The cost of TSP for an E-3 with 4 years in.
Moderator: Aitrus
The cost of TSP for an E-3 with 4 years in.
Hello everyone, I'm a DoD civillian and a HUGE believer in putting in to the TSP.
I work with 5-6 airmen who plan on doing 20 and don't currently contribute to their TSP.
I know when I up'ed my TSP 2% after my last pay raise, it only cost me 30$ less a pay peroid, yet I gained over 130$ extra in retirement due to it lowering my taxable income, and the TSP matching.
does anyone know off chance how much REAL money (that is how much less ) an E-3's paycheck would be if they were to contibute 2%??
Thanks in advance, I hope to talk them into saving for their future if it makes sence on paper
I work with 5-6 airmen who plan on doing 20 and don't currently contribute to their TSP.
I know when I up'ed my TSP 2% after my last pay raise, it only cost me 30$ less a pay peroid, yet I gained over 130$ extra in retirement due to it lowering my taxable income, and the TSP matching.
does anyone know off chance how much REAL money (that is how much less ) an E-3's paycheck would be if they were to contibute 2%??
Thanks in advance, I hope to talk them into saving for their future if it makes sence on paper
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- Posts: 12
- Joined: Sat Apr 24, 2010 5:21 pm
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- Posts: 12
- Joined: Sat Apr 24, 2010 5:21 pm
Program for a .rar file?
I downloaded the "Net Pay Calculator" and tried to open it up but it doesn't open. I tried to play with different programs and it still isn't opening up. Any ideas? Thanks in advance
~Bryan
~Bryan
Re: The cost of TSP for an E-3 with 4 years in.
Sir,
I'm not sure about the increased value but I can tell you that TSP has the lowest management fees in the entire mutual fund industry. I served 26 years in the military and I can tell you nothing beats TSP when it comes to cost. Vanguard Mutual Funds may come a close second but TSP wins out everytime. Your young enlisted members are only hurting themselves by not contributing to TSP, mainly for the tax advantage - TSP with its pre-tax advantage is something that helps them regulate their tax contributions while at the same time contributing to their retirement. If they choose not to participate in TSP I would tell them to look into an IRA either Traditional or Roth, which ever is best for their own situation - but they should be doing something...time is ticking and you don't get back.
I'm not sure about the increased value but I can tell you that TSP has the lowest management fees in the entire mutual fund industry. I served 26 years in the military and I can tell you nothing beats TSP when it comes to cost. Vanguard Mutual Funds may come a close second but TSP wins out everytime. Your young enlisted members are only hurting themselves by not contributing to TSP, mainly for the tax advantage - TSP with its pre-tax advantage is something that helps them regulate their tax contributions while at the same time contributing to their retirement. If they choose not to participate in TSP I would tell them to look into an IRA either Traditional or Roth, which ever is best for their own situation - but they should be doing something...time is ticking and you don't get back.
Re: The cost of TSP for an E-3 with 4 years in.
joeholcor is absolutely correct. In addition, for newer members of the military with lower salaries, they can use contributions to the TSP and/or an IRA (Traditional or ROTH) to get a qualified retirement savings credit on their taxes (Form 8880). Your can get back up to 50% (if I remember correctly) of what you contribute up to $2,000 (i.e. $1,000 credit) or what you owe in taxes. I never paid a cent in federal taxes my first 3 years in and had my tax liability greatly reduced until I made too much over the limit to be qualified any more.
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