthly. After retirement, I contributed the maximum allowable from my civilian pay. Hands down, Roth IRAs, invested in a good quality S&P 500 which has extremely low or no cost. All I can say is this strategy has served me well post retirement from the Navy and civilian private industry.

Response by CAPT Kevin B. made Jun 17 at 2016 10:53 AM

2016-06-17T10:53:00-04:00

I was Civil Service in the Reserves when TSP was invented. It's a no brainer to do 5% as that gets matched every pay day. However, I always did 10%. From '86-'13 that rolled up to a high six digit number. That stream which is now in commercial management provides 1/3rd of my income. Since I also had a MIL and CS full retirements with buyback on the CS side, I had to retire to get a pay raise. Bottom line, a good TSP contribution will give you about 1/3rd of what you'll want so you can do things when you retire.

TSP is traditional, not Roth unless they changed it the past few years. What you put in isn't taxed but when you take it out, everything is taxed as ordinary income. Roth flips that. There about 32 mix/match configurations you can go with or do a no brainer on an applicable Horizon plan.

Response by CPT Joseph K Murdock made Jun 17 at 2016 1:58 PM

2016-06-17T13:58:25-04:00

You gonna be rich if you do this for many years. What is the S and C?

Response by CDR Terry Boles made Jun 17 at 2016 3:16 PM

2016-06-17T15:16:34-04:00

I do not know the percentage but when I became capable of maxing the contributions I did. It took a long time to be able to contribute much of anything with life in the way, college age kids etc.

The TSP I do not think is a very good investment vehicle, seems like the returns are lower than elsewhere and you are limited to 2 transactions per month for investments. I suppose that could be good for those who simply want auto-pilot.

I still have concerns about this new retirement system which includes the TSP as a significant portion. Just thankful everyday I have the original retirement plan, final pay.

Response by Lt Col Private RallyPoint Member made Jun 17 at 2016 10:34 PM

2016-06-17T22:34:14-04:00

10% but when in deployed I put in 25%-35%. Tax free forever on Deployment contributions.... It also good to know that I'm not stuck with the new retirement system