SFC Private RallyPoint Member 95925 <div class="images-v2-count-0"></div><p>Throughout my military career, I have had many leaders recommend investing in the TSP.  I never wanted to because it didn't seem like the best investment option because investors will need to pay taxes on the earnings when it is withdrawn in the future.  Since October 01, 2012 the Army has had a Roth TSP in place.  To me, this seems like a much better investment option for a majority of Soldiers because contributions are already taxed at the investor's current tax rate, but will be tax free upon withdrawal in the future.  Since many Soldiers pay such a low tax rate (factoring in the already low tax rate due to income level, the earned income tax credit, any child tax credits, and any education tax credits), that this can be a virtually tax free way to invest.</p><p><br>Do you invest, and if so, do you use either of these options or do you use another method to invest?  I use the Roth TSP and have realized about a 6% gain since starting in Oct 12.</p> 2014-04-07T17:14:17-04:00 SFC Private RallyPoint Member 95925

<div class="images-v2-count-0"></div><p>Throughout my military career, I have had many leaders recommend investing in the TSP.  I never wanted to because it didn't seem like the best investment option because investors will need to pay taxes on the earnings when it is withdrawn in the future.  Since October 01, 2012 the Army has had a Roth TSP in place.  To me, this seems like a much better investment option for a majority of Soldiers because contributions are already taxed at the investor's current tax rate, but will be tax free upon withdrawal in the future.  Since many Soldiers pay such a low tax rate (factoring in the already low tax rate due to income level, the earned income tax credit, any child tax credits, and any education tax credits), that this can be a virtually tax free way to invest.</p><p><br>Do you invest, and if so, do you use either of these options or do you use another method to invest?  I use the Roth TSP and have realized about a 6% gain since starting in Oct 12.</p>

2014-04-07T17:14:17-04:00 2014-04-07T17:14:17-04:00 CPT Private RallyPoint Member 5360

<div class="images-v2-count-0"></div>Well Sir, it's probably from lack of knowledge. I know I didn't contribute to my own TSP until I was looking at my Soldier's LES and saw that some of them had a TSP, and this was about over a year of being on active duty. I still don't exactly know what a TSP is and how it works.

2013-11-11T01:08:26-05:00 2013-11-11T01:08:26-05:00 SSG Robert Burns 5362

<div class="images-v2-count-0"></div>I don't know.  I made 29% last year, but I am very active in my TSP making moves weekly.

2013-11-11T01:13:04-05:00 2013-11-11T01:13:04-05:00 Cpl Ray Fernandez 5368

<div class="images-v2-count-0"></div>Very few hear about it. I was nearly out of the Marine Corps before I heard a Gunny talking about it. I think if more knew about it the participation rate would be much higher. It may go hand in hand with teaching younger members of the military about personal finance, which may reduce/prevent many headaches and hardships that come from uninformed people who have very little if any experience with investing, saving, or even organizing a personal budget. <br>

2013-11-11T01:42:27-05:00 2013-11-11T01:42:27-05:00 SSG Robert Burns 5370

<div class="images-v2-count-0"></div>Another possible reason is because USAA advocates against TSP and promotes their own vehicles.

2013-11-11T01:44:30-05:00 2013-11-11T01:44:30-05:00 SFC Private RallyPoint Member 5386

<div class="images-v2-count-0"></div>I will tell you my reasons. I do not contribute to TSP first because there is no matching contribution.  Secondly, because the government borrows from benefit programs to include TSP, and I am not sure about you, but considering we can't pay our debts and we are struggling to find ways to continue to budget, not something I want to lose.  It has happened in the past. <br>

2013-11-11T03:12:47-05:00 2013-11-11T03:12:47-05:00 CW2 Joseph Evans 5422

<div class="images-v2-count-0"></div>Sir,<br>   Keep in mind when you are looking at that number that about 60% of the military strength consists of junior enlisted and junior NCOs with less than 6 years. The wages in those pay grades are not exactly grand in scale. School debt, family, bills, the insurance on the new car he bought with his bonus. Most of the income for those Soldiers is spent recovering from financial missteps, especially if they have any intention of remaining in the service. Another consideration is that at that level, most aren't interested in a savings plan because they think they can catch it up later.<br>   Until there is an active Choice Architecture built into the Army plan with a default amount going into the TSP and a match plan like that provided for civilian employees, you are going to have an extremely difficult time getting that number any higher.<br>

2013-11-11T11:48:55-05:00 2013-11-11T11:48:55-05:00 CPT Private RallyPoint Member 5667

<div class="images-v2-count-0"></div>Sir, I get a better return from my professionally managed portfolio.  If there was a match, I'd invest up to the limit of the match and that is it.  But I also wouldn't change the "pension" for a TSP match.

