I was curious how many folks use the TSP that the government offers. For those that don't know, the Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees quite similar to the 401k plans offered by private corporations. This was made available to the uniformed service a couple years before I got out and I wish I found out about it. It offers some excellent benefits, some better than anything you'll find on the civilian side. Here's a bit more about it:

Edited for content-USMCvet

This message has been edited. Last edited by: usmcvet,

I think the answer to this question is "not enough." Look at the total lack of responses to the question!

Most people are encouraged to fully fund their Roth IRA before contributing to the TSP. How many military families can save more than $10,000, the limit for a married couple?

Unfortunately, people read this advice, save $0 in the TSP and never get around to funding their IRA. At the end of their military service they have $0 saved for retirement.

It shouldn't be that way! If people would just divert their annual pay raise to the TSP they could have a significant amount in savings with absolutely no sacrifices!

quote:

Originally posted by flintla:
I think the answer to this question is "not enough." Look at the total lack of responses to the question!

Most people are encouraged to fully fund their Roth IRA before contributing to the TSP. How many military families can save more than $10,000, the limit for a married couple?

Unfortunately, people read this advice, save $0 in the TSP and never get around to funding their IRA. At the end of their military service they have $0 saved for retirement.

It shouldn't be that way! If people would just divert their annual pay raise to the TSP they could have a significant amount in savings with absolutely no sacrifices!

It should be noted that the topic of TSP has been posted here and other forums as well, during the past three (3) years.

Well, gee i just found this topic, it's been out here over 4 months.

The topic of TSP has had more discussion over on the coast guard finance threads than anywere.

When I ask many who are not contributing to the TSP why, they tell me they know all about it (lol) but have chosen to do something else that they feel is better for them.

I also notice that if someone posts something about the advantages of TSP, surely as this is a place to post one's opinion, many will jump in with; this other option is much better, don't do it now do something else....

Well, just do something to save for retirement. Well okay, if you only have $5,000 or less to save this year and you qualify for a Roth IRA, then just do it please, just do something to save.

Got more than that to save and you don't mind a tax reduction on your income earned now (or being able to save up to $46,000 in tax exempt income while deployed, not pay capital gains/loses each year - defer the earnings as taxable income as it's drawn in retirement?), then go to myPay or the Coast Guard equivalent and sign up for TSP.

But please ya'll, just do something to save, for short term and long-term needs.