View Full Version : Thrift savings program
http://www.tsp.gov/
This looked like a good deal. You can put in up to $15,000 a year. I was just wondering if anyone had done this? Any thoughts or opinions?
Scott
The Reaper
01-30-2007, 10:25
Yes, as soon as the option became available.
For most, that money comes right off your taxable income and is not taxed by the Federal government.
The funns are solid, if not spectacular performers.
I would suggest you contribute the max you can afford up to the 15K limit.
TR
Investment people will tell you to have a 'diverse portfolio' meaning you should invest in a number of different things. And in the TSP program you will notice there are a number of different funds to invest in. You may choose which percentage of your investment to place in each fund.
For a while, I chose to be diverse and invest equally across most funds. Then I noticed that the 'international fund' or I Fund, consitently and significantly outperformed the others, so now I have a preponderance of my investment in the I Fund.
There is an element of risk in doing this because investments can go up or down, having all of your eggs in one basket can really get you hammered if the fund takes a dive. So beware. Diversify, and watch your money on the table. Place your bets accordingly.
Invest as much as you can afford. You can elect to have special pays and bonuses invested differently than your regular pay. For instance, IIRC say you get a re-enlistment bonus, if you set up your TSP properly 100% of that money will go into whatever fund(s) you chose, thereby avoiding the higher taxes you would normally pay when you receive a bonus. If you simply received the bonus uncle sam will tax the shit out of it - unless - you received the bonus while deployed to a tax free combat zone.
spectre919
01-30-2007, 11:27
I am still investing in TSP and it's amazing how close the program is to comprable civilian investment and retirement plan.
I think it beats FC. At least you don't get the annoying phone calls 27 days out of the month!
Sacamuelas
02-02-2007, 13:37
Definitely worthwhile to use that benefit. The GOV matches up to 5% of your constributions with "free money" as well as the tax benefits you recieve by having the money come out of your pay pre-tax. There is also a great little loan program that you can utilize with the funds in your tsp account to make purchases at very low interest rates and end up "paying yourself" back the interest into your tsp account.
I always maxed out my tsp withdrawal from my check. It will pay off in the long run. :cool:
The Reaper
02-02-2007, 13:39
Definitely worthwhile to use that benefit. The GOV matches up to 5% of your constributions with "free money"
Not as a soldier, unless something changed very recently.
He is not a DA civilian.
Good advice, otherwise.
TR
http://www.tsp.gov/
This looked like a good deal. You can put in up to $15,000 a year. I was just wondering if anyone had done this? Any thoughts or opinions?
Scott
The TSP is good if you are eligible for matching funds (only for DA civilians as Reaper noted). Outside of that there are better alternatives out there for investors to use. The TSP has some of the lowest expenses you can ever hope to find which is a big plus, but their investment options are mediocre at best and have struggled to compete with their respective benchmarks.