2013-11-12T09:42:14-05:00 2013-11-12T09:42:14-05:00 SSG Private RallyPoint Member 5758

<div class="images-v2-count-0"></div><br /><br /><p style="margin:0in 0in 0pt;" class="MsoNormal">Sir, I do agree with a majority of the comments posted. I<br />have had my TSP for about four years now and honestly I try not to dwell on how<br />much I make. I personally have preached about the TSP program to anybody that will<br />listen and it always ends the same, I will start it next month. I teach the set<br />it and forget method for the SM that have sticky fingers when it comes to their<br />savings account. It would be a great idea to match contributions but due to my<br />lack of enthusiasm about finances the TSP was just the best way to go.<p></p></p><br /><br />

2013-11-12T16:44:15-05:00 2013-11-12T16:44:15-05:00 SSG Private RallyPoint Member 5770

<div class="images-v2-count-0"></div><p>Sir, as a former recruiter, I remember encouraging all my future soldiers to take advantage of the TSP as there was a matching incentive of up to 100 per month for the first year which is quite a sum of savings for a new soldier. I think if there was such a program for all soldiers even for just that small window, there would be a lot more takers.</p><p> </p><p>Another detriment to the TSP especially for those soldiers that end up on multiple deployments, is the SDP program which offers soldiers a more tangible way of short term earnings on a savings plan. </p><p> </p><p>I am truly thankful that as a young SPC, my leadership "voluntold" me to attend a couple of finance management classes given by both military sponsored organizations and civilian groups (First Command). The best advice I ever received was to put any pay increase I received into some sort of savings program because if I was living fine on my current pay, then I really wouldnt miss it anyways. While I have progressed in rank and years in service, I still preach those words and encourage all my soldiers to save for tomorrow so that you wont have to worry down the road.</p><p> </p><p> </p><p> </p>

2013-11-12T17:24:36-05:00 2013-11-12T17:24:36-05:00 LTC Private RallyPoint Member 17809

<div class="images-v2-count-0"></div>No Matching Funds

2013-12-08T23:32:38-05:00 2013-12-08T23:32:38-05:00 SSG Private RallyPoint Member 17829

<div class="images-v2-count-0"></div>Taking away the fact that of younger service members not being financially responsible, we can alson look at do our service members know all the advantages of using TSP?

2013-12-08T23:58:33-05:00 2013-12-08T23:58:33-05:00 PO3 Private RallyPoint Member 17849

<div class="images-v2-count-0"></div>1, there's no match. 2, there's not near enough education on why TSP is a good thing. When I was in the service, no one botheres to show me how much that $10, $50, $100 a month could add up and make me a millionaire. I wish someone would have given me a lesson on compound interest years ago....this stuff should be taught in boot camp.<div><br></div><div><br /><a href="http://www.daveramsey.com/article/how-teens-can-become-millionaires/lifeandmoney_kidsandmoney/">http://www.daveramsey.com/article/how-teens-can-become-millionaires/lifeandmoney_kidsandmoney/</a><br><div><br></div><br /><div>Now that I know better, I STILL would not participate in TSP, because again, no match, and 2, I don't want to government responsible for my retirement. I would however, invest in IRAs, 401Ks or mutual funds. I am so grateful that I now work for a company that has a 50% match up to the federal maximum allowed to be contributed. Once day..... when I'm debt free, I will invest the max, so I can get that immediate 50% return on my money.</div><br /><div><br></div><br /><div><br></div><br /><div><br></div><br /></div><div class="pta-link-card"><br /><div class="pta-link-card-picture"><img src="http://a248.e.akamai.net/f/1611/26335/9h/dramsey.download.akamai.com/23572/daveramsey.com/media/3_way_universal/facebook/fb_share_drdotcom.jpg"></div><br /><div class="pta-link-card-content"><br /><div class="pta-link-card-title"><a target="_blank" href="http://www.daveramsey.com/article/how-teens-can-become-millionaires/lifeandmoney_kidsandmoney/">How Teens Can Become Millionaires</a></div><br /><div class="pta-link-card-description">Whether you have never stepped foot in a bank or you are actively saving and investing for your future, all it takes is a little effort and a lot of patience to become confident in your financial deci...</div><br /></div><br /><div style="clear:both;"></div><br /><div class="pta-box-hide"></div><br /></div>

