The cost of TSP for an E-3 with 4 years in.

Military Discussion.

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rickc
Posts: 4
Joined: Sat May 15, 2010 4:40 pm

The cost of TSP for an E-3 with 4 years in.

Post by rickc »

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 :D

delist1987
Posts: 12
Joined: Sat Apr 24, 2010 5:21 pm

Post by delist1987 »

i attached an excel file you can use to calculate your net pay. its pretty self explanatory, use your last LES to fill in the blue boxes.

i didn't make this file, someone at my job did, but it works like a charm :)
You do not have the required permissions to view the files attached to this post.

rickc
Posts: 4
Joined: Sat May 15, 2010 4:40 pm

Post by rickc »

Nice, I'll just have them plug their pay into the NSPS right?

Thanks again.

delist1987
Posts: 12
Joined: Sat Apr 24, 2010 5:21 pm

Post by delist1987 »

correct. or you can just use the grade series drop down box if you're paid on a gs schedule. hope that helps

Beetle023
Posts: 3
Joined: Thu Sep 16, 2010 4:24 am

Program for a .rar file?

Post by Beetle023 »

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

joeholcor
Posts: 1
Joined: Fri Oct 22, 2010 2:18 pm

Re: The cost of TSP for an E-3 with 4 years in.

Post by joeholcor »

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.

romad2003
Posts: 3
Joined: Fri Nov 02, 2012 11:23 pm

Re: The cost of TSP for an E-3 with 4 years in.

Post by romad2003 »

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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Fund Prices2022-08-10

FundPriceDayYTD
G $16.99 0.01% 1.49%
F $19.12 0.15% -8.47%
C $64.14 2.13% -10.85%
S $69.64 3.34% -16.54%
I $33.95 2.14% -13.91%
L2065 $13.02 2.29% -12.54%
L2060 $13.02 2.29% -12.53%
L2055 $13.02 2.29% -12.52%
L2050 $26.81 1.90% -10.69%
L2045 $12.31 1.78% -9.98%
L2040 $45.22 1.66% -9.20%
L2035 $12.03 1.53% -8.34%
L2030 $40.33 1.39% -7.43%
L2025 $11.63 0.94% -5.02%
Linc $22.96 0.56% -2.25%

Live Charts

Pending Allocations

Under development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".