Does your unit ever discuss about TSP and Money Management?

2016-02-24T16:21:10-05:00

I have yet to have a formal class about TSP, the importance of saving for retirement and how to not blow my paycheck on needless items.

Response by SFC David Davenport made Feb 24 at 2016 4:25 PM

2016-02-24T16:25:43-05:00

In theory your first line supervisor should give you financial counseling periodically. Your other resource on post for TSP should be the S-1 or if you have one the CFNCO (Command Finance NCO) of your BN. You are certainly in the majority with not receiving financial advise from the military. I suppose you could try ACS as well.

Response by Capt Private RallyPoint Member made Feb 24 at 2016 5:03 PM

2016-02-24T17:03:51-05:00

These classes are often offered by USAA and other financial volunteers who come to the base. It falls upon the command to ensure that opportunities like this are used in addition to their regular unit financial counseling, though these special classes can sometimes conflict with exercise commitments. I even had my geographically-separated company (reinforced) arrange for one of these classes. If you'd really like a formal class on finance, and I definitely agree on the need for such classes as we've all had the "new join horror story on bad financial decisions", just ask your platoon leadership. It'll be easier to make the case and bring it to the attention of the right people if there's a bottom-up demand for this type of professional military education.

Response by CAPT Kevin B. made Feb 24 at 2016 7:47 PM

2016-02-24T19:47:09-05:00

You're on the right track if you put 10% on a horizon plan 2040. Feds match the first 5. TSP doesn't have that many mix/match but the horizon that becomes less risky over time is a good option that you don't have to think about tinkering with. The reason I say 10% is by the time you're 59 1/2 and can roll it into the commercial sector, it will be a very nice chunk of change if you contribute all your working life into it or similar 401.

Response by MAJ Ken Landgren made Feb 24 at 2016 10:07 PM

2016-02-24T22:07:09-05:00

The problem is there are a lot of concepts at play and computations. The training should understand:
1. Time horizon for the investment
2. Time value of money
3. What is diversification
4. Describe every fund to include historic prices
5. Roth vs. Traditional TSP
6. Projections for case studies

Response by LTC Peter Hartman made Feb 25 at 2016 10:30 AM

2016-02-25T10:30:33-05:00

The TSP is awesome. When I was enlisted the NCOs were pushing T-Bills. I don't think that I made all that much off of them, but I cashed them out to pay bills when I was studying for the bar exam.