Thift Savings Plan - Any advice? - Tilted Forum Project Discussion Community

emphant · 11-21-2005, 11:08 PM

Hi everyone. I am in the Navy and they pitch us TSP pretty hard. Is it really a good plan? Rigt now I'm an E-1, I
ll be an E-2 quite soon. I am currently investing 10% of my pay into the TSP. Is this good?

Also, how should I invest the money? Right now I have 40% going into the G fund and 60 % in the S fund. I was thinking about putting some in the I fund and/or some in the C fund.

I was looking into the L funds too but I'm not too sure. Can someone who knows what they are talking about give me some good advice?

forseti-6 · 11-27-2005, 10:35 PM

Hey there. I've been using the TSP for quite a while now. If you go to the website www.tsp.gov you can take a look at the historic returns. Personally for someone who doesn't have a whole lot of time to research different stocks and such, I think the TSP is an excellent plan.

The reason why the TSP is pushed hard towards junior enlisted is because it's never too early to start saving for your future. Look at it this way, you are taking out 10% pretax from your salary and putting it towards your future. It will grow. It is better than putting it in the bank and earning very little interest. If you decide to put in your 20 or serve out your enlistment, you will be a step ahead already.

10% is a good start, and of course if you can afford to put more in, do it! If not, it's not that bad. I don't know how the Navy's deployment schedule is, but if you get deployed, use that as an excuse to contribute a little bit more!

Personally I like to put my money in a little more risky (but higher possible return) funds. I currently have my distribution as 30% C, 40% I and 40% S. I'm basically basing this off of how the market has done in the last couple years. Putting it all in C is also a safe bet. I would stay out of the F and G fund for now, as that's mainly for those who want a steady return but little risky - i.e. someone close to retirement.

I'm not sure what the L fund is. Is that a new addition? PM if you have any specific questions.

xepherys · 11-28-2005, 02:15 PM

TSP is pretty decent for military personnel. It doesn't touch a private company's 401(k) offerings, usually, but it's something to start with. Also, even being the the Army National Guard, I've never used TSP. However, being young I suggest applying more money (as mentioned by forseti) into higher risk, higher yield options.

rthmchgs · 12-05-2005, 10:17 AM

I work for the navy, and have had the TSP for a couple of years. I've heard that if you exceed the percentage that the navy matches, you aren't benefitting. You should max out your contribution at whatever they match, then put whatever else you want to save into something else. I think I've heard the Roth IRA thrown around as a option. You'd have to ask someone a little better acquainted with that. I don't really have extra money to invest right now.

forseti-6 · 12-08-2005, 06:01 PM

Quote:

Originally Posted by rthmchgs

I work for the navy, and have had the TSP for a couple of years. I've heard that if you exceed the percentage that the navy matches, you aren't benefitting. You should max out your contribution at whatever they match, then put whatever else you want to save into something else. I think I've heard the Roth IRA thrown around as a option. You'd have to ask someone a little better acquainted with that. I don't really have extra money to invest right now.

Unfortunately active duty doesn't get any matching

Sgoilear · 12-17-2005, 10:15 AM

A little bit more about your plans might help. Four and out or whether you plan to make it a career. I was Navy for awhile but I never got into TSP but it compared up fairly well with the ROTH IRA I already had.

As an aside if you happen to be planning on getting out and going to college pay the extra 600 for the GI Bill kicker. Ask your yeoman about the details and he'll be able to set the paperwork up for you. It's very worth it as that extra 600 raises your GI Bill benefits by 300 a month for the entire duration you draw them. You can do it anytime in your enlistment so you have time if you happen to be tight right now. I remember all too well how poor I felt as an E-2.

11-21-2005, 11:08 PM	#1 (permalink)
emphant Crazy Location: Meeshagain	Thift Savings Plan - Any advice? Hi everyone. I am in the Navy and they pitch us TSP pretty hard. Is it really a good plan? Rigt now I'm an E-1, I ll be an E-2 quite soon. I am currently investing 10% of my pay into the TSP. Is this good? Also, how should I invest the money? Right now I have 40% going into the G fund and 60 % in the S fund. I was thinking about putting some in the I fund and/or some in the C fund. I was looking into the L funds too but I'm not too sure. Can someone who knows what they are talking about give me some good advice?

11-27-2005, 10:35 PM	#2 (permalink)
forseti-6 Existentialist Location: New York City	Hey there. I've been using the TSP for quite a while now. If you go to the website www.tsp.gov you can take a look at the historic returns. Personally for someone who doesn't have a whole lot of time to research different stocks and such, I think the TSP is an excellent plan. The reason why the TSP is pushed hard towards junior enlisted is because it's never too early to start saving for your future. Look at it this way, you are taking out 10% pretax from your salary and putting it towards your future. It will grow. It is better than putting it in the bank and earning very little interest. If you decide to put in your 20 or serve out your enlistment, you will be a step ahead already. 10% is a good start, and of course if you can afford to put more in, do it! If not, it's not that bad. I don't know how the Navy's deployment schedule is, but if you get deployed, use that as an excuse to contribute a little bit more! Personally I like to put my money in a little more risky (but higher possible return) funds. I currently have my distribution as 30% C, 40% I and 40% S. I'm basically basing this off of how the market has done in the last couple years. Putting it all in C is also a safe bet. I would stay out of the F and G fund for now, as that's mainly for those who want a steady return but little risky - i.e. someone close to retirement. I'm not sure what the L fund is. Is that a new addition? PM if you have any specific questions. __________________ "Don't cry because it's over. Smile because it happened." - Dr. Seuss

12-17-2005, 10:15 AM	#6 (permalink)
Sgoilear Tilted Location: Colorado	A little bit more about your plans might help. Four and out or whether you plan to make it a career. I was Navy for awhile but I never got into TSP but it compared up fairly well with the ROTH IRA I already had. As an aside if you happen to be planning on getting out and going to college pay the extra 600 for the GI Bill kicker. Ask your yeoman about the details and he'll be able to set the paperwork up for you. It's very worth it as that extra 600 raises your GI Bill benefits by 300 a month for the entire duration you draw them. You can do it anytime in your enlistment so you have time if you happen to be tight right now. I remember all too well how poor I felt as an E-2. __________________ "People are always blaming their circumstances for what they are. I don't believe in circumstances. The people who get on in this world are the people who get up and look for the circumstances they want, and, if they can't find them, make them." -George Bernard Shaw

11-28-2005, 02:15 PM	#3 (permalink)
xepherys <3 TFP Location: 17TLH2445607250	TSP is pretty decent for military personnel. It doesn't touch a private company's 401(k) offerings, usually, but it's something to start with. Also, even being the the Army National Guard, I've never used TSP. However, being young I suggest applying more money (as mentioned by forseti) into higher risk, higher yield options.

12-05-2005, 10:17 AM	#4 (permalink)
rthmchgs Upright Location: Norfolk, VA	I work for the navy, and have had the TSP for a couple of years. I've heard that if you exceed the percentage that the navy matches, you aren't benefitting. You should max out your contribution at whatever they match, then put whatever else you want to save into something else. I think I've heard the Roth IRA thrown around as a option. You'd have to ask someone a little better acquainted with that. I don't really have extra money to invest right now.