2013-12-09T00:45:05-05:00 2013-12-09T00:45:05-05:00 CSM Michael J. Uhlig 95931

<div class="images-v2-count-0"></div><p>I invest in both, the traditional TSP as well as the Roth TSP.  I am by no means a financial guru but have had a great return on my investment.</p><p><br></p><p>There are advantages of using both of these investments, the traditional TSP reduces the taxable income now (you are responsible to pay the taxes later on) while the Roth TSP does not require taxes to be paid when you get the money out at retirement (since you've paid taxes on the money already).</p><p><br></p><p>You gotta figure out what works best for you, but you have to do something and the younger you are the better off you are!</p>

2014-04-07T17:19:45-04:00 2014-04-07T17:19:45-04:00 SFC Private RallyPoint Member 95951

<div class="images-v2-count-0"></div>C, S, I Funds at 30% and F Fund at 10% - I've been beating the Lifecycle funds every year.  I also have two Oppenheimer Roth IRAs, and two 529s for the boys.  I also invest in guns and ammo.  All bases are covered!

2014-04-07T17:49:50-04:00 2014-04-07T17:49:50-04:00 SFC Private RallyPoint Member 96009

<div class="images-v2-count-0"></div>I wish all soldiers could see the importance of taking advantage of one of these investing tools. The retirement pay they will receive after 20 years will be disappointing and will not afford them the lifestyle they can afford while on active duty.

2014-04-07T18:52:03-04:00 2014-04-07T18:52:03-04:00 SFC Private RallyPoint Member 96014

<div class="images-v2-count-0"></div><div>We started 529 funds for both kids and a Roth for me in 2003.  At the time I was an E-4 and we were investing $100 per month.  With every rank I took the difference and invested it, currently we are living on E-6 pay.  After making E-7 I called my investment broker and we moved some stuff around, when I got the statement I realized that since 2007 we were getting almost 27% ROI.<br><br /></div>

2014-04-07T18:55:38-04:00 2014-04-07T18:55:38-04:00 SGT Private RallyPoint Member 96064

<div class="images-v2-count-0"></div>SFC Tierney,<div><br></div><div>In AIT, we had a mandatory Financial Management course.  I hated it and it was 8 of the most boring 8 hours of my life, but I'm thankful for it!  I learned how to read my LES and learned how to use TSP to my benefit. </div><div><br></div><div>Now, I invest 15% of my income to TSP via the L 2050 fund and averaged an almost 25% annual return after expenses.  My favorite aspect of investing in TSP is that I can take a loan out on my fund and pay it back at a low 1.89% interest rate (or whatever the G fund interest rate is at the time I initiate the loan).</div>

2014-04-07T19:47:24-04:00 2014-04-07T19:47:24-04:00 SGT Private RallyPoint Member 96183

<div class="images-v2-count-0"></div>I invested about $4k into TSP. Then did some research and started investing in American Growth Funds. I also pay an extra $150 a month for me and my family to have life insurance and I forget the name for it but that's what I'm paying for the rest of my life.

2014-04-07T21:23:28-04:00 2014-04-07T21:23:28-04:00 LTC Private RallyPoint Member 96284

<div class="images-v2-count-0"></div><p>I personally diversify my portfolio by doing TSP through military and the rest outside the military (Mutual Funds, Roth IRA, stocks, and precious metals). This way if one tanks I am not crushed. I have co-workers whose stocks go down and they get nervous about their retirement. I like to have a balance.</p><p><br></p><p>Oh and if deployed so the SDP to get the 10% interest.</p>

2014-04-07T23:08:27-04:00 2014-04-07T23:08:27-04:00 SFC Douglas Eshenbaugh 96403

<div class="images-v2-count-0"></div>I've been doing the TSP hard and heavy since 2001.  My thought was/is that while maybe not the best it at least gets the ball rolling.  The one thing that I do like about the TSP vs the Roth TSP is the tax deferment part.  While yes I'll probably be in a higher tax bracket when I draw the money out of the TSP it does lower my current taxable income.  There has been a few years where my TSP has deferred enough of my taxable income so that I fell into a lower tax bracket.  So in that sense it's been a win for me. <br><br>Right now I have the traditional TSP,a Roth IRA and a traditional IRA.  The traditional IRA is pre military.  I didn't do the Roth TSP because by the time it appeared I had my Roth IRA already setup and didn't see a difference between the two. <br>

2014-04-08T04:40:16-04:00 2014-04-08T04:40:16-04:00 CSM Private RallyPoint Member 96892

<div class="images-v2-count-0"></div>First off good job on participating in your future wealth.  I have been invested in the TSP program since it was available to us in the Military.  I have seen some very good growth years (2008 was not so good).  You are also correct on the pre taxed option it is very smart to do that as well.  I had private Roth before it was available through the TSP.   By doing what you are doing you are setting yourself up for success in retirement.  I wish more troops would look to the future.

