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'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.