2014-04-08T18:38:43-04:00 2014-04-08T18:38:43-04:00 SGM Private RallyPoint Member 97058

<div class="images-v2-count-0"></div>After reading these comments I think I will start getting into the TSP. Course I will do some research before I do. I have a new SSG that works with me who has been investing 10% of his pay in the TSP for 14 yrs now and currently has almost $300,000. Now Im not saying im not involved in investing. Currently I have a Roth IRA that I've been investing in since 2005. Im not sure what I have in the right now but I do know it has grown substantially over the years. I will definitely start looking at other option now. Thanks everyone.

2014-04-08T21:40:19-04:00 2014-04-08T21:40:19-04:00 CPL Private RallyPoint Member 445835

<div class="images-v2-count-0"></div>Hey Gentlmen<br />Right now I'm investing 5% TSP and 5% Roth TSP, I am 22 years old with no debt and perfect credit. Im not married and make around 23k a year. I also am from Az, where I do not pay any state taxes. With my income so low, and no state taxes, Should I move all 10% invested to Roth TSP?

2015-01-30T21:23:21-05:00 2015-01-30T21:23:21-05:00 GySgt Wayne A. Ekblad 585086

<div class="images-v2-count-0"></div><a target="_blank" href="http://www.federaltimes.com/story/government/management/compensation/2015/04/10/tsp-rate/25475341/">http://www.federaltimes.com/story/government/management/compensation/2015/04/10/tsp-rate/25475341/</a> <div class="pta-link-card answers-template-image type-default"> <div class="pta-link-card-picture"> <img src="https://d26horl2n8pviu.cloudfront.net/link_data_pictures/images/000/011/871/qrc/635641855154456810-Thrift-Savings-Plan.JPG?1443038359"> </div> <div class="pta-link-card-content"> <p class="pta-link-card-title"> <a target="blank" href="http://www.federaltimes.com/story/government/management/compensation/2015/04/10/tsp-rate/25475341/">TSP participation hits record high, $451 billion in funds</a> </p> <p class="pta-link-card-description">About 88.1 percent of federal employees in the Federal Employment Retirement System contributed to their TSP accounts in February.</p> </div> <div class="clearfix"></div> </div>

2015-04-11T03:22:33-04:00 2015-04-11T03:22:33-04:00 CPL Jay Freeman 585399

<div class="images-v2-count-0"></div>Roth is great I would invest in that I have a Roth in the civilian world I did do the tsp and it was a great way to have a Lil money when I got out

2015-04-11T10:53:14-04:00 2015-04-11T10:53:14-04:00 1LT Private RallyPoint Member 593659

<div class="images-v2-count-0"></div>I'd recommend investing in a Roth IRA over the TSP for the following reasons:<br />1. You'll be able to withdraw your earnings tax-free when your 59 1/2 <br />2. So many great funds to choose from. I recommend a solid large cap growth fund. With the TSP you are severely limited on what funds to invest in and the fact that uncle sam doesn't match your contibutions to a TSP.<br />3. Personally, I want control over my money instead of the federal government. <br /><br />I'm not a certified financial planner but just my $0.02. Good luck

2015-04-15T13:05:53-04:00 2015-04-15T13:05:53-04:00 SSgt Alex Robinson 888691

<div class="images-v2-count-0"></div>I have Roth IRA plus several traditional IRAs

2015-08-14T00:42:41-04:00 2015-08-14T00:42:41-04:00 MAJ Ken Landgren 922842

<div class="images-v2-count-0"></div>What are you invested in?

2015-08-27T17:45:39-04:00 2015-08-27T17:45:39-04:00 MAJ Raúl Rovira 1507892

<div class="images-v2-count-0"></div>I invested all of my disposable income in every possible investment I could since I paid off my student loans in 2003.

2016-05-07T01:21:18-04:00 2016-05-07T01:21:18-04:00 ENS Private RallyPoint Member 1663469

<div class="images-v2-count-0"></div>I contribute 44% of all my pay into Roth TSP - C fund and S fund - 50/50 (riskier funds).

2016-06-25T15:18:20-04:00 2016-06-25T15:18:20-04:00 SFC David Davenport 1972863

<div class="images-v2-count-0"></div>I work in this field. The TSP has good points and bad points just like everything else. That being said anything that gets Soldiers to invest is a good thing. Investing somewhere and putting money towards your future is much more important than what you invest it in. If you want to learn about this topic find a professional and become knowledgeable.

2016-10-13T14:48:53-04:00 2016-10-13T14:48:53-04:00 2014-04-07T17:14:17-04:00